<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
January 31
----------
Date of Fiscal Year End
January 31, 2004
----------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EATON VANCE(R) MANAGED INVESTMENTS LOGO]
[GRAPHIC]
SEMI ANNUAL REPORT JANUARY 31, 2004
[GRAPHIC]
EATON VANCE
MUNICIPALS
TRUST
[GRAPHIC]
ARIZONA
COLORADO
CONNECTICUT
MICHIGAN
MINNESOTA
NEW JERSEY
PENNSYLVANIA
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial
privacy. This notice is being sent to comply with privacy regulations of
the Securities and Exchange Commission. Each of the above financial
institutions has in effect the following policy with respect to nonpublic
personal information about its customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will
be collected.
- None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality
of such information.
For more information about Eaton Vance's privacy policies, call: 1-800-262-1122
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one
copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at 1-800-262-1122, or contact your financial
adviser.
Your instructions that householding not apply to delivery of your Eaton
Vance documents will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
[SIDENOTE]
From time to time, funds are required to vote proxies related to the securities
held by the funds. The Eaton Vance Funds or their underlying Portfolios vote
proxies according to a set of policies and procedures approved by the Funds' and
Portfolios' Boards. You may obtain a description of these policies and
procedures without charge, upon request, by calling 1-800-262-1122. This
description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2004
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J FETTER]
Thomas J. Fetter
President
Amid the market volatility and external political shocks of recent years, many
investors have become more concerned with risk management. That trend has been
especially true in the municipal bond market, where the use of bond insurance
has become increasingly common. Today, roughly half of all municipal bond
issuance is composed of insured bonds. As part of our continuing educational
series, we thought it might be helpful to discuss bond insurance and its impact
on the municipal market.
THE USE OF BOND INSURANCE HAS GROWN DRAMATICALLY OVER THE YEARS...
Municipal bond insurance was initially developed in 1971, when AMBAC Assurance
Corp., the nation's first municipal insurer, offered insurance as a way to
guarantee principal and interest payments on bond issues in the event of a bond
default. Over the following three decades, the municipal market has witnessed a
surge in the use of insurance. For example, in 1980, just 3% of all municipal
issuance was insured. However, by late 2003, that figure had risen to roughly
50%. Insurance has clear benefits for purchasers: the elimination of default
risk of the underlying issuer, AAA quality ratings and an enhancement of an
issue's liquidity. (It's important to note that, while insured bonds are insured
as to principal and interest payments, they still remain subject to interest
rate and market risks.)
THE MECHANICS OF MUNICIPAL BOND INSURANCE...
We start with the underlying reality that an issuer with a AAA credit rating
will pay less in interest expense than an issuer with a lower credit rating.
Thus, an issuer must first determine whether purchasing insurance is financially
feasible. That is, will the interest savings offset the cost of insurance? If
so, the issuer must then qualify for insurance. Just as an individual must
qualify for insurance, so must a bond issuer meet certain criteria. The issuer
provides key financial data and documents to potential insurers that are then
used to assess the issuer's financial strength and underlying fundamentals.
If the issuer qualifies, insurance is then effected by "direct purchase," with
the payment of a one-time premium by the issuer. The premium fee is calculated
as a percentage of the value of the bond issue - typically, around 50 basis
points (0.50%), but more if the credit entails higher risk. (An alternative
method of purchase involves "elective bidding," in which the insurance is
purchased by bond dealers, who determine at the time the bond is sold whether it
is more attractive as an insured or uninsured bond.)
IN-DEPTH CREDIT ANALYSIS INCLUDES INSURERS AS WELL AS BOND ISSUERS...
When analyzing municipal bonds, an investor naturally researches the issuer's
fundamentals. However, if the bond is insured, the analyst is concerned with the
soundness of the insurer as well. At Eaton Vance, analysis of the insured
segment is an integral part of our total municipal research effort. Research
includes, among other areas, analysis of an insurer's claims-paying ability, its
capital structure and the overall quality of its portfolio of policies. Based on
claims-paying ability, there are currently six bond insurers rated AAA by
Moody's Investors Service, Standard & Poor's and Fitch Ratings - the nation's
leading rating agencies.
INSURERS CAN PLAY A VALUABLE ROLE IN STRUCTURING BOND DEALS AND IMPROVING CREDIT
QUALITY...
Insurers play an important role in capital formation for municipal borrowers,
working closely with municipal officials to forge deals that raise capital for
vital projects at affordable interest rates. In so doing, the insurers can help
states and municipalities achieve more efficient fiscal management. Insurers
often re-structure bond deals by insisting on provisions that are intended to
make the deal more secure. That has proved a major benefit to investors in
recent years. In a more risk-conscious climate, we believe that an ongoing
analysis of the insured market is a necessary discipline to invest successfully
in today's municipal market.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
March 10, 2004
[SIDENOTE]
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<Page>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2004
MARKET RECAP
The U.S. economy gained strength in the year ended January 31, 2004, although
still characterized by uneven job growth. Spending - by individuals and
businesses alike - was helped by improving consumer and investor sentiment.
While fixed-income investors showed some concern about the improved economic
outlook, the bond market nonetheless registered solid returns in 2003.
CONSTRUCTION, RETAILING, FINANCIAL SERVICES AND MANUFACTURING SHOWED SOME
STRENGTH IN 2003...
The long-beleaguered manufacturing sector saw some improvement in 2003, as
capital spending showed signs of renewal. Meanwhile, the construction sector
remained strong, supported by strong residential building. The impressive
performance by the equity markets resulted in rising profits and additional
hiring within the financial service industry. Finally, consumers were encouraged
by the tax cuts enacted in May by Congress, which boosted spending and increased
retail jobs.
AMID SLOW JOB GROWTH AND LOW INFLATION, THE FEDERAL RESERVE KEPT INTEREST RATES
LOW...
The nation's Gross Domestic Product grew by 4.0% in the fourth quarter of 2003,
following an 8.2% surge in the third quarter. While these reports confirmed that
a recovery was in progress, the slow pace of job creation remained a concern.
The nation's unemployment rate was 5.6% in January 2004, down from 5.8% a year
ago. There were signs of hiring within specific sectors -temporary employment
agencies, the financial services sector and the building trades. However, nearly
three years after the onset of the 2001 recession, total jobs had still not
recovered to pre-recession levels, a phenomenon last seen in 1939.
Inflation remained generally under control. While, not surprisingly, health care
costs continued to rise, wage pressures were modest in the slow labor markets.
Retail prices were generally flat, and manufacturers, despite increases in key
inputs like energy and steel, generally held the line with respect to pricing.
With inflation in check, the Federal Reserve has maintained an accommodative
monetary policy, holding its Federal Funds rate - a key short-term interest rate
barometer - at 1.00%, where it has stood since June 2003.
[CHART]
MUNICIPAL BONDS YIELD 97% OF TREASURY YIELDS
<Table>
30-YEAR AAA-RATED GENERAL OBLIGATION (GO) BONDS* 4.82%
TAXABLE EQUIVALENT YIELD IN 35.0% TAX BRACKET 7.42%
30-YEAR TREASURY BOND 4.97%
</Table>
PRINCIPAL AND INTEREST PAYMENTS OF TREASURY SECURITIES ARE GUARANTEED BY THE
U.S. GOVERNMENT.
*GO YIELDS ARE A COMPILATION OF A REPRESENTATIVE VARIETY OF GENERAL OBLIGATIONS
AND ARE NOT NECESSARILY REPRESENTATIVES OF THE FUNDS' YIELDS. STATISTICS AS OF
JANUARY 31, 2004.
POST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
SOURCE: BLOOMBERG, L.P.
Amid a generally improving economy, the municipal bond market outperformed the
Treasury market. Ten-year Treasury bond yields - which began the six-month
period at 4.52% - declined to 4.14% by January 31, 2004, while 10-year municipal
yields fell from 4.10% to 3.68%. The Lehman Brothers Municipal Bond Index posted
a total return of 5.73% for the six months ended January 31, 2004.*
STATE TAX RATES ROSE AGAIN IN 2003, INCREASING THE BURDEN ON STATE TAXPAYERS...
According to the Tax Foundation, state tax increases in 2002 were estimated at
$7.6 billion, and estimated at roughly twice that figure in 2003. Over the past
decade, the fastest growing category of state tax collections was individual
income taxes, which rose at an average annual rate of 7.7%. That trend has left
taxpayers with a larger state tax bill and made a strong case for municipal
bonds as one of the few remaining ways to pare one's tax burden. Thus, we
continue to believe that municipal bonds remain a worthwhile consideration for
tax-conscious investors.
*It is not possible to invest directly in an Index.
[SIDENOTE]
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO
MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS
STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON
MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS,
MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON
VANCE FUND.
3
<Page>
EATON VANCE ARIZONA MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - Arizona's economy continued to see positive growth in the second half of
2003, but the strength shown by the education, construction and health-care
sectors was dampened by job losses in the manufacturing and information
technology sectors. Technology and aerospace also lagged due to continued
soft demand.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward
- - Arizona municipals with lower credit quality generally outperformed those
with higher credit quality, following the national trend. The Portfolio's
lower-rated bonds contributed to performance, but management generally kept
the Portfolio well diversified and retained its high average rating of AA.
- - The Portfolio benefited from holding a number of refunded non-callable bonds,
which was helpful in the low-interest-rate environment. With rates at
historically low levels, maintaining call protection has been a challenge.
Management also maintained the Portfolio's weighting in the health care
sector, which continued to provide an attractive income stream.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 57
- - Average Maturity: 17.2 years
- - Average Rating: AA
- - Average Call: 7.1 years
- - Average Dollar Price: $ 99.75
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 5.61% and 5.21%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.84 on January 31, 2004, from $9.55 on July 31, 2003, and the reinvestment
of $0.242 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.94 from $10.62 during the same period, and the
reinvestment of $0.229 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.88% for Class A and 4.16% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.91% and 6.74%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
3.97% and 3.42%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 6.43% and 5.54% respectively.(4)
RATING DISTRIBUTION+
[CHART]
<Table>
AAA 64.3%
AA 11.6%
A 7.7%
BBB 1.9%
CCC 0.8%
NON-RATED 13.7%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.19% 5.40%
Five Years 4.18 3.40
Ten Years 4.95 4.12
Life of Fund++ 5.00 5.85
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.10% 0.40%
Five Years 3.16 3.06
Ten Years 4.44 4.12
Life of Fund++ 4.50 5.85
</Table>
++ Inception date: Class A: 12/13/93; Class B: 7/25/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4) Taxable-equivalent rates
assume a maximum 38.28% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5) The Fund's SEC yield
is calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (6) Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
4
<Page>
EATON VANCE COLORADO MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF WILLIAM H. AHERN]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
- - Colorado's economy continued to contract, with the construction and
manufacturing sectors leading the state's job losses during the second half
of 2003. However, the state's services sectors, including finance, health
care, education, leisure and hospitality, showed solid gains and should
bolster the economy in 2004.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - Following the national trend, Colorado municipals with lower credit quality
generally outperformed those with higher ratings. The Portfolio's holdings in
BBB-rated and non-rated bonds increased in value, and management selectively
added some lower-rated issues. However, the overall investment-grade
percentage in the Portfolio remained high.
- - Management maintained the Portfolio's weighting in health care - a strong
part of the Colorado economy. The Portfolio's call protection was maintained
as the low interest rate climate produced more calls.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 44
- - Average Maturity: 21.7 years
- - Average Rating: AA
- - Average Call: 8.3 years
- - Average Dollar Price: $ 96.49
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 6.12% and 5.73%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.78 on January 31, 2004, from $9.44 on July 31, 2003, and the reinvestment
of $0.234 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.65 from $10.28 during the same period, and the
reinvestment of $0.214 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.70% for Class A and 3.96% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.58% and 6.39%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
4.16% and 3.62%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 6.71% and 5.84% respectively.(4)
RATING DISTRIBUTION+
<Table>
AAA 68.1%
AA 4.9%
A 7.1%
BBB 8.8%
NON-RATED 11.1%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.57% 5.76%
Five Years 4.74 3.96
Ten Years 4.99 4.36
Life of Fund++ 5.07 5.39
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.50% 0.76%
Five Years 3.72 3.62
Ten Years 4.48 4.36
Life of Fund++ 4.56 5.39
</Table>
++ Inception date: Class A: 12/10/93; Class B: 8/25/92
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume maximum a
38.01% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result. (6)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4%
- 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
5
<Page>
EATON VANCE CONNECTICUT MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF WILLIAM H. AHERN]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
- - The effects of the recession continued to be felt in Connecticut during the
latter half of 2003, with employment declines in the private sector led by
manufacturing, and job losses in the public sector continuing due to
budgetary pressures at state and local levels. On a positive note, increased
federal military spending has helped the state's defense industry.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - Municipal bonds with lower credit quality generally outperformed higher-rated
bonds during the period, although this trend was not as pronounced in
Connecticut as it was nationally. Management reduced AAA-rated bonds slightly
and increased weightings in AA-rated bonds and non-rated bonds, while
maintaining a high overall allocation to investment-grade quality bonds.
- - With interest rates at such low levels, management sought to keep call
protection as high as possible. Some insured* education bonds were sold at
significantly appreciated prices, allowing management to invest the proceeds
in insured* general obligations bonds, which are used in part to help
alleviate the state's budget problems.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 76
- - Average Maturity: 18.8 years
- - Average Rating: AA+
- - Average Call: 8.0 years
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 5.22% and 4.85%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$10.84 on January 31, 2004, from $10.54 on July 31, 2003, and the
reinvestment of $0.247 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.79 from $10.49 during the same
period, and the reinvestment of $0.205 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.47% for Class A and 3.73% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.24% and 6.04%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
3.41% and 2.83%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 5.52% and 4.58% respectively.(4)
RATING DISTRIBUTION+
[CHART]
<Table>
AAA 60.6%
AA 16.4%
A 7.5%
BBB 8.7%
NON-RATED 6.8%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change.
* Private insurance does not decrease the risk of loss of principal associated
with these investments.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 5.66% 4.89%
Five Years 4.93 4.14
Ten Years N.A. 4.25
Life of Fund++ 6.14 5.33
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 0.60% -0.11%
Five Years 3.92 3.79
Ten Years N.A. 4.25
Life of Fund++ 5.61 5.33
</Table>
++ Inception date: Class A: 4/19/94; Class B: 5/1/92
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume a maximum
38.25% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result. (6)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4%
- 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
6
<Page>
EATON VANCE MICHIGAN MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF WILLIAM H. AHERN]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
- - The national recession hit Michigan hard, and the state's manufacturing
sector took the brunt of the job losses. While manufacturing employment
declines slowed during the second half of 2003, the sector still lost more
jobs, especially in the auto industry. Home prices appreciated, but at a
slower rate than in the first half of the year.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - With the strengthening national economy and a greater willingness among
investors to take on risk, lower-rated bonds generally outperformed those
with higher ratings. Management took advantage of select opportunities to
sell A-rated bonds that had appreciated and used the proceeds to purchase
AAA-rated insured* general obligations (GO) bonds.
- - The Portfolio's average call was increased, helping bolster the call
protection for the portfolio. With interest rates at such low levels over the
past year, call protection has become increasingly important -- and more
difficult to maintain. Management acquired bonds with longer calls,
especially in the insured* GO sector, helping protect the Portfolio's income.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 53
- - Average Maturity: 20.3 years
- - Average Rating: AA
- - Average Call: 7.2 years
- - Average Dollar Price: $ 100.04
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 5.41% and 5.02%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.67 on January 31, 2004, from $9.40 on July 31, 2003, and the reinvestment
of $0.235 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.80 from $10.50 during the same period, and the
reinvestment of $0.223 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.76% for Class A and 4.02% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.63% and 6.44%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
3.77% and 3.22%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 6.04% and 5.16% respectively.(4)
RATING DISTRIBUTION+
[CHART]
<Table>
AAA 69.1%
A 13.5%
BBB 7.7%
NON-RATED 9.7%
</Table>
* Private insurance does not decrease the risk of loss of principal associated
with these investments.
+ Portfolio Statistics and Rating Distribution are subject to change.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 5.76% 4.99%
Five Years 4.76 3.96
Ten Years 4.76 4.23
Life of Fund++ 4.84 5.62
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 0.72% -0.01%
Five Years 3.75 3.62
Ten Years 4.25 4.23
Life of Fund++ 4.33 5.62
</Table>
++ Inception date: Class A: 12/7/93; Class B: 4/19/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated daily by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume a maximum 37.60% combined federal and state income tax rate. A
lower rate would result in lower tax-equivalent figures. (5) The Fund's SEC
yield is calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and annualizing
the result. (6) Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
7
<Page>
EATON VANCE MINNESOTA MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - Despite overall job losses during the period, there were bright spots for
Minnesota. Employment declined primarily in the durable goods manufacturing,
finance, insurance, real estate and government sectors. However, employment
growth in the non-durable goods manufacturing, wholesale and retail sectors,
as well as strength in the agriculture sector, provided optimism for 2004.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - Because of the stronger national economy, municipal bonds with lower credit
ratings tended to outperform those with higher ratings, which boosted the
sector weightings in the Portfolio's lower-rated holdings somewhat and made a
positive contribution to performance.
- - Management added to the Portfolio's holdings in bonds that support the Mayo
Clinic, one of the premier medical research institutions in the world. These
securities are high quality, AA-rated bonds with attractive yields that
management felt fortunate to acquire.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 46
- - Average Maturity: 21.8 years
- - Average Rating: AA
- - Average Call: 7.0 years
- - Average Dollar Price: $ 97.99
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 5.00% and 4.54%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.31 on January 31, 2004, from $9.09 on July 31, 2003, and the reinvestment
of $0.230 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.02 from $9.79 during the same period, and the
reinvestment of $0.209 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.68% for Class A and 3.94% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.81% and 6.58%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
3.89% and 3.34%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 6.49% and 5.58% respectively.(4)
RATING DISTRIBUTION+
<Table>
AAA 48.6%
AA 19.8%
A 15.2%
BBB 5.0%
BB 2.0%
NON-RATED 9.4%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.08% 5.34%
Five Years 3.91 3.13
Ten Years 4.49 3.77
Life of Fund++ 4.58 4.95
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.04% 0.34%
Five Years 2.90 2.80
Ten Years 3.99 3.77
Life of Fund++ 4.08 4.95
</Table>
++ Inception date: Class A: 12/9/93; Class B: 7/29/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume a maximum
40.10% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result. (6)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4%
- 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
8
<Page>
EATON VANCE NEW JERSEY MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - New Jersey's economy continued to buck the national trend, outpacing the U.S.
in job growth during the past six months. Strong employment gains in the
education, health care, and retail sectors more than made up for losses in
the transportation and information technology industries. Home prices rose,
albeit at a somewhat slower pace than earlier in the year.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - As a result of strength in both the state and national economies, lower-rated
bonds tended to outperform higher-rated bonds during the period. To take
advanrage of this, we continued to upgrade the Portfolio's holdings, to
increase the overall credit quality, as management feels there is more value
in high-quality bonds in this market environment.
- - New issuance was somewhat slower than it was nationally, so most of the
transactions in the Portfolio took place in the secondary market. With the
decline in interest rates over the past several years, management continued
to seek opportunities to increase call protection.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 96
- - Average Maturity: 27.2 years
- - Average Rating: AA-
- - Average Call: 10.6 years
- - Average Dollar Price: $ 98.89
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 6.76% and 6.39%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$10.49 on January 31, 2004, from $10.07 on July 31, 2003, and the
reinvestment of $0.255 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.95 from $10.51 during the same
period, and the reinvestment of $0.225 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 4.73% for Class A and 3.99% for Class B.(3) These
distribution rates are equivalent to taxable rates of 7.77% and 6.56%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
4.46% and 3.91%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 7.33% and 6.42% respectively.(4)
RATING DISTRIBUTION+
<Table>
AAA 46.5%
AA 15.7%
A 10.5%
BBB 11.0%
BB 1.3%
B 1.4%
NON-RATED 13.6%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 7.21% 6.32%
Five Years 4.98 4.19
Ten Years N.A. 4.39
Life of Fund++ 6.15 5.89
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 2.14% 1.32%
Five Years 3.97 3.86
Ten Years N.A. 4.39
Life of Fund++ 5.62 5.89
</Table>
++ Inception date: Class A: 4/13/94; Class B: 1/8/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume a maximum
39.14% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result. (6)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4%
- 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
9
<Page>
EATON VANCE PENNSYLVANIA MUNICIPALS FUND AS OF JANUARY 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - The Pennsylvania economy saw continued weakness during the second half of
2003, with the state's manufacturing industries, located primarily in the
western part of the state, leading the declines. Offsetting the job losses in
manufacturing, growth occurred in the eastern portion of the state in the
education, health care, and information technology sectors.
- - The Portfolio benefited from an unusually positive confluence of factors
nationwide that generally drove solid returns in both the stock and bond
markets. The U.S. economy steamed forward, but low inflation allowed the
Federal Reserve Board to maintain its accommodative interest-rate policy. In
this environment, municipal bond yields generally trended slightly downward.
- - Lower-rated bonds tended to outperform those with higher ratings, and, as a
result, management took advantage of this trend by selling some of the
Portfolio's lower-quality holdings at attractive price levels. Management
used the proceeds to buy higher-rated bonds.
- - The health care sector continued to provide attractive income. Management
remained highly selective in looking for opportunities within this sector. A
good example was the acquisition of Lebanon Health Care bonds, an attractive
issue that supports the Good Samaritan Hospital in Lebanon, Pennsylvania.
PORTFOLIO STATISTICS+
<Table>
- - Number of Issues: 100
- - Average Maturity: 21.0 years
- - Average Rating: AA-
- - Average Call: 6.6 years
- - Average Dollar Price: $ 96.52
</Table>
THE FUND
- - During the six months ended January 31, 2004, the Fund's Class A and Class B
shares had total returns of 5.64% and 5.26%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.96 on January 31, 2004, from $9.68 on July 31, 2003, and the reinvestment
of $0.262 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.30 from $10.01 during the same period, and the
reinvestment of $0.232 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2004, the
distribution rates were 5.19% for Class A and 4.45% for Class B.(3) These
distribution rates are equivalent to taxable rates of 8.24% and 7.06%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31, 2004, were
4.36% and 3.81%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 6.92% and 6.05% respectively.(4)
RATING DISTRIBUTION+
<Table>
AAA 54.7%
A 10.9%
BBB 14.2%
BB 4.6%
NON-RATED 15.6%
</Table>
+ Portfolio Statistics and Rating Distribution are subject to change.
FUND INFORMATION
as of January 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B
- -------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.85% 6.02%
Five Years 4.72 3.92
Ten Years N.A. 3.94
Life of Fund++ 5.73 5.55
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.77% 1.02%
Five Years 3.71 3.59
Ten Years N.A. 3.94
Life of Fund++ 5.20 5.55
</Table>
++ Inception date: Class A: 6/1/94; Class B: 1/8/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated daily by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume a maximum 37.00% combined federal and state income tax rate. A
lower rate would result in lower tax-equivalent figures. (5) The Fund's SEC
yield is calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and annualizing
the result. (6) Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's performance may be lower
or higher.
10
<Page>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2004
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2004
<Table>
<Caption>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment in Municipals Portfolio --
Identified cost $ 65,201,075 $ 31,121,980 $ 134,645,097 $ 63,795,507
Unrealized appreciation 4,289,044 1,768,658 10,389,632 7,186,492
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 69,490,119 $ 32,890,638 $ 145,034,729 $ 70,981,999
- -------------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 985 23,589 25,409 1,443
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 69,491,104 $ 32,914,227 $ 145,060,138 $ 70,983,442
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 159,678 $ 8,410 $ 20,132 $ 45,170
Dividends payable 130,250 56,781 233,574 129,377
Payable to affiliate for service fees 11,811 5,694 24,674 11,989
Accrued expenses 23,828 14,601 34,724 28,423
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 325,567 $ 85,486 $ 313,104 $ 214,959
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 69,165,537 $ 32,828,741 $ 144,747,034 $ 70,768,483
- -------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 66,873,870 $ 32,125,081 $ 139,255,605 $ 65,686,934
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (2,115,889) (986,120) (4,626,089) (2,167,994)
Accumulated undistributed (distributions in
excess of) net investment income 118,512 (78,878) (272,114) 63,051
Net unrealized appreciation from Portfolio
(computed on the basis of identified cost) 4,289,044 1,768,658 10,389,632 7,186,492
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 69,165,537 $ 32,828,741 $ 144,747,034 $ 70,768,483
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 10,174,183 $ 8,043,710 $ 25,363,035 $ 6,664,360
SHARES OUTSTANDING 1,034,024 822,360 2,340,019 688,998
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.84 $ 9.78 $ 10.84 $ 9.67
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset value
per share) $ 10.33 $ 10.27 $ 11.38 $ 10.15
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 58,991,354 $ 24,785,031 $ 119,383,999 $ 64,104,123
SHARES OUTSTANDING 5,393,630 2,328,189 11,066,596 5,935,380
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.94 $ 10.65 $ 10.79 $ 10.80
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
11
<Page>
<Table>
<Caption>
MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------
ASSETS
Investment in Municipals Portfolio --
Identified cost $ 46,593,783 $ 242,042,814 $ 209,340,165
Unrealized appreciation 2,392,968 21,887,132 13,559,452
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 48,986,751 $ 263,929,946 $ 222,899,617
- -----------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 4,834 258,564 65,769
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 48,991,585 $ 264,188,510 $ 222,965,386
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 27,735 $ 1,031,512 $ 384,639
Dividends payable 84,196 476,292 436,742
Payable to affiliate for service fees 8,344 44,921 37,816
Accrued expenses 18,816 50,733 67,111
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 139,091 $ 1,603,458 $ 926,308
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 48,852,494 $ 262,585,052 $ 222,039,078
- -----------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 50,686,185 $ 250,550,577 $ 229,311,273
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (4,086,163) (10,714,367) (20,823,195)
Accumulated undistributed (distributions in
excess of) net investment income (140,496) 861,710 (8,452)
Net unrealized appreciation from Portfolio
(computed on the basis of identified cost) 2,392,968 21,887,132 13,559,452
- -----------------------------------------------------------------------------------------------------------
TOTAL $ 48,852,494 $ 262,585,052 $ 222,039,078
- -----------------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 9,227,204 $ 32,255,582 $ 20,105,662
SHARES OUTSTANDING 991,381 3,074,432 2,018,902
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.31 $ 10.49 $ 9.96
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset value
per share) $ 9.77 $ 11.01 $ 10.46
- -----------------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 39,625,290 $ 230,329,470 $ 201,933,416
SHARES OUTSTANDING 3,955,102 21,026,159 19,600,860
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.02 $ 10.95 $ 10.30
- -----------------------------------------------------------------------------------------------------------
</Table>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
12
<Page>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
<Table>
<Caption>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest allocated from Portfolio $ 2,016,537 $ 1,002,721 $ 3,894,139 $ 2,026,221
Expenses allocated from Portfolio (158,521) (69,852) (356,340) (164,533)
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 1,858,016 $ 932,869 $ 3,537,799 $ 1,861,688
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Trustees fees and expenses $ 961 $ 96 $ 1,921 $ 961
Distribution and service fees
Class A 9,570 9,064 25,382 4,804
Class B 284,880 131,510 579,548 314,521
Legal and accounting services 9,442 7,525 10,978 8,633
Printing and postage 1,119 783 5,320 2,540
Custodian fee 7,024 3,975 10,371 7,126
Transfer and dividend disbursing agent fees 16,249 9,081 35,096 28,491
Registration fees 3,833 1,311 1,700 2,887
Miscellaneous 883 1,041 2,510 1,648
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 333,961 $ 164,386 $ 672,826 $ 371,611
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,524,055 $ 768,483 $ 2,864,973 $ 1,490,077
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost
basis) $ 43,789 $ 291,022 $ 106,112 $ 1,432,690
Financial futures contracts 404,265 (339,641) (904,320) (557,603)
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 448,054 $ (48,619) $ (798,208) $ 875,087
- -------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 2,734,351 $ 1,543,304 $ 5,385,488 $ 1,378,007
Financial futures contracts (1,172,260) (176,793) (458,327) (276,298)
- -------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 1,562,091 $ 1,366,511 $ 4,927,161 $ 1,101,709
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 2,010,145 $ 1,317,892 $ 4,128,953 $ 1,976,796
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,534,200 $ 2,086,375 $ 6,993,926 $ 3,466,873
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
13
<Page>
<Table>
<Caption>
MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest allocated from Portfolio $ 1,367,517 $ 7,566,550 $ 6,750,745
Expenses allocated from Portfolio (106,317) (696,360) (583,723)
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 1,261,200 $ 6,870,190 $ 6,167,022
- -----------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 961 $ 1,922 $ 1,922
Distribution and service fees
Class A 9,153 32,438 18,724
Class B 195,022 1,102,936 970,400
Legal and accounting services 11,252 9,282 8,198
Printing and postage 1,277 5,322 7,467
Custodian fee 4,784 13,230 13,253
Transfer and dividend disbursing agent fees 15,640 68,589 83,358
Registration fees 400 803 3,341
Miscellaneous 1,354 5,833 4,872
- -----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 239,843 $ 1,240,355 $ 1,111,535
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,021,357 $ 5,629,835 $ 5,055,487
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 221,425 $ 431,859 $ 270,423
Financial futures contracts 688,358 2,099,457 1,244,198
Interest rate swap contracts 24,623 -- --
- -----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 934,406 $ 2,531,316 $ 1,514,621
- -----------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 1,758,855 $ 14,819,293 $ 8,684,123
Financial futures contracts (1,386,097) (6,571,731) (3,816,250)
Interest rate swap contracts (57,836) -- --
- -----------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 314,922 $ 8,247,562 $ 4,867,873
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 1,249,328 $ 10,778,878 $ 6,382,494
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,270,685 $ 16,408,713 $ 11,437,981
- -----------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
14
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,524,055 $ 768,483 $ 2,864,973 $ 1,490,077
Net realized gain (loss) 448,054 (48,619) (798,208) 875,087
Net change in unrealized appreciation
(depreciation) 1,562,091 1,366,511 4,927,161 1,101,709
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,534,200 $ 2,086,375 $ 6,993,926 $ 3,466,873
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (235,667) $ (217,623) $ (579,270) $ (115,824)
Class B (1,262,340) (562,462) (2,325,352) (1,368,963)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,498,007) $ (780,085) $ (2,904,622) $ (1,484,787)
- -------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 1,456,782 $ 1,113,408 $ 5,084,931 $ 2,724,605
Class B 1,233,351 1,491,097 1,419,821 811,318
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 107,419 137,332 338,439 37,172
Class B 645,218 287,126 1,256,644 774,853
Cost of shares redeemed
Class A (837,695) (2,234,428) (5,980,505) (292,858)
Class B (4,049,259) (6,223,403) (9,493,331) (5,955,140)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ (1,444,184) $ (5,428,868) $ (7,374,001) $ (1,900,050)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 592,009 $ (4,122,578) $ (3,284,697) $ 82,036
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 68,573,528 $ 36,951,319 $ 148,031,731 $ 70,686,447
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 69,165,537 $ 32,828,741 $ 144,747,034 $ 70,768,483
- -------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME INCLUDED
IN NET ASSETS
AT END OF PERIOD $ 118,512 $ (78,878) $ (272,114) $ 63,051
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
15
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,021,357 $ 5,629,835 $ 5,055,487
Net realized gain 934,406 2,531,316 1,514,621
Net change in unrealized appreciation
(depreciation) 314,922 8,247,562 4,867,873
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,270,685 $ 16,408,713 $ 11,437,981
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (226,800) $ (796,223) $ (491,999)
Class B (862,572) (4,830,476) (4,620,956)
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,089,372) $ (5,626,699) $ (5,112,955)
- -----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 811,977 $ 3,150,447 $ 4,482,814
Class B 901,834 3,800,160 3,554,106
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 124,367 361,162 239,513
Class B 571,450 2,972,997 2,420,026
Cost of shares redeemed
Class A (877,721) (4,121,642) (2,245,841)
Class B (4,095,783) (14,482,944) (13,932,440)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ (2,563,876) $ (8,319,820) $ (5,481,822)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,382,563) $ 2,462,194 $ 843,204
- -----------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------
At beginning of period $ 50,235,057 $ 260,122,858 $ 221,195,874
- -----------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 48,852,494 $ 262,585,052 $ 222,039,078
- -----------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD $ (140,496) $ 861,710 $ (8,452)
- -----------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
16
<Page>
FOR THE YEAR ENDED JULY 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,034,152 $ 1,566,084 $ 6,020,213 $ 3,181,556
Net realized loss (952,766) (34,486) (269,668) (1,404,467)
Net change in unrealized appreciation
(depreciation) (403,955) (850,031) (2,440,714) (33,131)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,677,431 $ 681,567 $ 3,309,831 $ 1,743,958
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (418,613) $ (368,605) $ (1,141,055) $ (185,046)
Class B (2,610,138) (1,250,948) (5,097,184) (2,975,585)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (3,028,751) $ (1,619,553) $ (6,238,239) $ (3,160,631)
- -------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 3,729,841 $ 3,534,278 $ 7,630,004 $ 1,463,047
Class B 4,782,114 1,776,798 8,948,980 3,494,524
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 167,929 180,776 653,219 71,752
Class B 943,611 592,369 2,467,527 1,482,508
Cost of shares redeemed
Class A (1,857,355) (1,152,963) (4,998,880) (664,967)
Class B (8,300,440) (3,536,246) (14,526,286) (10,158,703)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (534,300) $ 1,395,012 $ 174,564 $ (4,311,839)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,885,620) $ 457,026 $ (2,753,844) $ (5,728,512)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 70,459,148 $ 36,494,293 $ 150,785,575 $ 76,414,959
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 68,573,528 $ 36,951,319 $ 148,031,731 $ 70,686,447
- -------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD $ 92,464 $ (67,276) $ (232,465) $ 57,761
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
17
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,166,219 $ 11,906,234 $ 10,498,518
Net realized loss (1,571,290) (8,343,479) (9,422,517)
Net change in unrealized appreciation
(depreciation) 519,546 1,648,870 5,294,546
- ----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,114,475 $ 5,211,625 $ 6,370,547
- ----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (428,465) $ (1,535,267) $ (880,465)
Class B (1,925,180) (10,358,266) (10,029,316)
- ----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (2,353,645) $ (11,893,533) $ (10,909,781)
- ----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 2,931,703 $ 9,849,317 $ 5,858,277
Class B 4,149,495 16,360,046 14,315,516
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 254,408 614,589 416,703
Class B 1,080,703 5,007,102 4,270,247
Cost of shares redeemed
Class A (1,388,119) (5,762,032) (3,673,512)
Class B (7,034,108) (26,669,607) (22,213,123)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (5,918) $ (600,585) $ (1,025,892)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (1,245,088) $ (7,282,493) $ (5,565,126)
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 51,480,145 $ 267,405,351 $ 226,761,000
- ----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 50,235,057 $ 260,122,858 $ 221,195,874
- ----------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD $ (72,481) $ 858,574 $ 49,016
- ----------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
18
<Page>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2004
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
ARIZONA FUND -- CLASS A
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.550 $ 9.730 $ 9.680 $ 9.480 $ 9.850 $ 10.200
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.246 $ 0.482 $ 0.485 $ 0.529 $ 0.495 $ 0.504
Net realized and unrealized gain (loss) 0.286 (0.182) 0.045 0.163 (0.363) (0.348)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.532 $ 0.300 $ 0.530 $ 0.692 $ 0.132 $ 0.156
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.242) $ (0.480) $ (0.480) $ (0.492) $ (0.502) $ (0.506)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.242) $ (0.480) $ (0.480) $ (0.492) $ (0.502) $ (0.506)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.840 $ 9.550 $ 9.730 $ 9.680 $ 9.480 $ 9.850
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.61% 3.06% 5.67% 7.46% 1.56% 1.48%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 10,174 $ 9,174 $ 7,342 $ 5,413 $ 5,064 $ 5,409
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.77%(5) 0.76% 0.78% 0.84% 0.89% 0.77%
Expenses after custodian fee
reduction(4) 0.77%(5) 0.75% 0.78% 0.82% 0.88% 0.76%
Net investment income 5.02%(5) 4.90% 5.05% 5.50% 5.30% 4.90%
Portfolio Turnover of the Portfolio 3% 6% 27% 26% 25% 38%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001 and increase
the ratio of net investment income to average net assets from 5.04% to
5.05%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
19
<Page>
<Table>
<Caption>
ARIZONA FUND -- CLASS B
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.620 $ 10.830 $ 10.770 $ 10.540 $ 10.950 $ 11.340
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.233 $ 0.456 $ 0.461 $ 0.494 $ 0.476 $ 0.472
Net realized and unrealized gain (loss) 0.316 (0.211) 0.054 0.203 (0.409) (0.381)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.549 $ 0.245 $ 0.515 $ 0.697 $ 0.067 $ 0.091
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.229) $ (0.455) $ (0.455) $ (0.467) $ (0.477) $ (0.481)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.229) $ (0.455) $ (0.455) $ (0.467) $ (0.477) $ (0.481)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.940 $ 10.620 $ 10.830 $ 10.770 $ 10.540 $ 10.950
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.21% 2.22% 4.92% 6.73% 0.81% 0.74%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 58,991 $ 59,399 $ 63,117 $ 66,376 $ 68,378 $ 88,682
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.52%(5) 1.51% 1.53% 1.59% 1.63% 1.56%
Expenses after custodian fee
reduction(4) 1.52%(5) 1.50% 1.53% 1.57% 1.62% 1.55%
Net investment income 4.28%(5) 4.17% 4.32% 4.62% 4.58% 4.16%
Portfolio Turnover of the Portfolio 3% 6% 27% 26% 25% 38%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001 and increase
the ratio of net investment income to average net assets from 4.31% to
4.32%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
20
<Page>
<Table>
<Caption>
COLORADO FUND -- CLASS A
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.440 $ 9.680 $ 9.680 $ 9.160 $ 9.570 $ 9.950
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.230 $ 0.464 $ 0.481 $ 0.479 $ 0.495 $ 0.507
Net realized and unrealized gain (loss) 0.344 (0.228) (0.001)(3) 0.535 (0.402) (0.374)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.574 $ 0.236 $ 0.480 $ 1.014 $ 0.093 $ 0.133
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.234) $ (0.476) $ (0.480) $ (0.494) $ (0.503) $ (0.513)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.234) $ (0.476) $ (0.480) $ (0.494) $ (0.503) $ (0.513)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.780 $ 9.440 $ 9.680 $ 9.680 $ 9.160 $ 9.570
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 6.12% 2.42% 5.13% 11.35% 1.18% 1.27%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 8,044 $ 8,709 $ 6,379 $ 2,726 $ 2,026 $ 2,021
Ratios (As a percentage of average daily
net assets):
Expenses(5) 0.71%(6) 0.73% 0.80% 0.86% 0.78% 0.63%
Expenses after custodian fee
reduction(5) 0.71%(6) 0.71% 0.78% 0.82% 0.75% 0.59%
Net investment income 4.74%(6) 4.78% 5.01% 5.06% 5.48% 5.09%
Portfolio Turnover of the Portfolio 4% 21% 18% 18% 14% 33%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
increase net realized and unrealized losses per share by $0.001 and
increase the ratio of net investment income to average net assets from
4.99% to 5.01%. Per share data and ratios for the periods prior to August
1, 2001 have not been restated to reflect this change in presentation.
(3) Per share amount is not in accord with the net realized and unrealized gain
(loss) on investments for the period because of the timing of sales of Fund
shares and the amount of the per share realized and unrealized gains and
losses at such time.
(4) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) Annualized.
See notes to financial statements
21
<Page>
<Table>
<Caption>
COLORADO FUND -- CLASS B
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.280 $ 10.540 $ 10.540 $ 9.970 $ 10.410 $ 10.820
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.211 $ 0.427 $ 0.447 $ 0.444 $ 0.468 $ 0.467
Net realized and unrealized gain (loss) 0.373 (0.244) 0.001 0.588 (0.440) (0.401)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.584 $ 0.183 $ 0.448 $ 1.032 $ 0.028 $ 0.066
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.214) $ (0.443) $ (0.448) $ (0.462) $ (0.468) $ (0.476)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.214) $ (0.443) $ (0.448) $ (0.462) $ (0.468) $ (0.476)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.650 $ 10.280 $ 10.540 $ 10.540 $ 9.970 $ 10.410
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.73% 1.70% 4.37% 10.58% 0.45% 0.54%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 24,785 $ 28,242 $ 30,116 $ 27,730 $ 28,446 $ 35,703
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.46%(5) 1.48% 1.55% 1.62% 1.52% 1.46%
Expenses after custodian fee
reduction(4) 1.46%(5) 1.46% 1.53% 1.58% 1.49% 1.42%
Net investment income 4.00%(5) 4.04% 4.28% 4.33% 4.75% 4.32%
Portfolio Turnover of the Portfolio 4% 21% 18% 18% 14% 33%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001 and increase
the ratio of net investment income to average net assets from 4.26% to
4.28%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
22
<Page>
<Table>
<Caption>
CONNECTICUT FUND -- CLASS A
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001(1) 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.540 $ 10.750 $ 10.750 $ 10.140 $ 10.460 $ 10.710
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.243 $ 0.494 $ 0.508 $ 0.518 $ 0.521 $ 0.539
Net realized and unrealized gain (loss) 0.304 (0.195) 0.007 0.601 (0.323) (0.258)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.547 $ 0.299 $ 0.515 $ 1.119 $ 0.198 $ 0.281
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.247) $ (0.509) $ (0.515) $ (0.509) $ (0.518) $ (0.531)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.247) $ (0.509) $ (0.515) $ (0.509) $ (0.518) $ (0.531)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.840 $ 10.540 $ 10.750 $ 10.750 $ 10.140 $ 10.460
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.22% 2.76% 4.92% 11.30% 2.09% 2.60%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 25,363 $ 25,210 $ 22,436 $ 12,752 $ 8,851 $ 9,222
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.78%(5) 0.77% 0.82% 0.86% 0.82% 0.75%
Expenses after custodian fee
reduction(4) 0.78%(5) 0.77% 0.80% 0.83% 0.80% 0.73%
Net investment income 4.50%(5) 4.55% 4.76% 4.95% 5.23% 4.89%
Portfolio Turnover of the Portfolio 7% 19% 22% 14% 20% 18%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001 and increase
the ratio of net investment income to average net assets from 4.75% to
4.76%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
23
<Page>
<Table>
<Caption>
CONNECTICUT FUND -- CLASS B
------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001(1) 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.490 $ 10.700 $ 10.700 $ 10.090 $ 10.400 $ 10.640
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.201 $ 0.411 $ 0.429 $ 0.440 $ 0.439 $ 0.440
Net realized and unrealized gain (loss) 0.304 (0.194) 0.004 0.598 (0.321) (0.243)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.505 $ 0.217 $ 0.433 $ 1.038 $ 0.118 $ 0.197
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.205) $ (0.427) $ (0.433) $ (0.428) $ (0.428) $ (0.437)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.205) $ (0.427) $ (0.433) $ (0.428) $ (0.428) $ (0.437)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.790 $ 10.490 $ 10.700 $ 10.700 $ 10.090 $ 10.400
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.85% 1.99% 4.13% 10.48% 1.31% 1.84%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 119,384 $ 122,822 $ 128,349 $ 126,304 $ 123,978 $ 149,024
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.53%(5) 1.52% 1.57% 1.60% 1.60% 1.56%
Expenses after custodian fee
reduction(4) 1.53%(5) 1.52% 1.55% 1.57% 1.58% 1.54%
Net investment income 3.76%(5) 3.82% 4.03% 4.24% 4.46% 4.11%
Portfolio Turnover of the Portfolio 7% 19% 22% 14% 20% 18%
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001 and increase
the ratio of net investment income to average net assets from 4.02% to
4.03%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
24
<Page>
<Table>
<Caption>
MICHIGAN FUND -- CLASS A
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.400 $ 9.590 $ 9.570 $ 9.040 $ 9.430 $ 9.820
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.232 $ 0.476 $ 0.486 $ 0.479 $ 0.480 $ 0.471
Net realized and unrealized gain (loss) 0.273 (0.190) 0.010 0.526 (0.356) (0.385)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.505 $ 0.286 $ 0.496 $ 1.005 $ 0.124 $ 0.086
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.235) $ (0.476) $ (0.476) $ (0.475) $ (0.471) $ (0.461)
From net realized gain -- -- -- -- (0.043) (0.015)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.235) $ (0.476) $ (0.476) $ (0.475) $ (0.514) $ (0.476)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.670 $ 9.400 $ 9.590 $ 9.570 $ 9.040 $ 9.430
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.41% 2.96% 5.34% 11.37% 1.55% 0.81%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 6,664 $ 4,079 $ 3,308 $ 2,838 $ 2,701 $ 1,737
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.81%(5) 0.79% 0.80% 0.86% 0.81% 0.80%
Expenses after custodian fee
reduction(4) 0.81%(5) 0.78% 0.80% 0.85% 0.81% 0.79%
Net investment income 4.81%(5) 4.92% 5.11% 5.12% 5.40% 4.81%
Portfolio Turnover of the Portfolio 7% 12% 7% 8% 30% 31%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001, and
increase the ratio of net investment income to average net assets from
5.10% to 5.11%. Per share data and ratios for the periods prior to August
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
25
<Page>
<Table>
<Caption>
MICHIGAN FUND -- CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.500 $ 10.710 $ 10.690 $ 10.090 $ 10.520 $ 10.950
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.223 $ 0.453 $ 0.461 $ 0.457 $ 0.459 $ 0.440
Net realized and unrealized gain (loss) 0.299 (0.213) 0.009 0.592 (0.401) (0.420)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.522 $ 0.240 $ 0.470 $ 1.049 $ 0.058 $ 0.020
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.222) $ (0.450) $ (0.450) $ (0.449) $ (0.445) $ (0.435)
From net realized gain -- -- -- -- (0.043) (0.015)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.222) $ (0.450) $ (0.450) $ (0.449) $ (0.488) $ (0.450)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.800 $ 10.500 $ 10.710 $ 10.690 $ 10.090 $ 10.520
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.02% 2.19% 4.50% 10.59% 0.75% 0.11%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 64,104 $ 66,608 $ 73,107 $ 77,957 $ 82,580 $ 107,357
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.56%(5) 1.54% 1.55% 1.60% 1.60% 1.58%
Expenses after custodian fee
reduction(4) 1.56%(5) 1.53% 1.55% 1.59% 1.60% 1.57%
Net investment income 4.15%(5) 4.20% 4.34% 4.38% 4.61% 4.03%
Portfolio Turnover of the Portfolio 7% 12% 7% 8% 30% 31%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
decrease net realized and unrealized gains per share by $0.001, and
increase the ratio of net investment income to average net assets from
4.33% to 4.34%. Per share data and ratios for the periods prior to August
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
26
<Page>
<Table>
<Caption>
MINNESOTA FUND -- CLASS A
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001 2000 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.090 $ 9.310 $ 9.410 $ 9.070 $ 9.460 $ 9.820
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.217 $ 0.449 $ 0.504 $ 0.488 $ 0.491 $ 0.490
Net realized and unrealized gain (loss) 0.233 (0.185) (0.118) 0.336 (0.395) (0.351)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.450 $ 0.264 $ 0.386 $ 0.824 $ 0.096 $ 0.139
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.230) $ (0.484) $ (0.486) $ (0.484) $ (0.486) $ (0.499)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.230) $ (0.484) $ (0.486) $ (0.484) $ (0.486) $ (0.499)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.310 $ 9.090 $ 9.310 $ 9.410 $ 9.070 $ 9.460
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.00% 2.86% 4.22% 9.29% 1.21% 1.34%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 9,227 $ 8,956 $ 7,370 $ 5,364 $ 5,079 $ 4,822
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.77%(5) 0.78% 0.77% 0.87% 0.79% 0.73%
Expenses after custodian fee
reduction(4) 0.77%(5) 0.76% 0.75% 0.82% 0.77% 0.71%
Net investment income 4.67%(5) 4.83% 5.41% 5.26% 5.48% 4.97%
Portfolio Turnover of the Portfolio 9% 15% 26% 17% 12% 19%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.002,
increase net realized and unrealized loss per share by $0.002, and increase
the ratio of net investment income to average shares outstanding from 5.39%
to 5.41%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized
See notes to financial statements
27
<Page>
<Table>
<Caption>
MINNESOTA FUND -- CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001 2000 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.790 $ 10.030 $ 10.130 $ 9.770 $ 10.170 $ 10.540
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.195 $ 0.411 $ 0.470 $ 0.451 $ 0.453 $ 0.446
Net realized and unrealized gain (loss) 0.244 (0.204) (0.121) 0.352 (0.418) (0.369)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.439 $ 0.207 $ 0.349 $ 0.803 $ 0.035 $ 0.077
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.209) $ (0.447) $ (0.449) $ (0.443) $ (0.435) $ (0.447)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.209) $ (0.447) $ (0.449) $ (0.443) $ (0.435) $ (0.447)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.020 $ 9.790 $ 10.030 $ 10.130 $ 9.770 $ 10.170
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.54% 2.07% 3.52% 8.36% 0.52% 0.65%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 39,625 $ 41,279 $ 44,110 $ 43,819 $ 43,660 $ 55,355
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.52%(5) 1.53% 1.52% 1.62% 1.55% 1.55%
Expenses after custodian fee
reduction(4) 1.52%(5) 1.51% 1.50% 1.57% 1.53% 1.53%
Net investment income 3.94%(5) 4.11% 4.68% 4.52% 4.74% 4.21%
Portfolio Turnover of the Portfolio 9% 15% 26% 17% 12% 19%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.002,
increase net realized and unrealized loss per share by $0.002, and increase
the ratio of net investment income to average shares outstanding from 4.66%
to 4.68%. Per share data and ratios for the periods prior to August 1, 2001
have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized
See notes to financial statements
28
<Page>
<Table>
<Caption>
NEW JERSEY FUND -- CLASS A
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.070 $ 10.320 $ 10.340 $ 9.760 $ 10.190 $ 10.590
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.255 $ 0.527 $ 0.558 $ 0.542 $ 0.543 $ 0.548
Net realized and unrealized gain (loss) 0.420 (0.248) (0.043) 0.572 (0.430) (0.394)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.675 $ 0.279 $ 0.515 $ 1.114 $ 0.113 $ 0.154
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.255) $ (0.529) $ (0.535) $ (0.534) $ (0.543) $ (0.554)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.255) $ (0.529) $ (0.535) $ (0.534) $ (0.543) $ (0.554)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.490 $ 10.070 $ 10.320 $ 10.340 $ 9.760 $ 10.190
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 6.76% 2.67% 5.16% 11.71% 1.34% 1.39%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 32,256 $ 31,548 $ 27,736 $ 19,212 $ 14,690 $ 18,897
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.81%(5) 0.82% 0.83% 0.88% 0.83% 0.73%
Expenses after custodian fee reduction(4) 0.81%(5) 0.82% 0.83% 0.87% 0.83% 0.72%
Net investment income 4.91%(5) 5.07% 5.46% 5.39% 5.64% 5.14%
Portfolio Turnover of the Portfolio 8% 15% 26% 20% 26% 32%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
increase net realized and unrealized losses per share by $0.001, and
increase the ratio of net investment income to average net assets from
5.45% to 5.46%. Per share data and ratios for the periods prior to August
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
29
<Page>
<Table>
<Caption>
NEW JERSEY FUND -- CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.510 $ 10.780 $ 10.790 $ 10.180 $ 10.610 $ 11.020
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.227 $ 0.470 $ 0.504 $ 0.494 $ 0.489 $ 0.481
Net realized and unrealized gain (loss) 0.438 (0.271) (0.039) 0.590 (0.443) (0.409)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.665 $ 0.199 $ 0.465 $ 1.084 $ 0.046 $ 0.072
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.225) $ (0.469) $ (0.475) $ (0.474) $ (0.476) $ (0.482)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.225) $ (0.469) $ (0.475) $ (0.474) $ (0.476) $ (0.482)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.950 $ 10.510 $ 10.780 $ 10.790 $ 10.180 $ 10.610
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 6.39% 1.80% 4.43% 10.88% 0.63% 0.59%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 230,329 $ 228,575 $ 239,669 $ 238,445 $ 233,230 $ 289,219
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.56%(5) 1.57% 1.58% 1.63% 1.60% 1.57%
Expenses after custodian fee
reduction(4) 1.56%(5) 1.57% 1.58% 1.62% 1.60% 1.56%
Net investment income 4.16%(5) 4.33% 4.72% 4.71% 4.88% 4.37%
Portfolio Turnover of the Portfolio 8% 15% 26% 20% 26% 32%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
increase net realized and unrealized losses per share by $0.001, and
increase the ratio of net investment income to average net assets from
4.71% to 4.72%. Per share data and ratios for the periods prior to August
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
30
<Page>
<Table>
<Caption>
PENNSYLVANIA FUND -- CLASS A
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.680 $ 9.870 $ 9.870 $ 9.480 $ 9.990 $ 10.400
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.258 $ 0.525 $ 0.565 $ 0.548 $ 0.534 $ 0.546
Net realized and unrealized gain (loss) 0.284 (0.171) (0.021) 0.381 (0.492) (0.393)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.542 $ 0.354 $ 0.544 $ 0.929 $ 0.042 $ 0.153
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.262) $ (0.544) $ (0.544) $ (0.539) $ (0.552) $ (0.563)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.262) $ (0.544) $ (0.544) $ (0.539) $ (0.552) $ (0.563)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.960 $ 9.680 $ 9.870 $ 9.870 $ 9.480 $ 9.990
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.64% 3.60% 5.66% 10.05% 0.58% 1.42%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 20,106 $ 17,109 $ 14,896 $ 11,411 $ 9,302 $ 10,652
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.83%(5) 0.83% 0.87% 0.89% 0.90% 0.75%
Expenses after custodian fee
reduction(4) 0.83%(5) 0.83% 0.85% 0.85% 0.90% 0.71%
Net investment income 5.19%(5) 5.29% 5.74% 5.65% 5.63% 5.29%
Portfolio Turnover of the Portfolio 5% 23% 15% 15% 18% 27%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
increase net realized and unrealized losses per share by $0.001, and
increase the ratio of net investment income to average net assets by less
than 0.01%. Per share data and ratios for the periods prior to August 1,
2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
31
<Page>
<Table>
<Caption>
PENNSYLVANIA FUND -- CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.010 $ 10.210 $ 10.210 $ 9.800 $ 10.310 $ 10.730
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.230 $ 0.469 $ 0.510 $ 0.492 $ 0.477 $ 0.477
Net realized and unrealized gain (loss) 0.292 (0.182) (0.026) 0.392 (0.508) (0.404)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.522 $ 0.287 $ 0.484 $ 0.884 $ (0.031) $ 0.073
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.232) $ (0.487) $ (0.484) $ (0.474) $ (0.479) $ (0.493)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.232) $ (0.487) $ (0.484) $ (0.474) $ (0.479) $ (0.493)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.300 $ 10.010 $ 10.210 $ 10.210 $ 9.800 $ 10.310
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.26% 2.81% 4.83% 9.21% (0.15)% 0.64%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 201,933 $ 204,087 $ 211,865 $ 218,068 $ 227,779 $ 303,150
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.58%(5) 1.58% 1.62% 1.65% 1.66% 1.58%
Expenses after custodian fee
reduction(4) 1.58%(5) 1.58% 1.60% 1.61% 1.66% 1.54%
Net investment income 4.47%(5) 4.57% 5.00% 4.90% 4.86% 4.47%
Portfolio Turnover of the Portfolio 5% 23% 15% 15% 18% 27%
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended July
31, 2002 was to increase net investment income per share by $0.001,
increase net realized and unrealized losses per share by $0.001, and
increase the ratio of net investment income to average net assets by less
than 0.01%. Per share data and ratios for the periods prior to August 1,
2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
32
<Page>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2004
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-eight Funds, seven
of which, each diversified, are included in these financial statements. They
include Eaton Vance Arizona Municipals Fund (Arizona Fund), Eaton Vance
Colorado Municipals Fund (Colorado Fund), Eaton Vance Connecticut Municipals
Fund (Connecticut Fund), Eaton Vance Michigan Municipals Fund (Michigan
Fund), Eaton Vance Minnesota Municipals Fund (Minnesota Fund), Eaton Vance
New Jersey Municipals Fund (New Jersey Fund) and Eaton Vance Pennsylvania
Municipals Fund (Pennsylvania Fund). The Funds offer two classes of shares:
Class A and Class B. Class A shares are generally sold subject to a sales
charge imposed at time of purchase. Class B shares are sold at net asset
value and are subject to a declining contingent deferred sales charge (see
Note 6). The Trustees have adopted a conversion feature pursuant to which
Class B shares of each Fund automatically convert to Class A shares eight
years after their purchase as described in each Fund's prospectus. Each class
represents a pro rata interest in the Fund, but votes separately on
class-specific matters and (as noted below) is subject to different expenses.
Realized and unrealized gains and losses are allocated daily to each class of
shares based on the relative net assets of each class to the total net assets
of the Fund. Net investment income, other than class specific expenses, is
allocated daily to each class of shares based upon the ratio of the value of
each class' paid shares to the total value of all paid shares. Each class of
shares differs in its distribution plan and certain other class specific
expenses. Each Fund invests all of its investable assets in interests in a
separate corresponding open-end management investment company (a Portfolio),
a New York Trust, having the same investment objective as its corresponding
Fund. The Arizona Fund invests its assets in the Arizona Municipals
Portfolio, the Colorado Fund invests its assets in the Colorado Municipals
Portfolio, the Connecticut Fund invests its assets in the Connecticut
Municipals Portfolio, the Michigan Fund invests its assets in the Michigan
Municipals Portfolio, the Minnesota Fund invests its assets in the Minnesota
Municipals Portfolio, the New Jersey Fund invests its assets in the New
Jersey Municipals Portfolio and the Pennsylvania Fund invests its assets in
the Pennsylvania Municipals Portfolio. The value of each Fund's investment in
its corresponding Portfolio reflects the Fund's proportionate interest in the
net assets of that Portfolio (approximately 99.9% at January 31, 2004 for
each Fund). The performance of each Fund is directly affected by the
performance of its corresponding Portfolio. The financial statements of each
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with each Fund's financial
statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATIONS -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
C FEDERAL TAXES -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At July 31, 2003,
the following Funds, for federal income tax purposes, had capital loss
carryovers, which will reduce each Fund's taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code, and thus will reduce the amount of the distributions
to shareholders which would otherwise be necessary to relieve the Funds of
any liability for federal income or excise tax. The amounts and expiration
dates of the capital loss carryovers are as follows:
<Table>
<Caption>
FUND AMOUNT EXPIRES
------------------------------------------------------
Arizona $ 536,449 July 31, 2010
589,819 July 31, 2009
177,375 July 31, 2008
281,246 July 31, 2004
Colorado 146,689 July 31, 2010
145,382 July 31, 2009
544,424 July 31, 2004
Connecticut 214,600 July 31, 2010
242,814 July 31, 2009
91,011 July 31, 2005
3,075,216 July 31, 2004
</Table>
33
<Page>
<Table>
<Caption>
FUND AMOUNT EXPIRES
------------------------------------------------------
Michigan $ 681,535 July 31, 2011
226,944 July 31, 2010
1,413,569 July 31, 2008
Minnesota 214,916 July 31, 2010
128,212 July 31, 2009
340,808 July 31, 2008
329,867 July 31, 2005
2,795,903 July 31, 2004
New Jersey 941,924 July 31, 2011
1,190,382 July 31, 2009
23,676 July 31, 2005
4,843,800 July 31, 2004
Pennsylvania 7,701,119 July 31, 2011
1,301,218 July 31, 2010
933,369 July 31, 2009
1,809,455 July 31, 2005
7,461,554 July 31, 2004
</Table>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intends to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay tax-exempt interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be
considered a tax preference item to shareholders.
Additionally, at July 31, 2003, Michigan Fund and New Jersey Fund had net
capital losses of $578,222 and $609,607, respectively, attributable to
security transactions incurred after October 31, 2002. These are treated as
arising on the first day of each Fund's taxable year ending July 31, 2004.
D EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian to the Funds and 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 the Funds or the
Portfolios maintain with IBT. All significant credit balances used to reduce
the Funds' custodian fees are reported as a reduction of total expenses on
the Statement of Operations.
E 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.
F EXPENSES -- The majority of expenses of the Trust are directly identifiable
to an individual fund. Expenses which are not readily identifiable to a
specific fund are allocated taking into consideration, among other things,
the nature and type of expense and the relative size of the funds.
G INDEMNIFICATIONS -- Under the Trust's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Fund and
shareholders are indemnified against personal liability for obligations of
the Trust. Additionally, in the normal course of business, the Fund enters
into agreements with service providers that may contain indemnification
clauses. The Fund's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Fund that have
not yet occurred.
H OTHER -- Investment transactions are accounted for on a trade-date basis.
I INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to January 31, 2004 and for the six months then ended have not been audited
by independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 DISTRIBUTIONS TO SHAREHOLDERS
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are declared separately for each
class of shares. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest income and capital gain distributions in additional shares of the
same class of a Fund at the net asset value as of the reinvestment date.
Distributions are paid in the form of additional shares of the same class or,
at the election of the shareholder, in cash. The Funds distinguish between
distributions on a tax basis and a financial reporting basis. Accounting
principles generally accepted in the United States of America require that
only distributions in excess of tax basis earnings and profits be reported in
the financial statements as a return of capital. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
34
<Page>
3 SHARES OF BENEFICIAL INTEREST
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such
as the Funds) and classes. Transactions in Fund shares were as follows:
<Table>
<Caption>
ARIZONA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 148,892 378,487
Issued to shareholders electing to
receive payments of distributions
in Fund shares 10,979 17,130
Redemptions (86,374) (189,343)
-------------------------------------------------------------------------------
NET INCREASE 73,497 206,274
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
ARIZONA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 113,450 437,109
Issued to shareholders electing to
receive payments of distributions
in Fund shares 59,479 86,163
Redemptions (373,147) (759,609)
-------------------------------------------------------------------------------
NET DECREASE (200,218) (236,337)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COLORADO FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 115,792 364,592
Issued to shareholders electing to
receive payments of distributions
in Fund shares 14,164 18,660
Redemptions (229,986) (120,102)
-------------------------------------------------------------------------------
NET INCREASE (DECREASE) (100,030) 263,150
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
COLORADO FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 142,124 168,406
Issued to shareholders electing to
receive payments of distributions
in Fund shares 27,317 55,914
Redemptions (589,729) (334,094)
-------------------------------------------------------------------------------
NET DECREASE (420,288) (109,774)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CONNECTICUT FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 480,229 705,436
Issued to shareholders electing to
receive payments of distributions
in Fund shares 31,420 60,375
Redemptions (562,985) (461,706)
-------------------------------------------------------------------------------
NET INCREASE (DECREASE) (51,336) 304,105
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
CONNECTICUT FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 132,560 831,576
Issued to shareholders electing to
receive payments of distributions
in Fund shares 117,627 228,550
Redemptions (889,682) (1,350,375)
-------------------------------------------------------------------------------
NET DECREASE (639,495) (290,249)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MICHIGAN FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 281,966 150,521
Issued to shareholders electing to
receive payments of distributions
in Fund shares 3,867 7,429
Redemptions (30,519) (69,100)
-------------------------------------------------------------------------------
NET INCREASE 255,314 88,850
-------------------------------------------------------------------------------
</Table>
35
<Page>
<Table>
<Caption>
MICHIGAN FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 75,929 323,147
Issued to shareholders electing to
receive payments of distributions
in Fund shares 72,458 136,993
Redemptions (556,296) (941,435)
-------------------------------------------------------------------------------
NET DECREASE (407,909) (481,295)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MINNESOTA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 88,121 315,627
Issued to shareholders electing to
receive payments of distributions
in Fund shares 13,462 27,434
Redemptions (95,320) (149,378)
-------------------------------------------------------------------------------
NET INCREASE 6,263 193,683
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
MINNESOTA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 90,228 415,077
Issued to shareholders electing to
receive payments of distributions
in Fund shares 57,507 107,917
Redemptions (410,760) (704,543)
-------------------------------------------------------------------------------
NET DECREASE (263,025) (181,549)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NEW JERSEY FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 304,304 945,861
Issued to shareholders electing to
receive payments of distributions
in Fund shares 34,898 59,254
Redemptions (397,940) (558,568)
-------------------------------------------------------------------------------
NET INCREASE (DECREASE) (58,738) 446,547
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
NEW JERSEY FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 351,922 1,507,451
Issued to shareholders electing to
receive payments of distributions
in Fund shares 275,354 460,248
Redemptions (1,342,648) (2,463,631)
-------------------------------------------------------------------------------
NET DECREASE (715,372) (495,932)
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
PENNSYLVANIA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 453,920 588,911
Issued to shareholders electing to
receive payments of distributions
in Fund shares 24,180 42,066
Redemptions (227,077) (371,922)
-------------------------------------------------------------------------------
NET INCREASE 251,023 259,055
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
PENNSYLVANIA FUND
---------------------------------
SIX MONTHS ENDED
JANUARY 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) JULY 31, 2003
-------------------------------------------------------------------------------
Sales 348,143 1,393,405
Issued to shareholders electing to
receive payments of distributions
in Fund shares 237,082 415,382
Redemptions (1,368,998) (2,165,938)
-------------------------------------------------------------------------------
NET DECREASE (783,773) (357,151)
-------------------------------------------------------------------------------
</Table>
4 TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios has engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. Certain of the
officers and Trustees of the Funds and of the Portfolios are officers of the
above organizations. EVM serves as the sub-transfer agent of each Fund and
receives from the transfer agent an aggregate fee based upon the actual
expenses incurred by EVM in the performance of these services. For the six
months ended January 31, 2004, EVM 37 earned $1,195, $752, $3,083,
36
<Page>
$1,808, $1,238, $5,169, and $5,993, in sub-transfer agent fees from Arizona
Fund, Colorado Fund, Connecticut Fund, Michigan Fund, Minnesota Fund, New
Jersey Fund, and Pennsylvania Fund, respectively. The Funds were informed
that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Funds'
principal underwriter, received $2,338, $1,887, $2,869, $1,511, $1,102,
$5,719 and $7,313 as its portion of the sales charge on sales of Class A
shares from the Arizona Fund, Colorado Fund, Connecticut Fund, Michigan Fund,
Minnesota Fund, New Jersey Fund, and Pennsylvania Fund, respectively, for the
six months ended January 31, 2004.
Except as to Trustees of the Funds and Portfolios who are not members of
EVM's or BMR's organization, officers and Trustees receive remuneration for
their services to each Fund out of the investment adviser fee earned by BMR.
5 DISTRIBUTION AND SERVICE PLANS
Each Fund has in effect a distribution plan for Class B (Class B Plan)
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan for Class A (Class A Plan) (collectively, the Plans). The Class B Plan
requires the Fund to pay the principal underwriter, EVD, amounts equal to
1/365 of 0.75% of each Fund's daily net assets attributable to Class B
shares, for providing ongoing distribution services and facilities to the
respective Fund. Each Fund will automatically discontinue payments to EVD
during any period in which there are no outstanding Uncovered Distribution
Charges, which are equivalent to the sum of (i) 5% of the aggregate amount
received by the Fund for Class B shares sold plus (ii) interest calculated by
applying the rate of 1% over the prevailing prime rate to the outstanding
balance of Uncovered Distribution Charges of EVD reduced by the aggregate
amount of contingent deferred sales charges (see Note 6) and daily amounts
theretofore paid to EVD. The amount payable to EVD with respect to each day
is accrued on such day as a liability of each Fund's Class B shares and,
accordingly, reduces each Fund's net assets. For the six months ended January
31, 2004, the Class B shares of the Arizona Fund, Colorado Fund, Connecticut
Fund, Michigan Fund, Minnesota Fund, New Jersey Fund and Pennsylvania Fund
paid or accrued $224,905, $103,824, $457,538, $248,306, $153,965, $870,739
and $766,105, respectively, to EVD, representing 0.75% (annualized) of each
Fund's Class B average daily net assets. At January 31, 2004, the amount of
Uncovered Distribution Charges of EVD calculated under the Class B Plans for
Arizona Fund, Colorado Fund, Connecticut Fund, Michigan Fund, Minnesota Fund,
New Jersey Fund and Pennsylvania Fund were approximately $1,164,000,
$1,000,000, $1,718,000, $251,000, $832,000, $1,554,000 and $2,218,000,
respectively.
The Plans authorize each Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts equal to 0.20% of each Fund's
average daily net assets attributable to Class A and Class B shares for each
fiscal year. Service fee payments are made for personal services and/or the
maintenance of shareholder accounts. Service fees are separate and distinct
from the sales commissions and distribution fees payable by each Fund to EVD,
and as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD. For the six months ended
January 31, 2004, Arizona Fund, Colorado Fund, Connecticut Fund, Michigan
Fund, Minnesota Fund, New Jersey Fund and Pennsylvania Fund paid or accrued
service fees to or payable to EVD in the amount of $9,570, $9,064, $25,382,
$4,804, $9,153, $32,438 and $18,724, respectively, for Class A shares, and
$59,975, $27,686, $122,010, $66,215, $41,057, $232,197 and $204,295,
respectively, for Class B shares.
Certain officers and Trustees of the Funds are officers or directors of EVD.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Class A shares may be
subject to a 1% CDSC if redeemed within 18 months of purchase (depending on
the circumstances of purchase). Generally, the CDSC is based upon the lower
of the net asset value at date of redemption or date of purchase. No charge
is levied on shares acquired by reinvestment of dividends or capital gains
distributions. The Class B CDSC is imposed at declining rates that begin at
5% in the case of redemptions in the first and second year after purchase,
declining one percentage point each subsequent year. No CDSC is levied on
shares which have been sold to EVD or its affiliates or to their respective
employees or clients and may be waived under certain other limited
conditions. CDSC charges received on Class B redemptions are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Distribution Plan (see Note 5). CDSC charges received on Class
B redemptions when no Uncovered Distribution Charges exist for Class B will
be credited to each Fund. EVD received approximately $25,000, $19,000,
$30,000, $19,000, $11,000, $73,000 and $40,000 of CDSC paid by Class B
shareholders of Arizona Fund, Colorado Fund, Connecticut Fund, Michigan Fund,
37
<Page>
Minnesota Fund, New Jersey Fund and Pennsylvania Fund, respectively, for the
six months ended January 31, 2004.
EVD received approximately $200 of CDSC paid by Class A shareholders of
Pennsylvania Fund and no CDSC paid by Class A shareholders of Arizona Fund,
Colorado Fund, Connecticut Fund, Michigan Fund, Minnesota Fund and New Jersey
Fund for the six months ended January 31, 2004.
7 INVESTMENT TRANSACTIONS
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended January 31, 2004 were as follows:
<Table>
ARIZONA FUND
Increases $ 2,707,414
Decreases 5,856,671
COLORADO FUND
Increases $ 2,583,759
Decreases 8,993,026
CONNECTICUT FUND
Increases $ 6,493,598
Decreases 17,493,082
MICHIGAN FUND
Increases $ 3,535,515
Decreases 7,498,486
MINNESOTA FUND
Increases $ 1,745,649
Decreases 5,685,542
NEW JERSEY FUND
Increases $ 6,978,935
Decreases 21,683,647
PENNSYLVANIA FUND
Increases $ 8,001,639
Decreases 19,650,381
</Table>
38
<Page>
ARIZONA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 98.4%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 2.3%
$ 1,000 Arizona School Facility Board,
(State School Improvements), 5.00%, 7/1/19 $ 1,061,050
500 Glendale, IDA, (Midwestern University),
5.75%, 5/15/21 536,100
- ---------------------------------------------------------------------------------------------------------
$ 1,597,150
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 4.7%
$ 700 Pima County, IDA, (Tucson Electric Power Co.),
6.00%, 9/1/29 $ 683,424
1,500 Salt River, Agriculture Improvements and Power District,
5.00%, 1/1/31 1,548,420
1,000 Salt River, Agriculture Improvements and Power District,
5.00%, 1/1/23 1,044,960
- ---------------------------------------------------------------------------------------------------------
$ 3,276,804
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 15.4%
$ 500 Glendale, IDA, (Thunderbird-American Graduate School),
Prerefunded to 7/1/05, 7.125%, 7/1/20 $ 546,665
1,250 Maricopa County, IDA, (Place Five and The Greenery),
Escrowed to Maturity, 8.625%, 1/1/27 1,554,375
7,500 Maricopa County, Single Family, Escrowed to Maturity,
0.00%, 2/1/16 4,453,425
6,500 Phoenix, IDA, Single Family, Escrowed to Maturity,
0.00%, 12/1/14 4,174,690
- ---------------------------------------------------------------------------------------------------------
$ 10,729,155
- ---------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 3.3%
$ 1,125 Puerto Rico, 0.00%, 7/1/18 $ 575,741
1,500 Tucson, 5.375%, 7/1/21 1,695,225
- ---------------------------------------------------------------------------------------------------------
$ 2,270,966
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 1.9%
$ 900 Coconino County, IDA, Health Care Institution,
(Guidance Center, Inc.), 5.80%, 6/1/11 $ 837,288
500 Yavapai County, IDA, Health Care Institution,
(West Yavapai Guidance), 6.625%, 8/15/24 460,370
- ---------------------------------------------------------------------------------------------------------
$ 1,297,658
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 4.1%
$ 750 Arizona Health Facilities Authority,
(John C. Lincoln Health Network), 5.75%, 12/1/32 $ 729,870
1,059 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital), 8.125%, 6/1/12(1) 169,419
1,171 Arizona Health Facilities Authority, (Phoenix
Memorial Hospital), 8.20%, 6/1/21(1) 187,410
1,000 Scottsdale, IDA, (Scottsdale Healthcare),
5.70%, 12/1/21 1,050,520
1,000 Winslow, IDA, (Winslow Memorial Hospital),
5.50%, 6/1/22 704,360
- ---------------------------------------------------------------------------------------------------------
$ 2,841,579
- ---------------------------------------------------------------------------------------------------------
HOUSING -- 4.0%
$ 1,000 Maricopa County, IDA, (Laguna Point Apartments),
6.75%, 7/1/19 $ 1,024,740
835 Maricopa County, IDA, (National Health Facilities II),
6.375%, 1/1/19 730,425
1,000 Phoenix, IDA, (Woodstone and Silver Springs Apartments),
(Asset Guaranty), 6.25%, 4/1/23 1,012,160
- ---------------------------------------------------------------------------------------------------------
$ 2,767,325
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 2.3%
$ 1,000 Casa Grande, (Frito Lay, Inc.), 6.60%, 12/1/10 $ 1,036,970
650 Phoenix Airport Authority, (America West Airlines, Inc.),
(AMT), 6.25%, 6/1/19 532,818
- ---------------------------------------------------------------------------------------------------------
$ 1,569,788
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 5.8%
$ 900 Pima County, IDA, (Tucson Electric Power Co.),
(FSA), 7.25%, 7/15/10 $ 945,180
670 Puerto Rico Electric Power Authority, (MBIA),
Variable Rate, 7/1/29(2)(3) 789,474
500 Puerto Rico Electric Power Authority, (MBIA),
5.00%, 7/1/32 521,345
400 Puerto Rico Electric Power Authority, (MBIA),
Variable Rate, 7/1/16(2)(3) 606,292
1,000 Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 1,148,930
- ---------------------------------------------------------------------------------------------------------
$ 4,011,221
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
39
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.9%
$ 1,000 Maricopa County, IDA, (Samaritan Health Services),
(MBIA), Escrowed to Maturity, 7.00%, 12/1/16 $ 1,290,150
- ---------------------------------------------------------------------------------------------------------
$ 1,290,150
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 3.1%
$ 1,000 Puerto Rico General Obligation, (FGIC), 5.00%, 7/1/32 $ 1,038,950
500 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 523,295
500 Puerto Rico General Obligation, (FSA), Variable Rate,
7/1/27(2)(3) 600,630
- ---------------------------------------------------------------------------------------------------------
$ 2,162,875
- ---------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 15.2%
$ 1,195 Arizona Health Facilities Authority, (Arizona Healthcare
Systems), (FGIC), 5.50%, 6/1/15 $ 1,368,179
1,000 Arizona Health Facilities Authority, (Northern Arizona
Healthcare System), (AMBAC), 4.75%, 10/1/30 1,000,790
2,000 Maricopa County, IDA, (Mayo Clinic Hospital), (AMBAC),
5.25%, 11/15/37(4) 2,062,080
1,000 Mesa IDA, (Discovery Health System), (MBIA),
5.625%, 1/1/29 1,080,580
1,000 Pima County, IDA, (Carondelet Health Care Corp.),
(MBIA), 5.25%, 7/1/12 1,133,650
1,000 Pima County, IDA, (Carondolet Health Care Corp.),
(MBIA), 5.25%, 7/1/11 1,136,180
1,500 Scottsdale, IDA, (Scottsdale Memorial Hospital), (AMBAC),
6.125%, 9/1/17 1,719,135
1,000 Yuma, IDA, (Yuma Regional Medical Center), (FSA),
5.00%, 8/1/31 1,026,820
- ---------------------------------------------------------------------------------------------------------
$ 10,527,414
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 2.9%
$ 550 Marana, Municipal Facilities, (Municipal Property Corp.),
(AMBAC), 5.00%, 7/1/28 $ 569,322
1,000 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
6/1/26(2)(5) 1,056,880
290 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
12/1/19(2)(3) 377,235
- ---------------------------------------------------------------------------------------------------------
2,003,437
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 4.8%
$ 1,000 Arizona Tourism and Sports Authority, (Multipurpose
Stadium Facility), (MBIA), 5.00%, 7/1/25 $ 1,037,620
750 Arizona Tourism and Sports Authority, (Multipurpose
Stadium Facility), (MBIA), 5.00%, 7/1/28 776,348
1,400 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(3) 1,523,550
- ---------------------------------------------------------------------------------------------------------
$ 3,337,518
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 9.4%
$ 3,000 Phoenix Civic Improvements Corp., Airport Revenue,
(FGIC), (AMT), 5.25%, 7/1/27 $ 3,107,820
1,650 Puerto Rico Highway and Transportation Authority,
(MBIA), 5.50%, 7/1/36 1,858,593
1,500 Tucson Street and Highway Revenue, (FGIC),
5.00%, 7/1/18 1,592,070
- ---------------------------------------------------------------------------------------------------------
$ 6,558,483
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 3.3%
$ 1,205 Peoria, Water and Sewer, (FGIC), 5.00%, 7/1/18 $ 1,278,758
1,000 Phoenix Civic Improvements Corp., Water System
Revenue, (FGIC), 5.00%, 7/1/22 1,043,590
- ---------------------------------------------------------------------------------------------------------
$ 2,322,348
- ---------------------------------------------------------------------------------------------------------
POOLED LOANS -- 8.2%
$ 2,000 Arizona Educational Loan Marketing Corp., (AMT),
6.25%, 6/1/06 $ 2,134,100
2,000 Arizona Educational Loan Marketing Corp., (AMT),
6.30%, 12/1/08 2,042,740
1,500 Arizona Student Loan Acquisition Authority, (AMT),
7.625%, 5/1/10 1,543,560
- ---------------------------------------------------------------------------------------------------------
$ 5,720,400
- ---------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 2.0%
$ 1,800 Arizona Health Facilities Authority, (Care Institute,
Inc. - Mesa), 7.625%, 1/1/26(6) $ 1,416,078
- ---------------------------------------------------------------------------------------------------------
$ 1,416,078
- ---------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 3.8%
$ 1,000 Central Arizona Water Conservation District,
5.50%, 11/1/09 $ 1,150,810
1,500 Phoenix, Civic Improvement Corp., Wastewater System,
4.75%, 7/1/23 1,505,205
- ---------------------------------------------------------------------------------------------------------
$ 2,656,015
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
40
<Page>
<Table>
<Caption>
VALUE
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.4%
(IDENTIFIED COST $63,890,142) $ 68,356,364
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.6% $ 1,133,783
- ---------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $ 69,490,147
- ---------------------------------------------------------------------------------------------------------
</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 Arizona
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 47.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 1.7% to 15.0% of total investments.
(1) Non-income producing security.
(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 has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(5) Security has been issued as an inverse floater bond.
(6) The Portfolio is accruing only partial interest on this security.
See notes to financial statements
41
<Page>
COLORADO MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS 98.7%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 6.3%
$ 1,000 Colorado Educational and Cultural Facilities Authority,
(Alexander Dawson School), 5.30%, 2/15/29 $ 1,032,590
1,000 Colorado Springs, (Colorado College), 5.25%, 6/1/24 1,054,930
- ---------------------------------------------------------------------------------------------------------
$ 2,087,520
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 3.6%
$ 3,000 Dawson Ridge, Metropolitan District #1, Escrowed to
Maturity, 0.00%, 10/1/22 $ 1,172,370
- ---------------------------------------------------------------------------------------------------------
$ 1,172,370
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 13.8%
$ 350 Aspen Valley, Hospital District, 6.80%, 10/15/24 $ 372,200
1,150 Colorado Health Facilities Authority, (Catholic Health
Initiatives), 5.25%, 9/1/21 1,191,032
750 Colorado Health Facilities Authority, (Parkview Memorial
Hospital), 6.125%, 9/1/25 785,587
500 Colorado Health Facilities Authority, (Portercare Adventist
Health), 6.50%, 11/15/31 548,080
500 Colorado Health Facilities Authority, (Vail Valley Medical
Center), 5.80%, 1/15/27 512,755
400 La Junta, (Arkansas Valley Regional Medical Center),
6.10%, 4/1/24 405,960
715 University of Colorado Hospital Authority,
5.60%, 11/15/25 734,684
- ---------------------------------------------------------------------------------------------------------
$ 4,550,298
- ---------------------------------------------------------------------------------------------------------
HOUSING -- 8.9%
$ 500 Colorado HFA, Multifamily, (AMT), 6.40%, 10/1/27 $ 521,985
15 Colorado HFA, Single Family, 8.00%, 12/1/24 15,023
1,000 Denver, Multifamily, (Bank Lofts), (FHA), (AMT),
6.15%, 12/1/16 1,042,360
355 Lake Creek, (Affordable Housing Corp.), Multifamily,
6.25%, 12/1/23 321,712
1,000 Lakewood, Multifamily, (FHA), (AMT), 6.65%, 10/1/25 1,026,300
- ---------------------------------------------------------------------------------------------------------
$ 2,927,380
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 4.6%
$ 500 Denver Airport Special Facilities, (United Airlines), (AMT),
6.875%, 10/1/32(1) $ 333,000
750 Puerto Rico Industrial, Medical and Environmental Pollution
Control Facility Finance Authority, (American Home Products),
5.10%, 12/1/18 772,552
$ 500 Puerto Rico Port Authority, (American Airlines), (AMT),
6.25%, 6/1/26 $ 392,530
- ---------------------------------------------------------------------------------------------------------
$ 1,498,082
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 4.7%
$ 1,000 University of Colorado, (FGIC), 5.00%, 6/1/27 $ 1,032,900
500 University of Northern Colorado, (AMBAC),
5.00%, 6/1/31 513,400
- ---------------------------------------------------------------------------------------------------------
$ 1,546,300
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 10.4%
$ 500 Arapahoe County, School District #6, (FGIC),
5.00%, 12/1/22 $ 524,540
1,000 Arapahoe County, Water and Wastewater, Public
Improvements District, (MBIA), 5.125%, 12/1/32 1,040,500
500 Bowles, Metropolitan District, (FSA), 5.00%, 12/1/33 516,650
1,000 Pueblo County, School District #70, (FGIC),
5.00%, 12/1/19 1,104,640
200 Puerto Rico, (FSA), Variable Rate, 7/1/27(2)(3) 240,252
- ---------------------------------------------------------------------------------------------------------
$ 3,426,582
- ---------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 5.5%
$ 760 Colorado Educational and Cultural Facilities Authority,
(Student Housing Foundation/University of Colorado),
(AMBAC), 5.00%, 7/1/27 $ 785,179
985 Thornton, SCA Realty Multifamily, (FSA), 7.10%, 1/1/30 1,022,588
- ---------------------------------------------------------------------------------------------------------
$ 1,807,767
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.5%
$ 250 Puerto Rico Public Building Authority, (AMBAC),
5.50%, 7/1/21 $ 289,353
400 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
12/1/19(2)(3) 520,324
- ---------------------------------------------------------------------------------------------------------
$ 809,677
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 5.6%
$ 255 Larimer County, Sales and Use Tax Revenue,
(Fairgrounds & Events Center), (MBIA),
5.00%, 12/15/19 $ 271,430
500 Sand Creek, Metropolitan District, (XLCA),
5.00%, 12/1/31 515,050
1,000 Sand Creek, Metropolitan District, (XLCA),
5.375%, 12/1/27 1,071,410
- ---------------------------------------------------------------------------------------------------------
$ 1,857,890
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
42
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 21.8%
$ 3,500 E-470 Colorado Public Highway Authority, (MBIA),
0.00%, 9/1/16 $ 2,000,005
2,000 Northwest Parkway Public Highway Authority, (FSA),
5.25%, 6/15/41 2,095,660
3,095 Puerto Rico Highway and Transportation Authority, (AMBAC),
0.00%, 7/1/18 1,687,734
250 Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/36 262,660
1,000 Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/36(4) 1,126,420
- ---------------------------------------------------------------------------------------------------------
$ 7,172,479
- ---------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 1.2%
$ 425 Logan County, Industrial Development, (TLC Care
Choices, Inc.), 6.875%, 12/1/23 $ 382,045
- ---------------------------------------------------------------------------------------------------------
$ 382,045
- ---------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 5.2%
$ 400 Bachelor Gulch, Metropolitan District, 6.70%, 11/15/19 $ 425,588
360 Bell Mountain Ranch, Metropolitan District,
6.625%, 11/15/25 370,040
400 Black Hawk, Business Improvement District,
6.50%, 12/1/11 395,496
500 Cottonwood, Water and Sanitation District,
7.75%, 12/1/20 531,915
- ---------------------------------------------------------------------------------------------------------
$ 1,723,039
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.4%
$ 450 Eagle County, (Eagle County Airport Terminal), (AMT),
7.50%, 5/1/21 $ 461,759
- ---------------------------------------------------------------------------------------------------------
$ 461,759
- ---------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 3.2%
$ 1,000 Colorado Water Resources, Power Development Authority,
5.00%, 9/1/21 $ 1,047,900
- ---------------------------------------------------------------------------------------------------------
$ 1,047,900
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.7%
(IDENTIFIED COST $30,646,324) $ 32,471,088
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 419,571
- ---------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 32,890,659
- ---------------------------------------------------------------------------------------------------------
</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.
FHA - Federal Housing Authority
The Portfolio invests primarily in debt securities issued by Colorado
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 51.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 4.9% to 14.5% of total investments.
(1) Non-income producing security.
(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 has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
43
<Page>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 95.5%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 8.8%
$ 1,500 Connecticut HEFA, (Loomis Chaffee School),
5.25%, 7/1/31 $ 1,573,245
2,500 Connecticut HEFA, (University of Hartford),
5.25%, 7/1/32 2,591,300
2,000 Connecticut HEFA, (Yale University), 5.00%, 7/1/42 2,060,980
4,350 Connecticut HEFA, (Yale University), 5.125%, 7/1/27 4,514,256
1,350 University of Connecticut, 5.00%, 5/15/23 1,398,087
545 University of Connecticut, 5.375%, 4/1/18 629,938
- ---------------------------------------------------------------------------------------------------------
$ 12,767,806
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 4.3%
$ 3,135 Connecticut Development Authority, (Connecticut
Light and Power), 5.85%, 9/1/28 $ 3,345,735
800 Connecticut Development Authority, (Western Mass
Electric), Variable Rate, 9/1/22(1)(2) 904,064
2,000 Puerto Rico Electric Power Authority, 5.125%, 7/1/29 2,057,120
- ---------------------------------------------------------------------------------------------------------
$ 6,306,919
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 7.2%
$ 3,010 Connecticut Clean Water Fund, 5.50%, 10/1/19 $ 3,524,258
720 Connecticut HEFA, (NHP) (Highland View), (AMT),
Prerefunded to 11/1/04, 7.00%, 11/1/07 765,137
1,305 Connecticut HEFA, (NHP), (Sharon Healthcare),
Prerefunded to 11/1/04, 6.25%, 11/1/14 1,381,878
335 Connecticut HEFA, (NHP), (Wadsworth Glen), (AMT),
Prerefunded to 11/1/04, 7.00%, 11/1/07 356,001
2,000 Connecticut HEFA, (NHP), (Wadsworth Glen), (AMT),
Prerefunded to 11/1/04, 7.50%, 11/1/16 2,132,700
2,000 Connecticut HEFA, (NHP), (Windsor), Prerefunded to
11/1/04, 7.125%, 11/1/14 2,130,820
100 Guam Power Authority, Prerefunded to 10/1/04,
6.625%, 10/1/14 105,743
- ---------------------------------------------------------------------------------------------------------
$ 10,396,537
- ---------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.1%
$ 1,750 Connecticut, 0.00%, 11/1/09 $ 1,477,245
1,270 Danbury, 4.50%, 2/1/14 1,371,397
1,065 Puerto Rico, 0.00%, 7/1/15 649,490
400 Redding, 5.50%, 10/15/18 465,472
650 Redding, 5.625%, 10/15/19 765,999
535 Wilton, 5.25%, 7/15/18 610,093
535 Wilton, 5.25%, 7/15/19 608,546
- ---------------------------------------------------------------------------------------------------------
$ 5,948,242
- ---------------------------------------------------------------------------------------------------------
HOUSING -- 0.0%
$ 45 Connecticut HFA, Housing Mortgage Finance Program,
(AMT), 5.45%, 5/15/32 $ 46,485
- ---------------------------------------------------------------------------------------------------------
$ 46,485
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 6.5%
$ 3,065 Connecticut Development Authority, Airport Facility,
(Signature Flight), (AMT), 6.625%, 12/1/14 $ 2,979,456
4,500 Eastern Connecticut Resource Recovery Authority,
(Wheelabrator Lisbon), (AMT), 5.50%, 1/1/20 4,512,960
700 Puerto Rico Port Authority, (American Airlines), (AMT),
6.25%, 6/1/26 549,542
1,350 Sprague, Environmental Improvement, (International
Paper Co.), (AMT), 5.70%, 10/1/21 1,386,666
- ---------------------------------------------------------------------------------------------------------
$ 9,428,624
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 14.0%
$ 1,250 Connecticut HEFA, (Choate Rosemary College), (MBIA),
5.00%, 7/1/27 $ 1,274,150
1,550 Connecticut HEFA, (Connecticut College), (MBIA),
5.00%, 7/1/32 1,602,901
2,000 Connecticut HEFA, (Fairfield University), (MBIA),
5.00%, 7/1/28 2,052,900
2,500 Connecticut HEFA, (Fairfield University), (MBIA),
5.25%, 7/1/25 2,621,000
1,000 Connecticut HEFA, (Greenwich Academy), (FSA),
5.00%, 3/1/32 1,033,750
5,305 Connecticut HEFA, (Trinity College), (MBIA),
5.50%, 7/1/21 6,125,790
1,440 Connecticut HEFA, (Westminster School), (MBIA),
5.00%, 7/1/29 1,472,501
1,000 University of Connecticut, (FGIC), 5.00%, 11/15/29 1,038,780
3,000 University of Connecticut, (MBIA), 4.75%, 11/15/24 3,030,150
- ---------------------------------------------------------------------------------------------------------
$ 20,251,922
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 4.5%
$ 4,000 Puerto Rico Electric Power Authority, (FSA),
4.75%, 7/1/24 $ 4,053,960
1,000 Puerto Rico Electric Power Authority, (MBIA), Variable
Rate, 7/1/16(1)(3) 1,515,730
830 Puerto Rico Electric Power Authority, DRIVERS, (FSA),
Variable Rate, 7/1/29(1)(3) 978,006
- ---------------------------------------------------------------------------------------------------------
$ 6,547,696
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
44
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.5%
$ 1,000 Connecticut HEFA, (Choate Rosemary College), (MBIA),
Prerefunded to 7/1/04, 6.80%, 7/1/15 $ 1,034,230
1,000 Connecticut Special Tax Transportation Infrastructure,
(FSA), Prerefunded to 10/1/11, 5.00%, 10/1/21 1,135,340
- ---------------------------------------------------------------------------------------------------------
$ 2,169,570
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 12.5%
$ 3,870 Bridgeport, (FGIC), 4.75%, 8/15/21 $ 3,977,315
2,305 Bridgeport, (FGIC), 5.375%, 8/15/19 2,519,296
2,000 Connecticut, (FSA), 5.00%, 10/15/19 2,130,880
1,000 New Britain, (MBIA), 6.00%, 3/1/12 1,198,860
3,500 New Haven, (FGIC), 5.00%, 11/1/18 3,798,445
515 Puerto Rico General Obligation, (FGIC), 5.00%, 7/1/32 535,059
350 Puerto Rico General Obligation, (FSA), Variable Rate,
7/1/27(1)(3) 420,441
3,500 Suffield, (MBIA), 4.75%, 6/15/21 3,599,575
- ---------------------------------------------------------------------------------------------------------
$ 18,179,871
- ---------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 3.4%
$ 1,000 Connecticut HEFA, (Bridgeport Hospital), (MBIA),
6.625%, 7/1/18 $ 1,013,960
1,000 Connecticut HEFA, (Danbury Hospital), (AMBAC),
5.375%, 7/1/17 1,069,070
1,500 Connecticut HEFA, (Hospital of St. Raphael), (AMBAC),
6.625%, 7/1/14 1,561,500
1,350 Connecticut HEFA, (Lawrence and Memorial Hospital),
(MBIA), 5.00%, 7/1/22 1,359,409
- ---------------------------------------------------------------------------------------------------------
$ 5,003,939
- ---------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 1.0%
$ 1,450 Connecticut HFA, (Housing Mortgage Finance Program),
(MBIA), (AMT), 5.30%, 5/15/33 $ 1,489,295
- ---------------------------------------------------------------------------------------------------------
$ 1,489,295
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.3%
$ 3,250 Puerto Rico Public Building Authority, (AMBAC),
5.50%, 7/1/21 $ 3,761,582
800 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
12/1/19(1)(3) 1,040,648
- ---------------------------------------------------------------------------------------------------------
$ 4,802,230
- ---------------------------------------------------------------------------------------------------------
INSURED-OTHER REVENUE -- 1.2%
- ---------------------------------------------------------------------------------------------------------
$ 550 Connecticut HEFA, (Child Care Facility Program), (AMBAC),
5.00%, 7/1/31 $ 564,998
1,150 Connecticut HEFA, (Village Families & Children), (AMBAC),
5.00%, 7/1/32 1,186,570
- ---------------------------------------------------------------------------------------------------------
$ 1,751,568
- ---------------------------------------------------------------------------------------------------------
INSURED-POOLED LOANS -- 1.0%
$ 1,360 Connecticut Higher Education Supplemental Loan Authority,
(MBIA), (AMT), 5.25%, 11/15/21 $ 1,412,278
- ---------------------------------------------------------------------------------------------------------
$ 1,412,278
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 1.7%
$ 375 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/07(1)(2) $ 397,061
2,000 Puerto Rico Infrastructure Financing Authority, (AMBAC),
5.00%, 7/1/28 2,058,840
- ---------------------------------------------------------------------------------------------------------
$ 2,455,901
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 5.0%
$ 5,500 Connecticut Airport, (Bradley International Airport), (FGIC),
(AMT), 5.125%, 10/1/26 $ 5,635,685
500 Guam International Airport Authority, (MBIA),
5.25%, 10/1/23 534,980
1,750 Puerto Rico Highway and Transportation Authority,
(AMBAC), 0.00%, 7/1/16 1,059,712
- ---------------------------------------------------------------------------------------------------------
$ 7,230,377
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 2.1%
$ 1,530 South Central Connecticut Regional Water Authority,
(MBIA), 5.00%, 8/1/25 $ 1,590,420
1,340 South Central Connecticut Regional Water Authority,
(FGIC), 5.125%, 8/1/29 1,392,113
- ---------------------------------------------------------------------------------------------------------
$ 2,982,533
- ---------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 1.6%
$ 2,000 Puerto Rico Public Finance Corp., (Commonwealth
Appropriation), 6.00%, 8/1/26 $ 2,332,600
- ---------------------------------------------------------------------------------------------------------
$ 2,332,600
- ---------------------------------------------------------------------------------------------------------
POOLED LOANS 0.5%
$ 645 Connecticut Higher Education Supplemental Loan Authority,
(AMT), 6.20%, 11/15/09 $ 652,934
- ---------------------------------------------------------------------------------------------------------
$ 652,934
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
45
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
SOLID WASTE -- 4.8%
$ 2,500 Bristol Resource Recovery Facility, (Ogden Martin
Systems), 6.50%, 7/1/14 $ 2,596,525
4,250 Connecticut Resources Recovery Authority, (American
REF-FUEL Co.), (AMT), 6.45%, 11/15/22 4,315,578
- ---------------------------------------------------------------------------------------------------------
$ 6,912,103
- ---------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 4.3%
$ 3,180 Connecticut Special Tax Transportation Infrastructure,
6.125%, 9/1/12(4) $ 3,811,294
2,000 Connecticut Special Tax Transportation Infrastructure,
6.50%, 10/1/12 2,470,000
- ---------------------------------------------------------------------------------------------------------
$ 6,281,294
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 0.4%
$ 500 Puerto Rico Highway and Transportation Authority,
5.50%, 7/1/15 $ 565,500
- ---------------------------------------------------------------------------------------------------------
$ 565,500
- ---------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 1.8%
$ 1,250 Connecticut Clean Water Fund, 6.00%, 10/1/12 $ 1,503,325
1,100 Stamford, Water Pollution Control System and Facilities,
5.00%, 11/15/32 1,138,335
- ---------------------------------------------------------------------------------------------------------
$ 2,641,660
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST $127,973,780) $ 138,557,884
- ---------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.5%
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- ---------------------------------------------------------------------------------------------------------
Connecticut HEFA, (Yale University), Variable Rate,
7/1/33 $ 5,000 $ 5,000,000
- ---------------------------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(AT AMORTIZED COST, $5,000,000) $ 5,000,000
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.0%
(IDENTIFIED COST $132,973,780) $ 143,557,884
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.0% $ 1,476,875
- ---------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 145,034,759
- ---------------------------------------------------------------------------------------------------------
</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
The Portfolio invests primarily in debt securities issued by Connecticut
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 51.7% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 6.8% to 22.9% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as an inverse floater bond.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
46
<Page>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 97.1%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 1.8%
$ 1,250 Michigan Higher Education Facilities Authority, (Creative
Studies), 5.85%, 12/1/22 $ 1,273,225
- ---------------------------------------------------------------------------------------------------------
$ 1,273,225
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.4%
$ 1,000 Puerto Rico Electric Power Authority, 5.125%, 7/1/29 $ 1,028,560
- ---------------------------------------------------------------------------------------------------------
$ 1,028,560
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 3.0%
$ 250 Battle Creek, Downtown Development Authority Tax
Increment, Prerefunded to 5/1/04, 7.60%, 5/1/16 $ 259,095
1,315 Battle Creek, Downtown Development Authority Tax
Increment, Prerefunded to 5/1/04, 7.65%, 5/1/22 1,362,997
475 Detroit, Prerefunded to 4/1/05, 6.70%, 4/1/10 510,473
- ---------------------------------------------------------------------------------------------------------
$ 2,132,565
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE -- MISCELLANEOUS -- 1.4%
$ 1,080 Pittsfield Township EDC, (Arbor Hospice),
7.875%, 8/15/27 $ 1,034,392
- ---------------------------------------------------------------------------------------------------------
$ 1,034,392
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 12.9%
$ 500 Allegan Hospital Finance Authority, (Allegan General
Hospital), 7.00%, 11/15/21 $ 512,210
870 Mecosta County, (Michigan General Hospital),
5.75%, 5/15/09 877,047
2,000 Michigan Hospital Finance Authority, (Central Michigan
Community Hospital), 6.25%, 10/1/27 2,003,620
3,750 Michigan Hospital Finance Authority, (McLaren Obligated
Group), 4.50%, 10/15/21 3,466,725
1,500 Michigan Hospital Finance Authority, (Oakwood Hospital),
5.75%, 4/1/32 1,553,355
750 Michigan Hospital Finance Authority, (Sparrow Obligation
Group), 5.625%, 11/15/36 761,512
- ---------------------------------------------------------------------------------------------------------
$ 9,174,469
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 6.0%
$ 2,000 Dickinson, EDC, (Champion International),
5.85%, 10/1/18 $ 2,043,620
2,200 Michigan Strategic Fund, (S.D. Warren), (AMT),
7.375%, 1/15/22 2,195,336
- ---------------------------------------------------------------------------------------------------------
$ 4,238,956
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 5.9%
$ 1,000 Ferris State University, (AMBAC), 5.00%, 10/1/23(1) $ 1,029,830
1,000 Michigan Technological University, (XLCA),
5.00%, 10/1/33 1,029,210
2,000 Western Michigan University, (FGIC),
5.125%, 11/15/22 2,104,040
- ---------------------------------------------------------------------------------------------------------
$ 4,163,080
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 4.9%
$ 2,000 Michigan Strategic Fund Resource Recovery, (Detroit
Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 $ 2,112,180
300 Michigan Strategic Fund, (Detroit Edison Co.), (FGIC),
6.95%, 5/1/11 374,355
1,000 Puerto Rico Electric Power Authority, (FSA),
4.75%, 7/1/24 1,013,490
- ---------------------------------------------------------------------------------------------------------
$ 3,500,025
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 7.0%
$ 3,500 Kent Hospital Finance Authority, (Butterworth Health
System), Prerefunded to 1/15/06, (MBIA),
6.125%, 1/15/21 $ 3,877,685
1,000 Lake Orion, School District, Prerefunded to 5/1/05,
(AMBAC), 7.00%, 5/1/20 1,082,510
- ---------------------------------------------------------------------------------------------------------
$ 4,960,195
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 31.6%
$ 1,000 Avondale School District, (AMBAC), 4.75%, 5/1/22 $ 1,010,810
1,005 Brighton School District, (AMBAC), 0.00%, 5/1/18 525,605
250 Clawson City School District, (FSA), 5.00%, 5/1/24 255,957
1,000 Coopersville Area Public School District, (MBIA),
5.00%, 5/1/29 1,020,980
2,000 Detroit School District, (FGIC), 5.25%, 5/1/28 2,113,140
1,000 Detroit, City School District, (FSA), 6.00%, 5/1/29 1,220,580
400 Haslett Public School District, (FSA), 4.75%, 5/1/26 402,468
1,900 Holland School District, (AMBAC), 0.00%, 5/1/17 1,053,474
3,000 Lake Orion, Community School District, (FGIC),
5.125%, 5/1/23 3,135,390
1,000 Melvindale-Northern Allen Park School District, (Building
and Site), (FSA), 5.00%, 5/1/28 1,033,220
1,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 1,079,300
2,410 Okemos Public Schools, (MBIA), 0.00%, 5/1/16 1,415,586
1,790 Parchment School District, (MBIA), 5.00%, 5/1/25 1,910,252
350 Puerto Rico General Obligation, (FSA), Variable Rate,
7/1/27(2)(3) 420,441
1,000 Redford Union School District No.1, (AMBAC),
5.00%, 5/1/22 1,072,720
1,000 St. Johns Public Schools, (FGIC), 5.10%, 5/1/25 1,077,900
</Table>
See notes to financial statements
47
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS (CONTINUED)
$ 2,500 Wyoming Public Schools, (FGIC), 5.125%, 5/1/23 $ 2,612,825
1,000 Zeeland Public Schools, (FGIC), 5.25%, 5/1/22 1,066,530
- ---------------------------------------------------------------------------------------------------------
$ 22,427,178
- ---------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 1.7%
$ 500 Michigan HDA, (Parkway Meadows), (FSA),
6.85%, 10/15/18 $ 511,900
660 Michigan HDA, Rental Housing, (MBIA), (AMT),
5.30%, 10/1/37 672,316
- ---------------------------------------------------------------------------------------------------------
$ 1,184,216
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 1.5%
$ 1,000 Michigan Building Authority, (Facilities Program), (MBIA),
5.00%, 10/15/29 $ 1,035,330
- ---------------------------------------------------------------------------------------------------------
$ 1,035,330
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 1.4%
$ 1,000 Wayne Charter County, (Airport Hotel-Detroit Metropolitan
Airport), (MBIA) , 5.00%, 12/1/30 $ 1,032,010
- ---------------------------------------------------------------------------------------------------------
$ 1,032,010
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 3.5%
$ 345 Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 1/1/19(2)(3) $ 455,476
2,000 Wayne Charter County Airport, Residual Certificates,
(MBIA), (AMT), Variable Rate, 12/1/28(2)(4) 2,033,360
- ---------------------------------------------------------------------------------------------------------
$ 2,488,836
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 7.3%
$ 500 Detroit, City Water Supply System, (FGIC),
4.75%, 7/1/19 $ 504,585
2,400 Grand Rapids, Sanitary Sewer System, (FGIC),
4.75%, 1/1/28 2,410,152
2,165 Warren, Water and Sewer, (FSA), 5.25%, 11/1/26 2,276,649
- ---------------------------------------------------------------------------------------------------------
$ 5,191,386
- ---------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 3.6%
$ 3,050 Detroit, Downtown Tax Increment, 0.00%, 7/1/16 $ 1,657,706
2,000 Detroit, Downtown Tax Increment, 0.00%, 7/1/20 839,160
30 Michigan Municipal Bond Authority Local Government
Loan, 6.90%, 5/1/21 30,129
- ---------------------------------------------------------------------------------------------------------
$ 2,526,995
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.2%
$ 1,500 Kent County Airport Facility, (AMT), Variable Rate,
1/1/25(2)(4) $ 1,532,790
- ---------------------------------------------------------------------------------------------------------
$ 1,532,790
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 97.1%
(IDENTIFIED COST $61,651,270) $ 68,924,208
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 2.9% $ 2,057,812
- ---------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 70,982,020
- ---------------------------------------------------------------------------------------------------------
</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 Michigan
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 66.7% 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 22.6% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(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 has been issued as a leveraged inverse floater bond.
(4) Security has been issued as an inverse floater bond.
See notes to financial statements
48
<Page>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 98.5%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 12.1%
$ 1,000 Hopkins, (Blake School), 5.50%, 9/1/24 $ 1,071,140
1,250 Minnesota Higher Education Facilities Authority, (Hamline
University), 6.00%, 10/1/29 1,299,387
575 Minnesota Higher Education Facilities Authority,
(Minneapolis College of Art), 5.375%, 5/1/21 590,220
500 Minnesota Higher Education Facilities Authority, (St. John's
University), 5.25%, 10/1/26 516,690
500 Minnesota Higher Education Facilities Authority, (St. John's
University), 5.40%, 10/1/22 513,995
500 Minnesota Higher Education Facilities Authority, (St. Mary's
College), 6.15%, 10/1/23 505,340
1,380 St. Cloud Housing and Redevelopment Authority, (University
Foundation), 5.00%, 5/1/23 1,431,364
- ---------------------------------------------------------------------------------------------------------
$ 5,928,136
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 9.4%
$ 2,000 Chaska, Electric, 6.10%, 10/1/30 $ 2,129,260
400 Puerto Rico Electric Power Authority, Variable Rate,
7/1/29(1)(2) 422,844
1,980 Rochester Electric, 5.25%, 12/1/30 2,051,696
- ---------------------------------------------------------------------------------------------------------
$ 4,603,800
- ---------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 12.8%
$ 750 Dakota County, Community Development Agency, (Senior
Housing Facilities), 5.00%, 1/1/21 $ 783,105
2,300 Hennepin County, Regional Railroad Authority,
5.00%, 12/1/31 2,367,574
1,500 Minneapolis and St. Paul General Obligation, Metropolitan
Airport Commission, (AMT), 4.50%, 1/1/15 1,539,885
1,000 Minnesota State, (Duluth Airport), (AMT),
6.25%, 8/1/14 1,065,420
500 Osseo, Independent School District No. 279,
5.25%, 2/1/21 537,400
- ---------------------------------------------------------------------------------------------------------
$ 6,293,384
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 8.9%
$ 1,000 Bemidji Health Care Facilities, (North Country Health
Services), (RAA), 5.00%, 9/1/31 $ 1,010,740
700 Martin County, (Fairmont Community Hospital Association),
6.625%, 9/1/22 690,753
1,000 Rochester Health Care Facilities, (Mayo Clinic),
5.50%, 11/15/27 1,062,630
500 Rochester Health Care Facilities, (Mayo Clinic), Variable
Rate, 11/15/27(1)(2) 562,635
1,000 St. Louis Park, Health Care Facilities Revenue, (Nicollet
Health Services), 5.25%, 7/1/30 1,013,170
- ---------------------------------------------------------------------------------------------------------
$ 4,339,928
- ---------------------------------------------------------------------------------------------------------
HOUSING -- 5.6%
$ 500 Columbia Heights, Multifamily, (Housing Crest),
6.625%, 4/20/43 $ 540,335
500 Minneapolis, Multifamily, (Bottineau Commons),
5.45%, 4/20/43 517,020
1,650 Minnetonka, Multifamily, (Archer Heights Apartments),
(AMT), 6.00%, 1/20/27 1,710,175
- ---------------------------------------------------------------------------------------------------------
$ 2,767,530
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 5.4%
$ 1,000 Cloquet, (Potlach Corp.), 5.90%, 10/1/26 $ 961,520
1,605 Minneapolis, Community Development Agency, Common
Bond Fund, (AMT), 6.80%, 12/1/24 1,664,834
- ---------------------------------------------------------------------------------------------------------
$ 2,626,354
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 1.1%
$ 500 Minnesota State Colleges and University, (St. Cloud St.
University), (FSA), 5.00%, 10/1/19 $ 533,090
- ---------------------------------------------------------------------------------------------------------
$ 533,090
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 12.0%
$ 500 Northern Minnesota Municipal Power Agency, (AMBAC),
4.75%, 1/1/20 $ 511,895
500 Puerto Rico Electric Power Authority, RITES, (FSA),
Variable Rate, 7/1/20(2)(3) 589,160
950 Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/21(4) 430,018
10,000 Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/25 3,644,300
50 Southern Minnesota Municipal Power Agency, (MBIA),
(AMT), Variable Rate, 1/1/18(1)(2) 52,396
565 Western Minnesota Municipal Power Agency, (AMBAC),
5.50%, 1/1/16 634,037
- ---------------------------------------------------------------------------------------------------------
$ 5,861,806
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
49
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 6.6%
$ 695 Freeborn County, (Criminal Justice Center), (FGIC),
5.00%, 2/1/23 $ 723,113
1,000 Lake Superior, Independent School District No. 381, (FSA),
5.00%, 4/1/18 1,077,270
1,330 St. Francis, Independent School District No. 15, (FGIC),
6.35%, 2/1/12 1,453,225
- ---------------------------------------------------------------------------------------------------------
$ 3,253,608
- ---------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 3.1%
$ 450 Plymouth, (Westhealth), (FSA), 6.25%, 6/1/16 $ 466,074
1,000 Willmar, (Rice Memorial Hospital), (FSA),
5.00%, 2/1/32 1,045,260
- ---------------------------------------------------------------------------------------------------------
$ 1,511,334
- ---------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 3.2%
$ 1,500 SCA MFMR Receipts, Burnsville, (FSA), 7.10%, 1/1/30 $ 1,557,240
- ---------------------------------------------------------------------------------------------------------
$ 1,557,240
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 2.7%
$ 1,270 Hopkins, Housing and Redevelopment Authority, (Public
Works and Fire Station), (MBIA), 5.00%, 2/1/20 $ 1,347,953
- ---------------------------------------------------------------------------------------------------------
$ 1,347,953
- ---------------------------------------------------------------------------------------------------------
INSURED-OTHER REVENUE -- 1.7%
$ 800 St. Paul, Housing and Redevelopment Authority,
(Block 19), (FSA), 5.35%, 8/1/29 $ 851,024
- ---------------------------------------------------------------------------------------------------------
$ 851,024
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 2.1%
$ 1,000 Washington County, Housing and Redevelopment Authority,
(Annual Appropriation), (MBIA), 5.50%, 2/1/32 $ 1,036,110
- ---------------------------------------------------------------------------------------------------------
$ 1,036,110
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 3.2%
$ 1,500 Minneapolis and St. Paul Metropolitan Airport Commission,
(FGIC), 5.25%, 1/1/32 $ 1,560,135
- ---------------------------------------------------------------------------------------------------------
$ 1,560,135
- ---------------------------------------------------------------------------------------------------------
MISCELLANEOUS -- 4.3%
$ 2,000 Minneapolis, Art Center Facilities, (Walker Art Center),
5.125%, 7/1/21 $ 2,100,820
- ---------------------------------------------------------------------------------------------------------
$ 2,100,820
- ---------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 4.3%
$ 1,000 Columbia Heights, Multifamily, (Crestview Corp.),
6.00%, 3/1/33 $ 926,530
670 Minneapolis, (Walker Methodist Senior Services),
6.00%, 11/15/28 557,507
975 St. Paul, Housing and Redevelopment, (Care Institute,
Inc.-Highland), 8.75%, 11/1/24(5) 607,415
- ---------------------------------------------------------------------------------------------------------
$ 2,091,452
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.5%
(IDENTIFIED COST $45,751,631) $ 48,263,704
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.5% $ 723,071
- ---------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 48,986,775
- ---------------------------------------------------------------------------------------------------------
</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
The Portfolio invests primarily in debt securities issued by Minnesota
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 36.3% 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 2.4% to 13.5% 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 has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(5) The Portfolio is accruing only partial interest on this security.
See notes to financial statements
50
<Page>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 100.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
COGENERATION -- 1.6%
$ 1,725 New Jersey EDA, (Trigen Trenton), (AMT), 6.20%,
12/1/07 $ 1,733,056
2,500 Port Authority of New York and New Jersey, (KIAC),
(AMT), 6.75%, 10/1/19 2,557,250
- ---------------------------------------------------------------------------------------------------------
$ 4,290,306
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 0.2%
$ 500 New Jersey Educational Facilities Authority, (Stevens
Institute of Technology), 5.25%, 7/1/32 $ 513,625
- ---------------------------------------------------------------------------------------------------------
$ 513,625
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 4.0%
$ 9,000 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 $ 4,901,490
2,000 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 1,089,220
2,000 Puerto Rico Electric Power Authority, Variable Rate,
7/1/29(1)(2) 2,114,220
2,500 Salem County, Pollution Control Financing, (Public Services
Enterprise Group, Inc.), (AMT) , 5.75%, 4/1/31 2,596,525
- ---------------------------------------------------------------------------------------------------------
$ 10,701,455
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 0.5%
$ 1,200 New Jersey Highway Authority, (Garden State Parkway),
Prerefunded to 1/1/10, 5.625%, 1/1/30 $ 1,402,836
- ---------------------------------------------------------------------------------------------------------
$ 1,402,836
- ---------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 1.8%
$ 1,500 Hudson County Improvement Authority, 6.625%, 8/1/25 $ 1,537,080
3,000 Mercer County Improvement Authority, 0.00%, 4/1/10 2,473,890
1,500 Puerto Rico, 0.00%, 7/1/16 862,065
- ---------------------------------------------------------------------------------------------------------
$ 4,873,035
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 0.5%
$ 1,305 New Jersey EDA, (Hudson County Occupational Center),
6.50%, 7/1/18 $ 1,213,846
- ---------------------------------------------------------------------------------------------------------
$ 1,213,846
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 11.9%
$ 3,750 Camden County, Improvement Authority, (Cooper Health
System), 6.00%, 2/15/27 $ 3,468,637
2,000 New Jersey Health Care Facilities Financing Authority,
(Atlantic City Medical Center), 5.75%, 7/1/25 2,113,920
3,000 New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.25%, 7/1/17 3,032,970
910 New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.25%, 7/1/27 890,162
2,625 New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.375%, 7/1/33 2,609,512
3,375 New Jersey Health Care Facilities Financing Authority,
(Deborah Heart and Lung Center), 6.30%, 7/1/23 3,436,492
1,505 New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), 6.00%, 1/1/34 1,579,934
2,700 New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), 6.00%, 1/1/25 2,837,646
2,000 New Jersey Health Care Facilities Financing Authority,
(Robert Wood Johnson University Hospital), 5.75%,
7/1/31 2,137,400
1,800 New Jersey Health Care Facilities Financing Authority,
(Saint Peters University Hospital), 6.875%, 7/1/30 2,004,264
1,800 New Jersey Health Care Facilities Financing Authority,
(Saint Peters University Hospital), (AMT), 6.875%,
7/1/20 2,035,980
550 New Jersey Health Care Facilities Financing Authority,
(St. Elizabeth's Hospital), 6.00%, 7/1/20 556,165
2,000 New Jersey Health Care Facilities Financing Authority,
(St. Elizabeth's Hospital), 6.00%, 7/1/27 1,973,900
2,500 New Jersey Health Care Facilities Financing Authority,
(Trinitas Hospital), 7.50%, 7/1/30 2,757,075
- ---------------------------------------------------------------------------------------------------------
$ 31,434,057
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 5.9%
$ 1,875 New Jersey EDA, (Continental Airlines), (AMT),
6.25%, 9/15/29 $ 1,656,900
1,875 New Jersey EDA, (Continental Airlines), (AMT),
9.00%, 6/1/33 2,076,506
2,135 New Jersey EDA, (GATX Terminals Corp.),
7.30%, 9/1/19 2,180,668
1,500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27(3) 1,483,125
5,640 New Jersey EDA, (Holt Hauling), (AMT),
8.95%, 12/15/18(3) 4,765,800
3,000 New Jersey EDA, (The Seeing Eye, Inc.),
6.20%, 12/1/24 3,358,710
- ---------------------------------------------------------------------------------------------------------
$ 15,521,709
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
51
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 1.3%
$ 1,700 New Jersey Educational Facilities Authority, (NJ Institute
of Technology), (MBIA), 4.75%, 7/1/31 $ 1,717,408
1,635 New Jersey Educational Facilities Authority, (Rowan
University), (FGIC), 5.25%, 7/1/20 1,769,005
- ---------------------------------------------------------------------------------------------------------
$ 3,486,413
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 1.3%
$ 1,300 Puerto Rico Electric Power Authority, (MBIA), Variable
Rate, 7/1/16(1)(4) $ 1,970,449
1,180 Puerto Rico Electric Power Authority, DRIVERS, (FSA),
Variable Rate, 7/1/29(1)(4) 1,390,418
- ---------------------------------------------------------------------------------------------------------
$ 3,360,867
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.2%
$ 1,000 Lafayette Yard, Community Development Corporation,
(Hotel and Conference Center), (MBIA), Prerefunded to
4/1/10, 5.80%, 4/1/35 $ 1,182,580
1,565 New Jersey Turnpike Authority, (MBIA), Escrowed to
Maturity, 6.50%, 1/1/16 1,938,033
- ---------------------------------------------------------------------------------------------------------
$ 3,120,613
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 10.5%
$ 1,250 Bordentown Regional School District Board of Education,
(FGIC), 5.00%, 1/15/31 $ 1,298,175
2,400 Bordentown Regional School District Board of Education,
(FGIC), 5.00%, 1/15/32 2,492,496
2,402 Bordentown Regional School District Board of Education,
(FGIC), 5.00%, 1/15/33 2,492,603
3,200 Branchburg Township Board of Education, (FSA),
5.00%, 2/1/26 3,317,568
1,325 Colts Neck Township Board of Education, (FSA),
5.00%, 2/1/23 1,429,052
1,650 Colts Neck Township Board of Education, (FSA),
5.00%, 2/1/27 1,760,500
1,000 High Bridge Board of Education, (FSA),
5.00%, 2/15/26 1,065,800
5,350 Irvington Township, (FSA), 0.00%, 7/15/22 2,179,376
5,350 Irvington Township, (FSA), 0.00%, 7/15/23 2,052,367
2,000 Irvington Township, (FSA), 0.00%, 7/15/24 724,560
1,000 Pequannock, River Basin Regional Sewer Authority,
(MBIA), 5.00%, 12/1/15 1,095,990
1,265 Pequannock, River Basin Regional Sewer Authority,
(MBIA), 5.00%, 12/1/21 1,332,779
1,885 Pohatcong Township School District, (FSA),
5.20%, 7/15/22 2,077,986
2,000 Puerto Rico Commonwealth, (FGIC), 5.50%, 7/1/22 2,307,300
$ 2,050 Washington Township, Mercer County Board of Education,
(FGIC), 5.00%, 1/1/26 $ 2,122,406
- ---------------------------------------------------------------------------------------------------------
$ 27,748,958
- ---------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 7.5%
$ 4,250 New Jersey EDA, (Hillcrest Health Services), (AMBAC),
0.00%, 1/1/19 $ 2,108,128
3,000 New Jersey EDA, (Hillcrest Health Services), (AMBAC),
0.00%, 1/1/21 1,325,820
10,970 New Jersey EDA, (St. Barnabas Medical Center), (MBIA),
0.00%, 7/1/26 3,574,245
2,890 New Jersey Health Care Facilities Financing Authority,
(St. Barnabas Health Center), (MBIA), Variable Rate,
1/1/21(1)(4) 2,917,657
6,000 New Jersey Health Care Facilities Financing Authority,
(St. Barnabas Medical Center), (MBIA), 0.00%, 7/1/23 2,306,100
3,330 New Jersey Health Care Facilities, (Englewood Hospital),
(MBIA), 5.00%, 8/1/31 3,424,039
4,000 New Jersey Health Care Facilities, (Jersey City Medical
Center), (FSA), 5.00%, 8/1/41 4,084,520
- ---------------------------------------------------------------------------------------------------------
$ 19,740,509
- ---------------------------------------------------------------------------------------------------------
INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 1.8%
$ 1,750 Lafayette Yard Community Development Corporation,
(Hotel and Conference Center), (FGIC), 5.00%, 4/1/35 $ 1,787,188
2,155 New Jersey EDA, RITES, (FSA), Variable Rate,
5/1/07(1)(4) 2,956,574
- ---------------------------------------------------------------------------------------------------------
$ 4,743,762
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.9%
$ 6,620 Garden State Preservation Trust, (FSA),
0.00%, 11/1/24 $ 2,363,539
10,000 Garden State Preservation Trust, (FSA),
0.00%, 11/1/27 3,038,800
5,000 New Jersey EDA, (School Facilities), (AMBAC),
4.375%, 9/1/29 4,798,950
- ---------------------------------------------------------------------------------------------------------
$ 10,201,289
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 2.0%
$ 1,155 New Jersey Sports and Exposition Authority, (MBIA),
4.50%, 9/1/20 $ 1,166,608
3,775 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/07(1)(2) 3,997,083
- ---------------------------------------------------------------------------------------------------------
$ 5,163,691
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
52
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 15.5%
$ 1,675 Delaware River Port Authority, (FSA), 5.20%, 1/1/25 $ 1,766,137
3,250 Delaware River Port Authority, (FSA), 5.20%, 1/1/27 3,413,508
5,500 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 6,106,320
435 New Jersey Turnpike Authority, (MBIA), 6.50%, 1/1/16 537,521
5,000 New Jersey Turnpike Authority, RITES, (MBIA), Variable
Rate, 1/1/16(2) 7,330,400
4,600 Puerto Rico Highway and Transportation Authority, (FSA),
4.75%, 7/1/38 4,674,428
7,325 Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/36 8,251,027
7,325 Puerto Rico Highway and Transportation Authority, (XLCA),
5.50%, 7/1/36 8,235,937
700 Trenton, Transportation Authority, (Parking Revenue),
(FGIC), 5.00%, 10/1/24 729,106
- ---------------------------------------------------------------------------------------------------------
$ 41,044,384
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 4.1%
$ 1,200 Bayonne, Municipal Utilities Authority, (XLCA), Variable
Rate, 4/1/11(1)(4) $ 1,160,028
2,500 Middlesex County Utilities Authority, (MBIA),
6.25%, 8/15/10 2,895,025
2,075 Mount Holly, Municipal Utilities Authority, Sewer Revenue,
(MBIA), 4.75%, 12/1/28 2,088,778
13,840 North Hudson, Sewer Authority, (MBIA), 0.00%, 8/1/25 4,730,927
- ---------------------------------------------------------------------------------------------------------
$ 10,874,758
- ---------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.6%
$ 720 Atlantic City, Public Facilities Lease Agreement,
8.875%, 1/15/14 $ 977,105
785 Atlantic City, Public Facilities Lease Agreement,
8.875%, 1/15/15 1,077,538
2,591 New Jersey Building Authority, (Garden State Savings
Bonds), 0.00%, 6/15/10 2,120,267
1,650 New Jersey EDA, (Economic Recovery), Contract Lease,
0.00%, 9/15/09 1,397,237
5,500 New Jersey EDA, (Economic Recovery), Contract Lease,
0.00%, 3/15/13 3,873,595
- ---------------------------------------------------------------------------------------------------------
$ 9,445,742
- ---------------------------------------------------------------------------------------------------------
MISCELLANEOUS -- 2.8%
$ 3,500 New Jersey EDA, (Glimcher Properties REIT), (AMT),
6.00%, 11/1/28 $ 3,358,250
2,000 Puerto Rico Infrastructure Financing Authority, (Escrow
Fund), Variable Rate, 10/1/34(1)(4) 2,603,180
1,500 Tobacco Settlement Financing Corp., Variable Rate,
6/1/39(1)(2) 1,446,180
- ---------------------------------------------------------------------------------------------------------
$ 7,407,610
- ---------------------------------------------------------------------------------------------------------
POOLED LOANS -- 1.2%
$ 4,700 New Jersey Higher Educational Student Loan Bonds,
(AMT), 0.00%, 7/1/10 $ 3,149,940
- ---------------------------------------------------------------------------------------------------------
$ 3,149,940
- ---------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 2.9%
$ 2,650 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/18 $ 2,681,191
2,715 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 2,644,139
3,390 New Jersey EDA, (Forsgate), (AMT), 8.625%, 6/1/25(5) 2,223,704
- ---------------------------------------------------------------------------------------------------------
$ 7,549,034
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 12.0%
$ 3,500 New Jersey Transportation Trust Fund Authority, Variable
Rate, 6/15/17(1)(2) $ 3,932,845
5,000 Port Authority of New York and New Jersey,
5.375%, 3/1/28 5,520,150
19,000 Port Authority of New York and New Jersey,
6.125%, 6/1/94(6) 22,187,060
- ---------------------------------------------------------------------------------------------------------
$ 31,640,055
- ---------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 2.2%
$ 5,795 New Jersey EDA, (Atlantic City Sewer), (AMT),
5.45%, 4/1/28 $ 5,908,118
- ---------------------------------------------------------------------------------------------------------
$ 5,908,118
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 100.2%
(IDENTIFIED COST $241,760,877) $ 264,536,612
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (0.2)% $ (606,638)
- ---------------------------------------------------------------------------------------------------------
NET ASSETS-- 100.0% $ 263,929,974
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
53
<Page>
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 New Jersey
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 48.9% 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 3.6% to 18.3% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as an inverse floater bond.
(3) Non-income producing security.
(4) Security has been issued as a leveraged inverse floater bond.
(5) The Portfolio is accruing only partial interest on this security.
(6) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
54
<Page>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 98.8%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
COGENERATION -- 5.3%
$ 1,785 Carbon County IDA, (Panther Creek Partners),
6.65%, 5/1/10 $ 1,948,113
4,500 Pennsylvania EDA, (Colver), (AMT), 7.125%, 12/1/15 4,687,695
5,000 Pennsylvania EDA, (Northampton Generating), (AMT),
6.50%, 1/1/13 5,088,700
- ---------------------------------------------------------------------------------------------------------
$ 11,724,508
- ---------------------------------------------------------------------------------------------------------
EDUCATION -- 0.5%
$ 1,100 Lehigh County, General Purpose Authority,
(Cedar Crest College), 6.70%, 4/1/26 $ 1,144,836
- ---------------------------------------------------------------------------------------------------------
$ 1,144,836
- ---------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.0%
$ 2,250 York County IDA, Pollution Control, (Public Service
Enterprise Group, Inc.), 5.50%, 9/1/20 $ 2,280,667
- ---------------------------------------------------------------------------------------------------------
$ 2,280,667
- ---------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 1.2%
$ 2,475 Chester IDA, (Senior Life Choice of Paoli, L.P.), (AMT),
Prerefunded to 8/1/04, 8.05%, 1/1/24 $ 2,635,751
- ---------------------------------------------------------------------------------------------------------
$ 2,635,751
- ---------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 0.5%
$ 1,000 Puerto Rico, 4.75%, 7/1/23 $ 1,002,980
- ---------------------------------------------------------------------------------------------------------
$ 1,002,980
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 2.8%
$ 2,000 Allegheny County IDA, (Residual Resources, Inc.),
6.50%, 9/1/21 $ 1,934,860
750 Allegheny County, (Residential Resources, Inc.)
6.60%, 9/1/31 725,040
3,500 Chester County HEFA, (Devereux Foundation),
6.00%, 11/1/29 3,642,240
- ---------------------------------------------------------------------------------------------------------
$ 6,302,140
- ---------------------------------------------------------------------------------------------------------
HOSPITAL -- 10.5%
$ 3,060 Hazelton Health Service Authority, (Hazelton General
Hospital), 5.50%, 7/1/27 $ 2,513,790
1,150 Horizon Hospital Systems Authority, (Horizon Hospital
Systems, Inc.), 6.35%, 5/15/26 1,205,269
2,500 Lancaster County, Hospital Authority, 5.50%, 3/15/26 2,553,225
$ 2,150 Lebanon County Health Facility Authority, (Good
Samaritan Hospital), 6.00%, 11/15/35 $ 2,194,440
5,000 Lehigh County, General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32 5,010,400
1,680 McKean, County Hospital Authority, (Bradford Hospital),
6.10%, 10/1/20 1,582,728
2,000 Monroe County, Hospital Authority, (Pocono Medical Center),
6.00%, 1/1/43 2,069,080
4,100 Pennsylvania HEFA, (UPMC Health System),
6.00%, 1/15/31 4,337,431
1,885 Washington County Hospital Authority,
(Monongahela Hospital), 5.50%, 6/1/17 2,005,376
- ---------------------------------------------------------------------------------------------------------
$ 23,471,739
- ---------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 7.4%
$ 5,450 Butler County IDA, (Witco Corp.), 5.85%, 12/1/23 $ 4,875,951
500 Erie IDA, (International Paper), (AMT), 5.85%, 12/1/20 517,665
4,000 Franklin County IDA, (Corning, Inc.), 6.25%, 8/1/05 4,003,880
2,500 New Morgan IDA, (Browning-Ferris Industries, Inc.), (AMT),
6.50%, 4/1/19 2,387,375
4,450 Pennsylvania, IDA, (Sun Co.), (AMT), 7.60%, 12/1/24 4,729,638
- ---------------------------------------------------------------------------------------------------------
$ 16,514,509
- ---------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 2.3%
$ 1,000 Chester County, IDA Educational Facility, (Westtown
School), (AMBAC), 5.00%, 1/1/31 $ 1,027,930
2,500 Delaware County, (Villanova University), (MBIA),
5.00%, 12/1/28 2,556,425
1,350 Lycoming County Authority, (Pennsylvania College of
Technology), (AMBAC), 5.25%, 5/1/32(1) 1,417,351
- ---------------------------------------------------------------------------------------------------------
$ 5,001,706
- ---------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 5.9%
$ 10,000 Beaver IDA, (Ohio Edison Co.), (FGIC), 7.05%, 10/1/20 $ 11,114,400
1,665 Puerto Rico Electric Power Authority, (MBIA), Variable Rate,
7/1/29(2)(3) 1,961,903
- ---------------------------------------------------------------------------------------------------------
$ 13,076,303
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 5.7%
$ 5,000 Philadelphia HEFA, (Pennsylvania Hospital), (FGIC),
Prerefunded to 2/15/04, Variable Rate, 3/6/12 $ 5,227,450
4,845 Westmoreland Municipal Authority, (FGIC), Escrowed to
Maturity, 0.00%, 8/15/19 2,364,312
5,400 Westmoreland Municipal Authority, (FGIC), Escrowed to
Maturity, 0.00%, 8/15/20 2,479,950
</Table>
See notes to financial statements
55
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- (CONTINUED)
$ 5,780 Westmoreland Municipal Authority, (FGIC), Escrowed to
Maturity, 0.00%, 8/15/20 $ 2,654,465
- ---------------------------------------------------------------------------------------------------------
$ 12,726,177
- ---------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 20.8%
$ 1,000 Butler School District, (FGIC), 5.00%, 10/1/26 $ 1,019,730
2,170 Elizabeth Forward School District, (MBIA), 0.00%, 9/1/20 991,278
2,170 Elizabeth Forward School District, (MBIA), 0.00%, 9/1/21 929,433
2,170 Elizabeth Forward School District, (MBIA), 0.00%, 9/1/22 871,342
2,170 Elizabeth Forward School District, (MBIA), 0.00%, 9/1/23 818,589
4,350 Erie School District, (AMBAC), 0.00%, 9/1/30 1,113,991
2,500 Erie School District, (MBIA), 0.00%, 5/1/19 1,236,375
2,625 Erie School District, (MBIA), 0.00%, 5/1/20 1,222,016
2,625 Erie School District, (MBIA), 0.00%, 5/1/21 1,148,332
3,625 Erie School District, (MBIA), 0.00%, 5/1/22 1,490,201
1,000 Gateway, School District Alleghany County, (FGIC),
5.00%, 10/15/32 1,032,310
1,075 Greater Nanticoke Area School District, (MBIA),
0.00%, 10/15/28 300,344
1,075 Greater Nanticoke Area School District, (MBIA),
0.00%, 10/15/29 284,735
2,365 Harrisburg, (AMBAC), 0.00%, 3/15/17 1,320,805
5,175 Hazelton School District, (FGIC), 0.00%, 3/1/21 2,270,583
1,000 Hopewell School District, (FSA), 0.00%, 9/1/22 398,930
2,000 Hopewell School District, (FSA), 0.00%, 9/1/26 630,620
250 Lancaster, (FGIC), 4.50%, 5/1/28 244,280
1,430 Mars Area School District, (MBIA), 0.00%, 3/1/14 948,419
1,000 McGuffey School District, (AMBAC), 4.75%, 8/1/28 1,003,250
5,400 Northampton County, (FSA), 5.25%, 10/1/30 5,685,768
1,500 Philadelphia, (FSA), 5.00%, 9/15/31 1,538,310
2,530 Philadelphia, (FSA), 5.00%, 3/15/28 2,599,575
3,355 Philadelphia, (FSA), 5.25%, 9/15/25 3,516,141
2,150 Philadelphia, School District, (FSA), 5.50%, 2/1/31 2,307,337
750 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 784,943
3,300 Puerto Rico General Obligation, (FSA), Variable Rate,
7/1/27(2)(3) 3,964,158
500 Puerto Rico General Obligation, (MBIA), Variable Rate,
7/1/20(2)(3) 744,200
655 Rochester Area School District, (AMBAC), 0.00%, 5/1/10 541,122
4,000 Spring Ford School District, (FGIC), 4.75%, 3/1/25 4,020,480
1,400 Upper Darby School District, (AMBAC), 5.00%, 5/1/19 1,473,178
- ---------------------------------------------------------------------------------------------------------
$ 46,450,775
- ---------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 4.1%
$ 3,750 Allegheny County Hospital Authority, (Magee-Womens
Hospital), (FGIC), 0.00%, 10/1/15 $ 2,287,763
4,000 Pennsylvania Higher Educational Facilities Authority,
(UPMC Health System), (FSA), 5.00%, 8/1/29 4,073,880
1,250 Sharon Health System Authority, (Sharon Regional Health
System), (MBIA), 5.00%, 12/1/28 1,273,538
1,310 Washington County Hospital Authority, (Washington
Hospital), (AMBAC), 5.50%, 7/1/17 1,489,798
- ---------------------------------------------------------------------------------------------------------
$ 9,124,979
- ---------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 0.3%
$ 500 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
12/1/19(2)(3) $ 650,405
- ---------------------------------------------------------------------------------------------------------
$ 650,405
- ---------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 1.2%
$ 2,500 Pittsburgh & Allegheny County, Public Auditorium Authority,
(Hotel Room), (AMBAC), 5.125%, 2/1/35 $ 2,566,825
- ---------------------------------------------------------------------------------------------------------
$ 2,566,825
- ---------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 4.5%
$ 2,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 2,059,560
635 Pennsylvania Turnpike Commission, (AMBAC),
4.75%, 12/1/27 638,118
1,000 Pennsylvania Turnpike Commission, (AMBAC),
5.00%, 12/1/30 1,034,100
3,750 Pennsylvania Turnpike Commission, (AMBAC),
5.00%, 7/15/41 3,844,838
1,365 PennsylvaniaTurnpike Commission, (AMBAC),
4.75%, 12/1/27 1,387,086
865 Puerto Rico Highway and Transportation Authority,
(MBIA), Variable Rate, 1/1/19(2)(3) 1,141,990
- ---------------------------------------------------------------------------------------------------------
$ 10,105,692
- ---------------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 2.7%
$ 5,960 Philadelphia Gas Works Revenue, (FSA), 5.00%, 7/1/28 $ 6,066,803
- ---------------------------------------------------------------------------------------------------------
$ 6,066,803
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 7.0%
$ 3,000 Allegheny County Sanitation Authority, (MBIA),
5.50%, 12/1/30 $ 3,242,400
3,500 Harrisburg Authority Water Revenue, (FSA),
5.00%, 7/15/24 3,638,145
</Table>
See notes to financial statements
56
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- (CONTINUED)
$ 1,000 Harrisburg Authority Water Revenue, (FSA),
5.00%, 7/15/29 $ 1,030,930
1,750 Lower Moreland Township Authority, Sewer Revenue,
(FSA), 5.00%, 8/1/29 1,787,520
2,500 Philadelphia Water and Wastewater, (FGIC), Variable Rate,
11/1/31(2)(3) 2,727,250
3,000 Pittsburgh Water and Sewer Authority, (AMBAC),
5.125%, 12/1/27 3,124,500
- ---------------------------------------------------------------------------------------------------------
$ 15,550,745
- ---------------------------------------------------------------------------------------------------------
NURSING HOME -- 4.0%
$ 2,000 Allegheny County HDA, (Villa St. Joseph),
6.00%, 8/15/28 $ 1,832,440
1,230 Chartiers Valley, IDA, (Beverly Enterprises, Inc.),
5.375%, 6/1/07 1,212,891
1,510 Green County IDA, (Beverly Enterprises, Inc.),
5.75%, 3/1/13 1,538,690
3,215 Montgomery IDA, (Advancement of Geriatric Health
Care Institute), 8.375%, 7/1/23 2,982,009
1,335 Westmoreland County IDA, (Highland Health
Systems, Inc.), 9.25%, 6/1/22 1,355,639
- ---------------------------------------------------------------------------------------------------------
$ 8,921,669
- ---------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 9.9%
$ 1,210 Bucks County IDA, (Pennswood), 6.00%, 10/1/27 $ 1,253,415
5,000 Chester IDA, (Senior Life Choice of Kimberton), (AMT),
8.50%, 9/1/25 5,196,350
1,960 Cliff House Trust, (AMT), 6.625%, 6/1/27 1,671,390
1,700 Crawford County Hospital Authority, (Wesbury United
Methodist Community), 6.25%, 8/15/29 1,654,950
4,050 Delaware County, (White Horse Village), 7.50%, 7/1/18 4,176,522
2,565 Delaware IDA, (Glen Riddle), (AMT), 8.625%, 9/1/25 2,684,221
1,870 Grove City, Area Hospital Authority, (Grove Manor),
6.625%, 8/15/29 1,870,411
1,835 Lancaster County, Hospital Authority, (Willow Valley
Retirement Communities), 5.875%, 6/1/31 1,907,868
500 Montgomery County Higher Education and Health Authority,
(Faulkeways at Gwynedd), 6.75%, 11/15/24 524,155
1,100 Philadelphia HEFA, (The Philadelphia Protestant Home),
6.50%, 7/1/27 1,099,131
- ---------------------------------------------------------------------------------------------------------
$ 22,038,413
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.2%
$ 1,000 Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28 $ 1,022,810
1,000 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 986,960
750 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 756,203
- ---------------------------------------------------------------------------------------------------------
$ 2,765,973
- ---------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.8%
(IDENTIFIED COST $205,997,522) $ 220,123,595
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.2% $ 2,776,049
- ---------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 222,899,644
- ---------------------------------------------------------------------------------------------------------
</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
The Portfolio invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 2004, 55.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 9.6% to 17.9% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(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 has been issued as a leveraged inverse floater bond.
See notes to financial statements
57
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2004
FINANCIAL STATEMENTS (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2004
<Table>
<Caption>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 63,890,142 $ 30,646,324 $ 132,973,780 $ 61,651,270
Unrealized appreciation 4,466,222 1,824,764 10,584,104 7,272,938
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 68,356,364 $ 32,471,088 $ 143,557,884 $ 68,924,208
- ------------------------------------------------------------------------------------------------------------------------------------
Cash $ 370,990 $ 110,804 $ 58,619 $ 1,351,957
Receivable for investments sold 337,958 5,068 -- --
Interest receivable 519,627 361,917 1,555,699 789,631
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 69,584,939 $ 32,948,877 $ 145,172,202 $ 71,065,796
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin
on open financial futures contracts $ 75,750 $ 44,992 $ 119,730 $ 63,490
Accrued expenses 19,042 13,226 17,713 20,286
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 94,792 $ 58,218 $ 137,443 $ 83,776
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 69,490,147 $ 32,890,659 $ 145,034,759 $ 70,982,020
- ------------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital
contributions and withdrawals $ 65,201,104 $ 31,122,001 $ 134,645,125 $ 63,795,528
Net unrealized appreciation (computed
on the basis of identified cost) 4,289,043 1,768,658 10,389,634 7,186,492
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 69,490,147 $ 32,890,659 $ 145,034,759 $ 70,982,020
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
58
<Page>
<Table>
<Caption>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 45,751,631 $ 241,760,877 $ 205,997,522
Unrealized appreciation 2,512,073 22,775,735 14,126,073
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 48,263,704 $ 264,536,612 $ 220,123,595
- ---------------------------------------------------------------------------------------------------------------------------
Cash $ 171,616 $ -- $ 265,300
Receivable for investments sold -- 1,611,719 --
Interest receivable 625,804 3,553,463 2,785,294
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 49,061,124 $ 269,701,794 $ 223,174,189
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open
financial futures contracts $ 60,000 $ 450,000 $ 242,250
Demand note payable -- 5,200,000 --
Due to bank -- 94,182 --
Accrued expenses 14,349 27,638 32,295
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 74,349 $ 5,771,820 $ 274,545
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN
PORTFOLIO $ 48,986,775 $ 263,929,974 $ 222,899,644
- ---------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and
withdrawals $ 46,593,807 $ 242,042,841 $ 209,340,194
Net unrealized appreciation (computed on the basis
of identified cost) 2,392,968 21,887,133 13,559,450
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL $ 48,986,775 $ 263,929,974 $ 222,899,644
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
59
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
<Table>
<Caption>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 2,016,538 $ 1,002,721 $ 3,894,139 $ 2,026,222
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,016,538 $ 1,002,721 $ 3,894,139 $ 2,026,222
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 116,084 $ 41,200 $ 290,650 $ 119,265
Trustees fees and expenses 3,745 961 5,044 3,745
Legal and accounting services 13,394 10,408 13,602 13,394
Custodian fee 20,276 13,366 39,093 22,000
Miscellaneous 5,023 3,917 7,951 6,129
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 158,522 $ 69,852 $ 356,340 $ 164,533
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,858,016 $ 932,869 $ 3,537,799 $ 1,861,689
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost
basis) $ 43,789 $ 291,023 $ 106,112 $ 1,432,690
Financial futures contracts 404,266 (339,641) (904,320) (557,603)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 448,055 $ (48,618) $ (798,208) $ 875,087
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 2,734,351 $ 1,543,304 $ 5,385,490 $ 1,378,007
Financial futures contracts (1,172,260) (176,793) (458,327) (276,298)
- ----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 1,562,091 $ 1,366,511 $ 4,927,163 $ 1,101,709
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 2,010,146 $ 1,317,893 $ 4,128,955 $ 1,976,796
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,868,162 $ 2,250,762 $ 7,666,754 $ 3,838,485
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
60
<Page>
<Table>
<Caption>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,367,518 $ 7,566,550 $ 6,750,746
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,367,518 $ 7,566,550 $ 6,750,746
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 69,760 $ 574,309 $ 486,732
Trustees fees and expenses 3,745 8,743 7,590
Legal and accounting services 12,520 35,800 23,921
Custodian fee 16,093 67,197 55,215
Miscellaneous 4,198 10,311 10,265
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 106,316 $ 696,360 $ 583,723
- ---------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,261,202 $ 6,870,190 $ 6,167,023
- ---------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost
basis) $ 221,425 $ 431,859 $ 270,423
Financial futures contracts 688,358 2,099,457 1,244,198
Interest rate swap contracts 24,623 -- --
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 934,406 $ 2,531,316 $ 1,514,621
- ---------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 1,758,855 $ 14,819,294 $ 8,684,123
Financial futures contracts (1,386,097) (6,571,731) (3,816,250)
Interest rate swap contracts (57,836) -- --
- ---------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 314,922 $ 8,247,563 $ 4,867,873
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 1,249,328 $ 10,778,879 $ 6,382,494
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,510,530 $ 17,649,069 $ 12,549,517
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
61
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
<Table>
<Caption>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 1,858,016 $ 932,869 $ 3,537,799 $ 1,861,689
Net realized gain (loss) 448,055 (48,618) (798,208) 875,087
Net change in unrealized appreciation
(depreciation) 1,562,091 1,366,511 4,927,163 1,101,709
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,868,162 $ 2,250,762 $ 7,666,754 $ 3,838,485
- -------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,707,414 $ 2,583,759 $ 6,493,598 $ 3,535,515
Withdrawals (5,856,671) (8,993,026) (17,493,082) (7,498,486)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (3,149,257) $ (6,409,267) $ (10,999,484) $ (3,962,971)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 718,905 $ (4,158,505) $ (3,332,730) $ (124,486)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 68,771,242 $ 37,049,164 $ 148,367,489 $ 71,106,506
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 69,490,147 $ 32,890,659 $ 145,034,759 $ 70,982,020
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
62
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,261,202 $ 6,870,190 $ 6,167,023
Net realized gain 934,406 2,531,316 1,514,621
Net change in unrealized appreciation
(depreciation) 314,922 8,247,563 4,867,873
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,510,530 $ 17,649,069 $ 12,549,517
- ---------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 1,745,649 $ 6,978,935 $ 8,001,639
Withdrawals (5,685,542) (21,683,647) (19,650,381)
- ---------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (3,939,893) $ (14,704,712) $ (11,648,742)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,429,363) $ 2,944,357 $ 900,775
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 50,416,138 $ 260,985,617 $ 221,998,869
- ---------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 48,986,775 $ 263,929,974 $ 222,899,644
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
63
<Page>
FOR THE YEAR ENDED JULY 31, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,721,947 $ 1,918,218 $ 7,426,305 $ 3,955,790
Net realized loss (952,766) (34,486) (269,668) (1,404,468)
Net change in unrealized appreciation
(depreciation) (403,955) (850,031) (2,440,714) (33,131)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,365,226 $ 1,033,701 $ 4,715,923 $ 2,518,191
- -------------------------------------------------------------------------------------------------------------------------------
Capital transactions--
Contributions $ 8,544,425 $ 5,459,235 $ 16,650,520 $ 5,031,989
Withdrawals (12,746,995) (5,946,277) (24,135,741) (13,125,967)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (4,202,570) $ (487,042) $ (7,485,221) $ (8,093,978)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,837,344) $ 546,659 $ (2,769,298) $ (5,575,787)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 70,608,586 $ 36,502,505 $ 151,136,787 $ 76,682,293
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 68,771,242 $ 37,049,164 $ 148,367,489 $ 71,106,506
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
64
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,667,445 $ 14,487,704 $ 12,765,366
Net realized loss (1,571,290) (8,343,479) (9,422,517)
Net change in unrealized appreciation
(depreciation) 519,546 1,648,870 5,294,546
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,615,701 $ 7,793,095 $ 8,637,395
- ---------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,065,967 $ 26,429,810 $ 20,423,743
Withdrawals (9,872,835) (41,003,267) (34,240,997)
- ---------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (2,806,868) $ (14,573,457) $ (13,817,254)
- ---------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (1,191,167) $ (6,780,362) $ (5,179,859)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 51,607,305 $ 267,765,979 $ 227,178,728
- ---------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 50,416,138 $ 260,985,617 $ 221,998,869
- ---------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
65
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2004
FINANCIAL STATEMENTS
SUPPLEMENTARY DATA
<Table>
<Caption>
ARIZONA PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 --------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.45%(2) 0.45% 0.44% 0.47% 0.52% 0.49%
Expenses after custodian fee reduction 0.45%(2) 0.44% 0.44% 0.45% 0.51% 0.48%
Net investment income 5.33%(2) 5.21% 5.39% 5.73% 5.67% 5.21%
Portfolio Turnover 3% 6% 27% 26% 25% 38%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.77% 3.32% 6.08% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 69,490 $ 68,771 $ 70,609 $ 71,927 $ 73,624 $ 94,333
- ------------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.38% to 5.39%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
66
<Page>
<Table>
<Caption>
COLORADO PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 --------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.38%(2) 0.39% 0.41% 0.45% 0.39% 0.39%
Expenses after custodian fee reduction 0.38%(2) 0.37% 0.39% 0.41% 0.36% 0.35%
Net investment income 5.06%(2) 5.11% 5.40% 5.47% 5.85% 5.36%
Portfolio Turnover 4% 21% 18% 18% 14% 33%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 6.29% 2.81% 5.58% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 32,891 $ 37,049 $ 36,503 $ 30,796 $ 30,620 $ 37,874
- ------------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.38% to 5.40%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
67
<Page>
<Table>
<Caption>
CONNECTICUT PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.48%(2) 0.48% 0.50% 0.51% 0.50% 0.50%
Expenses after custodian fee reduction 0.48%(2) 0.48% 0.48% 0.48% 0.48% 0.48%
Net investment income 4.79%(2) 4.84% 5.08% 5.31% 5.53% 5.15%
Portfolio Turnover 7% 19% 22% 14% 20% 18%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.39% 3.06% 5.23% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 145,035 $ 148,367 $ 151,137 $ 138,999 $ 133,137 $ 157,894
- -----------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.07% to 5.08%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
68
<Page>
<Table>
<Caption>
MICHIGAN PORTFOLIO
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.46%(2) 0.47% 0.45% 0.48% 0.52% 0.49%
Expenses after custodian fee reduction 0.46%(2) 0.46% 0.45% 0.47% 0.52% 0.48%
Net investment income 5.23%(2) 5.25% 5.41% 5.48% 5.67% 5.10%
Portfolio Turnover 7% 12% 7% 8% 30% 31%
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.59% 3.30% 5.65% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 70,982 $ 71,107 $ 76,682 $ 81,102 $ 85,576 $ 109,463
- -------------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.40% to 5.41%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
69
<Page>
<Table>
<Caption>
MINNESOTA PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 --------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.42%(2) 0.43% 0.41% 0.47% 0.45% 0.46%
Expenses after custodian fee reduction 0.42%(2) 0.41% 0.39% 0.42% 0.43% 0.44%
Net investment income 5.43%(2) 5.19% 5.76% 5.65% 5.81% 5.28%
Portfolio Turnover 9% 15% 26% 17% 12% 19%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.11% 3.20% 4.68% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 48,987 $ 50,416 $ 51,607 $ 49,632 $ 48,848 $ 60,393
- ------------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.74% to 5.76%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
70
<Page>
<Table>
<Caption>
NEW JERSEY PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.52%(2) 0.52% 0.52% 0.55% 0.54% 0.53%
Expenses after custodian fee reduction 0.52%(2) 0.52% 0.52% 0.54% 0.54% 0.52%
Net investment income 5.18%(2) 5.36% 5.76% 5.76% 5.91% 5.39%
Portfolio Turnover 8% 15% 26% 20% 26% 32%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 6.94% 2.86% 5.55% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 263,930 $ 260,986 $ 267,766 $ 258,202 $ 248,400 $ 309,333
- -----------------------------------------------------------------------------------------------------------------------------
</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 July 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.75% to 5.76%. Ratios for the
periods prior to August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
71
<Page>
<Table>
<Caption>
PENNSYLVANIA PORTFOLIO
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2004 ---------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net
assets):
Expenses 0.52%(2) 0.52% 0.54% 0.55% 0.58% 0.54%
Expenses after custodian fee reduction 0.52%(2) 0.52% 0.52% 0.51% 0.58% 0.50%
Net investment income 5.51%(2) 5.60% 6.05% 5.97% 5.92% 5.49%
Portfolio Turnover 5% 23% 15% 15% 18% 27%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.82% 3.90% 5.96% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 222,900 $ 221,999 $ 227,179 $ 230,213 $ 237,692 $ 314,873
- -----------------------------------------------------------------------------------------------------------------------------
</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 July 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 August 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
72
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2004
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 SIGNIFICANT ACCOUNTING POLICIES
Arizona Municipals Portfolio (Arizona Portfolio), Colorado Municipals
Portfolio (Colorado Portfolio), Connecticut Municipals Portfolio (Connecticut
Portfolio), Michigan Municipals Portfolio (Michigan Portfolio), Minnesota
Municipals Portfolio (Minnesota Portfolio), New Jersey Municipals Portfolio
(New Jersey Portfolio) and Pennsylvania Municipals Portfolio (Pennsylvania
Portfolio), collectively the Portfolios, are registered under the Investment
Company Act of 1940, as amended, as diversified open-end management
investment companies which were organized as trusts under the laws of the
State of New York on May 1, 1992. The Portfolios seek to achieve current
income, exempt from regular federal income tax and from particular state or
local income or other taxes, by investing primarily in investment grade
municipal obligations. The Declarations of Trust permit the Trustees to issue
interests in the Portfolios. At January 31, 2004, Eaton Vance Arizona
Municipals Fund, Eaton Vance Colorado Municipals Fund, Eaton Vance
Connecticut Municipals Fund, Eaton Vance Michigan Municipals Fund, Eaton
Vance Minnesota Municipals Fund, Eaton Vance New Jersey Municipals Fund and
Eaton Vance Pennsylvania Municipals Fund 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. Futures contracts and options
on futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on financial futures contracts
are normally valued at the mean between the latest bid and asked prices.
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 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 the
Portfolios' investors are primarily regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income under
the Internal Revenue Code, will retain its status as income exempt from
federal income tax when allocated to each Portfolio's investors. The portion
of such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item for investors.
D FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed only to hedge against
anticipated future changes in interest rates. Should interest rates move
unexpectedly, a Portfolio may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss.
E OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When a Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing options is limited to
the premium originally paid.
73
<Page>
F LEGAL FEES -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
G WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The 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 market-to-market daily and begin earning interest on
settlement date.
H 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 Portfolio makes bi-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.
I 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.
J 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.
K 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.
L INDEMNIFICATIONS -- Under the Portfolio's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Portfolio.
Interestholders in the Portfolio are jointly and severally liable for the
liabilities and obligations of the Portfolio in the event that the Portfolio
fails to satisfy such liabilities and obligations; provided, however, that,
to the extent assets are available in the Portfolio, the Portfolio may, under
certain circumstances, indemnify interestholders from and against any claim
or liability to which such holder may become subject by reason of being or
having been an interestholder in the Portfolio. Additionally, in the normal
course of business, the Portfolio enters into agreements with service
providers that may contain indemnification clauses. The Portfolio's maximum
exposure under these arrangements is unknown as this would involve future
claims that may be made against the Portfolio that have not yet occurred.
M INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to January 31, 2004 and for the six months then ended have not been audited
by independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of
74
<Page>
gross income (i.e., income other than gains from the sale of securities). For
the six months ended January 31, 2004, each Portfolio paid advisory fees as
follows:
<Table>
<Caption>
PORTFOLIO AMOUNT EFFECTIVE RATE*
----------------------------------------------------------
Arizona $ 116,084 0.33%
Colorado 41,200 0.22%
Connecticut 290,650 0.39%
Michigan 119,265 0.33%
Minnesota 69,760 0.28%
New Jersey 574,309 0.43%
Pennsylvania 486,732 0.43%
</Table>
* As a percentage of average daily net assets (annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee. Trustees of the
Portfolios who are not affiliated with the Investment Adviser may elect to
defer receipt of all or a percentage of their annual fees in accordance with
the terms of the Trustees Deferred Compensation Plan. For the six months
ended January 31, 2004, no significant amounts have been deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
During the six months ended January 31, 2004, 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
---------------------------------------------------------
New Jersey -- $ 119,759
</Table>
3 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the six months ended
January 31, 2004 were as follows:
<Table>
ARIZONA PORTFOLIO
Purchases $ 1,781,376
Sales 2,205,903
COLORADO PORTFOLIO
Purchases $ 1,505,510
Sales 7,230,935
CONNECTICUT PORTFOLIO
Purchases $ 9,338,902
Sales 22,722,518
MICHIGAN PORTFOLIO
Purchases $ 5,105,202
Sales 8,594,070
MINNESOTA PORTFOLIO
Purchases $ 4,631,504
Sales 7,207,136
NEW JERSEY PORTFOLIO
Purchases $ 21,928,331
Sales 29,464,839
PENNSYLVANIA PORTFOLIO
Purchases $ 11,814,480
Sales 18,334,762
</Table>
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 January 31, 2004, as computed on a
federal income tax basis, are as follows:
<Table>
ARIZONA PORTFOLIO
AGGREGATE COST $ 63,836,309
---------------------------------------------------------
Gross unrealized appreciation $ 7,194,217
Gross unrealized depreciation (2,674,162)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,520,055
---------------------------------------------------------
</Table>
<Table>
COLORADO PORTFOLIO
AGGREGATE COST $ 30,632,193
---------------------------------------------------------
Gross unrealized appreciation $ 2,122,545
Gross unrealized depreciation (283,650)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,838,895
---------------------------------------------------------
</Table>
75
<Page>
<Table>
CONNECTICUT PORTFOLIO
AGGREGATE COST $ 132,860,287
---------------------------------------------------------
Gross unrealized appreciation $ 10,743,462
Gross unrealized depreciation (45,865)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 10,697,597
---------------------------------------------------------
</Table>
<Table>
MICHIGAN PORTFOLIO
AGGREGATE COST $ 61,574,802
---------------------------------------------------------
Gross unrealized appreciation $ 7,357,641
Gross unrealized depreciation (8,235)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 7,349,406
---------------------------------------------------------
</Table>
<Table>
MINNESOTA PORTFOLIO
AGGREGATE COST $ 45,689,062
---------------------------------------------------------
Gross unrealized appreciation $ 3,118,165
Gross unrealized depreciation (543,523)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,574,642
---------------------------------------------------------
</Table>
<Table>
NEW JERSEY PORTFOLIO
AGGREGATE COST $ 241,505,698
---------------------------------------------------------
Gross unrealized appreciation $ 25,750,684
Gross unrealized depreciation (2,719,770)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 23,030,914
---------------------------------------------------------
</Table>
<Table>
PENNSYLVANIA PORTFOLIO
AGGREGATE COST $ 205,771,795
---------------------------------------------------------
Gross unrealized appreciation $ 15,910,925
Gross unrealized depreciation (1,559,125)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $ 14,351,800
---------------------------------------------------------
</Table>
5 LINE OF CREDIT
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and their affiliates in a committed $150 million unsecured line of credit
agreement with a group of banks. The Portfolios may temporarily borrow from
the line of credit to satisfy redemption requests or settle investment
transactions. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the Eurodollar rate or Federal Funds
rate. In addition, a fee computed at an annual rate of 0.10% on the daily
unused portion of the facility is allocated among the participating
portfolios and funds at the end of each quarter. At January 31, 2004, the New
Jersey Portfolio had a balance outstanding pursuant to this line of credit of
$5,200,000. The Portfolios did not have any significant borrowings or
allocated fees during the six months ended January 31, 2004.
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, options on financial 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 under these financial instruments at January 31,
2004 is as follows:
FUTURES CONTRACTS
<Table>
<Caption>
EXPIRATION NET UNREALIZED
PORTFOLIO DATE CONTRACTS POSITION DEPRECIATION
------------------------------------------------------------------------------
Arizona 3/04 101 U.S. Treasury Bond Short $ (177,179)
------------------------------------------------------------------------------
Colorado 3/04 57 U.S. Treasury Bond Short $ (56,106)
------------------------------------------------------------------------------
Connecticut 3/04 152 U.S. Treasury Bond Short $ (194,470)
------------------------------------------------------------------------------
Michigan 3/04 81 U.S. Treasury Bond Short $ (86,446)
------------------------------------------------------------------------------
Minnesota 3/04 80 U.S. Treasury Bond Short $ (119,105)
------------------------------------------------------------------------------
New Jersey 3/04 600 U.S. Treasury Bond Short $ (888,602)
------------------------------------------------------------------------------
Pennsylvania 3/04 323 U.S. Treasury Bond Short $ (566,623)
------------------------------------------------------------------------------
</Table>
At January 31, 2004, the Portfolios had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
76
<Page>
EATON VANCE MUNICIPALS FUNDS
INVESTMENT MANAGEMENT
Eaton Vance Municipals Funds
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Jessica M. Bibliowicz
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
Municipals Portfolios
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Colorado,
Connecticut and Michigan
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Arizona and
Pennsylvania Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio
Manager of Minnesota and New
Jersey Municipals Portfolios
Kristin S. Anagnost
Treasurer of Colorado,
Connecticut, Minnesota and New
Jersey Municipals Portfolios
Barbara E. Campbell
Treasurer of Arizona, Michigan
and Pennsylvania Municipals
Portfolios
Alan R. Dynner
Secretary
TRUSTEES
Jessica M. Bibliowicz
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout77
77
<Page>
INVESTMENT ADVISER OF THE PORTFOLIOS
BOSTON MANAGEMENT AND RESEARCH
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF THE FUNDS
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 CLARENDON STREET
BOSTON, MA 02116
TRANSFER AGENT
PFPC INC.
ATTN: EATON VANCE FUNDS
P.O. BOX 9653
PROVIDENCE, RI 02940-9653
(800) 262-1122
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
<Page>
313-3/04 7CSRC
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE ARIZONA MUNICIPALS FUND)
By: /s/ Thomas J. Fetter
---------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James L. O'Connor
---------------------------------------
James L. O'Connor
Treasurer
<Page>
Date: March 18, 2004
--------------
By: /s/ Thomas J. Fetter
---------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE COLORADO MUNICIPALS FUND)
By: /S/ Thomas J. Fetter
---------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ James L. O"Connor
---------------------------------
James L. O'Connor
Treasurer
<Page>
Date: March 18, 2004
--------------
By: /S/ Thomas J. Fetter
---------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE CONNECTICUT MUNICIPALS
FUND)
By: /S/ Thomas J. Fetter
----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ James L. O'Connor
----------------------------
James L. O'Connor
<Page>
Treasurer
Date: March 18, 2004
--------------
By: /S/ Thomas J. Fetter
----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE MICHIGAN MUNICIPALS FUND)
By: /s/ Thomas J. Fetter
-------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James L. O'Connor
-------------------------------------
James L. O'Connor
Treasurer
<Page>
Date: March 18, 2004
--------------
By: /s/ Thomas J. Fetter
-------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE MINNESOTA MUNICIPALS
FUND)
By: /S/ Thomas J. Fetter
----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ James L. O'Connor
----------------------------
James L. O'Connor
<Page>
Treasurer
Date: March 18, 2004
--------------
By: /S/ Thomas J. Fetter
----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE NEW JERSEY MUNICIPALS
FUND)
By: /S/ Thomas J. Fetter
-----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ James L. O'Connor
-----------------------------
James L. O'Connor
Treasurer
<Page>
Date: March 18, 2004
--------------
By: /S/ Thomas J. Fetter
-----------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
<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 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), 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 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
<Page>
(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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST (ON BEHALF OF EATON VANCE PENNSYLVANIA MUNICIPALS
FUND)
By: /s/ Thomas J. Fetter
-----------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James L. O'Connor
-----------------------------------------
James L. O'Connor
Treasurer
<Page>
Date: March 18, 2004
--------------
By: /s/ Thomas J. Fetter
-----------------------------------------
Thomas J. Fetter
President
Date: March 18, 2004
--------------