<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-08134
Eaton Vance Municipals Trust II
-------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31st
------------
Date of Fiscal Year End
July 31, 2003
-------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
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[EV LOGO]
[GRAPHIC]
SEMIANNUAL REPORT JULY 31, 2003
[GRAPHIC]
EATON VANCE HIGH YIELD MUNICIPALS FUND
[GRAPHIC]
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial
privacy. This notice is being sent to comply with privacy regulations of
the Securities and Exchange Commission. Each of the above financial
institutions has in effect the following policy with respect to nonpublic
personal information about its customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will
be collected.
- None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality
of such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission (SEC) permits mutual funds to
deliver only one copy of shareholder documents, including prospectuses,
proxy statements and shareholder reports, to fund investors with multiple
accounts at the same residential or post office box address. This practice
is often called "householding" and it helps eliminate duplicate mailings to
shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at 1-800-262-1122, or contact your financial
adviser.
Your instructions that householding not apply to delivery of your Eaton
Vance documents will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
From time to time, mutual funds are required to vote proxies related to the
securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios vote proxies according to a set of policies and procedures approved
by the Funds' and Portfolios' Boards. You may obtain a description of these
policies and procedures without charge, upon request, by calling 1-800-262-1122.
This description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
In our shareholder reports, we refer frequently to "quality spreads" and their
important role in bond analysis. However, while followed closely by bond
analysts and portfolio managers, this aspect of municipal bond investing is
generally overlooked by individual investors. As part of our continuing
educational series, we thought it might be instructive to discuss quality
spreads and why they constitute a key variable for investors in the municipal
bond market.
QUALITY SPREADS: COMPENSATION FOR ADDED CREDIT RISK...
The term "quality spread" refers to the difference in yields between bonds of
varying quality but similar maturities. A bond rated BBB, for example, should
have a higher yield than an insured bond rated AAA because investors who buy
lower-quality bonds anticipate being paid for accepting a higher level of credit
risk. That risk premium comes in the form of higher yields. Spreads are
typically stated in basis points, or 1/100's of a percentage point. Thus, a bond
yielding 5.00% trades at a spread of 100 basis points (1.00%) over a bond that
yields 4.00%.
SPREAD FLUCTUATIONS ARE INFLUENCED BY A VARIETY OF FACTORS...
Spreads fluctuate with changes in market conditions, with many factors
influencing spread relationships. The quality and type of bond are primary
factors. For example, an insured general obligation rated AAA - with no credit
risk - will trade at a significantly lower yield than a BBB-rated industrial
bond, which has a significantly higher credit risk. Naturally, a bond's price
will respond to changes that may impact - for better or worse - the underlying
fundamentals of an issuer. Remember, bond yields move in the opposite direction
of bond prices.
Another factor that influences spreads is supply. Assuming stable demand,
spreads are likely to widen if the supply for a specific issuer increases, as
the market must now digest a larger volume of bonds. Similarly, if supply
declines, spreads may narrow, as investors may be willing to pay more for a
credit that is increasingly scarce.
Finally, quality spreads may fluctuate with changes in the overall economy. For
example, spreads tend to narrow as the economy strengthens and the revenue
outlook improves. On the other hand, as the economy slows or enters recession,
spreads tend to widen, as investors become increasingly worried about the
direction of the economy and its impact on bonds with higher credit risk.
SPREADS CONSTITUTE A KEY FACTOR IN INVESTMENT DECISIONS...
Quality spreads have a profound influence on the investment decisions of
municipal bond portfolio managers. The widening of spreads may suggest a
developing opportunity. If spreads have widened appreciably, the investor may
detect an unusual opportunity in a lower-quality, higher-yielding bond.
Conversely, if lower-quality bonds have significantly outperformed high-quality
bonds over a period, the resulting narrowing of spreads may signal the need for
caution. This "spread compression" may prompt portfolio managers to upgrade
their portfolios with higher-quality bonds because they are no longer being
adequately compensated for the risk of owning lower-quality bonds.
While quality spreads are a key metric for municipal bond investors, they
represent just one of many factors considered in establishing a diversified bond
portfolio. At Eaton Vance, we realize that complex markets require intensive
research, a need that emphasizes once again the value of experienced,
professional portfolio management.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
September 10, 2003
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.
2
<Page>
MARKET RECAP
The U.S. economy saw anecdotal signs of improvement in the first half of 2003,
although the pace of recovery was fairly slow. The conclusion of official
hostilities in Iraq and the passage of significant tax legislation gave
consumers added confidence. While capital spending remained below past recovery
rates, some businesses were starting to invest in new plants and equipment.
TAX CUTS HAVE HAVE RAISED DISPOSABLE INCOME AND BOOSTED CONSUMER SPENDING...
Some long-depressed sectors showed signs of a rebound in the first half of 2003.
The manufacturing sector, which has lagged in recent years, enjoyed a modest
rise in industrial production. Tax cuts passed earlier this year resulted in
higher disposable income, adding some support to the retail sector. Meanwhile,
capital spending, which has languished amid the economic uncertainty of recent
years, finally showed signs of a rebound, as some companies moved to replace
aging equipment. A convincing recovery could add further momentum to business
investment. On a less positive note, a rise in mortgage rates raised some
concerns about the housing sector, which has been the primary engine for the
economy in recent years.
WAITING FOR A RECOVERY TO TAKE HOLD, THE FEDERAL RESERVE HAS MAINTAINED AN
ACCOMMODATIVE MONETARY POLICY...
Gross Domestic Product expanded 1.4% in the first quarter of 2003, followed by a
2.4% rise in the second quarter. The nation's unemployment rate was 6.2% in July
2003, a modest improvement from recent months. More encouraging, claims for
unemployment insurance continued to decline slightly, suggesting a gradual
improvement on the job-search front. Inflation has remained quite tame. In fact,
many economists have pointed to DE-flation as a more worrisome threat. In that
environment, the Federal Reserve has maintained an accommodative monetary
posture, lowering its Federal Funds rate - a key short-term interest rate
barometer - to 1.00% in June. The decline in short-term interest rates helped
fuel a stock market rally.
Municipal bonds yield 94% of Treasury yields
<Table>
30-Year AAA-rated
General Obligation (GO) Bonds* 5.08%
Taxable equivalent yield
in 35.0% tax bracket 7.82%
30-Year Treasury bond 5.41%
</Table>
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general obligations
and are not necessarily representative of a Fund's yield. Statistics as of July
31, 2003.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
However, longer-term interest rates moved higher, prompting a modest bond market
correction in the second quarter. Ten-year Treasury bond yields - which opened
2003 at 3.82% - rose to 4.52% by July 31, in response to the anticipation of a
stronger economy. Not surprisingly, the Lehman Brothers Municipal Bond Index had
a total return of just 0.43% for the six months ended July 31, 2003.*
WHILE FEDERAL TAX RATES HAVE FALLEN, STATE TAXES HAVE BEEN ON THE RISE...
Modest growth, global competition and productivity gains have kept inflation -
the primary nemesis of bonds - at bay. Meanwhile, the rationale for tax-exempt
income remains intact. While federal tax rates have been reduced, many state
governments - most of which have constitutional mandates to balance their
budgets - have enacted property and income tax increases to make up for revenue
shortfalls and budget deficits. We believe that municipal bonds will continue to
present interesting investment opportunities and to merit a place in the
portfolios of tax-conscious investors.
*It is not possible to invest directly in an Index.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGER
AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR
OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT
BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE
FUND.
3
<Page>
INVESTMENT UPDATE
[PHOTO OF THOMAS M. METZOLD]
Thomas M. Metzold
Portfolio Manager
Management Update
- - The U.S. economy generated stronger, if uneven, growth in the six months
ended July 31, 2003. Low interest rates and tax cuts encouraged consumers,
while progress on the geopolitical front eased the concerns of businesses and
employers. The nation's jobless rates in July 2003 was 6.2%, up from 5.9% a
year ago.
- - Industrial development revenue bonds (IDR) were again the Portfolio's largest
sector weighting at July 31. In a weak economy, management emphasized
increasingly strict credit criteria, focusing on projects with conservative
structures and covenants and yields that were commensurate with credit risk.
- - Senior living/life care bonds were major holdings. While deemed by management
an interesting investment opportunity and a compelling health care
alternative, management was increasingly selective with respect to these
research-intensive bonds because of overcapacity in some areas of the sector.
- - The Portfolio found some unique opportunities in casino bonds. These bonds
were issued by local jurisdictions to provide financing for the development
of tribal casino and resort properties. Debt service on the bonds is paid by
revenues generated by the gaming facilities.
- - The Portfolio continued to focus on call protection as a key strategic
consideration. The value of active management of call protection was
especially evident during this period of declining rates, as less than 2% of
the Portfolio's bonds were called in the 12 months ended July 31, 2003.
- - The Fund's Class A shares were ranked #1 of 75 funds in the High Yield
Municipal Fund Classification for the 1-year period ended July 31, 2003,
according to Lipper Inc., a nationally recognized monitor of mutual fund
performance.(1) The Fund's Class A shares were ranked #5 of 69 funds and #14
of 50 funds, respectively, for the 3- and 5-year periods.
FUND PERFORMANCE FOR THE PAST SIX MONTHS
- - During the six months ended July 31, 2003, the Fund's Class A shares had a
total return of 5.24%.(2) This return resulted from an increase in net asset
value (NAV) per share to $9.91 on July 31, 2003 from $9.73 on January 31,
2003, and the reinvestment of $0.322 in tax-free income.(3)
- - The Fund's Class B shares had a total return of 4.85% during the six months
ended July 31, 2003,(2) the result of an increase in NAV per share to $9.88
from $9.70, and the reinvestment of $0.285 in tax-free income.(3)
- - The Fund's Class C shares had a total return of 4.90% during the six months
ended July 31, 2003,(2) the result of an increase in NAV per share to $9.17
from $9.00, and the reinvestment of $0.265 in tax-free income.(3)
- - Based on the Fund's most recent dividends and NAVs on July 31, 2003 of $9.91
per share for Class A, $9.88 per share for Class B and $9.17 per share for
Class C, the distribution rates were 6.56%, 5.82% and 5.83% for Class A,
Class B and Class C, respectively.(4) The distribution rates of Class A,
Class B and Class C are equivalent to taxable rates of 10.09%, 8.95% and
8.97%, respectively.(5)
- - The SEC 30-day yields for Class A, Class B and Class C shares at July 31 were
7.03%, 6.63% and 6.62%, respectively.(6) The SEC 30-day yields of Class A,
Class B and Class C are equivalent to taxable yields of 10.82%, 10.20% and
10.18%, respectively.(5)
FUND OVERVIEW(7)
<Table>
Number of Issues 163
Average Maturity 21.9 Yrs.
Average Rating+ BBB-
Average Call 6.1 Yrs.
Average Dollar Price $ 93.53
</Table>
FUND INFORMATION
as of July 31, 2003
<Table>
<Caption>
PERFORMANCE(8) CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 8.37% 7.56% 7.59%
Five Years 3.50 2.69 2.67
Life of Fund+ 6.45 5.58 4.10
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 3.19% 2.56% 6.59%
Five Years 2.50 2.38 2.67
Life of Fund+ 5.80 5.58 4.10
</Table>
+ Inception Dates - Class A: 8/7/95; Class B: 8/7/95; Class C: 6/18/97
[CHART]
RATING DISTRIBUTION(7) By total investments
<Table>
Non-Rated 73.1%
AAA 11.6%
AA 2.8%
A 1.8%
BBB 8.6%
BB 0.4%
B 0.9%
CCC and below 0.8%
</Table>
(1) Source: Lipper Inc.Rankings are based on percent change in net asset value
and do not take sales charges into consideration. Rankings for other
Classes will vary. It is not possible to invest directly in a Lipper
Classification.
(2) 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.
(3) 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.
(4) 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.
(5) Taxable-equivalent rates assume maximum 35.0% federal tax rate. Rate does
not reflect state taxes. A lower rate would result in lower tax-equivalent
figures.
(6) 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.
(7) Fund Overview and Rating Distribution are subject to change.
(8) 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.
+ Average rating is based, in part, on internal Eaton Vance ratings.
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.
4
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
AS OF JULY 31, 2003
Assets
- ------------------------------------------------------
Investment in High Yield Municipals
Portfolio, at value
(identified cost, $409,837,032) $402,510,105
Receivable for Fund shares sold 1,549,173
- ------------------------------------------------------
TOTAL ASSETS $404,059,278
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Payable for Fund shares redeemed $ 1,980,031
Dividends payable 1,220,934
Payable to affiliate for distribution
and service fees 84,991
Accrued expenses 57,523
- ------------------------------------------------------
TOTAL LIABILITIES $ 3,343,479
- ------------------------------------------------------
NET ASSETS $400,715,799
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Paid-in capital $435,955,734
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (29,189,272)
Accumulated undistributed net investment
income 1,276,264
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (7,326,927)
- ------------------------------------------------------
TOTAL $400,715,799
- ------------------------------------------------------
Class A Shares
- ------------------------------------------------------
NET ASSETS $157,393,191
SHARES OUTSTANDING 15,879,835
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.91
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of $9.91) $ 10.40
- ------------------------------------------------------
Class B Shares
- ------------------------------------------------------
NET ASSETS $197,260,990
SHARES OUTSTANDING 19,964,108
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.88
- ------------------------------------------------------
Class C Shares
- ------------------------------------------------------
NET ASSETS $ 46,061,618
SHARES OUTSTANDING 5,020,785
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.17
- ------------------------------------------------------
</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, 2003
Investment Income
- -----------------------------------------------------
Interest allocated from Portfolio $15,670,316
Expenses allocated from Portfolio (1,333,693)
- -----------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $14,336,623
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Trustees' fees and expenses $ 1,552
Distribution and service fees
Class A 187,983
Class B 964,140
Class C 198,807
Transfer and dividend disbursing agent
fees 102,824
Registration fees 29,028
Printing and postage 26,095
Custodian fee 17,490
Legal and accounting services 1,164
Miscellaneous 3,569
- -----------------------------------------------------
TOTAL EXPENSES $ 1,532,652
- -----------------------------------------------------
NET INVESTMENT INCOME $12,803,971
- -----------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,791,464
Financial futures contracts (494,699)
- -----------------------------------------------------
NET REALIZED GAIN $ 2,296,765
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(1,307,653)
Financial futures contracts 3,781,105
Interest rate swap contracts 1,386,778
- -----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,860,230
- -----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 6,156,995
- -----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $18,960,966
- -----------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
5
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) JULY 31, 2003 YEAR ENDED
IN NET ASSETS (UNAUDITED) JANUARY 31, 2003
- ----------------------------------------------------------------------------
From operations --
Net investment income $ 12,803,971 $ 23,816,714
Net realized gain (loss) 2,296,765 (21,326,828)
Net change in unrealized
appreciation (depreciation) 3,860,230 22,183,563
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 18,960,966 $ 24,673,449
- ----------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (4,964,623) $ (9,622,365)
Class B (5,656,762) (11,092,978)
Class C (1,163,681) (1,664,380)
- ----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (11,785,066) $ (22,379,723)
- ----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 28,469,010 $ 43,181,989
Class B 18,919,118 33,231,644
Class C 12,660,116 17,681,401
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 1,210,419 2,317,469
Class B 1,538,046 3,011,806
Class C 474,490 713,042
Cost of shares redeemed
Class A (22,110,853) (34,446,530)
Class B (15,784,844) (35,727,928)
Class C (3,444,482) (6,299,795)
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 21,931,020 $ 23,663,098
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 29,106,920 $ 25,956,824
- ----------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------
At beginning of period $ 371,608,879 $ 345,652,055
- ----------------------------------------------------------------------------
AT END OF PERIOD $ 400,715,799 $ 371,608,879
- ----------------------------------------------------------------------------
Accumulated undistributed
net investment income
included in net assets
- ----------------------------------------------------------------------------
AT END OF PERIOD $ 1,276,264 $ 257,359
- ----------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JANUARY 31,
JULY 31, 2003 ----------------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.730 $ 9.660 $ 9.800 $ 9.790 $ 11.380 $ 11.570
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.348 $ 0.682 $ 0.627 $ 0.640 $ 0.640 $ 0.647
Net realized and unrealized
gain (loss) 0.154 0.031 (0.128) 0.015 (1.585) (0.176)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.502 $ 0.713 $ 0.499 $ 0.655 $ (0.945) $ 0.471
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.322) $ (0.643) $ (0.639) $ (0.645) $ (0.645) $ (0.661)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.322) $ (0.643) $ (0.639) $ (0.645) $ (0.645) $ (0.661)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.910 $ 9.730 $ 9.660 $ 9.800 $ 9.790 $ 11.380
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.24% 7.59% 5.18% 6.89% (8.62)% 4.16%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $157,393 $147,004 $134,950 $117,525 $114,610 $128,347
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.04%(5) 1.05% 1.07% 1.08% 1.01% 0.95%
Expenses after custodian
fee reduction(4) 1.04%(5) 1.05% 1.07% 1.08% 1.00% 0.94%
Net investment income 7.14%(5) 7.01% 6.37% 6.52% 5.95% 5.60%
Portfolio Turnover of the
Portfolio 17% 15% 24% 30% 58% 25%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for
Investment Companies and began using the interest method to amortize
premiums on fixed-income securities. The effect of this change for the
year ended January 31, 2002 was to increase net investment income per
share by less than $0.001, increase net realized and unrealized losses
per share by less than $0.001 and increase the ratio of net investment
income to average net assets by less than 0.01%. Per share data and
ratios for the periods prior to February 1, 2001 have not been restated
to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. 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
7
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JANUARY 31,
JULY 31, 2003 ----------------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.700 $ 9.640 $ 9.770 $ 9.750 $ 11.330 $ 11.520
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.311 $ 0.606 $ 0.545 $ 0.559 $ 0.554 $ 0.554
Net realized and unrealized
gain (loss) 0.154 0.022 (0.120) 0.016 (1.579) (0.167)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.465 $ 0.628 $ 0.425 $ 0.575 $ (1.025) $ 0.387
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.285) $ (0.568) $ (0.555) $ (0.555) $ (0.555) $ (0.577)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.285) $ (0.568) $ (0.555) $ (0.555) $ (0.555) $ (0.577)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.880 $ 9.700 $ 9.640 $ 9.770 $ 9.750 $ 11.330
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.85% 6.66% 4.38% 6.02% (9.32)% 3.44%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $197,261 $188,959 $187,232 $191,418 $204,348 $237,497
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.79%(5) 1.80% 1.82% 1.87% 1.77% 1.72%
Expenses after custodian
fee reduction(4) 1.79%(5) 1.80% 1.82% 1.87% 1.76% 1.71%
Net investment income 6.39%(5) 6.25% 5.56% 5.72% 5.18% 4.83%
Portfolio Turnover of the
Portfolio 17% 15% 24% 30% 58% 25%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for
Investment Companies and began using the interest method to amortize
premiums on fixed-income securities. The effect of this change for the
year ended January 31, 2002 was to increase net investment income per
share by less than $0.001, increase net realized and unrealized losses
per share by less than $0.001 and increase the ratio of net investment
income to average net assets by less than 0.01%. Per share data and
ratios for the periods prior to February 1, 2001 have not been restated
to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. 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
8
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS C
-----------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JANUARY 31,
JULY 31, 2003 ---------------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000 1999(1)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.000 $ 8.950 $ 9.060 $ 9.030 $10.490 $10.680
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.288 $ 0.561 $ 0.511 $ 0.516 $ 0.505 $ 0.506
Net realized and unrealized
gain (loss) 0.147 0.017 (0.112) 0.019 (1.460) (0.169)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.435 $ 0.578 $ 0.399 $ 0.535 $(0.955) $ 0.337
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.265) $(0.528) $(0.509) $(0.505) $(0.505) $(0.527)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.265) $(0.528) $(0.509) $(0.505) $(0.505) $(0.527)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.170 $ 9.000 $ 8.950 $ 9.060 $ 9.030 $10.490
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.90% 6.61% 4.43% 6.04% (9.38)% 3.22%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $46,062 $35,646 $23,470 $17,285 $17,699 $24,576
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.79%(5) 1.80% 1.82% 1.89% 1.84% 1.79%
Expenses after custodian
fee reduction(4) 1.79%(5) 1.80% 1.82% 1.89% 1.83% 1.78%
Net investment income 6.37%(5) 6.22% 5.62% 5.70% 5.09% 4.73%
Portfolio Turnover of the
Portfolio 17% 15% 24% 30% 58% 25%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for
Investment Companies and began using the interest method to amortize
premiums on fixed-income securities. The effect of this change for the
year ended January 31, 2002 was to increase net investment income per
share by less than $0.001, increase net realized and unrealized losses
per share by less than $0.001 and increase the ratio of net investment
income to average net assets by less than 0.01%. Per share data and
ratios for the periods prior to February 1, 2001 have not been restated
to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. 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
9
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
NOTES TO FINANCIAL STATEMENT (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, 2003). 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 accounting principles generally accepted in
the United States of America.
A Investment Valuation -- 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 accounting
principles generally accepted in the United States of America.
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,
2003, the Fund, for federal income tax purposes, had a capital loss carryover
of $22,480,295, 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. Such capital loss carryover will
expire January 31, 2011 ($12,893,267), January 31, 2010 ($628,329),
January 31, 2009 ($4,844,026), January 31, 2008 ($2,693,858) and January 31,
2006 ($1,420,815). 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.
Additionally, at January 31, 2003, the Fund had net capital losses of
$8,467,460 attributable to security transactions incurred after October 31,
2002. These capital losses are treated as arising on the first day of the
Fund's taxable year ended January 31, 2004.
D 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 maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of total expenses in the Statement of Operations.
E Expenses -- The majority of expenses of the Trust are directly identifiable
to an individual fund. Expenses which are not readily identifiable to a
specific fund are allocated taking into consideration, among other things,
the nature and type of expense and the relative size of the funds.
F Use of Estimates -- The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the
10
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
NOTES TO FINANCIAL STATEMENT (UNAUDITED) CONT'D
date of the financial statements and the reported amounts of income 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.
H Interim Financial Statements -- The interim financial statements relating to
July 31, 2003 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, consisting only of normal recurring
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. Accounting principles generally accepted in the
United States of America require that only distributions in excess of tax
basis earnings and profits be reported in the financial statements as a
return of capital. Permanent differences between book and tax accounting
relating to distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Fund's 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, 2003 YEAR ENDED
CLASS A (UNAUDITED) JANUARY 31, 2003
-------------------------------------------------------------------------------
Sales 2,892,362 4,438,698
Issued to shareholders electing to
receive payments of distributions in
Fund shares 123,079 238,095
Redemptions (2,247,192) (3,531,575)
-------------------------------------------------------------------------------
NET INCREASE 768,249 1,145,218
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
JULY 31, 2003 YEAR ENDED
CLASS B (UNAUDITED) JANUARY 31, 2003
-------------------------------------------------------------------------------
Sales 1,933,336 3,420,524
Issued to shareholders electing to
receive payments of distributions in
Fund shares 156,497 310,133
Redemptions (1,609,180) (3,679,541)
-------------------------------------------------------------------------------
NET INCREASE 480,653 51,116
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
JULY 31, 2003 YEAR ENDED
CLASS C (UNAUDITED) JANUARY 31, 2003
-------------------------------------------------------------------------------
Sales 1,388,189 1,954,655
Issued to shareholders electing to
receive payments of distributions in
Fund shares 52,193 79,099
Redemptions (378,477) (698,553)
-------------------------------------------------------------------------------
NET INCREASE 1,061,905 1,335,201
-------------------------------------------------------------------------------
</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 EVM and BMR. EVM serves as the
sub-transfer agent of the Fund and receives from the transfer agent an
aggregate fee based upon the actual expenses incurred by EVM in the
performance of those activities. For the six months ended July 31, 2003, no
significant amounts have been earned. The Fund was informed that Eaton Vance
Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal
underwriter, received $26,661 as its portion of the sales charge on sales of
Class A shares for the six months ended July 31, 2003.
5 Distribution and Service Plans
- -------------------------------------------
The Fund has in effect distribution plans for Class B shares (Class B Plan)
and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment
Company Act of 1940
11
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 2003
NOTES TO FINANCIAL STATEMENT (UNAUDITED) CONT'D
and a service plan for Class A shares (Class A Plan) (collectively, the
Plans). The Class B and Class C Plans require the Fund to pay 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
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 $723,105 and $149,105 for
Class B and Class C shares, respectively, to or payable to EVD for the six
months ended July 31, 2003, representing 0.75% (annualized) of the average
daily net assets for Class B and Class C shares. At July 31, 2003, the amount
of Uncovered Distribution Charges of EVD calculated under the Plan was
approximately $17,310,000 and $5,138,000 for Class B and Class C shares,
respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts equal to 0.25% (annualized)
of the Fund's average daily net assets attributable to Class A, Class B, and
Class C shares for each 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, 2003 amounted
to $187,983, $241,035, and $49,702 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
$191,000 and $4,000 of CDSC paid by shareholders for Class B shares and
Class C shares, respectively, for the six months ended July 31, 2003.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended July 31, 2003 aggregated $59,778,411 and $50,920,785,
respectively.
8 Shareholder Meeting
- -------------------------------------------
The Fund held a Special Meeting of Shareholders on June 6, 2003 to elect
Trustees. The results of the vote were as follows:
<Table>
<Caption>
NUMBER OF SHARES
---------------------
NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD
---------------------------------------------------------------
Jessica M. Bibliowicz 30,353,552 423,924
Donald R. Dwight 30,524,289 253,188
James B. Hawkes 30,533,038 244,439
Samuel L. Hayes, III 30,539,257 238,219
William H. Park 30,545,583 231,893
Norton H. Reamer 30,548,119 229,357
Lynn A. Stout 30,494,918 282,559
</Table>
Each nominee was also elected a Trustee of the Portfolio. Donald R. Dwight
retired as a Trustee effective July 1, 2003 pursuant to the Trust's mandatory
retirement policy.
12
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 95.6%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Cogeneration -- 2.9%
- -------------------------------------------------------------------------
$ 7,000 Maryland Energy Cogeneration, (AES
Warrior Run), (AMT), 7.40%, 9/1/19 $ 7,105,280
2,876 Ohio Water Development Authority, Solid
Waste Disposal, (Bay Shore Power),
6.625%, 9/1/20 2,851,151
2,000 Ohio Water Development Authority, Solid
Waste Disposal, (Bay Shore Power),
(AMT), 5.875%, 9/1/20 1,831,580
- -------------------------------------------------------------------------
$ 11,788,011
- -------------------------------------------------------------------------
Education -- 1.3%
- -------------------------------------------------------------------------
$ 3,000 California Educational Facilities
Authority, Residual Certificates,
Variable Rate, 12/1/32(1)(2) $ 3,172,740
2,000 New Hampshire HEFA, (Colby-Sawyer
College), 7.50%, 6/1/26(3) 2,105,080
- -------------------------------------------------------------------------
$ 5,277,820
- -------------------------------------------------------------------------
Electric Utilities -- 6.6%
- -------------------------------------------------------------------------
$ 4,000 Anaheim, CA, Public Financing Authority,
5.00%, 10/1/31 $ 3,919,760
1,350 Brazos River Authority, TX, (Reliant
Energy, Inc.), 5.375%, 4/1/19 1,207,480
3,000 Brazos River Authority, TX, PCR (Texas
Energy Co.), (AMT), 6.75%, 4/1/38 3,253,380
4,200 Clark County, NV, (Nevada Power), (AMT),
5.90%, 10/1/30(4) 3,493,896
1,250 Connecticut Development Authority,
(Connecticut Light and Power), Variable
Rate, 9/1/22(1)(5) 1,358,625
2,500 Connecticut Development Authority,
(Western Mass Electric), Variable Rate,
9/1/22(1)(5) 2,717,250
3,965 Matagorda County, TX, Navigation
District No.1, (Reliant Energy) ,
5.95%, 5/1/30 3,742,286
4,000 Matagorda County, TX, Navigation
District No.1, (Reliant Energy) ,
8.00%, 5/1/29 4,304,640
1,500 Mississippi Business Finance Corp.,
(System Energy Resources, Inc.),
5.90%, 5/1/22 1,479,930
946 Salt River, AZ, Agricultural
Improvements and Power District
Electric, Residual Certificates,
Variable Rate, 1/1/25(1)(5) 923,385
- -------------------------------------------------------------------------
$ 26,400,632
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.1%
- -------------------------------------------------------------------------
$10,000 Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 $ 3,539,200
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- -------------------------------------------------------------------------
$ 3,500 Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 $ 1,238,720
2,880 Kimball, NE, EDA, (Clean Harbors),
(AMT), Prerefunded to 9/1/06,
10.75%, 9/1/26 3,652,042
- -------------------------------------------------------------------------
$ 8,429,962
- -------------------------------------------------------------------------
General Obligations -- 2.3%
- -------------------------------------------------------------------------
$ 2,500 California, 2.00%, 6/16/04 $ 2,505,325
2,500 California, 5.00%, 2/1/33 2,259,700
3,000 New York, NY, Variable Rate,
6/1/28(1)(2) 2,931,450
4,100 North Carolina, Variable Rate,
3/1/28(1)(5) 1,637,581
- -------------------------------------------------------------------------
$ 9,334,056
- -------------------------------------------------------------------------
Health Care-Miscellaneous -- 5.4%
- -------------------------------------------------------------------------
$ 2,845 Illinois Development Finance Authority,
(Community Rehabilitation Providers),
5.60%, 7/1/19(4) $ 2,634,385
3,150 Osceola County, FL, IDA, Community
Provider Pooled Loan-93, 7.75%, 7/1/17 3,181,311
2,399 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 6.75%, 12/1/36 2,472,562
1,237 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 7.00%, 12/1/36 1,284,410
1,023 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 7.00%, 12/1/36 1,062,294
2,232 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 7.75%, 12/1/36 2,270,130
1,877 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 7.90%, 12/1/36 1,938,901
352 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.25%, 12/1/36 372,521
800 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.375%, 12/1/36 835,831
2,215 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.50%, 12/1/36 2,287,326
930 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.70%, 12/1/36 976,137
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Health Care-Miscellaneous (continued)
- -------------------------------------------------------------------------
$ 1,860 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.81%, 9/1/36 $ 1,956,998
558 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 8.875%, 12/1/36 590,051
- -------------------------------------------------------------------------
$ 21,862,857
- -------------------------------------------------------------------------
Hospital -- 7.1%
- -------------------------------------------------------------------------
$ 2,500 California Health Facilities Authority,
(Cedars Sinai Medical Center), Variable
Rate, 12/1/34(1)(5) $ 2,761,525
2,250 Chautauqua County, NY, IDA, (Women's
Christian Association), 6.40%, 11/15/29 2,041,065
3,685 Forsyth County, GA, Hospital Authority,
(Georgia Baptist Health Care System),
6.25%, 10/1/18 4,254,517
3,700 Forsyth County, GA, Hospital Authority,
(Georgia Baptist Health Care System),
6.375%, 10/1/28 4,258,182
2,000 New Hampshire HEFA, (Littleton
Hospital), 6.00%, 5/1/28 1,598,100
1,000 Oklahoma Development Finance Authority,
(Hillcrest Healthcare), 5.00%, 8/15/08 822,670
1,500 Oklahoma Development Finance Authority,
(Hillcrest Healthcare), 5.20%, 8/15/11 1,142,250
3,010 Oklahoma Development Finance Authority,
(Hillcrest Healthcare), 5.625%, 8/15/29 1,971,580
1,500 Oklahoma Development Finance Authority,
(Hillcrest Healthcare), 5.75%, 8/15/12 1,178,340
2,560 Oneida County, NY, Industrial
Development Agency, (Elizabeth Medical
Center), 6.00%, 12/1/29 2,209,997
875 Prince George's County, MD, (Greater
Southeast Healthcare System),
6.375%, 1/1/13(6) 282,625
5,900 Prince George's County, MD, (Greater
Southeast Healthcare System),
6.375%, 1/1/23(6) 1,905,700
1,785 San Gorgonio, CA, (Memorial Health Care
District), 5.75%, 5/1/20 1,510,663
2,500 Sullivan County, TN, Health Educational
and Housing Facility Board, (Wellmont
Health System), 6.25%, 9/1/32 2,526,825
- -------------------------------------------------------------------------
$ 28,464,039
- -------------------------------------------------------------------------
Housing -- 6.6%
- -------------------------------------------------------------------------
$ 730 Atlanta, GA, Urban Residential Finance
Authority, (New Community John Hope
Project), (AMT), 7.25%, 6/1/07 $ 734,752
2,500 Florida Capital Projects Finance
Authority, Student Housing Revenue,
(Florida University), 7.75%, 8/15/20 2,540,775
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Housing (continued)
- -------------------------------------------------------------------------
$ 865 Florida Capital Projects Finance
Authority, Student Housing Revenue,
(Florida University), 9.50%, 8/15/05 $ 861,159
1,855 Jefferson County, MO, IDA, Multifamily,
(Riverview Bend Apartments), (AMT),
6.75%, 11/1/29 1,769,466
490 Jefferson County, MO, IDA, Multifamily,
(Riverview Bend Apartments), (AMT),
7.125%, 11/1/29 475,790
3,850 Maricopa County, AZ, IDA, (National
Health Facilities II), 6.375%, 1/1/19 3,503,538
1,500 Maricopa County, AZ, IDA, (National
Health Facilities II), 6.625%, 7/1/33 1,337,730
2,330 Maricopa County, AZ, IDA, (National
Health Facilities II), 8.00%, 1/1/34 2,082,344
5,000 Muni Mae Tax-Exempt Bond, LLC, (AMT),
6.875%, 6/30/09 5,405,500
3,290 Oregon Health Authority, (Trillium
Affordable Housing), (AMT),
6.75%, 2/15/29 2,995,677
1,460 Oregon Health Authority, (Trillium
Affordable Housing), (AMT),
6.75%, 2/15/29 1,314,146
1,465 Texas Student Housing Corp., (University
of Northern Texas), 9.375%, 7/1/06 1,434,030
2,000 Texas Student Housing Corp., (University
of Northern Texas), 11.00%, 7/1/31 1,888,800
395 Virginia Housing Development Authority,
RITES, (AMT), Variable Rate,
7/1/21(1)(5) 392,274
- -------------------------------------------------------------------------
$ 26,735,981
- -------------------------------------------------------------------------
Industrial Development Revenue -- 21.9%
- -------------------------------------------------------------------------
$ 2,370 Abia Development Corp., TX, (Austin
Cargoport Development), (AMT),
6.50%, 10/1/24 $ 2,125,054
3,065 Abia Development Corp., TX, (Austin
Cargoport Development), (AMT),
9.25%, 10/1/21 3,377,414
2,000 Camden County, NJ, (Holt Hauling),
(AMT), 9.875%, 1/1/21(6) 390,000
3,900 Carbon County, UT, (Laidlaw
Environmental Services Inc.), (AMT),
7.45%, 7/1/17 3,636,555
5,000 Dallas-Fort Worth, TX, International
Airport Facility Improvements Corp.,
(American Airlines), (AMT),
5.95%, 5/1/29 4,556,250
1,665 Dallas-Fort Worth, TX, International
Airport Facility Improvements Corp.,
DRIVERS, 13.985%, 11/1/18(1)(2) 1,800,448
3,000 Denver, CO, City and County Special
Facilities, (United Airlines), (AMT),
6.875%, 10/1/32 1,177,500
8,000 Effingham County, GA, Solid Waste
Disposal, (Fort James), (AMT),
5.625%, 7/1/18 6,813,200
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Industrial Development Revenue (continued)
- -------------------------------------------------------------------------
$ 675 Florence County, SC, (Stone Container),
7.375%, 2/1/07 $ 685,031
2,700 Hancock County, KY, (Southwire Co.),
(AMT), 7.75%, 7/1/25 2,711,934
4,000 Hardeman County, TN, (Correctional
Facilities Corp.), 7.75%, 8/1/17 4,101,760
4,200 Houston, TX, Airport System,
(Continental Airlines), 6.75%, 7/1/29 3,356,388
6,965 Indianapolis, IN, Airport Authority,
(United Airlines), (AMT),
6.50%, 11/15/31(6) 2,838,238
4,065 Kansas City, MO, IDA, (Airline Cargo
Facilities), (AMT), 8.50%, 1/1/17 4,241,380
2,500 Los Angeles, CA, Regional Airports
Improvements Corp., (Terminal Four),
(AMT), 7.50%, 12/1/24 2,085,250
2,730 Maryland EDA, (AFCO Cargo), (AMT),
6.50%, 7/1/24 2,516,541
3,400 Morgantown, KY, Solid Waste Revenue,
(IMCO Recycling, Inc.), (AMT),
7.45%, 5/1/22 3,310,546
920 New Albany, IN, IDA, (K-Mart),
7.40%, 6/1/06 740,600
10,000 New Jersey EDA, (Continental Airlines),
(AMT), 6.25%, 9/15/29 8,416,500
500 New Jersey EDA, (Holt Hauling),
8.95%, 12/15/18(6) 455,350
4,000 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 3,984,000
4,000 New Jersey EDA, (School Facilities),
5.00%, 6/15/28(7) 3,943,720
4,000 New York City, NY, Industrial
Development Agency, (American Airlines,
Inc.), (AMT), 8.50%, 8/1/28 2,309,960
2,000 Perry County, KY, TJ International Inc.,
(AMT), 6.55%, 4/15/27 2,097,460
1,700 Phoenix, AZ, IDA, (America West
Airlines, Inc.), (AMT), 6.25%, 6/1/19 968,490
5,800 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 3,132,058
22,211 Robbins, IL, Resource Recovery, (AMT),
0.00%, 10/15/09 6,561,964
214 Robbins, IL, Resource Recovery, (AMT),
7.25%, 10/15/09 153,931
6,206 Robbins, IL, Resource Recovery, (AMT),
7.25%, 10/15/24 2,826,006
1,797 Robbins, IL, Resource Recovery, (AMT),
8.375%, 10/15/16(6) 3,055
703 Robbins, IL, Resource Recovery, (AMT),
8.375%, 10/15/16(6) 1,195
3,000 Rumford, ME, Solid Waste Disposal,
(Boise Cascade Corp.), 6.875%, 10/1/26 2,922,420
- -------------------------------------------------------------------------
$ 88,240,198
- -------------------------------------------------------------------------
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 0.7%
- -------------------------------------------------------------------------
$ 1,500 Matagorda County, TX, Navigation
District No. 1, (Centerpoint Energy,
Inc./Houston Light & Power Co.), (MBIA),
4.00%, 10/15/15 $ 1,406,550
1,500 Puerto Rico Electric Power Authority,
RITES, (FSA), Variable Rate,
7/1/20(1)(2) 1,557,930
- -------------------------------------------------------------------------
$ 2,964,480
- -------------------------------------------------------------------------
Insured-General Obligations -- 1.6%
- -------------------------------------------------------------------------
$ 1,000 California, Residual Certificates,
(AMBAC), Variable Rate, 10/1/30(1)(2) $ 1,047,650
4,900 Puerto Rico General Obligation, (FSA),
Variable Rate, 7/1/27(1)(2) 5,166,070
- -------------------------------------------------------------------------
$ 6,213,720
- -------------------------------------------------------------------------
Insured-Hospital -- 0.7%
- -------------------------------------------------------------------------
$ 2,415 California Statewide Communities
Development Authority, (Sutter Health),
Residual Certificates, (FSA), Variable
Rate, 8/15/19(1)(2) $ 2,804,057
- -------------------------------------------------------------------------
$ 2,804,057
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.1%
- -------------------------------------------------------------------------
$ 75 South Orange County, CA, Public
Financing Authority, (FGIC), DRIVERS,
Variable Rate, 8/15/15(1)(2) $ 442,163
- -------------------------------------------------------------------------
$ 442,163
- -------------------------------------------------------------------------
Insured-Transportation -- 2.8%
- -------------------------------------------------------------------------
$ 2,985 Monroe County, NY, Airport Authority,
(MBIA), DRIVERS, (AMT), Variable Rate,
1/1/18(1)(5) $ 3,604,149
2,000 New Jersey Turnpike Authority, RITES,
(MBIA), Variable Rate, 7/1/23(1)(2) 2,132,900
2,500 Puerto Rico Highway and Transportation
Authority, (CIFG), 5.00%, 7/1/23 2,524,250
3,000 Puerto Rico Highway and Transportation
Authority, (FSA), Variable Rate,
7/1/32(1)(2) 3,034,950
- -------------------------------------------------------------------------
$ 11,296,249
- -------------------------------------------------------------------------
Miscellaneous -- 1.4%
- -------------------------------------------------------------------------
$ 3,000 Colorado River Indian Tribe, AZ,
6.25%, 8/1/04 $ 3,078,720
2,689 Santa Fe, NM, (1st Interstate Plaza),
8.00%, 7/1/13 2,708,923
- -------------------------------------------------------------------------
$ 5,787,643
- -------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Nursing Home -- 6.3%
- -------------------------------------------------------------------------
$ 3,310 Bell County, TX, (Heritage Oaks
Healthcare), 6.70%, 6/1/29 $ 2,263,808
3,060 Clovis, NM, IDR, (Retirement Ranches,
Inc.), 7.75%, 4/1/19 3,155,931
2,300 Colorado HFA, (Volunteers of America),
5.75%, 7/1/20 2,029,819
3,600 Colorado HFA, (Volunteers of America),
5.875%, 7/1/28 3,069,648
1,100 Colorado HFA, (Volunteers of America),
6.00%, 7/1/29 957,319
2,500 Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 2,461,425
1,190 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 1,213,860
1,930 Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners),
6.75%, 3/1/19 1,638,107
3,838 Tarrant County, TX, Health Facilities
Authority, 8.00%, 9/1/25(6) 1,513,661
1,526 Tarrant County, TX, Health Facilities
Authority, (3927 Foundation),
10.125%, 9/1/09(6) 64,388
4,577 Tarrant County, TX, Health Facilities
Authority, (3927 Foundation),
10.25%, 9/1/19(6) 193,164
3,200 Westmoreland, PA, (Highland Health
Systems, Inc.), 9.25%, 6/1/22 3,260,832
3,790 Wisconsin HEFA, (Wisconsin Illinois
Senior Housing), 7.00%, 8/1/29 3,497,753
- -------------------------------------------------------------------------
$ 25,319,715
- -------------------------------------------------------------------------
Other Revenue -- 7.7%
- -------------------------------------------------------------------------
$ 6,000 California Statewide Communities
Development Authority, (East Valley
Tourist Development Authority),
8.25%, 10/1/14 $ 5,606,100
3,000 California Statewide Communities
Development Authority, (East Valley
Tourist Development Authority),
11.00%, 10/1/20 2,976,210
3,800 Capital Trust Agency, FL, (Seminole
Tribe Convention), 8.95%, 10/1/33 4,206,600
8,700 Capital Trust Agency, FL, (Seminole
Tribe Convention), 10.00%, 10/1/33 10,261,215
3,715 Iowa Finance Authority, (Southbridge
Mall), 6.375%, 12/1/13 3,427,422
1,200 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 10/1/32(1)(2) 1,620,360
3,525 Tobacco Settlement Financing Corp., NJ,
Variable Rate, 6/1/39(1)(5) 2,723,803
- -------------------------------------------------------------------------
$ 30,821,710
- -------------------------------------------------------------------------
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Senior Living / Life Care -- 11.9%
- -------------------------------------------------------------------------
$ 7,820 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 $ 7,132,309
2,500 Arizona Health Facilities Authority,
(Care Institute, Inc. - Mesa),
7.625%, 1/1/26(8) 1,898,400
1,000 Chester, PA, IDA, (Senior Life-Choice of
Kimberton), (AMT), 8.50%, 9/1/25 1,038,540
1,870 Chester, PA, IDA, (Senior Life-Choice of
Paoli), (AMT), 8.05%, 1/1/24 1,903,697
3,500 Delaware County, PA, (White Horse
Village), 7.30%, 7/1/14 3,596,740
1,585 Delaware County, PA, IDA, (Glen Riddle),
(AMT), 8.625%, 9/1/25 1,662,871
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/13 407,280
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/13 388,320
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/14 368,400
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/14 351,150
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/15 332,830
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/15 316,420
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/16 300,790
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/16 285,880
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/17 271,630
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/17 258,200
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/18 245,400
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/18 233,200
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/19 221,670
1,000 Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/19 210,650
1,870 Grove City, PA, Area Hospital Authority,
(Grove Manor), 6.625%, 8/15/29 1,804,849
3,530 Illinois Development Finance Authority,
(Care Institute, Inc. - Illinois),
7.80%, 6/1/25 3,615,638
7,500 Kansas City, MO, IDA, (Kingswood United
Methodist Manor), 5.875%, 11/15/29 6,419,625
3,410 Louisiana HFA, (HCC Assisted Living
Group 1), (AMT), 9.00%, 3/1/25 3,262,040
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
Senior Living / Life Care (continued)
- -------------------------------------------------------------------------
$ 5,220 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 $ 4,804,175
3,200 Minneapolis, MN, (Walker Methodist
Senior Services), 6.00%, 11/15/28 2,611,232
5,205 North Miami, FL, Health Care Facilities,
(Imperial Club), 8.00%, 1/1/33 3,838,948
- -------------------------------------------------------------------------
$ 47,780,884
- -------------------------------------------------------------------------
Special Tax Revenue -- 2.5%
- -------------------------------------------------------------------------
$ 2,240 Bell Mountain Ranch, CO, Metropolitan
District, 6.625%, 11/15/25 $ 2,280,947
3,400 Bell Mountain Ranch, CO, Metropolitan
District, 7.375%, 11/15/19 3,624,842
3,800 Cottonwood, CO, Water and Sanitation
District, 7.75%, 12/1/20 4,044,150
- -------------------------------------------------------------------------
$ 9,949,939
- -------------------------------------------------------------------------
Transportation -- 3.3%
- -------------------------------------------------------------------------
$ 930 Eagle County, CO, (Eagle County Airport
Terminal), (AMT), 7.00%, 5/1/21 $ 864,705
1,375 Eagle County, CO, (Eagle County Airport
Terminal), (AMT), 7.125%, 5/1/31 1,277,320
450 Eagle County, CO, (Eagle County Airport
Terminal), (AMT), 7.50%, 5/1/21 440,271
5,000 New Jersey Transportation Trust Fund
Authority, Variable Rate, 6/15/17(1)(5) 5,208,400
5,250 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 5,647,110
- -------------------------------------------------------------------------
$ 13,437,806
- -------------------------------------------------------------------------
Water and Sewer -- 0.4%
- -------------------------------------------------------------------------
$ 1,800 Metropolitan Water District, CA,
(Southern California Waterworks),
Variable Rate, 1/1/18(1)(2) $ 1,560,870
- -------------------------------------------------------------------------
$ 1,560,870
- -------------------------------------------------------------------------
Total Tax-Exempt Investments
(identified cost $395,049,875) $384,912,792
- -------------------------------------------------------------------------
</Table>
COMMON STOCKS -- 0.0%
<Table>
<Caption>
SECURITY SHARES VALUE
- ----------------------------------------------------------------
Coal -- 0.0%
- ----------------------------------------------------------------
Horizon Natural Resources Company(6) 172,103 $ 1,721
- ----------------------------------------------------------------
$ 1,721
- ----------------------------------------------------------------
Total Common Stocks
(identified cost $2,237,339) $ 1,721
- ----------------------------------------------------------------
Total Investments -- 95.6%
(identified cost $397,287,214) $384,914,513
- ----------------------------------------------------------------
Other Assets, Less Liabilities -- 4.4% $ 17,595,697
- ----------------------------------------------------------------
Net Assets -- 100.0% $402,510,210
- ----------------------------------------------------------------
</Table>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
At July 31, 2003, the concentration of the Portfolio's investments in various
states, determined as a percentage of net assets individually represent less
than 10% in each state.
The Portfolio invests primarily in debt securities issued by municipali-
ties. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at July 31, 2003, 6.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage insured
by financial institutions ranged from 0.1% to 3.3% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(5) Security has been issued as an inverse floater bond.
(6) Non-income producing security.
(7) When-issued security.
(8) The Portfolio is accruing only partial interest on this security.
SEE NOTES TO FINANCIAL STATEMENTS
17
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
AS OF JULY 31, 2003
Assets
- ------------------------------------------------------
Investments, at value (identified cost,
$397,287,214) $384,914,513
Cash 3,621,249
Receivable for investments sold 6,266,962
Receivable for open swap contracts 1,386,778
Interest receivable 9,626,421
Receivable for daily variation margin on
open financial futures contracts 684,375
Prepaid expenses 437
- ------------------------------------------------------
TOTAL ASSETS $406,500,735
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Payable for when-issued securities $ 3,947,053
Accrued expenses 43,472
- ------------------------------------------------------
TOTAL LIABILITIES $ 3,990,525
- ------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $402,510,210
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $409,834,357
Net unrealized depreciation (computed on
the basis of identified cost) (7,324,147)
- ------------------------------------------------------
TOTAL $402,510,210
- ------------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX MONTHS ENDED
JULY 31, 2003
Investment Income
- -----------------------------------------------------
Interest $15,670,320
- -----------------------------------------------------
TOTAL INVESTMENT INCOME $15,670,320
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Investment adviser fee $ 1,219,182
Trustees' fees and expenses 7,860
Custodian fee 83,073
Legal and accounting services 11,435
Miscellaneous 12,143
- -----------------------------------------------------
TOTAL EXPENSES $ 1,333,693
- -----------------------------------------------------
NET INVESTMENT INCOME $14,336,627
- -----------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,791,465
Financial futures contracts (494,699)
- -----------------------------------------------------
NET REALIZED GAIN $ 2,296,766
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(1,307,651)
Financial futures contracts 3,781,105
Interest rate swap contracts 1,386,778
- -----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,860,232
- -----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 6,156,998
- -----------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $20,493,625
- -----------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
18
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) JULY 31, 2003 YEAR ENDED
IN NET ASSETS (UNAUDITED) JANUARY 31, 2003
- ----------------------------------------------------------------------------
From operations --
Net investment income $ 14,336,627 $ 26,710,778
Net realized gain (loss) 2,296,766 (21,333,592)
Net change in unrealized appreciation
(depreciation) 3,860,232 22,192,449
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 20,493,625 $ 27,569,635
- ----------------------------------------------------------------------------
Capital transactions --
Contributions $ 59,778,411 $ 93,176,293
Withdrawals (50,920,785) (94,678,809)
- ----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 8,857,626 $ (1,502,516)
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 29,351,251 $ 26,067,119
- ----------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------
At beginning of period $ 373,158,959 $ 347,091,840
- ----------------------------------------------------------------------------
AT END OF PERIOD $ 402,510,210 $ 373,158,959
- ----------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
19
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED JANUARY 31,
JULY 31, 2003 ---------------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.69%(2) 0.71% 0.70% 0.72% 0.68% 0.67%
Expenses after custodian
fee reduction 0.69%(2) 0.71% 0.70% 0.72% 0.67% 0.66%
Net investment income 7.47%(2) 7.32% 6.69% 6.86% 6.25% 5.88%
Portfolio Turnover 17% 15% 24% 29% 58% 25%
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.42% 7.72% 5.55% -- -- --
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $402,510 $373,159 $347,092 $328,134 $338,925 $390,909
- ---------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio adopted the provisions of the revised AICPA Audit and
Accounting Guide for Investment Companies and began amortizing market
discount on fixed-income securities. The effect of this change for the
year ended January 31, 2002 on the ratio of net investment income to
average net assets was less than 0.01%. Ratios for the periods prior to
February 1, 2001 have not been restated to reflect this change in
presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
20
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
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, which was organized as a trust under the laws of the
State of New York on May 1, 1995. The Portfolio seeks to achieve high current
income exempt from regular federal income tax. The Declaration of Trust
permits the Trustees to issue interests in the Portfolio. At July 31, 2003,
the Eaton Vance High Yield Municipals Fund had an approximate 99.9% interest
in the Portfolio. The following is a summary of significant accounting
policies of the Portfolio. The policies are in conformity with accounting
principles generally accepted in the United States of America.
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 fair 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.
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 Financial Futures Contracts -- Upon entering into 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 only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
E Interest Rate Swaps -- The Portfolio may enter into interest rate swap
agreements to enhance return, to hedge against fluctuations in securities
prices or interest rates or as substitution for the purchase or sale of
securities. Pursuant to these agreements the Portfolio makes bi-annual
payments at a fixed interest rate. In exchange, the Portfolio receives
payments based on the interest rate of a benchmark industry index. During the
term of the outstanding swap agreement, changes in the underlying value of
the swap are recorded as unrealized gains and losses. The value of the swap
is determined by changes in the relationship between two rates of interest.
The Portfolio is exposed to credit loss in the event of non-performance by
the swap counterparty. However, the Portfolio does not anticipate
non-performance by the counterparty. Risk may also arise from the
unanticipated movements in value of interest rates.
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.
21
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Securities purchased on a 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 on the Statement of Operations.
I Use of Estimates -- The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States of America
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 income 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, 2003 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, consisting only of normal
recurring 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, 2003, the fee was equivalent
to 0.64% (annualized) of the Portfolio's average net assets for such period
and amounted to $1,219,182. 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. Trustees of the Portfolio who are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended July 31, 2003, no significant
amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $76,530,448 and $63,052,571, respectively,
for the six months ended July 31, 2003.
4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at July 31, 2003 as computed on a federal income tax basis,
were as follows:
<Table>
AGGREGATE COST $394,586,819
------------------------------------------------------
Gross unrealized appreciation $ 20,544,531
Gross unrealized depreciation (32,722,161)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $(12,177,630)
------------------------------------------------------
</Table>
5 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 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. The Portfolio
did not have any significant borrowings or allocated fees during the six
months ended July 31, 2003.
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 interest rate swap contracts and may involve,
to a varying degree, elements of risk in excess of the amounts
22
<Page>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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, 2003, the Portfolio entered into an interest rate swap agreement
with Morgan Stanley Capital Services, Inc. whereby the Portfolio makes
bi-annual payments at a fixed rate equal to 4.423% on the notional amount of
$25,000,000. In exchange, the Portfolio receives payments at a rate equal to
the Bond Market Association Municipal Swap Index on the same notional amount.
The value of the contract, which terminates September 4, 2013 is recorded as
a receivable for open swap contracts of $1,386,778 on July 31, 2003.
A summary of obligations under these financial instruments at July 31, 2003
is as follows:
<Table>
<Caption>
FUTURES CONTRACTS
-------------------------------------------------------------------------------
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION APPRECIATION
-------------------------------------------------------------------------------
9/03 150 U.S. Treasury Bond Short $ 1,621,628
9/03 250 U.S. Treasury Note Short 2,040,148
-------------------------------------------------------------------------------
$ 3,661,776
-------------------------------------------------------------------------------
</Table>
At July 31, 2003, the Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
7 Interestholder Meeting
- -------------------------------------------
The Portfolio held a Special Meeting of Interestholders on June 6, 2003 to
elect Trustees. The results of the vote were as follows:
<Table>
<Caption>
INTEREST IN THE PORTFOLIO
-------------------------
NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD
-------------------------------------------------------------------
Jessica M. Bibliowicz 99% 1%
Donald R. Dwight 99% 1%
James B. Hawkes 99% 1%
Samuel L. Hayes, III 99% 1%
William H. Park 99% 1%
Norton H. Reamer 99% 1%
Lynn A. Stout 99% 1%
</Table>
Results are rounded to the nearest whole number. Donald R. Dwight retired as
a Trustee effective July 1, 2003 pursuant to the Portfolio's mandatory
retirement policy.
23
<Page>
EATON VANCE HIGH YIELD MUNICIPALS FUND
INVESTMENT 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
Samuel. L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
HIGH YIELD MUNICIPALS PORTFOLIO
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President and
Portfolio Manager
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
24
<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
PFPC Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
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.
<Page>
416-9/03 HYSRC
<Page>
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company
<Page>
owning institutional investment management firms). Mr. Hayes is the
Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard
University Graduate School of Business Administration. Mr. Reamer is the
President of Unicorn Capital (an investment and financial advisory services
company), Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm). Previously, Mr. Reamer was Chairman of the Board of
UAM and Chairman, President and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Required in Filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST II (ON BEHALF OF EATON VANCE HIGH YIELD MUNICIPALS
FUND)
By: /s/ Thomas J. Fetter
--------------------
Thomas J. Fetter
President
Date: September 23, 2003
------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James L. O'Connor
---------------------
James L. O'Connor
Treasurer
Date: September 23, 2003
------------------
By: /s/ Thomas J. Fetter
--------------------
Thomas J. Fetter
President
Date: September 23, 2003
------------------