<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-07202
North Carolina Municipals Portfolio
-----------------------------------
(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)
August 31st
-----------
Date of Fiscal Year End
August 31, 2003
---------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2003
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.7%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
Education -- 9.3%
- ------------------------------------------------------------------------
$2,950 North Carolina Educational Facilities
Finance Agency, (Duke University),
5.125%, 10/1/41 $ 2,940,058
300 North Carolina Educational Facilities
Finance Agency, (High Point University),
5.125%, 9/1/21 296,526
8,410 University of North Carolina at Chapel
Hill, 0.00%, 8/1/17 4,343,933
1,980 University of North Carolina at Chapel
Hill, 0.00%, 8/1/21 793,168
- ------------------------------------------------------------------------
$ 8,373,685
- ------------------------------------------------------------------------
Electric Utilities -- 16.4%
- ------------------------------------------------------------------------
$1,015 Chatham County Industrial Facilities and
Pollution, (Carolina Power and Light),
6.30%, 6/15/14 $ 1,033,635
5,000 North Carolina Eastern Municipal Power
Agency, 6.125%, 1/1/09 5,508,450
1,250 North Carolina Eastern Municipal Power
Agency, 6.75%, 1/1/26 1,332,100
3,500 North Carolina Municipal Power Agency,
(Catawba), 6.50%, 1/1/20 3,780,805
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 1,005,680
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 1,005,680
1,000 Wake County, Industrial Facilities and
Pollution Control Financing Authority,
(Carolina Power and Light Co.),
5.375%, 2/1/17 1,033,830
- ------------------------------------------------------------------------
$14,700,180
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 8.5%
- ------------------------------------------------------------------------
$3,410 North Carolina Eastern Municipal Power
Agency, Escrowed to Maturity,
4.00%, 1/1/18 $ 3,230,770
2,210 North Carolina Eastern Municipal Power
Agency, Escrowed to Maturity,
5.00%, 1/1/17 2,328,434
440 North Carolina Eastern Municipal Power
Agency, Escrowed to Maturity,
5.00%, 1/1/21 452,135
1,500 North Carolina Medical Care Commission,
(Annie Penn Memorial Hospital),
Prerefunded to 1/1/15, 5.375%, 1/1/22 1,622,655
- ------------------------------------------------------------------------
$ 7,633,994
- ------------------------------------------------------------------------
General Obligations -- 8.9%
- ------------------------------------------------------------------------
$1,000 Charlotte, 4.75%, 7/1/28 $ 962,260
1,000 Charlotte, 5.00%, 7/1/29 1,001,860
1,000 Charlotte, 5.60%, 6/1/20 1,081,730
1,000 New Hanover County, 5.75%, 11/1/17 1,116,720
400 North Carolina, Variable Rate,
3/1/28(1)(2) 164,540
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
General Obligations (continued)
- ------------------------------------------------------------------------
$3,550 North Carolina Capital Improvements,
4.75%, 2/1/12(3) $ 3,677,587
- ------------------------------------------------------------------------
$ 8,004,697
- ------------------------------------------------------------------------
Hospital -- 9.8%
- ------------------------------------------------------------------------
$1,340 Charlotte-Mecklenberg Hospital
Authority, 0.00%, 1/1/06 $ 1,271,097
1,750 Charlotte-Mecklenberg Hospital
Authority, 5.00%, 1/15/31 1,692,898
3,400 North Carolina Medical Care Commission,
(Duke University Hospital),
0.00%, 6/1/09 2,668,660
1,000 North Carolina Medical Care Commission,
(Gaston Health Care), 5.00%, 2/15/29 941,680
500 North Carolina Medical Care Commission,
(Halifax Regional Medical Center),
5.00%, 8/15/24 445,435
250 North Carolina Medical Care Commission,
(Novant Health, Inc.), 5.00%, 11/1/20 251,073
1,000 North Carolina Medical Care Commission,
(Southeastern Regional Medical Center),
5.375%, 6/1/32 1,000,660
500 North Carolina Medical Care Commission,
(Union Regional Medical Center),
5.375%, 1/1/32 498,160
- ------------------------------------------------------------------------
$ 8,769,663
- ------------------------------------------------------------------------
Housing -- 5.1%
- ------------------------------------------------------------------------
$1,400 Charlotte Housing Authority, (Double
Oaks), FHA, (FNMA), 7.35%, 5/15/26 $ 1,470,294
285 Guam Housing Corp., Single Family,
(AMT), 5.75%, 9/1/31 298,469
1,235 North Carolina HFA, MFMR, (AMT),
6.45%, 9/1/27 1,272,532
1,270 North Carolina HFA, SFMR, (AMT),
6.60%, 9/1/26 1,288,237
970 Raleigh Housing Authority, Multifamily,
(Cedar Point), 7.00%, 11/1/30(4) 213,400
- ------------------------------------------------------------------------
$ 4,542,932
- ------------------------------------------------------------------------
Industrial Development Revenue -- 5.7%
- ------------------------------------------------------------------------
$2,750 Haywood County IDA, (Champion
International), (AMT), 5.50%, 10/1/18 $ 2,691,948
1,375 Martin County IDA, (Weyerhaeuser),
(AMT), 6.80%, 5/1/24 1,426,123
850 Robeson County, Industrial Facilities
and Pollution Control Financing
Authority, (Campbell Soup),
6.40%, 12/1/06 958,018
- ------------------------------------------------------------------------
$ 5,076,089
- ------------------------------------------------------------------------
Insured-Education -- 5.1%
- ------------------------------------------------------------------------
$1,375 East Carolina University, (AMBAC),
5.25%, 11/1/21 $ 1,415,425
1,320 North Carolina Educational Facilities
Finance Agency, (Johnson & Wales
University), (XLCA), 5.00%, 4/1/33 1,298,893
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
79
<Page>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2003
PORTFOLIO OF INVESTMENTS CONT'D
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
Insured-Education (continued)
- ------------------------------------------------------------------------
$1,900 University of North Carolina, (MBIA),
4.50%, 10/1/18 $ 1,886,567
- ------------------------------------------------------------------------
$ 4,600,885
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 1.7%
- ------------------------------------------------------------------------
$1,500 North Carolina Eastern Municipal Power
Agency, (FSA), Variable Rate,
1/1/19(1)(2) $ 1,508,880
- ------------------------------------------------------------------------
$ 1,508,880
- ------------------------------------------------------------------------
Insured-General Obligations -- 3.2%
- ------------------------------------------------------------------------
$ 500 Puerto Rico General Obligation, (FSA),
5.125%, 7/1/30 $ 505,820
280 Puerto Rico General Obligation, (MBIA),
Variable Rate, 7/1/20(2)(5) 370,488
945 Smithville Township, Brunswick County,
(MBIA), 5.00%, 6/1/23 953,722
995 Smithville Township, Brunswick County,
(MBIA), 5.00%, 6/1/24 997,119
- ------------------------------------------------------------------------
$ 2,827,149
- ------------------------------------------------------------------------
Insured-Hospital -- 2.4%
- ------------------------------------------------------------------------
$ 500 Cumberland County Hospital, (MBIA),
0.00%, 10/1/09 $ 405,505
935 North Carolina Medical Care Commission,
(Memorial Mission Hospital), (FSA),
0.00%, 10/1/06 874,964
1,500 North Carolina Medical Care Commission,
(Wilson Memorial Hospital), (AMBAC),
0.00%, 11/1/15 842,070
- ------------------------------------------------------------------------
$ 2,122,539
- ------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 2.4%
- ------------------------------------------------------------------------
$1,575 Franklin, County Jail, (FGIC),
6.625%, 6/1/14 $ 1,673,280
420 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 12/1/19(2)(5) 475,881
- ------------------------------------------------------------------------
$ 2,149,161
- ------------------------------------------------------------------------
Insured-Transportation -- 3.9%
- ------------------------------------------------------------------------
$1,375 Puerto Rico Highway and Transportation
Authority, (MBIA), 5.50%, 7/1/36 $ 1,477,713
1,000 Puerto Rico Highway and Transportation
Authority, (MBIA),
Variable Rate, 7/1/36(2)(5) 1,009,120
1,000 Raleigh Durham, Airport Authority,
(FGIC), 5.00%, 11/1/31 982,860
- ------------------------------------------------------------------------
$ 3,469,693
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 3.7%
- ------------------------------------------------------------------------
$1,745 Broad River, Water Authority Water
System, (MBIA), 5.375%, 6/1/26 $ 1,787,822
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
Insured-Water and Sewer (continued)
- ------------------------------------------------------------------------
$1,500 Kannapolis, Water and Sewer, (FSA),
(AMT), 5.25%, 2/1/26 $ 1,495,035
- ------------------------------------------------------------------------
$ 3,282,857
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 1.6%
- ------------------------------------------------------------------------
$1,500 Charlotte, (Government Facilities),
5.00%, 6/1/33 $ 1,469,175
- ------------------------------------------------------------------------
$ 1,469,175
- ------------------------------------------------------------------------
Water and Sewer -- 11.0%
- ------------------------------------------------------------------------
$1,700 Charlotte, Storm Water, 5.00%, 6/1/25 $ 1,703,128
1,975 Charlotte, Water and Sewer,
5.125%, 6/1/26 2,000,142
3,500 Charlotte, Water and Sewer,
5.25%, 6/1/25 3,921,890
2,000 Winston-Salem, Water and Sewer System,
5.125%, 6/1/28 2,217,120
- ------------------------------------------------------------------------
$ 9,842,280
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.7%
(identified cost $83,597,338) $88,373,859
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 1,170,560
- ------------------------------------------------------------------------
Net Assets -- 100.0% $89,544,419
- ------------------------------------------------------------------------
</Table>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by North Carolina
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at August 31, 2003, 22.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.5% to 10.1% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) Non-income producing security.
(5) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
80
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2003
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $60,890,842 $42,222,375 $51,509,016 $62,244,028
Unrealized appreciation 3,039,165 733,985 1,770,783 4,116,934
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $63,930,007 $42,956,360 $53,279,799 $66,360,962
- ------------------------------------------------------------------------------------------------------------
Cash $ -- $ 212,087 $ -- $ 278,179
Receivable for investments
sold -- -- 459,257 75,000
Interest receivable 819,227 628,223 732,177 877,695
Receivable for daily variation
margin on open financial
futures contracts 13,125 -- 13,209 13,344
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $64,762,359 $43,796,670 $54,484,442 $67,605,180
- ------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------
Demand note payable $ -- $ -- $ 300,000 $ --
Payable for open swap
contracts -- 70,930 -- --
Due to bank 16,563 -- 42,602 --
Accrued expenses 29,456 27,072 27,055 29,888
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 46,019 $ 98,002 $ 369,657 $ 29,888
- ------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $64,716,340 $43,698,668 $54,114,785 $67,575,292
- ------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $61,729,021 $43,035,613 $52,334,116 $63,511,069
Net unrealized appreciation
(computed on the basis of
identified cost) 2,987,319 663,055 1,780,669 4,064,223
- ------------------------------------------------------------------------------------------------------------
TOTAL $64,716,340 $43,698,668 $54,114,785 $67,575,292
- ------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
93
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2003
<Table>
<Caption>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $27,382,142 $77,657,544 $53,182,391 $83,597,338
Unrealized appreciation
(depreciation) 727,584 (822,761) 2,866,907 4,776,521
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $28,109,726 $76,834,783 $56,049,298 $88,373,859
- ---------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 24,663 $ 627,311 $ --
Receivable for investments
sold 537,935 2,466,119 -- 620,753
Interest receivable 386,100 963,405 656,333 973,095
Receivable for daily variation
margin on open financial
futures contracts 10,275 20,125 11,956 28,021
- ---------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $29,044,036 $80,309,095 $57,344,898 $89,995,728
- ---------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------
Payable for investments
purchased $ -- $ 1,598,321 $ -- $ --
Demand note payable 500,000 -- -- 400,000
Due to bank 17,635 -- -- 19,567
Accrued expenses 24,661 32,394 27,323 31,742
- ---------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 542,296 $ 1,630,715 $ 27,323 $ 451,309
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $28,501,740 $78,678,380 $57,317,575 $89,544,419
- ---------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $27,763,648 $79,580,640 $54,432,440 $84,739,239
Net unrealized appreciation
(depreciation) (computed on
the basis of identified
cost) 738,092 (902,260) 2,885,135 4,805,180
- ---------------------------------------------------------------------------------------------------------------------
TOTAL $28,501,740 $78,678,380 $57,317,575 $89,544,419
- ---------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
94
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2003
<Table>
<Caption>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $80,328,798 $51,021,898 $43,634,615 $106,704,028
Unrealized appreciation 1,241,391 821,398 2,192,547 4,728,240
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $81,570,189 $51,843,296 $45,827,162 $111,432,268
- -------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 401,046 $ 1,174,641 $ 226,863
Receivable for investments
sold 324,400 -- 920,853 200,000
Interest receivable 1,140,684 818,487 553,119 1,614,327
Receivable for daily variation
margin on open financial
futures contracts -- 7,656 9,714 39,231
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $83,035,273 $53,070,485 $48,485,489 $113,512,689
- -------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Payable for open swap
contracts $ 193,446 $ -- $ -- $ --
Payable for when-issued
securities -- 1,827,358 -- --
Due to bank 96,379 -- -- --
Accrued expenses 29,738 29,381 24,909 35,077
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 319,563 $ 1,856,739 $ 24,909 $ 35,077
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $82,715,710 $51,213,746 $48,460,580 $113,477,612
- -------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $81,667,765 $50,398,521 $46,253,223 $108,709,249
Net unrealized appreciation
(computed on the basis of
identified cost) 1,047,945 815,225 2,207,357 4,768,363
- -------------------------------------------------------------------------------------------------------------------
TOTAL $82,715,710 $51,213,746 $48,460,580 $113,477,612
- -------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
95
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------
Interest $ 3,599,223 $ 2,472,634 $3,262,430 $ 3,801,148
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 3,599,223 $ 2,472,634 $3,262,430 $ 3,801,148
- ------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 210,535 $ 112,691 $ 171,183 $ 228,505
Trustees fees and expenses 6,897 1,778 6,897 6,897
Legal and accounting services 21,253 18,848 26,004 20,968
Custodian fee 50,564 39,615 45,679 53,126
Miscellaneous 7,504 8,382 7,578 7,805
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 296,753 $ 181,314 $ 257,341 $ 317,301
- ------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 10,672 $ 9,493 $ 12,263 $ 12,572
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 10,672 $ 9,493 $ 12,263 $ 12,572
- ------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 286,081 $ 171,821 $ 245,078 $ 304,729
- ------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,313,142 $ 2,300,813 $3,017,352 $ 3,496,419
- ------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 227,714 $ 349,605 $ (361,566) $(2,727,187)
Financial futures contracts (93,284) 177,831 27,931 48,286
- ------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 134,430 $ 527,436 $ (333,635) $(2,678,901)
- ------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(1,465,217) $(1,565,186) $ (651,046) $ 1,393,216
Financial futures contracts (3,728) -- 38,078 (18,745)
Interest rate swap contracts -- (70,930) -- --
- ------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(1,468,945) $(1,636,116) $ (612,968) $ 1,374,471
- ------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,334,515) $(1,108,680) $ (946,603) $(1,304,430)
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,978,627 $ 1,192,133 $2,070,749 $ 2,191,989
- ------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
96
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------
Interest $1,681,963 $ 4,538,967 $ 3,441,251 $ 5,123,496
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $1,681,963 $ 4,538,967 $ 3,441,251 $ 5,123,496
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 60,657 $ 294,964 $ 185,506 $ 342,415
Trustees fees and expenses 1,818 6,871 6,946 6,867
Legal and accounting services 19,154 23,000 21,344 23,142
Custodian fee 28,953 62,948 43,462 67,750
Miscellaneous 7,934 9,147 10,074 9,440
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 118,516 $ 396,930 $ 267,332 $ 449,614
- ---------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 7,341 $ 16,256 $ 11,823 $ 16,212
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 7,341 $ 16,256 $ 11,823 $ 16,212
- ---------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 111,175 $ 380,674 $ 255,509 $ 433,402
- ---------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,570,788 $ 4,158,293 $ 3,185,742 $ 4,690,094
- ---------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 156,066 $ 345,751 $ 357,728 $ (959,779)
Financial futures contracts 78,878 91,840 18,093 125,928
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 234,944 $ 437,591 $ 375,821 $ (833,851)
- ---------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $ (942,203) $(2,060,643) $(1,522,911) $(1,865,385)
Financial futures contracts 45,690 (54,968) 42,896 139,231
- ---------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $ (896,513) $(2,115,611) $(1,480,015) $(1,726,154)
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (661,569) $(1,678,020) $(1,104,194) $(2,560,005)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 909,219 $ 2,480,273 $ 2,081,548 $ 2,130,089
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
97
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------------------
Interest $ 5,044,254 $ 2,832,521 $2,670,121 $ 6,632,020
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 5,044,254 $ 2,832,521 $2,670,121 $ 6,632,020
- -------------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 308,844 $ 137,196 $ 134,775 $ 459,099
Trustees fees and expenses 6,936 1,769 1,819 9,039
Legal and accounting services 24,067 20,998 19,258 25,276
Custodian fee 57,146 42,880 38,095 81,293
Miscellaneous 11,491 8,393 8,784 12,791
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 408,484 $ 211,236 $ 202,731 $ 587,498
- -------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 14,202 $ 9,564 $ 13,541 $ 12,478
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 14,202 $ 9,564 $ 13,541 $ 12,478
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 394,282 $ 201,672 $ 189,190 $ 575,020
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 4,649,972 $ 2,630,849 $2,480,931 $ 6,057,000
- -------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (119,063) $ 252,345 $ 14,833 $ (148,896)
Financial futures contracts 172,450 191,943 117,546 (17,521)
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 53,387 $ 444,288 $ 132,379 $ (166,417)
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(2,334,714) $(1,630,512) $ (798,853) $(2,684,031)
Financial futures contracts -- 26,935 35,073 214,776
Interest rate swap contracts (193,446) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(2,528,160) $(1,603,577) $ (763,780) $(2,469,255)
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(2,474,773) $(1,159,289) $ (631,401) $(2,635,672)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 2,175,199 $ 1,471,560 $1,849,530 $ 3,421,328
- -------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
98
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,313,142 $ 2,300,813 $ 3,017,352 $ 3,496,419
Net realized gain (loss) 134,430 527,436 (333,635) (2,678,901)
Net change in unrealized
appreciation (depreciation) (1,468,945) (1,636,116) (612,968) 1,374,471
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,978,627 $ 1,192,133 $ 2,070,749 $ 2,191,989
- ---------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,826,188 $ 4,263,125 $ 6,128,727 $ 6,168,539
Withdrawals (9,563,241) (5,016,611) (10,414,983) (10,294,305)
- ---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(1,737,053) $ (753,486) $ (4,286,256) $ (4,125,766)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ 241,574 $ 438,647 $ (2,215,507) $ (1,933,777)
- ---------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------
At beginning of year $64,474,766 $43,260,021 $ 56,330,292 $ 69,509,069
- ---------------------------------------------------------------------------------------------------------------
AT END OF YEAR $64,716,340 $43,698,668 $ 54,114,785 $ 67,575,292
- ---------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
99
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,570,788 $ 4,158,293 $ 3,185,742 $ 4,690,094
Net realized gain (loss) 234,944 437,591 375,821 (833,851)
Net change in unrealized
appreciation (depreciation) (896,513) (2,115,611) (1,480,015) (1,726,154)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 909,219 $ 2,480,273 $ 2,081,548 $ 2,130,089
- ------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,630,038 $ 8,575,652 $ 5,893,727 $ 7,117,679
Withdrawals (4,426,484) (17,793,080) (9,406,029) (15,522,233)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(1,796,446) $ (9,217,428) $(3,512,302) $ (8,404,554)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (887,227) $ (6,737,155) $(1,430,754) $ (6,274,465)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of year $29,388,967 $ 85,415,535 $58,748,329 $ 95,818,884
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $28,501,740 $ 78,678,380 $57,317,575 $ 89,544,419
- ------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
100
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,649,972 $ 2,630,849 $ 2,480,931 $ 6,057,000
Net realized gain (loss) 53,387 444,288 132,379 (166,417)
Net change in unrealized
appreciation (depreciation) (2,528,160) (1,603,577) (763,780) (2,469,255)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 2,175,199 $ 1,471,560 $ 1,849,530 $ 3,421,328
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 9,291,990 $10,958,295 $ 8,308,589 $ 7,960,993
Withdrawals (12,365,559) (7,921,651) (9,554,586) (17,554,176)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL
TRANSACTIONS $ (3,073,569) $ 3,036,644 $(1,245,997) $ (9,593,183)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ (898,370) $ 4,508,204 $ 603,533 $ (6,171,855)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 83,614,080 $46,705,542 $47,857,047 $119,649,467
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 82,715,710 $51,213,746 $48,460,580 $113,477,612
- ----------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
101
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2002
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,272,765 $ 2,245,811 $ 3,343,135 $ 3,850,104
Net realized gain (loss) (631,672) 602,730 367,293 (156,918)
Net change in unrealized
appreciation (depreciation) 347,603 (501,713) (974,424) (736,198)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 2,988,696 $ 2,346,828 $ 2,736,004 $ 2,956,988
- ---------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 6,809,501 $ 4,582,385 $ 4,309,009 $ 4,107,303
Withdrawals (9,594,679) (6,331,168) (14,387,224) (17,376,284)
- ---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(2,785,178) $(1,748,783) $(10,078,215) $(13,268,981)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ 203,518 $ 598,045 $ (7,342,211) $(10,311,993)
- ---------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------
At beginning of year $64,271,248 $42,661,976 $ 63,672,503 $ 79,821,062
- ---------------------------------------------------------------------------------------------------------------
AT END OF YEAR $64,474,766 $43,260,021 $ 56,330,292 $ 69,509,069
- ---------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
102
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2002
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,587,954 $ 4,280,034 $ 3,185,904 $ 5,076,726
Net realized gain (loss) (9,056) 29,738 (131,873) 630,398
Net change in unrealized
appreciation (depreciation) (162,433) 7,301 (122,874) (1,639,536)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,416,465 $ 4,317,073 $ 2,931,157 $ 4,067,588
- ------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,366,902 $ 12,850,221 $ 6,471,395 $ 7,401,642
Withdrawals (4,549,359) (14,548,820) (8,202,615) (16,674,894)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(1,182,457) $ (1,698,599) $(1,731,220) $ (9,273,252)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ 234,008 $ 2,618,474 $ 1,199,937 $ (5,205,664)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of year $29,154,959 $ 82,797,061 $57,548,392 $101,024,548
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $29,388,967 $ 85,415,535 $58,748,329 $ 95,818,884
- ------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
103
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2002
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,496,689 $ 2,286,247 $ 2,469,992 $ 6,330,915
Net realized gain (loss) 970,187 (184,633) 42,386 594,776
Net change in unrealized
appreciation (depreciation) (1,264,734) 8,493 (77,276) (2,029,896)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,202,142 $ 2,110,107 $ 2,435,102 $ 4,895,795
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 9,273,139 $10,460,995 $ 5,681,377 $ 10,163,485
Withdrawals (13,812,339) (5,687,013) (7,628,407) (17,512,878)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL
TRANSACTIONS $ (4,539,200) $ 4,773,982 $(1,947,030) $ (7,349,393)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ (337,058) $ 6,884,089 $ 488,072 $ (2,453,598)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 83,951,138 $39,821,453 $47,368,975 $122,103,065
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 83,614,080 $46,705,542 $47,857,047 $119,649,467
- ----------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
104
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
ALABAMA PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.46% 0.45% 0.46% 0.49% 0.46%
Expenses after custodian
fee reduction 0.44% 0.44% 0.44% 0.48% 0.45%
Net investment income 5.08% 5.21% 5.31% 5.57% 5.18%
Portfolio Turnover 10% 25% 14% 8% 23%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.09% 4.86% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $64,716 $64,475 $64,271 $66,653 $82,141
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.20% to 5.21%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
105
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
ARKANSAS PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.41% 0.40% 0.39% 0.46% 0.45%
Expenses after custodian
fee reduction 0.39% 0.39% 0.37% 0.45% 0.43%
Net investment income 5.22% 5.38% 5.48% 5.65% 5.25%
Portfolio Turnover 25% 23% 9% 14% 24%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 2.81% 5.83% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $43,699 $43,260 $42,662 $42,233 $50,491
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.37% to 5.38%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
106
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
GEORGIA PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.46% 0.46% 0.45% 0.49% 0.46%
Expenses after custodian
fee reduction 0.44% 0.45% 0.42% 0.47% 0.42%
Net investment income 5.38% 5.55% 5.47% 5.69% 5.31%
Portfolio Turnover 16% 18% 8% 13% 38%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.82% 4.82% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $54,115 $56,330 $63,673 $63,067 $71,220
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.54% to 5.55%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
107
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
KENTUCKY PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.46% 0.45% 0.48% 0.52% 0.49%
Expenses after custodian
fee reduction 0.44% 0.44% 0.44% 0.50% 0.47%
Net investment income 5.05% 5.25% 5.17% 5.75% 5.36%
Portfolio Turnover 10% 5% 15% 11% 11%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.22% 4.39% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $67,575 $69,509 $79,821 $81,708 $97,762
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.23% to 5.25%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
108
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
LOUISIANA PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.40% 0.40% 0.43% 0.39% 0.37%
Expenses after custodian
fee reduction 0.38% 0.38% 0.40% 0.35% 0.34%
Net investment income 5.33% 5.43% 5.28% 5.63% 5.16%
Portfolio Turnover 21% 25% 14% 14% 20%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.16% 5.02% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $28,502 $29,389 $29,155 $28,441 $32,668
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.28% to 5.43%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
109
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
MARYLAND PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.47% 0.48% 0.47% 0.51% 0.49%
Expenses after custodian
fee reduction 0.45% 0.46% 0.42% 0.49% 0.46%
Net investment income 4.96% 5.12% 5.30% 5.18% 5.05%
Portfolio Turnover 28% 25% 18% 9% 31%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 2.90% 5.17% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $78,678 $85,416 $82,797 $81,676 $95,223
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets by less than 0.01%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
110
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
MISSOURI PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.45% 0.44% 0.45% 0.49% 0.46%
Expenses after custodian
fee reduction 0.43% 0.43% 0.43% 0.48% 0.44%
Net investment income 5.39% 5.60% 5.65% 5.80% 5.28%
Portfolio Turnover 20% 8% 8% 8% 21%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.65% 5.24% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $57,318 $58,748 $57,548 $58,927 $68,264
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.59% to 5.60%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
111
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
NORTH CAROLINA PORTFOLIO
--------------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.48% 0.48% 0.49% 0.52% 0.50%
Expenses after custodian
fee reduction 0.46% 0.48% 0.46% 0.49% 0.49%
Net investment income 4.99% 5.28% 5.34% 5.66% 5.24%
Portfolio Turnover 21% 21% 28% 17% 3%
- ------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 2.29% 4.43% -- -- --
- ------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $89,544 $95,819 $101,025 $110,493 $129,330
- ------------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.27% to 5.28%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
112
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
OREGON PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.48% 0.51% 0.48%
Expenses after custodian
fee reduction 0.47% 0.45% 0.47% 0.50% 0.47%
Net investment income 5.50% 5.46% 5.45% 5.63% 5.27%
Portfolio Turnover 16% 21% 13% 25% 35%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 2.58% 5.28% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $82,716 $83,614 $83,951 $83,712 $94,317
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.43% to 5.46%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
113
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
SOUTH CAROLINA PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.43% 0.40% 0.39% 0.44% 0.43%
Expenses after custodian
fee reduction 0.41% 0.38% 0.34% 0.42% 0.40%
Net investment income 5.36% 5.49% 5.56% 5.77% 5.33%
Portfolio Turnover 37% 15% 21% 12% 26%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.15% 5.07% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $51,214 $46,706 $39,821 $35,070 $44,833
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.46% to 5.49%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
114
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
TENNESSEE PORTFOLIO
-----------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2003 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.42% 0.40% 0.41% 0.44% 0.42%
Expenses after custodian
fee reduction 0.39% 0.38% 0.37% 0.42% 0.41%
Net investment income 5.05% 5.27% 5.39% 5.61% 5.23%
Portfolio Turnover 17% 19% 11% 9% 13%
- ---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.90% 5.38% -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $48,461 $47,857 $47,369 $45,015 $49,407
- ---------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets by less than 0.01%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
115
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
VIRGINIA PORTFOLIO
---------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------------
2003 2002(1) 2001 2000 1999
- -------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.50% 0.49% 0.49% 0.54% 0.50%
Expenses after custodian
fee reduction 0.49% 0.49% 0.47% 0.53% 0.48%
Net investment income 5.13% 5.31% 5.28% 5.61% 5.26%
Portfolio Turnover 20% 33% 39% 23% 17%
- -------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 2.89% 4.25% -- -- --
- -------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $113,478 $119,649 $122,103 $115,776 $137,624
- -------------------------------------------------------------------------------------------------
</Table>
(1) 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 August 31, 2002 was to increase the ratio
of net investment income to average net assets from 5.30% to 5.31%.
Ratios for the periods prior to September 1, 2001 have not been restated
to reflect this change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
116
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Alabama Municipals Portfolio (Alabama Portfolio), Arkansas Municipals
Portfolio (Arkansas Portfolio), Georgia Municipals Portfolio (Georgia
Portfolio), Kentucky Municipals Portfolio (Kentucky Portfolio), Louisiana
Municipals Portfolio (Louisiana Portfolio), Maryland Municipals Portfolio
(Maryland Portfolio), Missouri Municipals Portfolio (Missouri Portfolio),
North Carolina Municipals Portfolio (North Carolina Portfolio), Oregon
Municipals Portfolio (Oregon Portfolio), South Carolina Municipals Portfolio
(South Carolina Portfolio), Tennessee Municipals Portfolio (Tennessee
Portfolio) and Virginia Municipals Portfolio (Virginia Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940, as amended, as diversified open-end management investment companies.
The Portfolios, which were organized as trusts under the laws of the State of
New York on May 1, 1992, seek to achieve current income exempt from regular
federal income tax and from particular state or local income or other taxes.
The Declarations of Trust permit the Trustees to issue interests in the
Portfolios. At August 31, 2003, Eaton Vance Alabama Municipals Fund, Eaton
Vance Arkansas Municipals Fund, Eaton Vance Georgia Municipals Fund, Eaton
Vance Kentucky Municipals Fund, Eaton Vance Louisiana Municipals Fund, Eaton
Vance Maryland Municipals Fund, Eaton Vance Missouri Municipals Fund, Eaton
Vance North Carolina Municipals Fund, Eaton Vance Oregon Municipals Fund,
Eaton Vance South Carolina Municipals Fund, Eaton Vance Tennessee Municipals
Fund and Eaton Vance Virginia Municipals Fund each held an approximate 99.9%
interest in its corresponding Portfolio. The following is a summary of
significant accounting policies of the Portfolios. The policies are in
conformity with accounting principles generally accepted in the United States
of America.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Financial futures contracts and
options on financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Over-the-counter options on financial
futures contracts are normally valued at the mean between the latest bid and
asked prices. Interest rate swaps are normally valued on the basis of
valuations furnished by a broker. 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 Federal Taxes -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit. Interest income received by the Portfolios on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from federal income tax
when allocated to each Portfolio's investors. The portion of such interest,
if any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed for both hedging
against anticipated future changes in interest rates and investment purposes.
Should interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a
117
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS CONT'D
loss in the amount of the cost of the option. When a Portfolio enters into a
closing sale transaction, a Portfolio will realize a gain or loss depending
on whether the sales proceeds from the closing sale transaction are greater
or less than the cost of the option. When a Portfolio exercises a put option,
settlement is made in cash. The risk associated with purchasing put options
is limited to the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Interest Rate Swaps -- A 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 Portfolios make semi-annual
payments at a fixed interest rate. In exchange, a 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.
H Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
I Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statements of Operations.
J 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.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended August 31, 2003, the Portfolios paid advisory
fees as follows:
<Table>
<Caption>
PORTFOLIO AMOUNT EFFECTIVE RATE*
--------------------------------------------------------------------
Alabama $ 210,535 0.32%
Arkansas 112,691 0.26%
Georgia 171,183 0.31%
Kentucky 228,505 0.33%
Louisiana 60,657 0.21%
Maryland 294,964 0.35%
Missouri 185,506 0.31%
North Carolina 342,415 0.36%
Oregon 308,844 0.37%
South Carolina 137,196 0.28%
Tennessee 134,775 0.27%
Virginia 459,099 0.39%
</Table>
* As a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation Plan.
For the year ended August 31, 2003, no significant amounts have been
deferred.
118
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS CONT'D
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
During the year ended August 31, 2003, certain Portfolios engaged in purchase
and sale transactions with other Portfolios that also utilize BMR as an
investment adviser. These purchase and sale transactions complied with
Rule 17a-7 under the Investment Company Act of 1940 and amounted to:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
----------------------------------------------------------------
Arkansas $1,286,500 $1,586,235
Louisiana -- $ 36,448
Maryland $ 505,820 --
Missouri $ 254,030 $ 811,950
North Carolina $ 159,980 $ 505,820
Oregon $1,027,480 $ 531,820
Tennessee $2,154,508 --
South Carolina -- $ 930,924
Virginia -- $1,024,040
</Table>
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended August 31,
2003, were as follows:
<Table>
<Caption>
ALABAMA PORTFOLIO
------------------------------------------------------
Purchases $ 7,611,624
Sales 6,186,200
<Caption>
ARKANSAS PORTFOLIO
------------------------------------------------------
Purchases $ 12,982,100
Sales 11,000,758
<Caption>
GEORGIA PORTFOLIO
------------------------------------------------------
Purchases $ 8,504,423
Sales 8,586,527
<Caption>
KENTUCKY PORTFOLIO
------------------------------------------------------
Purchases $ 6,549,196
Sales 7,325,461
<Caption>
LOUISIANA PORTFOLIO
------------------------------------------------------
Purchases $ 6,167,628
Sales 6,945,849
<Caption>
MARYLAND PORTFOLIO
------------------------------------------------------
Purchases $ 22,606,352
Sales 27,065,525
<Caption>
MISSOURI PORTFOLIO
------------------------------------------------------
Purchases $ 11,217,731
Sales 12,208,740
<Caption>
NORTH CAROLINA PORTFOLIO
------------------------------------------------------
Purchases $ 19,186,083
Sales 22,607,432
<Caption>
OREGON PORTFOLIO
------------------------------------------------------
Purchases $ 14,756,145
Sales 12,994,317
<Caption>
SOUTH CAROLINA PORTFOLIO
------------------------------------------------------
Purchases $ 25,524,806
Sales 17,736,633
<Caption>
TENNESSEE PORTFOLIO
------------------------------------------------------
Purchases $ 8,194,601
Sales 8,444,977
<Caption>
VIRGINIA PORTFOLIO
------------------------------------------------------
Purchases $ 23,137,317
Sales 27,119,520
</Table>
119
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS CONT'D
4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at August 31, 2003, as computed on a
federal income tax basis, are as follows:
<Table>
<Caption>
ALABAMA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 60,885,134
-------------------------------------------------------
Gross unrealized appreciation $ 3,879,511
Gross unrealized depreciation (834,638)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,044,873
-------------------------------------------------------
<Caption>
ARKANSAS PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 42,218,774
-------------------------------------------------------
Gross unrealized appreciation $ 1,864,014
Gross unrealized depreciation (1,126,428)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 737,586
-------------------------------------------------------
<Caption>
GEORGIA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 51,445,735
-------------------------------------------------------
Gross unrealized appreciation $ 3,705,884
Gross unrealized depreciation (1,871,820)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,834,064
-------------------------------------------------------
<Caption>
KENTUCKY PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 62,337,870
-------------------------------------------------------
Gross unrealized appreciation $ 3,725,080
Gross unrealized depreciation (245,300)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,479,780
-------------------------------------------------------
<Caption>
LOUISIANA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 27,154,367
-------------------------------------------------------
Gross unrealized appreciation $ 1,317,556
Gross unrealized depreciation (351,689)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 965,867
-------------------------------------------------------
<Caption>
MARYLAND PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 78,012,763
-------------------------------------------------------
Gross unrealized appreciation $ 3,180,744
Gross unrealized depreciation (4,438,224)
-------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,257,480)
-------------------------------------------------------
<Caption>
MISSOURI PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 53,165,303
-------------------------------------------------------
Gross unrealized appreciation $ 3,486,797
Gross unrealized depreciation (602,802)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,883,995
-------------------------------------------------------
<Caption>
NORTH CAROLINA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 83,536,315
-------------------------------------------------------
Gross unrealized appreciation $ 5,892,091
Gross unrealized depreciation (1,054,547)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,837,544
-------------------------------------------------------
<Caption>
OREGON PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 80,253,267
-------------------------------------------------------
Gross unrealized appreciation $ 2,699,936
Gross unrealized depreciation (1,383,014)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,316,922
-------------------------------------------------------
<Caption>
SOUTH CAROLINA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 51,006,535
-------------------------------------------------------
Gross unrealized appreciation $ 1,951,071
Gross unrealized depreciation (1,114,310)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 836,761
-------------------------------------------------------
<Caption>
TENNESSEE PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 43,631,951
-------------------------------------------------------
Gross unrealized appreciation $ 2,472,588
Gross unrealized depreciation (277,377)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,195,211
-------------------------------------------------------
</Table>
120
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS CONT'D
<Table>
<Caption>
VIRGINIA PORTFOLIO
-------------------------------------------------------
AGGREGATE COST $ 106,672,530
-------------------------------------------------------
Gross unrealized appreciation $ 5,749,367
Gross unrealized depreciation (989,629)
-------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,759,738
-------------------------------------------------------
</Table>
5 Line of Credit
- -------------------------------------------
The Portfolios participate 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 Portfolios solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. At August 31,
2003, the Georgia Portfolio, the Louisiana Portfolio, and the North Carolina
Portfolio had balances outstanding pursuant to this line of credit of
$300,000, $500,000, and $400,000, respectively. The Portfolios did not have
any significant borrowings or allocated fees during the year ended
August 31, 2003.
6 Financial Instruments
- -------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and interest rate swaps and may involve, to a
varying degree, elements of risk in excess of the amounts recognized for
financial statement purposes. The notional or contractual amounts of these
instruments represent the investment a Portfolio has in particular classes of
financial instruments and does not necessarily represent the amounts
potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations held under these financial instruments at
August 31, 2003, is as follows:
<Table>
<Caption>
FUTURES CONTRACTS
------------------------------------------------------------------------------------------------
NET UNREALIZED
EXPIRATION APPRECIATION
PORTFOLIO DATE CONTRACTS POSITION (DEPRECIATION)
------------------------------------------------------------------------------------------------
Alabama 12/03 60 U.S. Treasury Bond Short $(51,846)
------------------------------------------------------------------------------------------------
Georgia 12/03 69 U.S. Treasury Bond Short $ 9,886
------------------------------------------------------------------------------------------------
Kentucky 12/03 61 U.S. Treasury Bond Short $(52,711)
------------------------------------------------------------------------------------------------
Louisiana 12/03 55 U.S. Treasury Bond Short $ 10,508
------------------------------------------------------------------------------------------------
Maryland 12/03 92 U.S. Treasury Bond Short $(79,499)
------------------------------------------------------------------------------------------------
Missouri 12/03 64 U.S. Treasury Bond Short $ 18,228
------------------------------------------------------------------------------------------------
North Carolina 12/03 150 U.S. Treasury Bond Short $ 28,659
------------------------------------------------------------------------------------------------
South Carolina 12/03 35 U.S. Treasury Bond Short $ (6,173)
------------------------------------------------------------------------------------------------
Tennessee 12/03 52 U.S. Treasury Bond Short $ 14,810
------------------------------------------------------------------------------------------------
Virginia 12/03 210 U.S. Treasury Bond Short $ 40,123
</Table>
At August 31, 2003, the Portfolios had sufficient cash and/or securities
to cover margin requirements on open futures contracts.
At August 31, 2003, the Arkansas Portfolio and the Oregon Portfolio have
entered into interest rate swap agreements with JP Morgan Chase Bank whereby
the Portfolios make bi-annual payments at a fixed rate equal to 4.55% on the
notional amount of $5,500,000 and $15,000,000, respectively. In exchange, the
Portfolios receive payments at a rate equal to the Bond Market Association
Municipal Swap Index on the same notional amounts. The value of the
contracts, which terminate November 19, 2023, are recorded as a payable for
open swap contracts on the Arkansas Portfolio and the Oregon Portfolio of
$70,930 and $193,446, respectively, at August 31, 2003.
121
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
NOTES TO FINANCIAL STATEMENTS CONT'D
7 Interestholder Meeting (Unaudited)
- --------------------------------------------------------------------------------
Each Portfolio held a Special Meeting of Interestholders on June 6, 2003 to
elect Trustees. The results of the vote were as follows:
<Table>
<Caption>
JESSICA M. DONALD R. JAMES B. SAMUEL L. WILLIAM H. NORTON H. LYNN A.
PORTFOLIO BIBLIOWICZ DWIGHT HAWKES HAYES, III PARK REAMER STOUT
---------------------------------------------------------------------------------------------------------------------
Alabama Portfolio
Affirmative 99% 99% 99% 99% 99% 99% 99%
Withhold 1% 1% 1% 1% 1% 1% 1%
Arkansas Portfolio
Affirmative 99% 99% 99% 99% 99% 99% 99%
Withhold 1% 1% 1% 1% 1% 1% 1%
Georgia Portfolio
Affirmative 98% 98% 98% 98% 98% 98% 98%
Withhold 2% 2% 2% 2% 2% 2% 2%
Kentucky Portfolio
Affirmative 98% 98% 98% 98% 98% 98% 98%
Withhold 2% 2% 2% 2% 2% 2% 2%
Louisiana Portfolio
Affirmative 98% 98% 98% 98% 98% 98% 98%
Withhold 2% 2% 2% 2% 2% 2% 2%
Maryland Portfolio
Affirmative 98% 98% 99% 98% 99% 98% 98%
Withhold 2% 2% 1% 2% 1% 2% 2%
Missouri Portfolio
Affirmative 97% 96% 97% 97% 96% 96% 96%
Withhold 3% 4% 3% 3% 4% 4% 4%
North Carolina Portfolio
Affirmative 99% 99% 99% 99% 99% 99% 99%
Withhold 1% 1% 1% 1% 1% 1% 1%
Oregon Portfolio
Affirmative 98% 98% 98% 98% 98% 98% 98%
Withhold 2% 2% 2% 2% 2% 2% 2%
South Carolina Portfolio
Affirmative 99% 98% 99% 99% 99% 99% 99%
Withhold 1% 2% 1% 1% 1% 1% 1%
Tennessee Portfolio
Affirmative 99% 99% 99% 99% 99% 99% 99%
Withhold 1% 1% 1% 1% 1% 1% 1%
Virginia Portfolio
Affirmative 99% 99% 99% 99% 99% 99% 99%
Withhold 1% 1% 1% 1% 1% 1% 1%
</Table>
Results are rounded to the nearest whole number. Donald R. Dwight retired
as a Trustee effective July 1, 2003 pursuant to the mandatory retirement
policy of the Portfolios.
122
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS
OF ALABAMA MUNICIPALS PORTFOLIO, ARKANSAS MUNICIPALS PORTFOLIO, GEORGIA
MUNICIPALS PORTFOLIO, KENTUCKY MUNICIPALS PORTFOLIO, LOUISIANA MUNICIPALS
PORTFOLIO, MARYLAND MUNICIPALS PORTFOLIO, MISSOURI MUNICIPALS PORTFOLIO, NORTH
CAROLINA MUNICIPALS PORTFOLIO, OREGON MUNICIPALS PORTFOLIO, SOUTH CAROLINA
MUNICIPALS PORTFOLIO, TENNESSEE MUNICIPALS PORTFOLIO AND VIRGINIA MUNICIPALS
PORTFOLIO:
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Alabama Municipals Portfolio, Arkansas
Municipals Portfolio, Georgia Municipals Portfolio, Kentucky Municipals
Portfolio, Louisiana Municipals Portfolio, Maryland Municipals Portfolio,
Missouri Municipals Portfolio, North Carolina Municipals Portfolio, Oregon
Municipals Portfolio, South Carolina Municipals Portfolio, Tennessee Municipals
Portfolio and Virginia Municipals Portfolio (the "Portfolios") as of August 31,
2003, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended August 31, 2003 and 2002
and supplementary data for each of the years in the five year period ended
August 31, 2003. These financial statements and supplementary data are the
responsibility of the Portfolios' management. Our responsibility is to express
an opinion on the financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at August 31, 2003, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at August 31, 2003, the results of their operations, the changes in
their net assets and their supplementary data for the respective stated periods,
in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 10, 2003
123
<Page>
EATON VANCE MUNICIPALS FUNDS
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Municipals Trust (the Trust),
Alabama Municipals Portfolio (ALP), Arkansas Municipals Portfolio (ARP), Georgia
Municipals Portfolio (GAP), Kentucky Municipals Portfolio (KYP), Louisiana
Municipals Portfolio (LAP), Maryland Municipals Portfolio (MDP), Missouri
Municipals Portfolio (MOP), North Carolina Municipals Portfolio (NCP), Oregon
Municipals Portfolio (ORP), South Carolina Municipals Portfolio (SCP), Tennessee
Municipals Portfolio (TNP) and Virginia Municipals Portfolio (VAP) are
responsible for the overall management and supervision of the Trust's and
Portfolios' affairs. The Trustees and officers of the Trust and the Portfolios
are listed below. Except as indicated, each individual has held the office shown
or other offices in the same company for the last five years. Trustees and
officers of the Trust and the Portfolios hold indefinite terms of office. The
"noninterested Trustees" consist of those Trustees who are not "interested
persons" of the Trust, as that term is defined under the 1940 Act. The business
address of each Trustee and officer is The Eaton Vance Building, 255 State
Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance
Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management,
"BMR" refers to Boston Management and Research and "EVD" refers to Eaton Vance
Distributors, Inc. EVC and EV are the corporate parent and trustee,
respectively, of EVM and BMR. EVD is the Funds' principal underwriter, the
Portfolios' placement agent and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
-----------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Trustee Since 1998 President and Chief 193 None
Bibliowicz Executive Officer of
11/28/59 National Financial
Partners (financial
services company)
(since April 1999).
President and Chief
Operating Officer of
John A. Levin & Co.
(registered investment
adviser) (July 1997 to
April 1999) and a
Director of Baker,
Fentress & Company,
which owns John A.
Levin & Co. (July 1997
to April 1999).
Ms. Bibliowicz is an
interested person
because of her
affiliation with a
brokerage firm.
James B. Hawkes Trustee and Vice Trustee and Vice Chairman, President and 193 Director of EVC
11/9/41 President President of the Chief Executive Officer
Trust since 1985; of BMR, EVC, EVM and
of the Portfolios EV; Director of EV;
since 1992 Vice President and
Director of EVD.
Trustee and/or officer
of 193 registered
investment companies in
the Eaton Vance Fund
Complex. Mr. Hawkes is
an interested person
because of his
positions with BMR,
EVM, EVC and EV, which
are affiliates of the
Trust and the
Portfolios.
</Table>
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
-----------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, Trustee Trustee of the Jacob H. Schiff 193 Director of Tiffany &
III Trust since 1986; Professor of Investment Co. (specialty
2/23/35 of ALP, GAP, KYP, Banking retailer) and
MDP, MOP, NCP, Emeritus, Harvard Telect, Inc.
ORP, TNP and VAP University Graduate (telecommunication
since 1992; of School of services company)
ARP, LAP and SCP Business Administration.
since 1993
William H. Park Trustee Since 2003 President and Chief 190 None
9/19/47 Executive Officer,
Prizm Capital
Management, LLC
(investment management
firm) (since 2002).
Executive Vice
President and Chief
Financial
Officer, United Asset
Management Corporation
(a holding
company owning
institutional
investment management
firms) (1982-2001).
Ronald A. Pearlman Trustee Since 2003 Professor of Law, 190 None
7/10/40 Georgetown University
Law Center
(since 1999). Tax
Partner, Covington &
Burling,
Washington, DC
(1991-2000).
</Table>
124
<Page>
EATON VANCE MUNICIPALS FUNDS
MANAGEMENT AND ORGANIZATION CONT'D
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
-----------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEES (CONTINUED)
Norton H. Reamer Trustee Trustee of the President, Unicorn 193 None
9/21/35 Trust since 1985; Corporation (an
of ALP, GAP, KYP, investment and
MDP, MOP, NCP, financial advisory
ORP, TNP and VAP services company)
since 1992; of (since September 2000).
ARP, LAP and SCP Chairman, Hellman,
since 1993 Jordan Management
Co., Inc. (an
investment management
company) (since
November 2000).
Advisory Director of
Berkshire Capital
Corporation (investment
banking firm) (since
June 2002). Formerly
Chairman of the Board,
United Asset Management
Corporation (a holding
company owning
institutional
investment management
firms) and Chairman,
President and Director,
UAM Funds (mutual
funds).
Lynn A. Stout Trustee Since 1998 Professor of Law, 193 None
9/14/57 University of
California at Los
Angeles School of Law
(since July 2001).
Formerly, Professor of
Law, Georgetown
University Law Center.
</Table>
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH PORTFOLIOS SERVICE DURING PAST FIVE YEARS
------------------------------------------------------------------------------------------
Thomas J. Fetter President Since 1993 Vice President of EVM and BMR.
8/20/43 Trustee and President of The
Massachusetts Health &
Education Tax-Exempt Trust.
Officer of 128 registered
investment companies managed
by EVM or BMR.
William H. Ahern, Vice President of Vice President of Vice President of EVM and BMR.
Jr. ALP, KYP and MDP ALP since 1997; of Officer of 36 registered
7/28/59 KYP since 1998; of investment companies managed
MDP since 2000 by EVM or BMR.
Cynthia J. Clemson Vice President of Since 1995 Vice President of EVM and BMR.
3/2/63 GAP, MOP and TNP Officer of 20 registered
investment companies managed
by EVM or BMR.
Robert B. Vice President Since 1993 Vice President of EVM and BMR.
MacIntosh Officer of 128 registered
1/22/57 investment companies managed
by EVM or BMR.
Thomas M. Metzold Vice President of Vice President of Vice President of EVM and BMR.
8/3/58 ARP and ORP ARP since 2000; of Officer of 7 registered
ORP since 1996 investment companies managed
by EVM or BMR.
Alan R. Dynner Secretary Since 1997 Vice President, Secretary and
10/10/40 Chief Legal Officer of BMR,
EVM, EVD, EV and EVC. Officer
of 193 registered investment
companies managed by EVM or
BMR.
Kristin S. Treasurer of LAP, Since 2002(2) Assistant Vice President of
Anagnost MOP, ORP and TNP EVM and BMR. Officer of 110
6/12/65 registered investment
companies managed by EVM or
BMR.
Barbara E. Treasurer of ALP, Since 2002(2) Vice President of EVM and BMR.
Campbell ARP, GAP, KYP, Officer of 193 registered
6/19/57 MDP, NCP, SCP and investment companies managed
VAP by EVM or BMR.
James L. O'Connor Treasurer of the Since 1989 Vice President of BMR, EVM and
4/1/45 Trust EVD. Officer of 115 registered
investment companies managed
by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(2) Prior to 2002, Ms. Anagnost served as Assistant Treasurer since 1998 and
Ms. Campbell served as Assistant Treasurer since 1993.
The SAI for the Funds includes additional information about the Trustees and
officers of the Funds and the Portfolios and can be obtained without charge by
calling 1-800-225-6265.
125
<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 this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this 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.
NORTH CAROLINA MUNICIPALS PORTFOLIO
By: /S/ Thomas J. Fetter
--------------------------
Thomas J. Fetter
President
Date: October 16, 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/ Barbara E. Campbell
--------------------------
Barbara E. Campbell
Treasurer
Date: October 16, 2003
----------------
By: /S/ Thomas J. Fetter
--------------------------
Thomas J. Fetter
President
Date: October 16, 2003
----------------