<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04409
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Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
-------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
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[EV LOGO]
[GRAPHIC IMAGE]
SEMIANNUAL REPORT MARCH 31,2004
[GRAPHIC IMAGE]
EATON VANCE NATIONAL MUNICIPALS FUND
[GRAPHIC IMAGE]
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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.
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 NATIONAL MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF THOMAS M. METZOLD]
Thomas M. Metzold
Portfolio Manager
MANAGEMENT DISCUSSION
- - Economic activity continued to gain strength in the six months ended March
31, 2004, although the pace of the recovery was a topic of debate. The
nation's Gross Domestic Product grew by 4.2% in the first quarter of 2004,
following a 4.1% rise in the fourth quarter of 2003. While the figures
suggested a sound overall economy, the slow pace of job creation remained a
concern.
- - The investment climate, however, remained generally positive and the bond
market generated solid returns. The Fund posted strong returns against this
backdrop, outpacing its benchmark, the Lehman Brothers Municipal Bond Index,
which had a total return of 3.12% for the six months ended March 31, 2004.*
- - Escrowed bonds were the Portfolio's largest sector weighting at March 31,
2004. Pre-refunded and backed by Treasury bonds, escrowed issues provide
above-average coupons and are deemed very high quality. The second largest
weighting was industrial development revenue bonds (IDRs). IDRs, particularly
in the airline sector, provided some compelling opportunities for the
Portfolio, as the economy began to show signs of improvement and businesses
increased capital spending, reinvesting in plants and equipment.
FUND PERFORMANCE
THE PAST SIX MONTHS
- - During the six months ended March 31, 2004, the Fund's Class A shares had a
total return of 4.63%.(1) This return resulted from an increase in net asset
value (NAV) per share to $11.01 on March 31, 2004, from $10.84 on September
30, 2003, and the reinvestment of $0.328 per share in tax-exempt dividend
income.(2)
- - The Fund's Class B shares had a total return of 4.35% during the period,(1)
the result of an increase in NAV per share to $10.28 from $10.13, and the
reinvestment of $0.287 per share in tax-exempt dividend income.(2)
- - The Fund's Class C shares had a total return of 4.23% during the period,(1)
the result of an increase in NAV per share to $9.79 from $9.64, and the
reinvestment of $0.255 per share in tax-exempt dividend income.(2)
- - The Fund's Class I shares had a total return of 4.68% during the period,(1)
the result of an increase in NAV per share to $10.20 from $10.05, and the
reinvestment of $0.316 per share in tax-exempt dividend income.(2)
- - Based on the most recent distributions and NAVs per share on March 31, 2004,
the distribution rates were 5.95% for Class A, 5.61% for Class B, 5.23% for
Class C and 6.20% for Class I.(3) The distribution rates of Classes A, B, C
and I are equivalent to taxable rates of 9.15%, 8.63%, 8.05% and 9.54%,
respectively.(4)
- - The SEC 30-day yields at March 31, 2004, were 5.12%, 5.04%, 4.62% and 5.64%
for Classes A, B, C and I, respectively. (5) These yields are equivalent to
taxable rates of 7.88%, 7.75%, 7.11% and 8.68%, respectively.(4)
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGER
AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR
OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT
BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE
FUND.
* It is not possible to invest directly in an Index.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(6) CLASS A CLASS B CLASS C CLASS I
- -----------------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 12.83% 12.42% 12.02% 13.07%
Five Years 5.54 5.05 4.71 N.A.
Ten Years N.A. 6.36 6.10 N.A.
Life of Fund+ 7.30 6.78 5.25 6.85
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 7.44% 7.42% 11.02% 13.07%
Five Years 4.51 4.73 4.71 N.A.
Ten Years N.A. 6.36 6.10 N.A.
Life of Fund+ 6.77 6.78 5.25 6.85
</Table>
+ Inception Dates - Class A: 4/5/94; Class B: 12/19/85; Class C: 12/3/93;
Class I: 7/1/99
(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 and Class C shares. If the sales charge was deducted, the
performance would be reduced. Class I shares generally have no sales
charge. (2) A portion of the Fund's income may be subject to federal income
tax and/or alternative minimum tax. Income may be subject to state and
local 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 35.00% federal 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 the maximum sales charge of
4.75%. Class B returns 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. For Class C, one year return reflects 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Yield will vary. Performance is for
the stated time period only; due to market volatility, the Fund's current
performance may be lower or higher than the quoted return.
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 NATIONAL MUNICIPALS FUND as of March 31, 2004
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2004
<Table>
ASSETS
Investment in National Municipals Portfolio, at value
(identified cost, $1,934,917,233) $ 2,096,149,399
Receivable for Fund shares sold 3,519,992
- --------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,099,669,391
- --------------------------------------------------------------------------------------------------
LIABILITIES
Dividends payable $ 4,939,027
Payable for Fund shares redeemed 2,642,958
Payable to affiliate for distribution and service fees 930,122
Accrued expenses 182,628
- --------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 8,694,735
- --------------------------------------------------------------------------------------------------
NET ASSETS $ 2,090,974,656
- --------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 1,982,887,860
Accumulated net realized loss from Portfolio (computed on
the basis of identified cost) (55,874,128)
Accumulated undistributed net investment income 2,728,758
Net unrealized appreciation from Portfolio (computed on the basis of
identified cost) 161,232,166
- --------------------------------------------------------------------------------------------------
TOTAL $ 2,090,974,656
- --------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 281,135,419
SHARES OUTSTANDING 25,537,750
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 11.01
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 OF $11.01) $ 11.56
- --------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 1,578,829,545
SHARES OUTSTANDING 153,579,045
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 10.28
- --------------------------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 227,017,360
SHARES OUTSTANDING 23,191,264
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.79
- --------------------------------------------------------------------------------------------------
CLASS I SHARES
NET ASSETS $ 3,992,332
SHARES OUTSTANDING 391,334
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 10.20
- --------------------------------------------------------------------------------------------------
</Table>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
MARCH 31, 2004
<Table>
INVESTMENT INCOME
Interest allocated from Portfolio $ 67,511,571
Expenses allocated from Portfolio (4,680,161)
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 62,831,410
- --------------------------------------------------------------------------------------------------
EXPENSES
Trustees' fees and expenses $ 1,741
Distribution and service fees
Class A 321,984
Class B 5,114,170
Class C 1,057,316
Transfer and dividend disbursing agent fees 470,861
Registration fees 67,097
Printing and postage 46,361
Custodian fee 18,868
Legal and accounting services 9,829
Miscellaneous 29,574
- --------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 7,137,801
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 55,693,609
- --------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss)--
Investment transactions (identified cost basis) $ 3,907,238
Financial futures contracts (27,675,695)
Interest rate swap contracts (6,263,000)
- --------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (30,031,457)
- --------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) $ 69,250,918
Financial futures contracts (9,761,885)
Interest rate swap contracts 1,757,584
- --------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 61,246,617
- --------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 31,215,160
- --------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 86,908,769
- --------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
3
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS
INCREASE (DECREASE) ENDED MARCH 31, 2004 YEAR ENDED
IN NET ASSETS (UNAUDITED) SEPTEMBER 30, 2003
- -------------------------------------------------------------------------------------------
From operations--
Net investment income $ 55,693,609 $ 114,562,805
Net realized loss (30,031,457) (2,503,870)
Net change in unrealized
appreciation (depreciation) 61,246,617 (15,496,860)
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 86,908,769 $ 96,562,075
- -------------------------------------------------------------------------------------------
Distributions to shareholders--
From net investment income
Class A $ (7,659,397) $ (13,242,734)
Class B (44,199,739) (86,905,152)
Class C (5,533,941) (10,165,790)
Class I (100,879) (136,792)
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (57,493,956) $ (110,450,468)
- -------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest--
Proceeds from sale of shares
Class A $ 66,012,580 $ 120,363,859
Class B 70,714,847 148,507,343
Class C 40,573,607 64,710,751
Class I 1,511,540 667,702
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 3,296,401 5,065,058
Class B 20,268,646 31,249,498
Class C 2,623,614 4,681,531
Class I 36,814 67,493
Cost of shares redeemed
Class A (28,663,805) (101,235,825)
Class B (88,650,653) (198,072,994)
Class C (19,376,016) (53,428,583)
Class I (10,900) (504,607)
Contingent deferred sales charges
Class B 317,066 862,362
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 68,653,741 $ 22,933,588
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 98,068,554 $ 9,045,195
- -------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 1,992,906,102 $ 1,983,860,907
- -------------------------------------------------------------------------------------------
AT END OF PERIOD $ 2,090,974,656 $ 1,992,906,102
- -------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME
INCLUDED IN NET ASSETS
AT END OF PERIOD $ 2,728,758 $ 4,529,105
- -------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
4
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 ----------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.840 $ 10.920 $ 10.550 $ 10.230 $ 10.440 $ 11.650
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.319 $ 0.666 $ 0.656 $ 0.618 $ 0.629 $ 0.636
Net realized and unrealized gain (loss) 0.179 (0.105) 0.334 0.312 (0.200) (1.209)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.498 $ 0.561 $ 0.990 $ 0.930 $ 0.429 $ (0.573)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.328) $ (0.641) $ (0.620) $ (0.610) $ (0.639) $ (0.637)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.328) $ (0.641) $ (0.620) $ (0.610) $ (0.639) $ (0.637)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 11.010 $ 10.840 $ 10.920 $ 10.550 $ 10.230 $ 10.440
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.63% 5.46% 9.84% 9.33% 4.39% (5.14)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 281,135 $ 236,885 $ 213,456 $ 181,600 $ 174,024 $ 211,206
Ratios (As a percentage of average daily net
assets):
Expenses(4) 0.77%(5) 0.78% 0.83% 0.83% 0.66% 0.71%
Expenses after custodian fee reduction(4) 0.77%(5) 0.78% 0.82% 0.82% 0.65% 0.69%
Net investment income 5.80%(5) 6.29% 6.31% 5.92% 6.23% 5.67%
Portfolio Turnover of the Portfolio 27% 35% 32% 20% 41% 60%
</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
September 30, 2002 was to increase net investment income per share by
$0.003, decrease net realized and unrealized gains per share by $0.003 and
increase the ratio of net investment income to average net assets from
6.28% to 6.31%. Per share data and ratios for the periods prior to October
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements
5
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -------------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.130 $ 10.190 $ 9.850 $ 9.550 $ 9.740 $ 10.870
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.279 $ 0.581 $ 0.572 $ 0.541 $ 0.532 $ 0.508
Net realized and unrealized gain (loss) 0.158 (0.086) 0.303 0.300 (0.188) (1.126)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.437 $ 0.495 $ 0.875 $ 0.841 $ 0.344 $ (0.618)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.289) $ (0.561) $ (0.540) $ (0.545) $ (0.534) $ (0.512)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.289) $ (0.561) $ (0.540) $ (0.545) $ (0.534) $ (0.512)
- -------------------------------------------------------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES CHARGES $ 0.002 $ 0.006 $ 0.005 $ 0.004 $ -- $ --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.280 $ 10.130 $ 10.190 $ 9.850 $ 9.550 $ 9.740
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.35% 5.17% 9.30% 9.06% 3.72% (5.90)%
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 1,578,830 $ 1,553,297 $ 1,582,772 $ 1,525,303 $ 1,483,566 $ 1,764,616
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.17%(5) 1.20% 1.25% 1.26% 1.25% 1.53%
Expenses after custodian fee reduction(4) 1.17%(5) 1.20% 1.24% 1.25% 1.24% 1.51%
Net investment income 5.44%(5) 5.88% 5.89% 5.49% 5.63% 4.86%
Portfolio Turnover of the Portfolio 27% 35% 32% 20% 41% 60%
</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
September 30, 2002 was to increase net investment income per share by
$0.003, decrease net realized and unrealized gains per share by $0.003 and
increase the ratio of net investment income to average net assets from
5.86% to 5.89%. Per share data and ratios for the periods prior to October
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements
6
<Page>
<Table>
<Caption>
CLASS C
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.640 $ 9.710 $ 9.380 $ 9.100 $ 9.280 $ 10.350
- ---------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.248 $ 0.522 $ 0.515 $ 0.478 $ 0.477 $ 0.482
Net realized and unrealized gain (loss) 0.158 (0.089) 0.297 0.274 (0.175) (1.073)
- ---------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 0.406 $ 0.433 $ 0.812 $ 0.752 $ 0.302 $ (0.591)
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.256) $ (0.503) $ (0.482) $ (0.472) $ (0.482) $ (0.479)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.256) $ (0.503) $ (0.482) $ (0.472) $ (0.482) $ (0.479)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.790 $ 9.640 $ 9.710 $ 9.380 $ 9.100 $ 9.280
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.23% 4.71% 9.02% 8.47% 3.46% (5.92)%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 227,017 $ 200,310 $ 185,439 $ 136,213 $ 104,455 $ 140,182
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.52%(5) 1.53% 1.57% 1.59% 1.58% 1.54%
Expenses after custodian fee reduction(4) 1.52%(5) 1.53% 1.56% 1.58% 1.57% 1.52%
Net investment income 5.07%(5) 5.54% 5.56% 5.16% 5.31% 4.84%
Portfolio Turnover of the Portfolio 27% 35% 32% 20% 41% 60%
</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
September 30, 2002 was to increase net investment income per share by
$0.003, decrease net realized and unrealized gains per share by $0.003 and
increase the ratio of net investment income to average net assets from
5.53% to 5.56%. Per share data and ratios for the periods prior to October
1, 2001 have not been restated to reflect this change in presentation.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements
7
<Page>
<Table>
<Caption>
CLASS I
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999(3)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.050 $ 10.110 $ 9.770 $ 9.460 $ 9.610 $ 10.000
- ---------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.307 $ 0.642 $ 0.637 $ 0.604 $ 0.557 $ 0.149
Net realized and unrealized gain (loss) 0.159 (0.086) 0.298 0.291 (0.107) (0.390)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.466 $ 0.556 $ 0.935 $ 0.895 $ 0.450 $ (0.241)
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.316) $ (0.616) $ (0.595) $ (0.585) $ (0.600) $ (0.149)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.316) $ (0.616) $ (0.595) $ (0.585) $ (0.600) $ (0.149)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.200 $ 10.050 $ 10.110 $ 9.770 $ 9.460 $ 9.610
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 4.68% 5.84% 10.05% 9.71% 4.96% (2.44)%
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 3,992 $ 2,414 $ 2,193 $ 389 $ 598 $ 468
Ratios (As a percentage of average daily
net assets):
Expenses(5) 0.52%(6) 0.53% 0.57% 0.58% 0.57% 0.55%(6)
Expenses after custodian fee reduction(5) 0.52%(6) 0.53% 0.56% 0.57% 0.56% 0.53%(6)
Net investment income 6.02%(6) 6.54% 6.60% 6.22% 5.87% 6.12%(6)
Portfolio Turnover of the Portfolio 27% 35% 32% 20% 41% 60%
</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
September 30, 2002 was to increase net investment income per share by
$0.003, decrease net realized and unrealized gains per share by $0.003 and
increase the ratio of net investment income to average net assets from
6.57% to 6.60%. Per share data and ratios for the periods prior to October
1, 2001 have not been restated to reflect this change in presentation.
(3) For the period from the commencement of offering of Class I shares, July 1,
1999, to September 30, 1999.
(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 the Portfolio's allocated expenses.
(6) Annualized.
See notes to financial statements
8
<Page>
EATON VANCE NATIONAL MUNICIPALS FUND as of March 31, 2004
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance National Municipals Fund (the Fund) is a diversified series of
Eaton Vance Municipals Trust (the Trust). The Trust is an entity of the type
commonly known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund offers four classes of shares. Class A shares
are generally sold subject to a sales charge imposed at time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sales charge (see Note 6). The Trustees have adopted a
conversion feature pursuant to which Class B shares of the Fund automatically
convert to Class A shares eight years after their purchase as described in
the Fund's prospectus. In addition, all Class B shares of the Fund purchased
on or before March 16, 2004 converted to Class A shares of the same Fund on
April 8, 2004. Class I shares are sold at net asset value to certain
institutional investors. Each class represents a pro rata interest in the
Fund, but votes separately on class-specific matters and (as noted below) is
subject to different expenses. Realized and unrealized gains and losses are
allocated daily to each class of shares based on the relative net assets of
each class to the total net assets of the Fund. Net investment income, other
than class-specific expenses, is allocated daily to each class of shares
based upon the ratio of the value of each class' paid shares to the total
value of all paid shares. Each class of shares differs in its distribution
plan and certain other class-specific expenses. The Fund invests all of its
investable assets in interests in National Municipals Portfolio (the
Portfolio), a New York Trust, having the same investment objective as the
Fund. The value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio (99.9% at March 31,
2004). The performance of the Fund is directly affected by the performance of
the Portfolio. The financial statements of the Portfolio, including the
portfolio of investments, are included elsewhere in this report and should be
read in conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATION -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B INCOME -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with accounting
principles generally accepted in the United States of America.
C FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 2003, the Fund, for federal income tax purposes, had a capital
loss carryover of $23,042,053 which will reduce the taxable income arising
from future net realized gains 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 Fund of any liability for federal income or excise tax. A portion
of such capital loss carryover was acquired through a Fund Reorganization and
may be subject to certain limitations. Such capital loss carryover will
expire on September 30, 2009. Dividends paid by the Fund from net tax-exempt
interest on municipal bonds allocated from the Portfolio are not includable
by shareholders as gross income for federal income tax purposes because the
Fund and Portfolio intend to meet certain requirements of the Internal
Revenue Code applicable to regulated investment companies which will enable
the Fund to pay exempt-interest dividends. The portion of such interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item to shareholders.
Additionally, at September 30, 2003, the Fund had net capital losses of
$8,653,345 attributable to security transactions incurred after October 31,
2002. These capital losses are treated as arising on the first day of the
Fund's current taxable year.
D 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.
E INDEMNIFICATIONS -- Under the Trust's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising
9
<Page>
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.
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 OTHER -- Investment transactions are accounted for on a trade-date basis.
H EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of total expenses in the Statement of Operations.
I INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to March 31, 2004 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 DISTRIBUTIONS TO SHAREHOLDERS
The net income of the Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are declared separately for each
class of shares. Distributions are paid monthly. Distributions of allocated
realized gains, if any, are made at least annually. Shareholders may reinvest
capital gain distributions in additional shares of the same class of the Fund
at the net asset value as of the ex-dividend date. Distributions are paid in
the form of additional shares of the same class or, at the election of the
shareholder, in cash. The Fund distinguishes between distributions on a tax
basis and a financial reporting basis. Accounting principles generally
accepted in the United States of America require that only distributions in
excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
3 SHARES OF BENEFICIAL INTEREST
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
---------------------------------------------------------------------------
Sales 6,001,816 11,382,208
Issued to shareholders electing to
receive payments of distributions
in Fund shares 299,187 478,814
Redemptions (2,607,688) (9,568,928)
---------------------------------------------------------------------------
NET INCREASE 3,693,315 2,292,094
---------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
---------------------------------------------------------------------------
Sales 6,860,852 15,025,003
Issued to shareholders electing to
receive payments of distributions
in Fund shares 1,971,421 3,156,008
Redemptions (8,639,953) (20,070,031)
---------------------------------------------------------------------------
NET INCREASE (DECREASE) 192,320 (1,889,020)
---------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS C (UNAUDITED) SEPTEMBER 30, 2003
---------------------------------------------------------------------------
Sales 4,137,806 6,864,196
Issued to shareholders electing to
receive payments of distributions
in Fund shares 267,754 498,815
Redemptions (1,985,279) (5,685,675)
---------------------------------------------------------------------------
NET INCREASE 2,420,281 1,677,336
---------------------------------------------------------------------------
</Table>
10
<Page>
<Table>
<Caption>
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS I (UNAUDITED) SEPTEMBER 30, 2003
--------------------------------------------------------------------------
Sales 148,618 66,928
Issued to shareholders electing to
receive payments of distributions
in Fund shares 3,607 6,889
Redemptions (1,055) (50,462)
--------------------------------------------------------------------------
NET INCREASE 151,170 23,355
--------------------------------------------------------------------------
</Table>
4 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the Administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. Except as to Trustees of the Fund and the
Portfolio who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their services to the Fund out of the
investment adviser fee earned by BMR. EVM serves as the sub-transfer agent of
the Fund and receives from the transfer agent an aggregate fee based upon the
actual expenses incurred by EVM in the performance of those services. For the
six months ended March 31, 2004, EVM earned $33,427 in sub-transfer agent
fees. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a
subsidiary of EVM and the Fund's principal underwriter, received $68,456 as
its portion of the sales charge on sales of Class A shares for the six months
ended March 31, 2004.
Certain officers and Trustees of the Fund and of the Portfolio are officers
of the above organizations.
5 DISTRIBUTION AND SERVICE PLANS
The Fund has in effect distribution plans for Class B shares (Class B Plan)
and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment
Company Act of 1940 and a service plan for Class A shares (Class A Plan),
(collectively, the Plans). The Class B and Class C Plans require the Fund to
pay EVD amounts equal to 1/365 of 0.75% of the Fund's average daily net
assets attributable to Class B and Class C shares for providing ongoing
distribution services and facilities to the Fund. The Fund will automatically
discontinue payments to EVD during any period in which there are no
outstanding Uncovered Distribution Charges, which are equivalent to the sum
of (i) 5% and 6.25% of the aggregate amount received by the Fund for the
Class B and Class C shares sold, respectively, plus (ii) interest calculated
by applying the rate of 1% over the prevailing prime rate to the outstanding
balance of Uncovered Distribution Charges of EVD of each respective class
reduced by the aggregate amount of contingent deferred sales charges (see
Note 6) and daily amounts theretofore paid to EVD by each respective class.
The Fund paid or accrued $3,150,551 and $792,987 for Class B, and Class C
shares, respectively, payable to EVD for the six months ended March 31, 2004,
representing 0.40% and 0.75% (annualized) of the average daily net assets for
Class B and Class C shares, respectively. At March 31, 2004, the amount of
Uncovered Distribution Charges EVD calculated under the Plans was
approximately $70,000 and $27,595,000 for Class B and Class C shares.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25%
(annualized) of the Fund's average daily net assets attributable to Class A,
Class B, and Class C shares for each fiscal year. Service fee payments will
be made for personal services and/or the maintenance of shareholder accounts.
Service fees are separate and distinct from the sales commissions and
distribution fees payable by the Fund to EVD, and, as such are not subject to
automatic discontinuance when there are no outstanding Uncovered Distribution
Charges of EVD. Service fee payments for the six months ended March 31, 2004
amounted to $321,984, $1,963,619, and $264,329 for Class A, Class B, and
Class C shares, respectively.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase and on redemptions of
Class C shares made within one year of purchase. Generally, the CDSC is based
upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of dividends
or capital gains distributions. Class B CDSC is imposed at declining rates
that begin at 5% in the case of redemptions in the first and second year
after purchase, declining one percentage point each subsequent year. Class C
shares will be subject to a 1% CDSC if redeemed within one year of purchase.
No CDSC is levied on shares which have been sold to EVM or its affiliates or
to their respective employees or clients and may be waived under certain
other limited conditions. CDSC charges are paid to EVD to reduce the amount
of Uncovered Distribution Charges calculated under each Fund's Distribution
Plan (see Note 5). CDSC charges received when no Uncovered Distribution
Charges exist will be credited to the Fund. EVD received approximately
11
<Page>
$25,000 of CDSC paid by shareholders for Class C shares for the six months
ended March 31, 2004. EVD also received approximately $406,000 of CDSC paid
by Class B shareholders of which $317,066 was paid directly to the Fund for
days when no Uncovered Distribution Charges existed.
7 INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the National Municipals
Portfolio aggregated $178,159,269 and $174,898,282, respectively, for the six
months ended March 31, 2004.
12
<Page>
NATIONAL MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.7%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
COGENERATION -- 3.0%
$ 22,150 Maryland Energy Cogeneration,
(AES Warrior Run), (AMT), 7.40%, 9/1/19 $ 22,635,085
6,100 Pennsylvania EDA, (Northampton Generating),
(AMT), 6.50%, 1/1/13 6,208,946
21,950 Pennsylvania EDA, (Northampton Generating),
(AMT), 6.60%, 1/1/19 22,266,738
5,900 Pennsylvania EDA, (Northampton Generating),
Junior Liens, (AMT), 6.875%, 1/1/11 5,912,803
5,000 Pennsylvania EDA, (Northampton Generating),
Junior Liens, (AMT), 6.95%, 1/1/21 5,002,900
- -------------------------------------------------------------------------------------------------
$ 62,026,472
- -------------------------------------------------------------------------------------------------
EDUCATION -- 0.2%
$ 4,130 California Educational Facilities Authority,
(Stanford University), Variable Rate, 6/1/21(1) $ 5,037,650
- -------------------------------------------------------------------------------------------------
$ 5,037,650
- -------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 5.8%
$ 13,000 Brazos River Authority, TX, (Reliant Energy, Inc.),
5.20%, 12/1/18 $ 14,286,610
14,300 Clark County, NV, (Nevada Power), (AMT),
5.90%, 10/1/30 13,073,060
20,000 Colorado Springs, CO, Utilities,
5.00%, 11/15/29 20,749,400
9,000 Connecticut Development Authority,
(Connecticut Light and Power), 5.85%, 9/1/28 9,629,730
13,000 Connecticut Development Authority,
(Western Massachusetts Electric), 5.85%, 9/1/28 13,909,610
5,000 Matagorda County, TX, Navigation District No.1,
(Reliant Energy), 5.95%, 5/1/30 5,019,750
2,000 Matagorda County, TX, Navigation District No.1,
(Reliant Energy), 8.00%, 5/1/29 2,194,100
20,000 New York Energy Research and Development
Authority Facility, (AMT), 4.70%, 6/1/36 20,384,400
8,000 North Carolina Municipal Power Agency,
(Catawba), 6.50%, 1/1/20 8,926,320
13,500 San Antonio, TX, Electric and Natural Gas,
4.50%, 2/1/21 13,537,125
- -------------------------------------------------------------------------------------------------
$ 121,710,105
- -------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 16.5%
$ 2,400 Bexar County, TX, Health Facilities, (St. Luke's Lutheran),
Escrowed to Maturity, 7.00%, 5/1/21 $ 3,128,424
11,195 Colorado Health Facilities Authority, (Liberty Heights),
Escrowed to Maturity, 0.00%, 7/15/22 4,530,840
184,070 Colorado Health Facilities Authority, (Liberty Heights),
Escrowed to Maturity, 0.00%, 7/15/24 65,806,866
215,825 Dawson Ridge, CO, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 86,444,387
11,175 Dawson Ridge, CO, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 4,475,923
101,555 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/23 38,546,216
60,360 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/25 20,219,393
4,270 Illinois HEFA, (Chicago Osteopathic Health Systems),
Escrowed to Maturity, 7.125%, 5/15/11 4,302,452
4,500 Illinois HEFA, (Chicago Osteopathic Health Systems),
Prerefunded to 11/15/19, 7.25%, 5/15/22 4,534,605
6,175 Kimball, NE, EDA, (Clean Harbors), (AMT),
Prerefunded to 9/1/06, 10.75%, 9/1/26 7,569,500
8,990 Louisiana Public Facilities Authority,
(Southern Baptist Hospitals, Inc.), Escrowed to
Maturity, 8.00%, 5/15/12 11,002,501
5,675 Maricopa County, AZ, IDA,
(Place Five and The Greenery),
Escrowed to Maturity, 6.625%, 1/1/27 6,631,521
100,000 Mississippi Housing Finance Corp., Single Family,
Escrowed to Maturity, (AMT), 0.00%, 6/1/15 62,116,000
46,210 San Joaquin Hills Transportation Corridor Agency,
CA, Toll Road Bonds, Escrowed to Maturity,
0.00%, 1/1/20 22,010,285
15,000 San Joaquin Hills Transportation Corridor Agency,
CA, Toll Road Bonds, Escrowed to Maturity,
0.00%, 1/1/25 5,313,000
- -------------------------------------------------------------------------------------------------
$ 346,631,913
- -------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.5%
$ 5,000 California, 2.00%, 6/16/04 $ 5,002,008
4,750 California, 5.10%, 2/1/34 4,760,735
16,000 California, 5.25%, 11/1/29 16,417,280
20,000 California, 5.25%, 2/1/30 20,429,800
10,000 California, 5.25%, 4/1/32 10,209,400
9,875 California, 5.50%, 11/1/33 10,350,284
7,000 Georgia, Variable Rate, 12/1/19(2)(3) 2,328,830
4,735 New York, NY, Variable Rate, 6/1/28(1)(3) 5,448,754
16,175 Puerto Rico, Variable Rate, 7/1/29(2)(3) 20,155,667
- -------------------------------------------------------------------------------------------------
$ 95,102,758
- -------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
13
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 0.4%
$ 1,570 Pittsfield Township, MI, EDC, (Arbor Hospice),
7.875%, 8/15/27 $ 1,525,773
3,152 Tax Revenue Exempt Securities Trust, Community
Health Provider, (Pooled Loan Program Various
States Trust Certificates), 5.50%, 12/1/36 3,097,423
3,381 Tax Revenue Exempt Securities Trust, Community
Health Provider, (Pooled Loan Program Various
States Trust Certificates), 5.875%, 12/1/36 3,405,742
- -------------------------------------------------------------------------------------------------
$ 8,028,938
- -------------------------------------------------------------------------------------------------
HOSPITAL -- 3.1%
$ 6,091 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital), 8.20%, 6/1/21(4) $ 612,738
12,600 California Health Facilities Authority,
(Cedars Sinai Medical Center), Variable Rate,
12/1/34(2)(3) 14,764,932
8,860 Louisiana Public Facilities Authority,
(General Health Systems), 6.80%, 11/1/16 9,051,022
9,765 Massachusetts HEFA, (Partners Healthcare System),
5.25%, 7/1/29 10,085,780
3,500 New Jersey Health Care Facilities Financing Authority,
(Trinitas Hospital), 7.50%, 7/1/30 3,915,100
4,000 Oneida County, NY, Industrial Development Agency,
(Elizabeth Medical Center), 6.00%, 12/1/29 3,645,040
3,075 Prince George's County, MD, (Greater Southeast
Healthcare System), 6.375%, 1/1/23(4) 741,382
7,750 Rhode Island HEFA, (St. Joseph Health Services),
5.50%, 10/1/29 7,035,527
12,500 Rochester, MN, Health Care Facilities, (Mayo Clinic),
Variable Rate, 11/15/27(2)(3) 14,348,250
- -------------------------------------------------------------------------------------------------
$ 64,199,771
- -------------------------------------------------------------------------------------------------
HOUSING -- 4.1%
$ 3,000 ABAG Finance Authority, CA, (Civic Center
Drive Apartments), (AMT), 6.375%, 9/1/32 $ 3,021,450
7,480 Arkansas Development Finance Authority, MFMR,
(Park Apartments), (AMT), 5.95%, 12/1/28 5,832,530
6,360 California Statewide Communities Development
Authority, (Corporate Fund for Housing), (AMT),
Variable Rate, 6/1/09(2)(3) 5,254,250
600 California Statewide Communities Development
Authority, (Corporate Fund for Housing), (AMT),
Variable Rate, 6/1/09(2)(3) 511,782
16,000 Charter Mac Equity Trust, TN, (AMT),
6.625%, 6/30/09 18,264,800
10,770 Florida Capital Projects Financing Authority,
Student Housing Revenue, (Florida University),
7.85%, 8/15/31 11,013,187
$ 9,865 Lake Creek, CO, (Affordable Housing Corp.),
6.25%, 12/1/23 $ 8,972,513
1,255 Maricopa County, AZ, IDA, (National Health
Facilities II), 6.375%, 1/1/19 1,022,072
7,225 Minneapolis, MN, Community Development,
(Lindsay Brothers), 6.60%, 12/1/18 7,170,596
15,355 New Hampshire Housing Finance Authority,
Multifamily Housing, 6.20%, 7/1/36 15,406,439
10,590 Texas Student Housing Corp., (University of
Northern Texas), 6.85%, 7/1/31 10,314,766
- -------------------------------------------------------------------------------------------------
$ 86,784,385
- -------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 11.9%
$ 7,220 Austin, TX, (Cargoport Development LLC), (AMT),
8.30%, 10/1/21 $ 7,672,405
10,260 Bedford County, VA, IDA, (Nekoosa Packaging),
(AMT), 6.55%, 12/1/25 10,388,045
2,250 Calhoun County, AR, Solid Waste Disposal,
(Georgia-Pacific Corp.), (AMT), 6.375%, 11/1/26 2,254,995
2,000 Camden County, NJ, (Holt Hauling), (AMT),
9.875%, 1/1/21(4) 300,000
6,050 Carbon County, UT, (Laidlaw Environmental),
(AMT), 7.50%, 2/1/10 6,234,646
4,000 Courtland, AL, Solid Waste Disposal, (Champion
International Corp.), (AMT), 6.70%, 11/1/29 4,331,480
55,500 Denver, CO, City and County Special Facilities,
(United Airlines), (AMT), 6.875%, 10/1/32(4) 45,510,000
3,500 Effingham County, GA, IDA, PCR,
(Georgia Pacific Corp.), 6.50%, 6/1/31 3,534,895
24,940 Effingham County, GA, Solid Waste Disposal,
(Fort James), (AMT), 5.625%, 7/1/18 23,735,897
6,645 Hardeman County, TN, (Correctional Facilities Corp.),
7.75%, 8/1/17 6,986,619
30,000 Houston, TX, Airport System, (Continental Airlines),
6.75%, 7/1/29 25,331,700
5,000 McMinn County, TN, (Calhoun Newsprint - Bowater, Inc.),
(AMT), 7.40%, 12/1/22 5,046,450
10,000 Michigan Strategic Fund, (S.D. Warren),
7.375%, 1/15/22 9,930,900
15,000 Michigan Strategic Fund, (S.D. Warren),
(AMT), 7.375%, 1/15/22 14,896,350
3,500 Michigan Strategic Fund, (S.D. Warren),
(AMT), 7.375%, 1/15/22 3,475,815
5,025 New Jersey EDA, (American Airlines),
(AMT), 7.10%, 11/1/31 3,592,975
18,820 New Jersey EDA, (Continental Airlines),
(AMT), 6.25%, 9/15/29 15,141,066
4,950 New Jersey EDA, (Continental Airlines),
(AMT), 9.00%, 6/1/33 5,082,116
</Table>
See notes to financial statements
14
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE (CONTINUED)
$ 17,000 New Jersey EDA, (Holt Hauling),
7.75%, 3/1/27(4) $ 16,660,000
1,500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27(4) 1,470,000
12,500 New York City, NY, Industrial Development Agency,
(American Airlines, Inc.), (AMT), 8.50%, 8/1/28 10,000,000
10,000 New York City, NY, Industrial Development Agency,
(American Airlines, Inc. - JFK International Airport),
(AMT), 8.00%, 8/1/12 8,050,200
12,330 Puerto Rico Port Authority, (American Airlines),
(AMT), 6.25%, 6/1/26 8,785,495
1,000 Puerto Rico Port Authority, (American Airlines),
(AMT), 6.30%, 6/1/23 712,530
1,779 Savannah, GA, (Intercat - Savannah), (AMT),
9.75%, 7/1/10 1,722,438
3,122 Savannah, GA, EDA, (Intercat - Savannah),
(AMT), 9.00%, 1/1/15 2,932,292
5,000 Skowhegan, ME, (S.D. Warren), (AMT),
6.65%, 10/15/15 4,829,150
- -------------------------------------------------------------------------------------------------
$ 248,608,459
- -------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 0.0%
$ 165 Puerto Rico Industrial Tourist Educational Medical and
Environmental, DRIVERS, (MBIA),
Variable Rate, 7/1/33(2)(3) $ 797,541
- -------------------------------------------------------------------------------------------------
$ 797,541
- -------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 3.4%
$ 9,320 Anaheim, CA, Public Financing Authority Electric
System Distribution Facilities, (FSA),
5.00%, 10/1/31 $ 9,656,172
8,000 Brazos River Authority, TX, (Centerpoint Energy, Inc./
Houston Light & Power Co.), (MBIA),
4.00%, 8/1/15(5) 8,138,800
5,500 Intermountain Power Agency, UT, (MBIA),
Variable Rate, 7/1/19(2)(3) 8,163,980
7,000 Matagorda County, TX, Navigation District No. 1,
(Centerpoint Energy, Inc./Houston Light & Power Co.),
(MBIA), 4.00%, 10/15/15 7,123,620
11,000 Memphis, TN, Electric System, (MBIA),
Variable Rate, 12/1/11(1)(3) 14,920,180
6,000 Sacramento, CA, Municipal Electric Utility District,
(FSA), Variable Rate, 8/15/28(1)(3) 6,640,260
7,455 South Carolina Public Service Authority, DRIVERS,
(FGIC), Variable Rate, 1/1/25(1)(3) 7,719,131
15,000 Southern, MN, Municipal Power Agency, Power
Supply System (AMBAC), 0.00%, 1/1/18 8,163,300
- -------------------------------------------------------------------------------------------------
$ 70,525,443
- -------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.7%
$ 20,505 Massachusetts Turnpike Authority, (FGIC),
Escrowed to Maturity, Variable Rate, 7/1/17(2)(3) $ 24,172,524
9,500 Massachusetts Turnpike Authority, (FGIC),
Escrowed to Maturity, Variable Rate, 1/1/20(2)(3) 11,419,665
- -------------------------------------------------------------------------------------------------
$ 35,592,189
- -------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 3.9%
$ 9,900 California, (AMBAC), Variable Rate, 11/1/19(2)(3) $ 12,648,636
11,665 California, RITES, (AMBAC),
Variable Rate, 2/1/23(1)(3) 14,274,461
12,500 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/23 4,675,750
16,980 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/25 5,628,191
14,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/29 3,725,400
5,000 Umatilla County, OR, School District No. 008R,
(MBIA), Variable Rate, 6/15/19(2)(3) 5,831,400
18,860 Washington , (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/20 8,575,453
17,630 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/18 9,059,881
18,125 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/19 8,761,263
19,125 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/21 8,189,708
- -------------------------------------------------------------------------------------------------
$ 81,370,143
- -------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 1.0%
$ 5,070 Maryland HEFA, (Medlantic), (AMBAC),
Variable Rate, 8/15/38(1)(3) $ 6,641,497
8,560 Tyler, TX, Health Facility Development Corp.,
(East Texas Medical Center),
(FSA), 5.375%, 11/1/27 8,914,470
5,000 Wisconsin HEFA, (Ministry Health Care),
(MBIA), 5.125%, 2/15/22 5,261,750
- -------------------------------------------------------------------------------------------------
$ 20,817,717
- -------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 2.8%
$ 50,000 Pennsylvania Housing Finance Agency, (FSA),
(AMT), Variable Rate, 6/1/08 $ 50,000,000
7,450 SCA Multifamily Mortgage, Industrial Development
Board, Hamilton County, TN, (FSA),
(AMT), 7.35%, 1/1/30 7,731,461
- -------------------------------------------------------------------------------------------------
$ 57,731,461
- -------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
15
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE /
CERTIFICATES OF PARTICIPATION -- 0.9%
$ 34,180 Anaheim, CA, Public Financing Authority,
(Public Improvements) (FSA), 0.00%, 9/1/35 $ 6,457,627
11,265 Union County, NJ, Improvement Authority,
(Lease-Madison Redevelopment),
(FSA), 5.00%, 3/1/34 11,786,570
- -------------------------------------------------------------------------------------------------
$ 18,244,197
- -------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 1.0%
$ 25,000 Harris County-Houston, TX, Sports Authority,
(MBIA), 0.00%, 11/15/41 $ 3,079,750
11,000 Harris County-Houston, TX, Sports Authority,
(MBIA), 5.25%, 11/15/40 11,523,930
7,895 New Jersey EDA School Facilities Construction,
(AMBAC), Variable Rate, 3/1/24(1)(3) 7,136,291
- -------------------------------------------------------------------------------------------------
$ 21,739,971
- -------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 2.9%
$ 13,305 Illinois Sports Facility Authority,
(AMBAC), 0.00%, 6/15/23 $ 5,135,198
31,510 Illinois Sports Facility Authority,
(AMBAC), 0.00%, 6/15/24 11,394,646
10,000 Illinois Sports Facility Authority,
(AMBAC), 0.00%, 6/15/25 3,417,400
44,190 Metropolitan Pier and Exposition Authority,
(McCormick Place Expansion), IL,
(MBIA), 0.00%, 6/15/35 8,796,903
50,000 Metropolitan Pier and Exposition Authority,
(McCormick Place Expansion), IL,
(MBIA), 0.00%, 12/15/39 7,699,500
50,000 Metropolitan Pier and Exposition Authority,
(McCormick Place Expansion), IL,
(MBIA), 0.00%, 6/15/40 7,497,500
40,670 Metropolitan Pier and Exposition Authority, IL,
(MBIA), 0.00%, 12/15/37 7,000,527
9,185 Regional Transportation Authority, LA,
(FGIC), 0.00%, 12/1/15 5,423,100
9,500 Regional Transportation Authority, LA,
(FGIC), 0.00%, 12/1/21 3,870,965
265 South Orange County, CA, Public Financing Authority,
(FGIC), DRIVERS, Variable Rate, 8/15/15(1)(3) 1,138,573
- -------------------------------------------------------------------------------------------------
$ 61,374,312
- -------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 7.3%
$ 18,220 Alameda, CA, Corridor Transportation Authority,
(MBIA), 0.00%, 10/1/35 $ 3,437,750
10,000 Chicago, IL, O'Hare International Airport, (AMBAC),
(AMT), 5.375%, 1/1/32 10,430,100
5,000 Dallas Fort Worth, TX, International Airport, (FGIC),
(AMT), 5.625%, 11/1/21 5,387,450
3,335 Dallas Fort Worth, TX, International Airport, (FSA),
(AMT), Variable Rate, 5/1/11(1)(3) 4,331,398
4,000 Dallas Fort Worth, TX, International Airport, (MBIA),
(AMT), Variable Rate, 5/1/11(1)(3) 5,056,880
2,500 Dallas-Fort Worth, TX, International Airport,
(FGIC), (AMT), 5.50%, 11/1/20 2,669,275
3,305 Kansas Turnpike Authority, (AMBAC),
Variable Rate, 3/1/11(1)(3) 3,370,604
3,330 Kansas Turnpike Authority, (AMBAC),
Variable Rate, 3/1/15(1)(3) 3,332,098
12,000 Massachusetts Turnpike Authority,
(AMBAC), 5.00%, 1/1/39 12,272,760
14,000 Metropolitan Transportation Authority, NY,
(FSA), 5.00%, 11/15/30 14,591,500
7,000 Metropolitan Washington, DC, Airports Authority,
DRIVERS, (MBIA), (AMT), Variable Rate, 10/12/21(1)(3) 7,768,740
12,330 Miami-Dade County, FL , Miami International Airport,
(FGIC), (AMT), 5.00%, 10/1/30 12,496,085
18,190 Port Authority of New York and New Jersey,
(XLCA), 4.50%, 9/15/35 17,664,855
9,000 Puerto Rico Highway and Transportation Authority,
(FSA), Variable Rate, 7/1/32(1)(3) 10,366,290
50,000 San Joaquin Hills, CA, Transportation Corridor
Agency Toll, (MBIA), 0.00%, 1/15/35 9,855,000
30,000 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/26 9,613,500
50,000 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/22 20,057,500
- -------------------------------------------------------------------------------------------------
$ 152,701,785
- -------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 0.5%
$ 10,500 Philadelphia, PA, Gas Works Revenue,
(FSA), 5.00%, 7/1/28 $ 10,734,990
- -------------------------------------------------------------------------------------------------
$ 10,734,990
- -------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 3.3%
$ 11,915 Atlanta, GA, Water and Sewer,
(FGIC), 5.00%, 11/1/38 $ 12,276,144
10,135 California Water Resources, (Central Valley),
(FGIC), Variable Rate, 12/1/28(1)(3) 11,727,209
10,445 Castaic Lake, CA, Water Agency Certificates of
Participation, (Water System Improvements),
(AMBAC), 0.00%, 8/1/21 4,456,359
</Table>
See notes to financial statements
16
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER (CONTINUED)
$ 20,980 Chicago, IL, Wastewater Transmission,
(MBIA), 0.00%, 1/1/26 $ 6,898,224
29,775 Houston, TX, Water and Sewer System,
(FSA), 0.00%, 12/1/28 8,312,585
9,400 Houston, TX, Water and Sewer System,
(FSA), 4.75%, 12/1/24(5) 9,457,434
7,500 Marco Island, FL, Utility System,
(MBIA), 5.00%, 10/1/27 7,851,075
7,435 Palm Coast, FL, Utility System,
(MBIA), 5.00%, 10/1/27 7,783,032
- -------------------------------------------------------------------------------------------------
$ 68,762,062
- -------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 0.4%
$ 8,000 New York Dormitory Authority, (Court Facilities),
5.50%, 5/15/19 $ 8,765,120
- -------------------------------------------------------------------------------------------------
$ 8,765,120
- -------------------------------------------------------------------------------------------------
NURSING HOME -- 3.3%
$ 12,185 Bell County, TX,
(Riverside Healthcare, Inc. - Normandy Terrace),
9.00%, 4/1/23 $ 7,432,850
4,665 Delaware County, PA, (Mainline - Haverford Nursing
and Rehabilitation Centers), 9.00%, 8/1/22(4) 2,841,312
9,880 Hillsborough County, FL, IDA, (Tampa Bay
Retirement Center), 7.00%, 6/1/25(6) 5,544,557
2,925 Lackawanna County, PA, IDA,
(Edella Street Associates), 8.875%, 9/1/14 2,926,784
13,250 Massachusetts IFA, (Age Institute of Massachusetts),
8.05%, 11/1/25 13,303,133
11,645 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 9,335,797
11,485 Montgomery, PA, IDA, (Advancement of Geriatric
Health Care Institute), 8.375%, 7/1/23 10,791,536
3,500 Orange County, FL, Health Facilities Authority,
(Westminster Community Care), 6.75%, 4/1/34 2,741,445
3,880 Sussex County, DE, (Delaware Health Corp.),
7.50%, 1/1/14 3,912,708
4,700 Sussex County, DE, (Delaware Health Corp.),
7.60%, 1/1/24 4,712,831
2,285 Westmoreland, PA, (Highland Health Systems, Inc.),
9.25%, 6/1/22 2,319,526
3,946 Wisconsin HEFA, (Wisconsin Illinois Senior Housing),
7.00%, 8/1/29 3,744,545
- -------------------------------------------------------------------------------------------------
$ 69,607,024
- -------------------------------------------------------------------------------------------------
OTHER REVENUE -- 7.6%
$ 22,000 California Statewide Communities Development
Authority, (East Valley Tourist Development Authority),
8.25%, 10/1/14 $ 22,558,360
10,000 California Statewide Communities Development
Authority, (East Valley Tourist Development Authority),
9.25%, 10/1/20 10,801,400
1,500 Capital Trust Agency, FL, (Seminole Tribe Convention),
8.95%, 10/1/33 1,764,270
26,500 Capital Trust Agency, FL, (Seminole Tribe Convention),
10.00%, 10/1/33 32,931,020
10,235 Golden Tobacco Securitization Corp., CA,
6.75%, 6/1/39 10,131,831
10,950 Golden Tobacco Securitization Corp., CA,
Variable Rate, 6/1/43(2)(3) 11,267,769
10,000 Golden Tobacco Securitization Corp., CA,
Variable Rate, 6/1/27(2)(3) 10,365,900
11,300 Golden Tobacco Securitization Corp., CA,
Variable Rate, 6/1/31(2)(3) 11,883,871
9,500 New Jersey EDA, School Facilities Construction,
Variable Rate, 6/15/28(2)(3) 10,304,365
10,200 Orange County, NC, (Community Activity Corp.),
8.00%, 3/1/24(4) 3,876,000
20,700 Tobacco Settlement Financing Corp., NJ,
Variable Rate, 6/1/39(2)(3) 20,282,895
13,000 Tobacco Settlement Management Authority, SC,
6.375%, 5/15/28 12,474,280
- -------------------------------------------------------------------------------------------------
$ 158,641,961
- -------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 5.5%
$ 13,225 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
5.75%, 12/15/28 $ 12,349,637
9,700 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 9,605,425
6,035 Arizona Health Facilities Authority,
(Care Institute, Inc. - Mesa), 7.625%, 1/1/26(6) 4,811,826
16,715 Bell County, TX, Health Facilities Authority,
(Care Institute, Inc. - Texas), 9.00%, 11/1/24 17,373,571
3,060 Chester, PA, IDA, (Senior Life - Choice of Kimberton),
(AMT), 8.50%, 9/1/25 3,189,928
4,600 Chester, PA, IDA, (Senior Life - Choice of Paoli),
(AMT), 8.05%, 1/1/24 4,844,444
11,570 De Kalb County, GA, Private Hospital Authority,
(Atlanta, Inc.), 8.50%, 3/1/25(6) 4,701,354
4,960 Delaware County, PA, IDA, (Glen Riddle),
(AMT), 8.625%, 9/1/25 5,191,781
6,980 Glen Cove, NY, IDA, (Regency at Glen Cove),
9.50%, 7/1/12 6,978,046
</Table>
See notes to financial statements
17
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE (CONTINUED)
$ 14,375 Illinois Development Finance Authority,
(Care Institute, Inc. - Illinois), 7.80%, 6/1/25 $ 14,864,325
1,900 Kansas City, MO, IDA, (Kingswood United
Methodist Manor), 5.375%, 11/15/09 1,836,863
9,345 New Jersey EDA, (Forsgate), (AMT),
8.625%, 6/1/25(6) 5,693,909
12,265 North Miami, FL, Health Facilities Authority,
(Imperial Club), 6.75%, 1/1/33 10,999,620
800 North Miami, FL, Health Facilities Authority,
(Imperial Club), 9.00%, 1/1/12(4) 7,576
7,915 Roseville, MN, Elder Care Facility,
(Care Institute, Inc. - Roseville), 7.75%, 11/1/23(6) 5,989,755
12,140 St. Paul, MN, Housing and Redevelopment,
(Care Institute, Inc. - Highland), 8.75%, 11/1/24(6) 7,645,772
- -------------------------------------------------------------------------------------------------
$ 116,083,832
- -------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 0.4%
$ 3,000 Tri-County, OR, Metropolitan Transportation District,
Variable Rate, 8/1/19(2)(3) $ 3,369,600
4,570 University Square, FL, Community Development
District, 6.75%, 5/1/20 4,842,052
- -------------------------------------------------------------------------------------------------
$ 8,211,652
- -------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.4%
$ 38,000 Port Authority of New York and New Jersey,
5.00%, 9/1/33 $ 39,628,680
10,065 Port Authority of New York and New Jersey,
5.00%, 9/1/38 10,414,557
- -------------------------------------------------------------------------------------------------
$ 50,043,237
- -------------------------------------------------------------------------------------------------
WATER AND SEWER -- 0.9%
$ 5,480 California Water Resources, (Central Valley),
Variable Rate, 6/1/18(2)(3) $ 6,683,298
11,800 Metropolitan Water District of Southern California,
5.00%, 7/1/27 12,869,906
- -------------------------------------------------------------------------------------------------
$ 19,553,204
- -------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.7%
(IDENTIFIED COST $1,893,516,102) $ 2,069,428,292
- -------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 26,721,135
- -------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 2,096,149,427
- -------------------------------------------------------------------------------------------------
</Table>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
At March 31, 2004, the concentration of the Portfolio's investments in the
various states, determined as a percentage of net assets, is as follows:
<Table>
California 14.3%
Colorado 11.3%
Texas 10.0%
Others, representing less than 10% individually 63.1%
</Table>
The Portfolio invests primarily in debt securities issued by 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 March
31, 2004, 28.7% 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 an individual financial
institution ranged from 0.9% to 8.7% of total investments.
(1) Security has been issued as a leveraged inverse floater bond.
(2) Security has been issued as an inverse floater bond.
(3) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) Non-income producing security.
(5) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(6) The Portfolio is accruing only partial interest on this security.
See notes to financial statements
18
<Page>
NATIONAL MUNICIPALS Portfolio as of March 31, 2004
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2004
<Table>
ASSETS
Investments, at value (identified cost, $1,893,516,102) $ 2,069,428,292
Cash 23,778,353
Receivable for investments sold 430,000
Interest receivable 41,129,275
- ----------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,134,765,920
- ----------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 30,226,575
Payable for open swap contracts 4,719,149
Payable for daily variation margin on open financial futures contracts 3,656,250
Accrued expenses 14,519
- ----------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 38,616,493
- ----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 2,096,149,427
- ----------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 1,934,917,261
Net unrealized appreciation (computed on the basis of identified cost) 161,232,166
- ----------------------------------------------------------------------------------------
TOTAL $ 2,096,149,427
- ----------------------------------------------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
MARCH 31, 2004
<Table>
INVESTMENT INCOME
Interest $ 67,511,572
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 67,511,572
- ----------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 4,429,923
Trustees' fees and expenses 14,145
Custodian fee 162,908
Legal and accounting services 42,627
Miscellaneous 30,559
- ----------------------------------------------------------------------------------------
TOTAL EXPENSES $ 4,680,162
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 62,831,410
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 3,907,238
Financial futures contracts (27,675,695)
Interest rate swap contracts (6,263,000)
- ----------------------------------------------------------------------------------------
NET REALIZED LOSS $ (30,031,457)
- ----------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 69,250,918
Financial futures contracts (9,761,885)
Interest rate swap contracts 1,757,584
- ----------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 61,246,617
- ----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 31,215,160
- ----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 94,046,570
- ----------------------------------------------------------------------------------------
</Table>
See notes to financial statements
19
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) MARCH 31, 2004 YEAR ENDED
IN NET ASSETS (UNAUDITED) SEPTEMBER 30, 2003
- ----------------------------------------------------------------------------------------
From operations --
Net investment income $ 62,831,410 $ 128,366,781
Net realized loss (30,031,457) (2,503,869)
Net change in unrealized
appreciation (depreciation) 61,246,617 (15,496,861)
- ----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 94,046,570 $ 110,366,051
- ----------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 178,159,269 $ 336,856,366
Withdrawals (174,898,282) (437,448,632)
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ 3,260,987 $ (100,592,266)
- ----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 97,307,557 $ 9,773,785
- ----------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 1,998,841,870 $ 1,989,068,085
- ----------------------------------------------------------------------------------------
AT END OF PERIOD $ 2,096,149,427 $ 1,998,841,870
- ----------------------------------------------------------------------------------------
</Table>
See notes to financial statements
20
<Page>
SUPPLEMENTARY DATA
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -------------------------------------------------------------------
(UNAUDITED) 2003 2002(1) 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily
net assets):
Expenses 0.46%(3) 0.47% 0.49% 0.48% 0.48% 0.45%
Expenses after custodian fee
reduction 0.46%(3) 0.47% 0.48% 0.47% 0.47% 0.43%
Net investment income 6.13%(3) 6.59% 6.64% 6.25% 6.37% 5.92%
Portfolio Turnover 27% 35% 32% 20% 41% 60%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.77% 5.81% 10.18% -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 2,096,149 $ 1,998,842 $ 1,989,068 $ 1,847,028 $ 1,769,985 $ 2,125,545
- -----------------------------------------------------------------------------------------------------------------------------------
</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 September 30, 2002 was to increase the ratio of
net investment income to average net assets from 6.60% to 6.63%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
(3) Annualzied
See notes to financial statements
21
<Page>
NATIONAL MUNICIPALS PORTFOLIO as of March 31, 2004
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 SIGNIFICANT ACCOUNTING POLICIES
National Municipals Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end
management investment company which was organized as a trust under the laws
of the State of New York on May 1, 1992. The Declaration of Trust permits the
Trustees to issue interests in the Portfolio. At March 31, 2004, Eaton Vance
National Municipals Fund held an approximate 99.9% interest in the Portfolio.
The following is a summary of significant accounting policies of the
Portfolio. The policies are in conformity with accounting principles
generally accepted in the United States of America.
A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on the
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Interest rate swaps are normally valued on the
basis of calculations furnished by a broker. 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 and discount.
C FEDERAL TAXES -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investor's distributive share of the Portfolio's net taxable (if any) and
tax-exempt investment income, net realized capital gains, and any other items
of income, gain, loss, deduction or credit. Interest income received by the
Portfolio on investments in municipal bonds, which is excludable from gross
income under the Internal Revenue Code, will retain its status as income
exempt from federal income tax when allocated to the Portfolio's investors.
The portion of such interest, if any, earned on private activity bonds issued
after August 7, 1986 may be considered a tax preference item for investors.
D FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit (initial margin) either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio (margin maintenance) each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
The Portfolio's investment in financial futures contracts is designed for
both hedging against anticipated future changes in interest rates and
investment purposes. Should interest rates move unexpectedly, the Portfolio
may not achieve the anticipated benefits of the financial futures contracts
and may realize a loss.
E INTEREST RATE SWAPS -- The Portfolio may enter into interest rate swap
agreements to enhance return, to hedge against fluctuations in securities
prices or interest rates or as substitution for the purchase or sale of
securities. Pursuant to the agreement, 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 rise from the unanticipated movements in
value of interest rates.
F OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put option
on a financial futures contract by the Portfolio, the premium paid is
recorded as an investment, the value of which is marked-to-market daily. When
a purchased option expires, the Portfolio will realize a loss in the amount
of the cost of the option. When the 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 the Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing put options is limited
to the premium originally paid.
22
<Page>
G 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.
H WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Portfolio may engage
in when-issued and delayed delivery transactions. The Portfolio records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
I USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
J 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.
K 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.
L EXPENSE REDUCTIONS -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balance the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
total expenses on the Statement of Operations.
M INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to March 31, 2004 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended March 31, 2004, the fee was equivalent
to 0.43% of the Portfolio's average daily net assets for such period and
amounted to $4,429,923. Except as to Trustees of the Portfolio who are not
members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to the Portfolio out of such investment
adviser fee. Trustees of the Portfolio that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended March 31, 2004, no significant
amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $541,977,545 and $535,837,491,
respectively, for the six months ended March 31, 2004.
23
<Page>
4 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation/depreciation in the value of the
investments owned at March 31, 2004, as computed on a federal income tax
basis, were as follows:
<Table>
AGGREGATE COST $ 1,884,960,898
-----------------------------------------------------------------
Gross unrealized appreciation $ 248,394,751
Gross unrealized depreciation (63,927,357)
-----------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 184,467,394
-----------------------------------------------------------------
</Table>
5 LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. The Portfolio 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
line of credit is allocated among the participating portfolios and funds at
the end of each quarter. The Portfolio did not have any significant
borrowings or allocated fees during the six months ended March 31, 2004.
6 FINANCIAL INSTRUMENTS
The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and interest rate swap contracts and may involve,
to a varying degree, elements of risk in excess of the amounts 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.
FUTURES CONTRACTS
<Table>
<Caption>
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION DEPRECIATION
--------------------------------------------------------------------
6/04 4,500 U.S. Treasury Bond Short $ (8,245,687)
6/04 1,000 U.S. Treasury Note Short (1,715,188)
--------------------------------------------------------------------
$ (9,960,875)
--------------------------------------------------------------------
</Table>
At March 31, 2004, the Portfolio had entered into an interest rate swap
agreement with Morgan Stanley Capital Services and two interest rate swap
agreements with Merrill Lynch Capital Services. The Portfolio makes payments
at rates equal to 4.315%, 4.750% and 4.355% biannually on the notional
amounts of $100,000,000, $125,000,000 and $170,000,000, respectively. In
exchange, the Portfolio receives payments at a rate equal to the Bond Market
Association Municipal Swap Index on the same notional amounts. The value of
the contracts, that terminate on June 9, 2024, August 11, 2014, and September
23, 2014 of ($3,037,952), ($3,405,685) and $1,724,488, respectively, are
recorded as an aggregate payable for open swap contracts of $4,719,149 on
March 31, 2004.
24
<Page>
EATON VANCE NATIONAL MUNICIPALS FUND
INVESTMENT MANAGEMENT
EATON VANCE NATIONAL MUNICIPALS FUND
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
NATIONAL MUNICIPALS PORTFOLIO
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President and Portfolio Manager
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
25
<Page>
INVESTMENT ADVISER OF NATIONAL MUNICIPALS PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF EATON VANCE NATIONAL MUNICIPALS FUND
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 CLARENDON STREET
BOSTON, MA 02116
TRANSFER AGENT
PFPC INC.
ATTN: EATON VANCE FUNDS
P.O. BOX 9653
PROVIDENCE, RI 02940-9653
(800) 262-1122
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. BEFORE
INVESTING, INVESTORS SHOULD CONSIDER CAREFULLY THE FUND'S INVESTMENT
OBJECTIVE(S), RISKS, AND CHARGES AND EXPENSES. THE FUND'S CURRENT PROSPECTUS
CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND AND IS AVAILABLE THROUGH YOUR
FINANCIAL ADVISOR. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY. FOR FURTHER INFORMATION PLEASE CALL 800-225-6265.
<Page>
448-5/04 HMSRC
<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 (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 this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
<Page>
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Effective February 9, 2004, the Governance Committee of the Board of Trustees
formalized the procedures by which a Fund's shareholders may recommend nominees
to the registrant's Board of Trustees. The Governance Committee shall, when
identifying candidates for the position of Independent Trustee, consider any
such candidate recommended by a shareholder of a Fund if such recommendation
contains sufficient background information concerning the candidate, and is
received in a sufficiently timely manner (and in any event no later than the
date specified for receipt of shareholder proposals in any applicable proxy
statement with respect to a Fund). Shareholders shall be directed to address any
such recommendations to the attention of the Governance Committee, c/o the
Secretary of the Fund.
ITEM 10. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant's internal controls over
financial reporting during the period that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUNICIPALS TRUST ON BEHALF OF (EATON VANCE NATIONAL MUNICIPALS FUND)
By: /s/ Thomas J. Fetter
--------------------------------
Thomas J. Fetter
President
Date: May 20, 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
Date: May 20, 2004
------------
By: /s/ Thomas J. Fetter
--------------------------------
Thomas J. Fetter
President
Date: May 20, 2004
------------