<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<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
---------
Eaton Vance Municipals Trust
----------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
March 31, 2004
--------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[GRAPHIC IMAGE]
SEMIANNUAL REPORT MARCH 31, 2004
[GRAPHIC IMAGE]
EATON VANCE MUNICIPALS TRUST
CALIFORNIA
FLORIDA
MASSACHUSETTS
MISSISSIPPI
NEW YORK
OHIO
RHODE ISLAND
WEST VIRGINIA
[GRAPHIC IMAGE]
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the
Securities and Exchange Commission. Each of the above financial institutions
has in effect the following policy with respect to nonpublic personal
information about its customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
- None of such information about you (or former customers) will be disclosed
to anyone, except as permitted by law (which includes disclosure to
employees necessary to service your account).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality
of such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122
----------
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one copy
of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at 1-800-262-1122, or contact your financial
adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
From time to time, funds are required to vote proxies related to the securities
held by the funds. The Eaton Vance Funds or their underlying Portfolios vote
proxies according to a set of policies and procedures approved by the Funds' and
Portfolios' Boards. You may obtain a description of these policies and
procedures without charge, upon request, by calling 1-800-262-1122. This
description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE MUNICIPALS FUNDS as of March 31, 2004
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
Amid the market volatility of recent years, many investors have become more
concerned with risk management. That trend has been especially true in the
municipal bond market, where the use of bond insurance has become increasingly
common. Today, roughly half of all municipal bond issuance is composed of
insured bonds. As part of our continuing educational series, we thought it might
be helpful to discuss bond insurance and its impact on the municipal market.
THE USE OF BOND INSURANCE HAS GROWN DRAMATICALLY OVER THE YEARS...
Municipal bond insurance was initially developed in 1971, when AMBAC Assurance
Corp., the nation's first municipal insurer, offered insurance as a way to
guarantee principal and interest payments on bond issues in the event of a bond
default. Over the following three decades, the municipal market has witnessed a
surge in the use of insurance. For example, in 1980, just 3% of all municipal
issuance was insured. However, by late 2003, that figure had risen to roughly
50%. Insurance has clear benefits for purchasers: the elimination of default
risk of the underlying issuer, AAA quality ratings and an enhancement of an
issue's liquidity. (It's important to note that, while insured bonds are insured
as to principal and interest payments, they still remain subject to interest
rate and market risks.)
THE MECHANICS OF MUNICIPAL BOND INSURANCE...
We start with the underlying reality that an issuer with a AAA credit rating
will pay less in interest expense than an issuer with a lower credit rating.
Thus, an issuer must first determine whether purchasing insurance is financially
feasible. That is, will the interest savings offset the cost of insurance? If
so, the issuer must then qualify for insurance. Just as an individual must
qualify for insurance, so must a bond issuer meet certain criteria. The issuer
provides key financial data and documents to potential insurers that are then
used to assess the issuer's financial strength and underlying fundamentals. If
the issuer qualifies, insurance is then effected by "direct purchase," with the
payment of a one-time premium by the issuer. The premium fee is calculated as a
percentage of the value of the bond issue - typically, around 50 basis points
(0.50%), but more if the credit entails higher risk. (An alternative method of
purchase involves "elective bidding," in which the insurance is purchased by
bond dealers, who determine at the time the bond is sold whether it is more
attractive as an insured or uninsured bond.)
IN-DEPTH CREDIT ANALYSIS INCLUDES INSURERS AS WELL AS BOND ISSUERS...
When analyzing municipal bonds, an investor naturally researches the issuer's
fundamentals. However, if the bond is insured, the analyst is concerned with the
soundness of the insurer as well. At Eaton Vance, analysis of the insured
segment is an integral part of our total municipal research effort. Research
includes, among other areas, analysis of an insurer's claims-paying ability, its
capital structure and the overall quality of its portfolio of policies. Based on
claims-paying ability, there are currently six bond insurers rated AAA by
Moody's Investors Service, Standard & Poor's and Fitch Ratings - the nation's
leading rating agencies.
INSURERS CAN PLAY A VALUABLE ROLE IN STRUCTURING BOND DEALS AND IMPROVING CREDIT
QUALITY...
Insurers play an important role in capital formation for municipal borrowers,
working closely with municipal officials to forge deals that raise capital for
vital projects at affordable interest rates. In so doing, the insurers can help
states and municipalities achieve more efficient fiscal management. Insurers
often re-structure bond deals by insisting on provisions that are intended to
make the deal more secure. That has proved a major benefit to investors in
recent years. In a more risk-conscious climate, we believe that an ongoing
analysis of the insured market is a necessary discipline to invest successfully
in today's municipal market.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 10, 2004
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. YIELDS WILL VARY.
2
<Page>
EATON VANCE MUNICIPALS FUNDS as of March 31, 2004
MARKET RECAP
Economic activity continued to gain strength in the six months ended March 31,
2004, although the pace of the recovery was a topic of strong debate. Businesses
increased capital spending, reinvesting in plants and equipment. Meanwhile,
consumer spending remained very resilient, despite deepening concerns over the
continuing conflict in Iraq, slow job growth and sharply rising gasoline prices.
However, the investment climate remained generally positive and, against this
backdrop, the bond market generated solid returns during the period.
THE CONSTRUCTION AND BUSINESS SERVICE SECTORS WERE AMONG THE LEADERS IN JOB
GROWTH...
Construction employment, while subject to seasonal fluctuations, contributed
strongly to the economy. Gains were also seen in the service sector, where
business services, health care, education, retailing and leisure showed
strength. Interestingly, temporary employment agencies reported some weakness,
suggesting that employers may be increasingly inclined to begin hiring permanent
employees. The manufacturing sector remained lackluster. However, hopes rose
that recent trends showing less deterioration might mark an end to the
relentless job losses dating to 2000.
WHILE KEEPING INTEREST RATES AT A RECORD LOW, THE FEDERAL RESERVE CONTINUED TO
MONITOR THE ECONOMY CLOSELY FOR INFLATION...
The nation's Gross Domestic Product grew by 4.2% in the first quarter of 2004,
following an 4.1% rise in the fourth quarter of 2003. While the figures
suggested a sound overall economy, the the slow pace of job creation remained a
concern. The nation's unemployment rate was 5.7% in March 2004, down just 0.1%
from 5.8% a year earlier. Recent labor market data have been unusually volatile.
The Federal Reserve is likely to keep a close eye on future jobs reports - as
well as prices of key commodities and consumer goods - for signs of a return of
inflation. Late in the period, inflation appeared to be edging somewhat higher,
especially energy, transportation and clothing costs. Nevertheless, through
March, the Federal Reserve held its Federal Funds rate - a key short-term
interest rate barometer - at 1.00%, where it has stood since June 2003.
MUNICIPAL BOND YIELDS NEARLY EQUALLED TREASURY YIELDS
<Table>
30-YEAR AAA-RATED
GENERAL OBLIGATION (GO) BONDS* 4.75%
TAXABLE EQUIVALENT YIELD
IN 35.0% TAX BRACKET 7.31%
30-YEAR TREASURY BOND 4.77%
</Table>
PRINCIPAL AND INTEREST PAYMENTS OF TREASURY SECURITIES ARE GUARANTEED BY THE
U.S. GOVERNMENT.
*GO YIELDS ARE A COMPILATION OF A REPRESENTATIVE VARIETY OF GENERAL
OBLIGATIONS AND ARE NOT NECESSARILY REPRESENTATIVE OF THE FUND'S YIELD.
STATISTICS AS OF MARCH 31, 2004.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
SOURCE: BLOOMBERG, L.P.
The municipal bond market performed generally in line with the Treasury market
during the six-month period. Ten-year Treasury bond yields-which were around
3.93% at September 30, 2003 - declined to 3.83% by March 31, 2004, while 10-year
municipal yields fell from 3.76% to 3.64%. The Lehman Brothers Municipal Bond
Index posted a total return of 3.12% for the six months ended March 31, 2004.*
STATE TAX RATES ROSE AGAIN IN 2003, INCREASING THE BURDEN ON STATE TAXPAYERS...
While federal taxes declined, state taxes rose significantly in 2002 and 2003,
according to the Tax Foundation. Over the past decade, the fastest growing
category of state tax collections was individual income taxes, which rose at an
average annual rate of 7.7%. That trend has left taxpayers with a larger state
tax bill and made a strong case for municipal bonds as one of the few remaining
ways to pare one's tax burden. Thus, we continue to believe that municipal bonds
remain a worthwhile consideration for tax-conscious investors.
*It is not possible to invest directly in an Index.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS
PORTFOLIO MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE
REPORT AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY
TIME BASED UPON MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY
RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS
INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE
FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION
OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND.
3
<Page>
EATON VANCE CALIFORNIA MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - The California economy saw stagnant job growth in 2003, as the manufacturing,
government, information and entertainment sectors struggled. Construction,
financial services, leisure, tourism and selected service sectors led the way
in job creation. The state's March 2004 jobless rate was 6.5%, down from 6.8%
a year ago.
- - At 21.4% of the Portfolio's net assets, escrowed/ prerefunded bonds were the
largest sector weighting. Escrowed bonds are generally considered to be of
the highest quality, warranting a AAA credit rating, because they have been
pre-refunded or escrowed to maturity by their issuers and because they are
backed by Treasury bonds. They are also attractive investments because they
generally provide a reliable stream of income.
- - Another significant investment for the Portfolio was lease
revenue/certificates of participation (COPs) bonds, which are an alternative
financing tool often used to finance public improvements, water utilities and
recreational facilities. Among these holdings were bonds issued by California
Public Works for the University of California and by Los Angeles County for
the Disney concert hall parking facility.
- - With continued low interest rates, management continued to adjust coupon
structure and upgrade call characteristics, as market conditions dictated.
Coupon structure and call features can have a significant influence on the
Fund's performance.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 2.82% and 2.72%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$10.96 on March 31, 2004, from $10.92 on September 30, 2003, and the
reinvestment of $0.265 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.14 from $10.11 during the same
period, and the reinvestment of $0.244 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
4.10% and 4.16%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 6.96% and 7.06%, respectively.(4)
FUND STATISTICS+
<Table>
- - Number of Issues: 78
- - Effective Maturity: 10.9 years
- - Average Rating: AA
- - Average Call: 10.1 years
- - Average Dollar Price: $ 97.91
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 56.6%
AA 13.8%
A 5.6%
BBB 6.7%
BB 1.1%
Non-Rated 16.2%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 4.86% 4.70%
Five Years 4.90 4.69
Ten Years N.A. 5.71
Life of Fund++ 6.48 6.06
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year -0.15% -0.30%
Five Years 3.90 4.36
Ten Years N.A. 5.71
Life of Fund++ 5.96 6.06
</Table>
++Inception date: Class A: 5/27/94; Class B: 12/19/85
(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. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 41.05% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
4
<Page>
EATON VANCE FLORIDA MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - While Florida's economy registered only modest job growth in late 2003 and
early 2004, it nonetheless managed to outpace the nation as a whole. The
state's key tourism sector and its construction sector-fueled by a surging
housing market - have been the primary drivers of job growth. The state's
jobless rate was 4.8% in March 2004, down from 5.3% a year ago.
- - Insured* water and sewer bonds represented the Portfolio's largest sector
weighting at March 31, 2004. These essential services bonds are generally
insulated from economic fluctuations because they represent non-discretionary
expenses. These bonds financed Florida communities' efforts to upgrade their
water infrastructure.
- - Insured* transportation bonds remained a major sector weighting at March 31,
2004. The Fund's investments included issues for turnpikes, expressways, and
aviation facilities. The Portfolio's insured* transportation holdings also
included Puerto Rico bonds, which play an important role in management's
efforts to maintain a broad diversification of investments.
- - Amid continued low interest rates, management continued to emphasize the
Portfolio's call protection. Faced with the prospect of a faster pace of
refundings, management believes that call protection remains an important
strategic aspect for municipal bond investors.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 3.51% and 3.22%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$10.78 on March 31, 2004, from $10.68 on September 30, 2003, and the
reinvestment of $0.273 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $11.05 from $10.95 during the same
period, and the reinvestment of $0.250 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
4.20% and 3.60%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 6.46% and 5.54%, respectively.(4)
FUND STATISTICS+
<Table>
- - Number of Issues: 94
- - Effective Maturity: 11.8 years
- - Average Rating: AA
- - Average Call: 8.4 years
- - Average Dollar Price: $ 101.63
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 70.2%
AA 4.7%
A 5.2%
BBB 4.5%
Non-Rated 15.4%
</Table>
+May not represent the Portfolio's current or future investments.
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 5.71% 5.00%
Five Years 5.29 4.52
Ten Years N.A. 5.30
Life of Fund++ 6.39 6.15
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 0.64% 0.00%
Five Years 4.26 4.19
Ten Years N.A. 5.30
Life of Fund++ 5.87 6.15
</Table>
++Inception date: Class A: 4/5/94; Class B: 8/28/90
(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. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state intangibles tax.
(3) 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.
(4) Taxable-equivalent rates assume maximum 35.00% federal income tax rate. A
lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
5
<Page>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - The Massachusetts economy took steps toward recovery in 2003, as rising
demand for technology and improving financial markets boosted the state's
leading industries. A strong residential building climate lifted the
construction sector. The state's November 2003 jobless rate was 5.4%, the
same level as a year ago, but below the national rate.
- - Representing 11.6% of the Portfolio's net assets, escrowed/prerefunded bonds
were among the largest sector weightings as of March 31, 2004. These bonds
are generally rated AAA, considered to be the highest quality, because
principal and interest are fully backed by U.S. Treasury bonds. They are also
attractive investments because they typically provide a reliable stream of
income.
- - Education and insured* education bonds were also among the Portfolio's
largest sector weightings during the period. Management focused on
high-quality bonds from some of the Commonwealth's finest higher and
secondary educational institutions, including Harvard, MIT, and Boston
University.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A, Class B, and
Class I shares had total returns of 3.57%, 3.28%, and 3.62%, respectively.(1)
For Class A, this return resulted from an increase in net asset value (NAV)
per share to $9.78 on March 31, 2004, from $9.68 on September 30, 2003, and
the reinvestment of $0.242 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.90 from $10.79 during the same
period, and the reinvestment of $0.242 per share in tax-free income.(2) For
Class I, this return resulted from an increase in NAV to $10.10 from $10.00
during the same period, and the reinvestment of $0.259 per share in tax-free
income.(2)
- - The SEC 30-day yields for Class A, Class B, and Class I shares at March 31,
2004, were 4.26%, 3.59%, and 4.62%, respectively.(3) The SEC 30-day yields of
Class A, Class B, and Class I are equivalent to taxable yields of 6.92%,
5.83%, and 7.51%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 71
- - Effective Maturity: 11.8 years
- - Average Rating: AA
- - Average Call: 10.9 years
- - Average Dollar Price: $ 100.72
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 52.6%
AA 24.9%
A 11.8%
BBB 6.0%
Non-Rated 4.7%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B CLASS I
- ---------------------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 5.86% 5.09% 5.99%
Five Years 5.39 4.58 5.54
Ten Years 6.05 5.34 6.28
Life of Fund++ 5.22 5.86 5.67
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 0.87% 0.09% 5.99%
Five Years 4.36 4.24 5.54
Ten Years 5.54 5.34 6.28
Life of Fund++ 4.72 5.86 5.67
</Table>
++Inception date: Class A: 12/7/93; Class B: 4/18/91; Class I:6/17/93
(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. If the sales charge was deducted, the performance would be reduced.
Class I generally has no sales charge.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 38.45% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
6
<Page>
EATON VANCE MISSISSIPPI MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - As the national economy moved towards recovery in the past six months, there
were some encouraging signs in Mississippi as well. New and expanded
facilities announced from January-March 2004 represented nearly $500 million
in capital investment in the state. The 100 projects are expected to create
an estimated 2,730 new jobs, according to the Mississippi Development
Authority. The state's unemployment rate was 4.2% for March 2004, versus the
5.7% national rate.
- - Management remained selective within the insured* hospital sector, which
represented the largest sector weighting as of March 31, 2004. With the
industry facing the pressure of strict Medicare reimbursement, the Fund
focused on insured* issues of institutions management believes have superior
management and a solid market share.
- - Against the backdrop of a recovering state economy, insured* general
obligations were another significant investment. In a slow economy, insured*
bonds provided an extra measure of security against the possibility of
declining municipal or state revenues.
- - With continued low interest rates, management continued to adjust coupon
structure and upgrade call characteristics, as market conditions dictated.
Coupon structure and call features can have a significant influence on the
Fund's performance.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 1.85% and 1.58%, respectively.(1) For Class A,
this return resulted from a decrease in net asset value (NAV) per share to
$9.79 on March 31, 2004, from $9.84 on September 30, 2003, and the
reinvestment of $0.231 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $10.01 from $10.06 during the same
period, and the reinvestment of $0.209 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
3.54% and 2.91%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 5.73% and 4.71%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 48
- - Effective Maturity: 7.4 years
- - Average Rating: AA+
- - Average Call: 7.0 years
- - Average Dollar Price: $ 103.77
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 73.8%
AA 6.3%
A 8.5%
BBB 10.1%
Non-Rated 1.3%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 3.99% 3.22%
Five Years 4.84 4.05
Ten Years 5.88 5.30
Life of Fund++ 4.86 4.54
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year -0.93% -1.73%
Five Years 3.83 3.71
Ten Years 5.37 5.30
Life of Fund++ 4.37 4.54
</Table>
++Inception date: Class A: 12/7/93; Class B: 6/11/93
(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. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 38.25% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
7
<Page>
EATON VANCE NEW YORK MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - The New York economy improved in 2003 and early 2004, although job creation
was sporadic. The pace of hiring in the key financial services and
manufacturing sectors remained central to the still-evolving recovery of the
New York economy. The state's March 2004 jobless rate was 6.5%, up slightly
from 6.3% a year ago.
- - Education bonds were the Portfolio's largest sector weighting at March 31,
2004, accounting for 22.9% of the Portfolio's net assets. The bonds in this
category were all issued by the New York Dormitory Authority and represent a
variety of financing efforts for New York State University Educational
Facilities and for City University. Education bonds are considered attractive
investments because they historically have tended to be more stable credits
in an uncertain economy, thanks to the steady demand for higher education.
- - Another sector that has tended to be less vulnerable in a slow economy is
escrowed/prerefunded bonds, which represented 7.1% of the Portfolio's net
assets at the end of the period. Backed by Treasury bonds, escrowed issues
represent the high quality that is prized by investors in an uncertain
economic climate.
- - Selected Puerto Rico bonds gave the Portfolio flexibility with regard to
coupon structure, as well as further diversification through insured* special
tax revenue and insured* electric utilities bonds.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A, Class B and
Class C shares had total returns of 2.97%, 2.86% and 0.72%, respectively.(1)
For Class A, this return resulted from an increase in net asset value (NAV)
per share to $10.95 on March 31, 2004, from $10.92 on September 30, 2003, and
the reinvestment of $0.266 per share in tax-free income and $0.026 per share
in capital gains.(2) For Class B, this return resulted from an increase in
NAV to $11.83 from $11.80 during the same period, and the reinvestment of
$0.279 per share in tax-free income and $0.026 per share in capital gains.(2)
For Class C, this return resulted from a decrease in NAV to $9.94 from $10.05
during the same period, and the reinvestment of $0.156 per share in tax-free
income and $0.026 per share in capital gains.(2)
- - The SEC 30-day yields for Class A, Class B, and Class C shares at March 31,
2004, were 3.95%, 3.94%, and 3.33%, respectively.(3) The SEC 30-day yields
are equivalent to taxable yields of 6.58%, 6.57%, and 5.55%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 80
- - Effective Maturity: 12.1 years
- - Average Rating: AA-
- - Average Call: 11.7 years
- - Average Dollar Price: $ 110.57
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 22.2%
AA 48.1%
A 16.8%
BBB 2.7%
Non-Rated 10.2%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B CLASS C
- ---------------------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.54% 6.24% N.A.
Five Years 5.95 5.27 N.A.
Ten Years N.A. 5.87 N.A.
Life of Fund++ 6.67 6.72 1.22**
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.47% 1.24% N.A.
Five Years 4.91 4.94 N.A.
Ten Years N.A. 5.87 N.A.
Life of Fund++ 6.15 6.72 0.23**
</Table>
++Inception date: Class A: 4/15/94; Class B: 8/30/90; Class C:9/30/03
**Represents Cumulative Return from 9/30/03 - 3/31/04
(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.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state and local income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 40.01% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4%
- 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For Class C,
returns reflect 1% CDSC. For the Fund's performance as of the most recent
month-end, please refer to www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
8
<Page>
EATON VANCE OHIO MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - Ohio's economy continued to shed jobs in the manufacturing sector, which
accounts for 16% of the state's workforce, with especially severe losses in
the steel and auto areas. Meanwhile, education, health care and financial
services continued to generate some job momentum. The state's March 2004
jobless rate was 5.7%, down from 6.3% a year ago.
- - The Portfolio remained very selective within the hospital sector, its largest
sector weighting at March 31, 2004. With this competitive industry facing the
pressure of complex reimbursement rules, management focused on institutions
it believes have sound financial structures, good management and a solid
market share.
- - Insured* general obligations (GOs) were another significant investment for
the Portfolio. Insured* school district GOs have been valued by investors in
an uncertain economy that has continued to pressure industrial and
economically sensitive issuers.
- - Puerto Rico bonds played a role in management's efforts to maintain a broad
diversification. The Fund's Puerto Rico holdings included insured* education,
insured* electric utilities, and insured* special tax revenue bonds.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 4.23% and 3.77%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.35 on March 31, 2004, from $9.23 on September 30, 2003, and the
reinvestment of $0.266 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.55 from $10.43 during the same
period, and the reinvestment of $0.271 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
4.71% and 4.04%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 7.83% and 6.72%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 75
- - Effective Maturity: 9.5 years
- - Average Rating: AA-
- - Average Call: 7.6 years
- - Average Dollar Price: $ 105.16
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 47.2%
AA 13.5%
A 15.7%
BBB 6.7%
BB 1.6%
Non-Rated 15.3%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 8.30% 7.37%
Five Years 4.89 4.07
Ten Years 5.91 5.23
Life of Fund++ 4.93 5.70
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 3.20% 2.37%
Five Years 3.88 3.74
Ten Years 5.40 5.23
Life of Fund++ 4.43 5.70
</Table>
++Inception date: Class A: 12/7/93; Class B: 4/18/91
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 39.88% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
9
<Page>
EATON VANCE RHODE ISLAND MUNICIPALS FUND as of March 31, 2004
INVESTMENT UP DATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - The improving employment trend in Rhode Island stalled slightly in March of
2004, as the state's unemployment rate rose to 5.6%, just under the national
rate of 5.7%. In previous months, however, data have indicated that the jobs
picture was stronger than expected in 2003, as the state added 4,300 jobs in
the private and public sectors, according to a recently published report.
- - Insured* education bonds were the largest investment for the Portfolio as of
March 31, 2004. Investments in this sector included some of the most
prominent public and private institutions within the state, including Rhode
Island School of Design, University of Rhode Island, and Johnson and Wales
University. Education bonds historically have tended to be stable credits in
an uncertain economy, due to the steady demand for higher education.
- - With few new issues generally available in the Rhode Island market,
management aims to diversify holdings through selected Puerto Rico bonds.
These bonds add flexibility in terms of the Portfolio's coupon profile, and
as of March 31, 2004, included holdings in insured* electric utilities,
insured* special tax revenue, and insured* transportation.
- - In an uncertain economy, essential services bonds stand out for their
historically stable revenues. The Portfolio had investments in a variety of
insured* water and sewer, insured* electric utilities, and insured* solid
waste bonds.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 4.02% and 3.72%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.91 on March 31, 2004, from $9.76 on September 30, 2003, and the
reinvestment of $0.240 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.14 from $9.99 during the same
period, and the reinvestment of $0.219 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
3.88% and 3.30%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 6.63% and 5.64%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 62
- - Effective Maturity: 8.5 years
- - Average Rating: AA+
- - Average Call: 7.3 years
- - Average Dollar Price: $ 105.98
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 75.7%
AA 3.8%
A 3.5%
BBB 7.2%
BB 2.8%
Non-Rated 7.0%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.23% 5.62%
Five Years 5.38 4.61
Ten Years 6.05 5.50
Life of Fund++ 4.97 4.73
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 1.17% 0.62%
Five Years 4.35 4.28
Ten Years 5.54 5.50
Life of Fund++ 4.47 4.73
</Table>
++Inception date: Class A: 12/7/93; Class B: 6/11/93
(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. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 41.44% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
10
<Page>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - The employment picture in West Virginia improved over the past year, with the
state posting an unemployment rate of 5.4% in March 2004, versus a rate of
6.3% the previous March. Total employment rose for the period, with the
goods-producing and service-providing sectors adding the most jobs.
- - Insured* water and sewer bonds were the Portfolio's largest commitment as of
March 31, 2004, at 15.4% of net assets. Holdings in this area included
several issues from the West Virginia Water Development Authority, which
provides financing for the construction of a variety of municipal water and
wastewater facilities throughout the state.
- - The Portfolio also maintained a significant investment in insured* hospital
bonds. As elsewhere in the nation, the West Virginia hospital industry
remains under the pressure of strict reimbursement regulations. Management
focused on health facilities finance authority issues, which funded the
acquisition, construction and improvement of well-situated acute care sites.
- - Insured* education bonds were another sizable weighting for the Portfolio.
Several bonds in this category were issued by the West Virginia State
University System and provided financing for a variety of projects. Education
bonds are considered attractive investments because they historically have
tended to be more stable credits in an uncertain economy.
THE FUND
- - During the six months ended March 31, 2004, the Fund's Class A and Class B
shares had total returns of 3.73% and 3.23%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$10.02 on March 31, 2004, from $9.88 on September 30, 2003, and the
reinvestment of $0.226 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $10.20 from $10.08 during the same
period, and the reinvestment of $0.204 per share in tax-free income.(2)
- - The SEC 30-day yields for Class A and Class B shares at March 31, 2004, were
3.63% and 3.00%, respectively.(3) The SEC 30-day yields of Class A and Class
B are equivalent to taxable yields of 5.97% and 4.94%, respectively.(4)
*Private insurance does not remove the interest rate and market risks
associated with insured investments.
FUND STATISTICS+
<Table>
- - Number of Issues: 42
- - Effective Maturity: 9.8 years
- - Average Rating: AA+
- - Average Call: 9.4 years
- - Average Dollar Price: $ 95.80
</Table>
[CHART]
RATING DISTRIBUTION+
<Table>
AAA 77.8%
AA 0.9%
A 12.4%
BBB 7.3%
Non-Rated 1.6%
</Table>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF MARCH 31, 2004
<Table>
<Caption>
PERFORMANCE(5) CLASS A CLASS B
- -----------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 5.78% 4.86%
Five Years 5.14 4.34
Ten Years 6.00 5.38
Life of Fund++ 5.11 4.66
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year 0.80% -0.14%
Five Years 4.11 4.00
Ten Years 5.48 5.38
Life of Fund++ 4.61 4.66
</Table>
++Inception date: Class A: 12/13/93; Class B: 6/11/93
(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. If the sales charge was deducted, the performance would be reduced.
(2) A portion of the Fund's income may be subject to federal income and/or
alternative minimum tax and state income tax.
(3) The Fund's 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.
(4) Taxable-equivalent rates assume maximum 39.23% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent figures.
(5) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. For the Fund's
performance as of the most recent month-end, please refer to
www.eatonvance.com.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. 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.
11
<Page>
EATON VANCE MUNICIPALS FUNDS as of March 31, 2004
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2004
<Table>
<Caption>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment in Municipals Portfolio --
Identified cost $ 214,331,707 $ 236,953,760 $ 199,518,006 $ 17,365,441
Unrealized appreciation 31,667,501 23,042,351 18,761,003 1,244,490
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 245,999,208 $ 259,996,111 $ 218,279,009 $ 18,609,931
- -----------------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 124,000 $ 261,473 $ 32,279 $ 2,260
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 246,123,208 $ 260,257,584 $ 218,311,288 $ 18,612,191
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 253,610 $ 395,122 $ 92,779 $ --
Dividends payable 530,147 165,741 234,961 16,374
Payable to affiliate for distribution fees 117,382 -- -- --
Accrued expenses 28,345 25,372 24,061 5,130
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 929,484 $ 586,235 $ 351,801 $ 21,504
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 245,193,724 $ 259,671,349 $ 217,959,487 $ 18,590,687
- -----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 235,014,981 $ 242,096,221 $ 210,451,422 $ 18,865,128
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (21,709,551) (6,665,238) (11,365,526) (1,511,129)
Accumulated undistributed (distributions in excess
of) net investment income 220,793 1,198,015 112,588 (7,802)
Net unrealized appreciation from Portfolio (computed
on the basis of identified cost) 31,667,501 23,042,351 18,761,003 1,244,490
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 245,193,724 $ 259,671,349 $ 217,959,487 $ 18,590,687
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 38,118,926 $ 200,546,844 $ 144,743,821 $ 12,123,241
SHARES OUTSTANDING 3,478,171 18,609,301 14,800,419 1,238,701
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 10.96 $ 10.78 $ 9.78 $ 9.79
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset value per share) $ 11.51 $ 11.32 $ 10.27 $ 10.28
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 207,074,798 $ 59,124,505 $ 64,766,568 $ 6,467,446
SHARES OUTSTANDING 20,427,402 5,352,753 5,939,510 646,139
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 10.14 $ 11.05 $ 10.90 $ 10.01
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS I SHARES
NET ASSETS $ -- $ -- $ 8,449,098 $ --
SHARES OUTSTANDING -- -- 836,439 --
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ -- $ -- $ 10.10 $ --
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
12
<Page>
<Table>
<Caption>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment in Municipals Portfolio --
Identified cost $ 312,007,775 $ 158,094,413 $ 51,502,599 $ 25,974,014
Unrealized appreciation 41,092,052 13,473,248 3,835,046 1,945,593
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 353,099,827 $ 171,567,661 $ 55,337,645 $ 27,919,607
- ------------------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 258,060 $ 88,032 $ 17,261 $ 283,048
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 353,357,887 $ 171,655,693 $ 55,354,906 $ 28,202,655
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 300,157 $ 265,844 $ 11,601 $ --
Dividends payable 742,334 127,847 54,920 15,311
Payable to affiliate for distribution fees 45,630 -- -- --
Accrued expenses 51,624 22,449 9,059 18,037
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,139,745 $ 416,140 $ 75,580 $ 33,348
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 352,218,142 $ 171,239,553 $ 55,279,326 $ 28,169,307
- ------------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 310,327,809 $ 166,088,659 $ 53,750,463 $ 27,579,015
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (525,532) (8,450,339) (2,299,209) (1,311,708)
Accumulated undistributed (distributions in excess
of) net investment income 1,323,813 127,985 (6,974) (43,593)
Net unrealized appreciation from Portfolio (computed
on the basis of identified cost) 41,092,052 13,473,248 3,835,046 1,945,593
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 352,218,142 $ 171,239,553 $ 55,279,326 $ 28,169,307
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 49,732,472 $ 129,896,194 $ 27,052,905 $ 18,250,942
SHARES OUTSTANDING 4,542,861 13,891,730 2,728,540 1,821,942
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 10.95 $ 9.35 $ 9.91 $ 10.02
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset value per share) $ 11.50 $ 9.82 $ 10.40 $ 10.52
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 302,046,352 $ 41,343,359 $ 28,226,421 $ 9,918,365
SHARES OUTSTANDING 25,523,733 3,918,292 2,782,344 972,296
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 11.83 $ 10.55 $ 10.14 $ 10.20
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 439,318 $ -- $ -- $ --
SHARES OUTSTANDING 44,203 -- -- --
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 9.94 $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
13
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest allocated from Portfolio $ 7,182,065 $ 7,610,607 $ 6,210,744 $ 495,743
Expenses allocated from Portfolio (681,160) (680,080) (546,945) (36,231)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 6,500,905 $ 6,930,527 $ 5,663,799 $ 459,512
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Trustees fees and expenses $ 1,741 $ 1,740 $ 1,740 $ 86
Distribution and service fees
Class A 45,010 30,202 48,525 3,201
Class B 466,271 1,109,297 752,500 71,093
Legal and accounting services 9,892 10,667 8,729 8,219
Printing and postage 5,621 8,243 5,807 1,050
Custodian fee 12,501 13,492 11,750 3,469
Transfer and dividend disbursing agent fees 53,721 69,260 54,074 6,059
Registration fees 1,900 150 4,250 --
Miscellaneous 4,882 5,550 4,249 792
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 601,539 $ 1,248,601 $ 891,624 $ 93,969
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 5,899,366 $ 5,681,926 $ 4,772,175 $ 365,543
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 673,506 $ 1,335,818 $ (394,425) $ (7,688)
Financial futures contracts (4,106,428) (4,289,717) (2,365,761) (167,204)
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (3,432,922) $ (2,953,899) $ (2,760,186) $ (174,892)
- -----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 2,831,008 $ 4,052,116 $ 3,335,177 $ 43,858
Financial futures contracts 1,216,639 1,316,883 1,570,375 25,628
- -----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,047,647 $ 5,368,999 $ 4,905,552 $ 69,486
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 614,725 $ 2,415,100 $ 2,145,366 $ (105,406)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,514,091 $ 8,097,026 $ 6,917,541 $ 260,137
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
14
<Page>
<Table>
<Caption>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest allocated from Portfolio $ 10,146,601 $ 5,289,276 $ 1,502,436 $ 742,317
Expenses allocated from Portfolio (909,053) (461,570) (125,209) (55,317)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 9,237,548 $ 4,827,706 $ 1,377,227 $ 687,000
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Trustees fees and expenses $ 1,741 $ 1,740 $ 870 $ 87
Distribution and service fees
Class A 45,411 19,339 12,268 3,941
Class B 502,001 732,256 202,097 112,105
Class C 951 -- -- --
Legal and accounting services 9,237 10,913 9,422 8,641
Printing and postage 11,108 6,769 1,438 2,399
Custodian fee 14,454 10,369 4,841 3,405
Transfer and dividend disbursing agent fees 106,872 51,369 12,598 18,817
Registration fees 1,917 700 -- --
Miscellaneous 6,703 3,663 1,380 902
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 700,395 $ 837,118 $ 244,914 $ 150,297
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 8,537,153 $ 3,990,588 $ 1,132,313 $ 536,703
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 2,830,411 $ 354,309 $ 167,040 $ 63,946
Financial futures contracts (3,909,449) (1,567,164) (568,307) (232,612)
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (1,079,038) $ (1,212,855) $ (401,267) $ (168,666)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 2,450,533 $ 3,484,696 $ 940,424 $ 391,759
Financial futures contracts 90,114 300,253 338,655 134,968
- ------------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 2,540,647 $ 3,784,949 $ 1,279,079 $ 526,727
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 1,461,609 $ 2,572,094 $ 877,812 $ 358,061
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,998,762 $ 6,562,682 $ 2,010,125 $ 894,764
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
15
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
- -----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,899,366 $ 5,681,926 $ 4,772,175 $ 365,543
Net realized loss (3,432,922) (2,953,899) (2,760,186) (174,892)
Net change in unrealized appreciation
(depreciation) 4,047,647 5,368,999 4,905,552 69,486
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,514,091 $ 8,097,026 $ 6,917,541 $ 260,137
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (868,213) $ (779,047) $ (1,211,714) $ (75,807)
Class B (5,057,947) (5,021,663) (3,341,803) (293,744)
Class I -- -- (204,127) --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (5,926,160) $ (5,800,710) $ (4,757,644) $ (369,551)
- -----------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 6,454,050 $ 9,630,297 $ 11,189,212 $ 1,229,169
Class B 5,851,203 4,388,587 3,711,038 400,671
Class I -- -- 772,748 --
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 389,151 377,444 505,621 31,215
Class B 2,825,003 2,687,371 2,082,151 143,585
Class I -- -- 25,736 --
Cost of shares redeemed
Class A (3,572,520) (6,508,241) (1,826,835) (269,243)
Class B (14,297,828) (16,083,568) (10,072,326) (581,335)
Class I -- -- (32,861) --
Net asset value of shares exchanged
Class A -- 171,472,933 93,316,621 8,465,800
Class B -- (171,499,296) (93,308,439) (8,464,773)
Contingent deferred sales charges
Class B 58,362 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ (2,292,579) $ (5,534,473) $ 6,362,666 $ 955,089
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,704,648) $ (3,238,157) $ 8,522,563 $ 845,675
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 246,898,372 $ 262,909,506 $ 209,436,924 $ 17,745,012
- -----------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 245,193,724 $ 259,671,349 $ 217,959,487 $ 18,590,687
- -----------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD $ 220,793 $ 1,198,015 $ 112,588 $ (7,802)
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
16
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 8,537,153 $ 3,990,588 $ 1,132,313 $ 536,703
Net realized loss (1,079,038) (1,212,855) (401,267) (168,666)
Net change in unrealized appreciation
(depreciation) 2,540,647 3,784,949 1,279,079 526,727
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,998,762 $ 6,562,682 $ 2,010,125 $ 894,764
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,097,712) $ (558,470) $ (298,704) $ (90,696)
Class B (7,269,501) (3,780,639) (878,277) (447,031)
Class C (3,998) -- -- --
From net realized gain
Class A (106,361) -- -- --
Class B (671,419) -- -- --
Class C (613) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (9,149,604) $ (4,339,109) $ (1,176,981) $ (537,727)
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 10,696,541 $ 5,292,554 $ 2,189,288 $ 885,173
Class B 6,161,003 2,672,759 1,034,117 794,355
Class C 440,378 -- -- --
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 661,319 270,288 136,572 63,901
Class B 5,311,463 2,044,000 518,698 255,040
Class C 2,143 -- -- --
Cost of shares redeemed
Class A (4,167,127) (2,402,232) (1,039,730) (316,640)
Class B (17,580,796) (11,552,264) (3,023,699) (1,025,414)
Class C (11,209) -- -- --
Net asset value of shares exchanged
Class A -- 111,311,490 13,942,845 14,104,165
Class B -- (111,309,644) (13,943,483) (14,104,427)
Contingent deferred sales charges
Class B 63,681 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ 1,577,396 $ (3,673,049) $ (185,392) $ 656,153
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 2,426,554 $ (1,449,476) $ 647,752 $ 1,013,190
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 349,791,588 $ 172,689,029 $ 54,631,574 $ 27,156,117
- ------------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 352,218,142 $ 171,239,553 $ 55,279,326 $ 28,169,307
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD $ 1,323,813 $ 127,985 $ (6,974) $ (43,593)
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
17
<Page>
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
- -----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 12,012,420 $ 11,964,343 $ 9,648,130 $ 716,913
Net realized gain (loss) 4,984,724 786,408 1,131,203 (17,406)
Net change in unrealized appreciation
(depreciation) (13,091,792) (7,443,955) (5,238,900) (253,870)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,905,352 $ 5,306,796 $ 5,540,433 $ 445,637
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,377,606) $ (1,196,173) $ (2,017,818) $ (112,431)
Class B (10,144,427) (10,731,680) (7,001,137) (599,035)
Class I -- -- (437,891) --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (11,522,033) $ (11,927,853) $ (9,456,846) $ (711,466)
- -----------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 14,089,683 $ 9,146,249 $ 9,791,250 $ 1,069,293
Class B 11,208,149 16,613,696 13,511,366 1,654,870
Class I -- -- 651,194 --
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 553,736 534,929 634,250 44,714
Class B 4,305,082 4,089,815 3,521,498 259,244
Class I -- -- 65,501 --
Cost of shares redeemed
Class A (3,982,992) (5,009,410) (7,157,953) (302,691)
Class B (30,604,029) (32,313,366) (23,172,441) (1,861,488)
Class I -- -- (1,830,712) --
Contingent deferred sales charges
Class B 109,263 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ (4,321,108) $ (6,938,087) $ (3,986,047) $ 863,942
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (11,937,789) $ (13,559,144) $ (7,902,460) $ 598,113
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 258,836,161 $ 276,468,650 $ 217,339,384 $ 17,146,899
- -----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 246,898,372 $ 262,909,506 $ 209,436,924 $ 17,745,012
- -----------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF YEAR $ 247,587 $ 1,316,799 $ 98,057 $ (3,794)
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
18
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 15,952,214 $ 8,447,082 $ 2,333,266 $ 1,106,285
Net realized gain (loss) 2,557,327 (946,600) 44,261 265,016
Net change in unrealized appreciation
(depreciation) (7,881,483) (616,783) (1,473,126) (943,833)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 10,628,058 $ 6,883,699 $ 904,401 $ 427,468
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,694,599) $ (801,232) $ (539,044) $ (167,373)
Class B (13,299,285) (7,311,020) (1,783,128) (935,604)
Class C (1) -- -- --
From net realized gain
Class A (17,681) -- -- --
Class B (167,562) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (15,179,128) $ (8,112,252) $ (2,322,172) $ (1,102,977)
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 20,783,568 $ 7,099,625 $ 3,661,350 $ 742,510
Class B 23,741,648 10,058,719 5,661,025 2,614,273
Class C 11,338 -- -- --
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 870,196 347,249 297,434 115,057
Class B 7,822,908 3,430,722 968,352 462,585
Cost of shares redeemed
Class A (8,618,482) (6,276,257) (2,165,677) (771,737)
Class B (40,678,610) (22,283,785) (7,055,542) (2,549,461)
Contingent deferred sales charges
Class B 95,813 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE
TRANSACTIONS $ 4,028,379 $ (7,623,727) $ 1,366,942 $ 613,227
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (522,691) $ (8,852,280) $ (50,829) $ (62,282)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 350,314,279 $ 181,541,309 $ 54,682,403 $ 27,218,399
- ------------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 349,791,588 $ 172,689,029 $ 54,631,574 $ 27,156,117
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF YEAR $ 1,157,871 $ 476,506 $ 37,694 $ (42,569)
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
19
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CALIFORNIA FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.920 $ 11.250 $ 10.880 $ 10.270 $ 10.320 $ 11.340
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.273 $ 0.542 $ 0.548 $ 0.533 $ 0.536 $ 0.544
Net realized and unrealized gain (loss) 0.032 (0.342) 0.352 0.619 (0.031) (1.007)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.305 $ 0.200 $ 0.900 $ 1.152 $ 0.505 $ (0.463)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.265) $ (0.530) $ (0.530) $ (0.542) $ (0.555) $ (0.557)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.265) $ (0.530) $ (0.530) $ (0.542) $ (0.555) $ (0.557)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.960 $ 10.920 $ 11.250 $ 10.880 $ 10.270 $ 10.320
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.82% 1.89% 8.61% 11.46% 5.17% (4.25)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 38,119 $ 34,753 $ 24,863 $ 21,089 $ 17,617 $ 16,675
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.88%(5) 0.88% 0.91% 0.94% 0.89% 0.78%
Expenses after custodian fee
reduction(4) 0.88%(5) 0.87% 0.91% 0.91% 0.88% 0.76%
Net investment income 4.97%(5) 4.97% 5.09% 5.00% 5.35% 4.93%
Portfolio Turnover of the Portfolio 4% 21% 3% 26% 13% 28%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.004, decrease net realized and unrealized gains per share by $0.004 and
increase the ratio of net investment income to average net assets from
5.05% to 5.09%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
20
<Page>
<Table>
<Caption>
CALIFORNIA FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.110 $ 10.400 $ 10.050 $ 9.490 $ 9.520 $ 10.420
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.244 $ 0.481 $ 0.474 $ 0.450 $ 0.475 $ 0.474
Net realized and unrealized gain (loss) 0.026 (0.317) 0.327 0.572 (0.024) (0.934)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.270 $ 0.164 $ 0.801 $ 1.022 $ 0.451 $ (0.460)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.243) $ (0.459) $ (0.455) $ (0.467) $ (0.487) $ (0.448)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.243) $ (0.459) $ (0.455) $ (0.467) $ (0.487) $ (0.448)
- ------------------------------------------------------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES CHARGES $ 0.003 $ 0.005 $ 0.004 $ 0.005 $ 0.006 $ 0.008
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.140 $ 10.110 $ 10.400 $ 10.050 $ 9.490 $ 9.520
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.72% 1.73% 8.30% 11.09% 5.06% (4.50)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 207,075 $ 212,145 $ 233,973 $ 226,303 $ 220,693 $ 252,763
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.08%(5) 1.09% 1.24% 1.26% 1.13% 1.18%
Expenses after custodian fee
reduction(4) 1.08%(5) 1.08% 1.24% 1.23% 1.12% 1.16%
Net investment income 4.79%(5) 4.79% 4.77% 4.58% 5.13% 4.70%
Portfolio Turnover of the Portfolio 4% 21% 3% 26% 13% 28%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.004, decrease net realized and unrealized gains per share by $0.004 and
increase the ratio of net investment income to average net assets from
4.73% to 4.77%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
21
<Page>
<Table>
<Caption>
FLORIDA FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.680 $ 10.940 $ 10.630 $ 10.010 $ 10.190 $ 11.150
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.260 $ 0.548 $ 0.572 $ 0.561 $ 0.535 $ 0.549
Net realized and unrealized gain (loss) 0.113 (0.259) 0.287 0.593 (0.051) (0.979)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.373 $ 0.289 $ 0.859 $ 1.154 $ 0.484 $ (0.430)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.273) $ (0.549) $ (0.549) $ (0.534) $ (0.539) $ (0.530)
From net realized gain -- -- -- -- (0.125) --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.273) $ (0.549) $ (0.549) $ (0.534) $ (0.664) $ (0.530)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.780 $ 10.680 $ 10.940 $ 10.630 $ 10.010 $ 10.190
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.51% 2.76% 8.38% 11.76% 5.05% (4.02)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 200,547 $ 25,996 $ 21,866 $ 14,759 $ 12,558 $ 12,818
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.80%(5) 0.79% 0.86% 0.85% 0.89% 0.75%
Expenses after custodian fee
reduction(4) 0.80%(5) 0.78% 0.82% 0.79% 0.84% 0.70%
Net investment income 4.80%(5) 5.12% 5.40% 5.38% 5.42% 5.07%
Portfolio Turnover of the Portfolio 7% 23% 19% 11% 12% 39%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.001, decrease net realized and unrealized gains per share by $0.001 and
increase the ratio of net investment income to average net assets from
5.39% to 5.40%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
22
<Page>
<Table>
<Caption>
FLORIDA FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.950 $ 11.220 $ 10.900 $ 10.270 $ 10.430 $ 11.420
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.235 $ 0.482 $ 0.507 $ 0.495 $ 0.479 $ 0.466
Net realized and unrealized gain (loss) 0.103 (0.272) 0.293 0.603 (0.046) (1.001)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.338 $ 0.210 $ 0.800 $ 1.098 $ 0.433 $ (0.535)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.238) $ (0.480) $ (0.480) $ (0.468) $ (0.468) $ (0.455)
From net realized gain -- -- -- -- (0.125) --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.238) $ (0.480) $ (0.480) $ (0.468) $ (0.593) $ (0.455)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 11.050 $ 10.950 $ 11.220 $ 10.900 $ 10.270 $ 10.430
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.22% 1.93% 7.56% 10.93% 4.38% (4.84)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 59,125 $ 236,914 $ 254,603 $ 257,813 $ 264,028 $ 332,227
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.55%(5) 1.54% 1.61% 1.60% 1.58% 1.58%
Expenses after custodian fee
reduction(4) 1.55%(5) 1.53% 1.57% 1.54% 1.53% 1.53%
Net investment income 4.25%(5) 4.39% 4.67% 4.64% 4.73% 4.23%
Portfolio Turnover of the Portfolio 7% 23% 19% 11% 12% 39%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.001, decrease net realized and unrealized gains per share by $0.001 and
increase the ratio of net investment income to average net assets from
4.66% to 4.67%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
23
<Page>
<Table>
<Caption>
MASSACHUSETTS FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.680 $ 9.850 $ 9.550 $ 9.020 $ 9.110 $ 9.940
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.241 $ 0.492 $ 0.496 $ 0.484 $ 0.478 $ 0.504
Net realized and unrealized gain (loss) 0.101 (0.180) 0.285 0.531 (0.071) (0.828)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.342 $ 0.312 $ 0.781 $ 1.015 $ 0.407 $ (0.324)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.242) $ (0.482) $ (0.481) $ (0.485) $ (0.497) $ (0.506)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.242) $ (0.482) $ (0.481) $ (0.485) $ (0.497) $ (0.506)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.780 $ 9.680 $ 9.850 $ 9.550 $ 9.020 $ 9.110
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.57% 3.29% 8.48% 11.48% 4.70% (3.42)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 144,744 $ 41,413 $ 38,857 $ 26,819 $ 11,212 $ 15,825
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.79%(5) 0.81% 0.82% 0.84% 0.87% 0.70%
Expenses after custodian fee
reduction(4) 0.79%(5) 0.80% 0.80% 0.80% 0.85% 0.68%
Net investment income 4.93%(5) 5.09% 5.21% 5.10% 5.49% 5.23%
Portfolio Turnover of the Portfolio 12% 16% 10% 8% 15% 24%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.004, decrease net realized and unrealized gains per share by $0.004 and
increase the ratio of net investment income to average net assets from
5.17% to 5.21%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
24
<Page>
<Table>
<Caption>
MASSACHUSETTS FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.790 $ 10.990 $ 10.660 $ 10.050 $ 10.130 $ 11.070
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.232 $ 0.469 $ 0.476 $ 0.461 $ 0.468 $ 0.470
Net realized and unrealized gain (loss) 0.107 (0.209) 0.311 0.608 (0.088) (0.945)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.339 $ 0.260 $ 0.787 $ 1.069 $ 0.380 $ (0.475)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.229) $ (0.460) $ (0.457) $ (0.459) $ (0.460) $ (0.465)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.229) $ (0.460) $ (0.457) $ (0.459) $ (0.460) $ (0.465)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.900 $ 10.790 $ 10.990 $ 10.660 $ 10.050 $ 10.130
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.28% 2.43% 7.61% 10.87% 3.93% (4.44)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 64,767 $ 160,416 $ 169,602 $ 163,028 $ 157,801 $ 185,540
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.55%(5) 1.56% 1.57% 1.59% 1.61% 1.57%
Expenses after custodian fee
reduction(4) 1.55%(5) 1.55% 1.55% 1.55% 1.59% 1.55%
Net investment income 4.25%(5) 4.35% 4.49% 4.41% 4.74% 4.37%
Portfolio Turnover of the Portfolio 12% 16% 10% 8% 15% 24%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.004, decrease net realized and unrealized gains per share by $0.004 and
increase the ratio of net investment income to average net assets from
4.45% to 4.49%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
25
<Page>
<Table>
<Caption>
MASSACHUSETTS FUND -- CLASS I
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.000 $ 10.170 $ 9.870 $ 9.310 $ 9.390 $ 10.260
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.262 $ 0.529 $ 0.534 $ 0.518 $ 0.519 $ 0.528
Net realized and unrealized gain (loss) 0.098 (0.182) 0.281 0.559 (0.079) (0.869)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.360 $ 0.347 $ 0.815 $ 1.077 $ 0.440 $ (0.341)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.260) $ (0.517) $ (0.515) $ (0.517) $ (0.520) $ (0.529)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.260) $ (0.517) $ (0.515) $ (0.517) $ (0.520) $ (0.529)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.100 $ 10.000 $ 10.170 $ 9.870 $ 9.310 $ 9.390
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.62% 3.51% 8.55% 11.87% 4.92% (3.53)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 8,449 $ 7,608 $ 8,880 $ 6,957 $ 7,259 $ 10,311
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.59%(5) 0.61% 0.62% 0.64% 0.68% 0.64%
Expenses after custodian fee
reduction(4) 0.59%(5) 0.60% 0.60% 0.60% 0.66% 0.62%
Net investment income 5.19%(5) 5.29% 5.44% 5.36% 5.67% 5.30%
Portfolio Turnover of the Portfolio 12% 16% 10% 8% 15% 24%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.004, decrease net realized and unrealized gains per share by $0.004 and
increase the ratio of net investment income to average net assets from
5.40% to 5.44%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
26
<Page>
<Table>
<Caption>
MISSISSIPPI FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.840 $ 10.000 $ 9.750 $ 9.310 $ 9.350 $ 10.060
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.224 $ 0.473 $ 0.471 $ 0.469 $ 0.459 $ 0.487
Net realized and unrealized gain (loss) (0.043) (0.163) 0.249 0.441 (0.023) (0.715)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.181 $ 0.310 $ 0.720 $ 0.910 $ 0.436 $ (0.228)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.231) $ (0.470) $ (0.470) $ (0.470) $ (0.476) $ (0.482)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.231) $ (0.470) $ (0.470) $ (0.470) $ (0.476) $ (0.482)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.790 $ 9.840 $ 10.000 $ 9.750 $ 9.310 $ 9.350
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 1.85% 3.21% 7.64% 9.98% 4.87% (2.37)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 12,123 $ 2,727 $ 1,945 $ 2,131 $ 1,269 $ 1,455
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.82%(5) 0.81% 0.90% 0.88% 1.02% 0.70%
Expenses after custodian fee
reduction(4) 0.82%(5) 0.79% 0.88% 0.83% 1.00% 0.68%
Net investment income 4.55%(5) 4.81% 4.85% 4.88% 5.02% 4.97%
Portfolio Turnover of the Portfolio 3% 11% 10% 11% 4% 16%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.010, decrease net realized and unrealized gains per share by $0.010 and
increase the ratio of net investment income to average net assets from
4.75% to 4.85%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
27
<Page>
<Table>
<Caption>
MISSISSIPPI FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.060 $ 10.220 $ 9.970 $ 9.530 $ 9.560 $ 10.300
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.197 $ 0.409 $ 0.409 $ 0.407 $ 0.404 $ 0.417
Net realized and unrealized gain (loss) (0.050) (0.163) 0.247 0.444 (0.023) (0.741)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.147 $ 0.246 $ 0.656 $ 0.851 $ 0.381 $ (0.324)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.197) $ (0.406) $ (0.406) $ (0.411) $ (0.411) $ (0.416)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.197) $ (0.406) $ (0.406) $ (0.411) $ (0.411) $ (0.416)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.010 $ 10.060 $ 10.220 $ 9.970 $ 9.530 $ 9.560
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 1.58% 2.47% 6.75% 9.13% 4.14% (3.25)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 6,467 $ 15,018 $ 15,202 $ 14,706 $ 14,356 $ 16,300
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.57%(5) 1.56% 1.65% 1.63% 1.76% 1.51%
Expenses after custodian fee
reduction(4) 1.57%(5) 1.54% 1.63% 1.58% 1.74% 1.49%
Net investment income 3.91%(5) 4.07% 4.11% 4.15% 4.28% 4.16%
Portfolio Turnover of the Portfolio 3% 11% 10% 11% 4% 16%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.010, decrease net realized and unrealized gains per share by $0.010 and
increase the ratio of net investment income to average net assets from
4.01% to 4.11%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
28
<Page>
<Table>
<Caption>
NEW YORK FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.920 $ 11.070 $ 10.610 $ 9.910 $ 9.860 $ 10.920
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.273 $ 0.539 $ 0.543 $ 0.505 $ 0.515 $ 0.532
Net realized and unrealized gain (loss) 0.049 (0.165) 0.430 0.709 0.061 (0.907)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.322 $ 0.374 $ 0.973 $ 1.214 $ 0.576 $ (0.375)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.266) $ (0.518) $ (0.513) $ (0.506) $ (0.526) $ (0.534)
From net realized gain (0.026) (0.006) -- (0.008) -- (0.151)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.292) $ (0.524) $ (0.513) $ (0.514) $ (0.526) $ (0.685)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.950 $ 10.920 $ 11.070 $ 10.610 $ 9.910 $ 9.860
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.97% 3.54% 9.49% 12.48% 6.09% (3.63)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 49,732 $ 42,481 $ 29,817 $ 20,429 $ 11,411 $ 12,683
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.80%(5) 0.80% 0.82% 0.85% 0.83% 0.77%
Expenses after custodian fee
reduction(4) 0.80%(5) 0.80% 0.82% 0.85% 0.83% 0.76%
Net investment income 4.96%(5) 4.99% 5.11% 4.81% 5.29% 5.09%
Portfolio Turnover of the Portfolio 10% 19% 7% 19% 27% 41%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.002, decrease net realized and unrealized gains per share by $0.002 and
increase the ratio of net investment income to average net assets from
5.09% to 5.11%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
29
<Page>
<Table>
<Caption>
NEW YORK FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 11.800 $ 11.950 $ 11.450 $ 10.700 $ 10.640 $ 11.760
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.288 $ 0.534 $ 0.502 $ 0.459 $ 0.474 $ 0.483
Net realized and unrealized gain (loss) 0.048 (0.181) 0.468 0.763 0.063 (0.972)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.336 $ 0.353 $ 0.970 $ 1.222 $ 0.537 $ (0.489)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.282) $ (0.501) $ (0.470) $ (0.464) $ (0.477) $ (0.480)
From net realized gain (0.026) (0.006) -- (0.008) -- (0.151)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.308) $ (0.507) $ (0.470) $ (0.472) $ (0.477) $ (0.631)
- ------------------------------------------------------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES CHARGES $ 0.002 $ 0.004 $ -- $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 11.830 $ 11.800 $ 11.950 $ 11.450 $ 10.700 $ 10.640
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.86% 3.08% 8.70% 11.64% 5.24% (4.35)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 302,046 $ 307,299 $ 320,497 $ 318,217 $ 323,013 $ 387,951
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.93%(5) 1.23% 1.57% 1.61% 1.59% 1.57%
Expenses after custodian fee
reduction(4) 0.93%(5) 1.23% 1.57% 1.61% 1.59% 1.56%
Net investment income 4.85%(5) 4.58% 4.37% 4.09% 4.54% 4.27%
Portfolio Turnover of the Portfolio 10% 19% 7% 19% 27% 41%
- ------------------------------------------------------------------------------------------------------------------------------
</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
$0.002, decrease net realized and unrealized gains per share by $0.002 and
increase the ratio of net investment income to average net assets from
4.35% to 4.37%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
30
<Page>
<Table>
<Caption>
NEW YORK FUND -- CLASS C
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -------------------------
(UNAUDITED)(1) 2003(1)(2)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.050 $ 10.000
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.164 $ 0.002
Net realized and unrealized gain (loss) (0.083)(3) 0.049
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.081 $ 0.051
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.165) $ (0.001)
From net realized gain (0.026) --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.191) $ (0.001)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.940 $ 10.050
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 0.72% 0.50%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $ 439 $ 11
Ratios (As a percentage of average daily net assets):
Expenses(5) 1.55%(6) 1.89%(6)
Net investment income 4.05%(6) 6.41%(6)
Portfolio Turnover of the Portfolio 10% 19%
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Class C shares commenced operations on September 30, 2003.
(3) The per share amount in not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) Annualized.
See notes to financial statements
31
<Page>
<Table>
<Caption>
OHIO FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003 2002(1)(2) 2001(1) 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.230 $ 9.290 $ 9.130 $ 8.920 $ 9.120 $ 9.930
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.237 $ 0.499 $ 0.490 $ 0.506 $ 0.506 $ 0.511
Net realized and unrealized gain (loss) 0.149 (0.077) 0.148 0.229 (0.186) (0.725)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.386 $ 0.422 $ 0.638 $ 0.735 $ 0.320 $ (0.214)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.266) $ (0.482) $ (0.478) $ (0.515) $ (0.516) $ (0.513)
From net realized gain -- -- -- (0.010) (0.004) (0.083)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.266) $ (0.482) $ (0.478) $ (0.525) $ (0.520) $ (0.596)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.350 $ 9.230 $ 9.290 $ 9.130 $ 8.920 $ 9.120
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.23% 4.73% 7.23% 8.43% 3.74% (2.31)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 129,896 $ 15,612 $ 14,526 $ 12,153 $ 8,052 $ 9,203
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.83%(5) 0.81% 0.84% 0.86% 0.88% 0.77%
Expenses after custodian fee
reduction(4) 0.83%(5) 0.80% 0.83% 0.85% 0.88% 0.76%
Net investment income 5.07%(5) 5.46% 5.40% 5.50% 5.74% 5.32%
Portfolio Turnover of the Portfolio 3% 15% 15% 22% 28% 59%
- ------------------------------------------------------------------------------------------------------------------------------
</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 less
than $0.001, decrease net realized and unrealized gains per share by less
than $0.001 and increase the ratio of net investment income to average net
assets by less than 0.01%. Per share data and ratios for the periods prior
to 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
32
<Page>
<Table>
<Caption>
OHIO FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003 2002(1)(2) 2001(1) 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.430 $ 10.490 $ 10.320 $ 10.080 $ 10.290 $ 11.210
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.239 $ 0.489 $ 0.479 $ 0.493 $ 0.495 $ 0.490
Net realized and unrealized gain (loss) 0.140 (0.081) 0.154 0.258 (0.201) (0.832)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.379 $ 0.408 $ 0.633 $ 0.751 $ 0.294 $ (0.342)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.259) $ (0.468) $ (0.463) $ (0.501) $ (0.500) $ (0.495)
From net realized gain -- -- -- (0.010) (0.004) (0.083)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.259) $ (0.468) $ (0.463) $ (0.511) $ (0.504) $ (0.578)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.550 $ 10.430 $ 10.490 $ 10.320 $ 10.080 $ 10.290
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.77% 4.01% 6.30% 7.66% 3.04% (3.21)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 41,343 $ 157,077 $ 167,015 $ 169,811 $ 174,964 $ 206,401
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.58%(5) 1.56% 1.59% 1.62% 1.65% 1.61%
Expenses after custodian fee
reduction(4) 1.58%(5) 1.55% 1.58% 1.61% 1.65% 1.60%
Net investment income 4.55%(5) 4.73% 4.67% 4.81% 4.96% 4.50%
Portfolio Turnover of the Portfolio 3% 15% 15% 22% 28% 59%
- ------------------------------------------------------------------------------------------------------------------------------
</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 less
than $0.001, decrease net realized and unrealized gains per share by less
than $0.001 and increase the ratio of net investment income to average net
assets by less than 0.01%. Per share data and ratios for the periods prior
to 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
33
<Page>
<Table>
<Caption>
RHODE ISLAND FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.760 $ 10.010 $ 9.710 $ 9.120 $ 9.070 $ 9.940
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.230 $ 0.472 $ 0.472 $ 0.474 $ 0.471 $ 0.474
Net realized and unrealized gain (loss) 0.160 (0.253) 0.297 0.582 0.046 (0.872)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.390 $ 0.219 $ 0.769 $ 1.056 $ 0.517 $ (0.398)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.240) $ (0.469) $ (0.469) $ (0.466) $ (0.467) $ (0.472)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.240) $ (0.469) $ (0.469) $ (0.466) $ (0.467) $ (0.472)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.910 $ 9.760 $ 10.010 $ 9.710 $ 9.120 $ 9.070
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.02% 2.29% 8.21% 11.80% 5.95% (4.16)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 27,053 $ 11,701 $ 10,169 $ 7,630 $ 4,245 $ 3,290
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.77%(5) 0.74% 0.75% 0.74% 0.79% 0.69%
Expenses after custodian fee
reduction(4) 0.77%(5) 0.73% 0.72% 0.69% 0.76% 0.65%
Net investment income 4.66%(5) 4.82% 4.89% 5.01% 5.27% 4.94%
Portfolio Turnover of the Portfolio 10% 19% 13% 14% 15% 18%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended
September 30, 2002 was to increase net investment income per share by
$0.002, decrease net realized and unrealized gains per share by $0.002 and
increase the ratio of net investment income to average net assets from
4.87% to 4.89%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
34
<Page>
<Table>
<Caption>
RHODE ISLAND FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.990 $ 10.250 $ 9.940 $ 9.340 $ 9.280 $ 10.170
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.201 $ 0.409 $ 0.410 $ 0.414 $ 0.414 $ 0.409
Net realized and unrealized gain (loss) 0.158 (0.262) 0.307 0.590 0.048 (0.894)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.359 $ 0.147 $ 0.717 $ 1.004 $ 0.462 $ (0.485)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.209) $ (0.407) $ (0.407) $ (0.404) $ (0.402) $ (0.405)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.209) $ (0.407) $ (0.407) $ (0.404) $ (0.402) $ (0.405)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.140 $ 9.990 $ 10.250 $ 9.940 $ 9.340 $ 9.280
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.72% 1.48% 7.42% 10.96% 5.17% (4.92)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 28,226 $ 42,930 $ 44,513 $ 37,300 $ 33,316 $ 37,775
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.52%(5) 1.49% 1.50% 1.49% 1.56% 1.49%
Expenses after custodian fee
reduction(4) 1.52%(5) 1.48% 1.47% 1.44% 1.53% 1.45%
Net investment income 3.98%(5) 4.08% 4.14% 4.25% 4.56% 4.15%
Portfolio Turnover of the Portfolio 10% 19% 13% 14% 15% 18%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended
September 30, 2002 was to increase net investment income per share by
$0.002, decrease net realized and unrealized gains per share by $0.002 and
increase the ratio of net investment income to average net assets from
4.12% to 4.14%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
35
<Page>
<Table>
<Caption>
WEST VIRGINIA FUND -- CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 9.880 $ 10.130 $ 9.750 $ 9.290 $ 9.290 $ 10.120
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.222 $ 0.468 $ 0.465 $ 0.479 $ 0.459 $ 0.476
Net realized and unrealized gain (loss) 0.144 (0.253) 0.380 0.448 0.020 (0.821)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.366 $ 0.215 $ 0.845 $ 0.927 $ 0.479 $ (0.345)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.226) $ (0.465) $ (0.465) $ (0.467) $ (0.479) $ (0.485)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.226) $ (0.465) $ (0.465) $ (0.467) $ (0.479) $ (0.485)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.020 $ 9.880 $ 10.130 $ 9.750 $ 9.290 $ 9.290
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.73% 2.23% 8.97% 10.16% 5.39% (3.55)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 18,251 $ 3,522 $ 3,517 $ 2,931 $ 2,310 $ 1,866
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.85%(5) 0.73% 0.78% 0.78% 0.91% 0.70%
Expenses after custodian fee
reduction(4) 0.85%(5) 0.71% 0.77% 0.74% 0.89% 0.68%
Net investment income 4.45%(5) 4.74% 4.78% 4.93% 5.02% 4.84%
Portfolio Turnover of the Portfolio 6% 21% 19% 12% 7% 32%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended
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
4.75% to 4.78%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
36
<Page>
<Table>
<Caption>
WEST VIRGINIA FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 --------------------------------------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2) 2001 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.080 $ 10.340 $ 9.950 $ 9.480 $ 9.470 $ 10.320
- ------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.194 $ 0.402 $ 0.403 $ 0.411 $ 0.402 $ 0.403
Net realized and unrealized gain (loss) 0.118 (0.261) 0.388 0.465 0.019 (0.842)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.312 $ 0.141 $ 0.791 $ 0.876 $ 0.421 $ (0.439)
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.192) $ (0.401) $ (0.401) $ (0.406) $ (0.411) $ (0.411)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.192) $ (0.401) $ (0.401) $ (0.406) $ (0.411) $ (0.411)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.200 $ 10.080 $ 10.340 $ 9.950 $ 9.480 $ 9.470
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.23% 1.41% 8.17% 9.41% 4.62% (4.40)%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted) $ 9,918 $ 23,634 $ 23,701 $ 21,775 $ 22,394 $ 24,854
Ratios (As a percentage of average daily
net assets):
Expenses(4) 1.60%(5) 1.48% 1.53% 1.53% 1.62% 1.53%
Expenses after custodian fee
reduction(4) 1.60%(5) 1.46% 1.52% 1.49% 1.60% 1.51%
Net investment income 3.80%(5) 3.99% 4.05% 4.20% 4.32% 4.02%
Portfolio Turnover of the Portfolio 6% 21% 19% 12% 7% 32%
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the
provisions of the revised AICPA Audit and Accounting Guide for Investment
Companies and began using the interest method to amortize premiums on
fixed-income securities. The effect of this change for the year ended
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
4.02% to 4.05%. 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 its corresponding Portfolio's allocated
expenses.
(5) Annualized.
See notes to financial statements
37
<Page>
EATON VANCE MUNICIPALS FUNDS as of March 31, 2004
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each non-diversified, are included in these financial statements.
They include Eaton Vance California Municipals Fund (California Fund), Eaton
Vance Florida Municipals Fund (Florida Fund), Eaton Vance Massachusetts
Municipals Fund (Massachusetts Fund), Eaton Vance Mississippi Municipals Fund
(Mississippi Fund), Eaton Vance New York Municipals Fund (New York Fund),
Eaton Vance Ohio Municipals Fund (Ohio Fund), Eaton Vance Rhode Island
Municipals Fund (Rhode Island Fund) and Eaton Vance West Virginia Municipals
Fund (West Virginia Fund). The Florida Fund, the Mississippi Fund, the Ohio
Fund, the Rhode Island Fund and the West Virginia Fund offer two classes of
shares. The California Fund, Massachusetts Fund and the New York Fund offer
three classes of shares. Class A shares are generally sold subject to a sales
charge imposed at time of purchase. Class B shares and Class C shares of the
California Fund and the New York Fund are sold at net asset value and are
subject to a declining contingent deferred sales charge (see Note 6). As of
March 31, 2004, no Class C shares of the California Fund have been issued.
The Trustees have adopted a conversion feature pursuant to which Class B
shares of the Funds automatically convert to Class A shares eight years after
their purchase as described in each Fund's prospectus. In addition, all Class
B shares of Eaton Vance California Fund and Eaton Vance New York Fund
purchased on or before March 16, 2004 converted to Class A shares of the same
Fund on April 8, 2004. Class B shares acquired through reinvestment of
distributions will convert in proportion to shares not acquired through
reinvestment. Class I shares of the Massachusetts Fund are sold at net asset
value. Each class represents a pro rata interest in the Fund, but votes
separately on class-specific matters and (as noted below) is subject to
different expenses. Realized and unrealized gains and losses are allocated
daily to each class of shares based on the relative net assets of each class
to the total net assets of the Fund. Net investment income, other than class
specific expenses, is allocated daily to each class of shares based upon the
ratio of the value of each class' paid shares to the total value of all paid
shares. Each class of shares differs in its distribution plan and certain
other class specific expenses. Each Fund invests all of its investable assets
in interests in a separate corresponding open-end management investment
company (a Portfolio), a New York Trust, having the same investment objective
as its corresponding Fund. The California Fund invests its assets in the
California Municipals Portfolio, the Florida Fund invests its assets in the
Florida Municipals Portfolio, the Massachusetts Fund invests its assets in
the Massachusetts Municipals Portfolio, the Mississippi Fund invests its
assets in the Mississippi Municipals Portfolio, the New York Fund invests its
assets in the New York Municipals Portfolio, the Ohio Fund invests its assets
in the Ohio Municipals Portfolio, the Rhode Island Fund invests its assets in
the Rhode Island Municipals Portfolio and the West Virginia Fund invests its
assets in the West Virginia Municipals Portfolio. The value of each Fund's
investment in its corresponding Portfolio reflects the Fund's proportionate
interest in the net assets of that Portfolio (approximately 99.9% at March
31, 2004 for each Fund). The performance of each Fund is directly affected by
the performance of its corresponding Portfolio. The financial statements of
each Portfolio, including the portfolio of investments, are included
elsewhere in this report and should be read in conjunction with each Fund's
financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATION -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
C FEDERAL TAXES -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, 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, certain Funds, for federal income tax purposes, had
capital loss carryovers which will reduce taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code, and thus will reduce the amount of the distributions
to shareholders which would otherwise be necessary to relieve the Funds of
any
38
<Page>
liability for federal income or excise tax. The amounts and expiration dates
of the capital loss carryovers are as follows:
<Table>
<Caption>
FUND AMOUNT EXPIRES
-----------------------------------------------------------------------------
California $ 2,417,233 September 30, 2011
723,504 September 30, 2010
1,155,825 September 30, 2009
663,911 September 30, 2008
17,095,660 September 30, 2004
Florida 3,994,644 September 30, 2010
603,727 September 30, 2009
599,206 September 30, 2008
Massachusetts 1,430,573 September 30, 2011
1,741,735 September 30, 2010
2,135 September 30, 2005
7,763,971 September 30, 2004
Mississippi 53,963 September 30, 2011
40,090 September 30, 2010
1,377,618 September 30, 2005
New York 116,493 September 30, 2011
Ohio 6,140,842 September 30, 2011
1,825,374 September 30, 2010
Rhode Island 90,400 September 30, 2011
21,737 September 30, 2010
294,723 September 30, 2009
184,964 September 30, 2008
34,703 September 30, 2005
1,523,162 September 30, 2004
West Virginia 211,865 September 30, 2010
171,534 September 30, 2009
526 September 30, 2008
170,463 September 30, 2005
816,508 September 30, 2004
</Table>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds 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, Florida Fund, Massachusetts Fund,
Mississippi Fund, and Rhode Island Fund had net capital losses of $1,362,709,
$692,881, $89,070, and $312,598, respectively, attributable to security
transactions incurred after October 31, 2002. These capital losses are
treated as arising on the first day of each Fund's taxable year ending
September 30, 2004.
D EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian to the Funds and the Portfolios. Pursuant to the respective
custodian agreements, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Funds or the
Portfolios maintain with IBT. All significant credit balances used to reduce
each Fund's custodian fees are reported as a reduction of total expenses in
the Statements of Operations.
E USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
F INDEMNIFICATIONS -- Under the Trust's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Funds and
shareholders are indemnified against personal liability for obligations of
the Trust. Additionally, in the normal course of business, the Funds enter
into agreements with service providers that may contain indemnification
clauses. The Funds' maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Funds that have
not yet occurred.
G 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.
H OTHER -- Investment transactions are accounted for on a trade-date basis.
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 Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
39
<Page>
2 DISTRIBUTIONS TO SHAREHOLDERS
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are declared separately for each
class of shares. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest capital gain distributions in additional shares of the same class of
the Fund at the net asset value as of the reinvestment date. Distributions
are paid in the form of additional shares of the same class or, at the
election of the shareholder, in cash. The Funds distinguish between
distributions on a tax basis and a financial reporting basis. Accounting
principles generally accepted in the United States of America require that
only distributions in excess of tax basis earnings and profits be reported in
the financial statements as a return of capital. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital. These differences relate primarily to the difference in
method for accreting market discount and amortizing premiums.
3 SHARES OF BENEFICIAL INTEREST
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<Table>
<Caption>
CALIFORNIA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 585,262 1,287,268
Issued to shareholders electing to
receive payments of distributions
in Fund shares 35,406 50,751
Redemptions (324,713) (366,019)
-----------------------------------------------------------------------------
NET INCREASE 295,955 972,000
-----------------------------------------------------------------------------
<Caption>
CALIFORNIA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 570,249 1,106,278
Issued to shareholders electing to
receive payments of distributions
in Fund shares 277,164 425,427
Redemptions (1,408,206) (3,040,867)
-----------------------------------------------------------------------------
NET DECREASE (560,793) (1,509,162)
-----------------------------------------------------------------------------
<Caption>
FLORIDA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 889,434 853,411
Issued to shareholders electing to
receive payments of distributions
in Fund shares 34,987 50,068
Redemptions (602,547) (468,348)
Exchange from Class B shares 15,853,783 --
-----------------------------------------------------------------------------
NET INCREASE 16,175,657 435,131
-----------------------------------------------------------------------------
<Caption>
FLORIDA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 397,955 1,510,400
Issued to shareholders electing to
receive payments of distributions
in Fund shares 242,690 372,326
Redemptions (1,456,119) (2,948,167)
Exchange to Class A shares (15,460,353) --
-----------------------------------------------------------------------------
NET DECREASE (16,275,827) (1,065,441)
-----------------------------------------------------------------------------
<Caption>
MASSACHUSETTS FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 1,149,788 1,008,027
Issued to shareholders electing to
receive payments of distributions
in Fund shares 51,820 65,592
Redemptions (187,327) (740,320)
Exchange from Class B shares 9,508,424 --
-----------------------------------------------------------------------------
NET INCREASE 10,522,705 333,299
-----------------------------------------------------------------------------
<Caption>
MASSACHUSETTS FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 341,861 1,251,555
Issued to shareholders electing to
receive payments of distributions
in Fund shares 190,814 325,819
Redemptions (928,310) (2,153,073)
Exchange to Class A shares (8,526,408) --
-----------------------------------------------------------------------------
NET DECREASE (8,922,043) (575,699)
-----------------------------------------------------------------------------
</Table>
40
<Page>
<Table>
<Caption>
MASSACHUSETTS FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS I (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 76,285 65,065
Issued to shareholders electing to
receive payments of distributions
in Fund shares 2,546 6,538
Redemptions (3,235) (183,579)
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) 75,596 (111,976)
-----------------------------------------------------------------------------
<Caption>
MISSISSIPPI FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 123,795 108,796
Issued to shareholders electing to
receive payments of distributions
in Fund shares 3,170 4,552
Redemptions (27,265) (30,779)
Exchange from Class B shares 861,843 --
-----------------------------------------------------------------------------
NET INCREASE 961,543 82,569
-----------------------------------------------------------------------------
<Caption>
MISSISSIPPI FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 39,882 163,807
Issued to shareholders electing to
receive payments of distributions
in Fund shares 14,229 25,752
Redemptions (57,856) (184,337)
Exchange to Class A shares (842,366) --
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) (846,111) 5,222
-----------------------------------------------------------------------------
<Caption>
NEW YORK FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 971,885 1,915,927
Issued to shareholders electing to
receive payments of distributions
in Fund shares 60,248 80,619
Redemptions (380,145) (800,097)
-----------------------------------------------------------------------------
NET INCREASE 651,988 1,196,449
-----------------------------------------------------------------------------
<Caption>
NEW YORK FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 518,165 2,031,769
Issued to shareholders electing to
receive payments of distributions
in Fund shares 446,611 668,999
Redemptions (1,483,319) (3,480,072)
-----------------------------------------------------------------------------
NET DECREASE (518,543) (779,304)
-----------------------------------------------------------------------------
<Caption>
NEW YORK FUND
-----------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS C (UNAUDITED) SEPTEMBER 30, 2003(1)
--------------------------------------------------------------------------------
Sales 43,990 1,134
Issued to shareholders electing to
receive payments of distributions
in Fund shares 213 --
Redemptions (1,134) --
--------------------------------------------------------------------------------
NET INCREASE 43,069 1,134
--------------------------------------------------------------------------------
<Caption>
OHIO FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 568,081 775,644
Issued to shareholders electing to
receive payments of distributions
in Fund shares 28,954 38,054
Redemptions (255,523) (686,364)
Exchange from Class B shares 11,859,058 --
-----------------------------------------------------------------------------
NET INCREASE 12,200,570 127,334
-----------------------------------------------------------------------------
<Caption>
OHIO FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 254,673 974,488
Issued to shareholders electing to
receive payments of distributions
in Fund shares 193,671 332,079
Redemptions (1,098,894) (2,162,387)
Exchange to Class A shares (10,493,567) --
-----------------------------------------------------------------------------
NET DECREASE (11,144,117) (855,820)
-----------------------------------------------------------------------------
</Table>
41
<Page>
<Table>
<Caption>
RHODE ISLAND FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 220,062 374,894
Issued to shareholders electing to
receive payments of distributions
in Fund shares 13,814 30,427
Redemptions (105,816) (222,426)
Exchange from Class B shares 1,401,657 --
-----------------------------------------------------------------------------
NET INCREASE 1,529,717 182,895
-----------------------------------------------------------------------------
<Caption>
RHODE ISLAND FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 102,001 565,453
Issued to shareholders electing to
receive payments of distributions
in Fund shares 51,214 96,623
Redemptions (299,147) (707,921)
Exchange to Class A shares (1,369,591) --
-----------------------------------------------------------------------------
NET DECREASE (1,515,523) (45,845)
-----------------------------------------------------------------------------
<Caption>
WEST VIRGINIA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 88,608 75,068
Issued to shareholders electing to
receive payments of distributions
in Fund shares 6,400 11,656
Redemptions (31,724) (77,421)
Exchange from Class B shares 1,402,172 --
-----------------------------------------------------------------------------
NET INCREASE 1,465,456 9,303
-----------------------------------------------------------------------------
<Caption>
WEST VIRGINIA FUND
--------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales 78,004 258,798
Issued to shareholders electing to
receive payments of distributions
in Fund shares 25,000 45,804
Redemptions (101,175) (252,506)
Exchange to Class A shares (1,374,544) --
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) (1,372,715) 52,096
-----------------------------------------------------------------------------
</Table>
(1) Class C shares of the New York Fund commenced operations on September
30, 2003.
4 TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios has engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. Certain officers and
Trustees of the Funds and of the Portfolios are officers of the above
organizations. Except for Trustees of the Funds and Portfolios who are not
members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to each fund out of the investment adviser
fee earned by BMR. 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 $3,733, $4,725, $4,002, $465, $7,438,
$3,890, $1,114 and $760 in sub-transfer agent fees from the California Fund,
Florida Fund, Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund,
Rhode Island Fund and West Virginia Fund, respectively. The Funds were
informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and
the Funds' principal underwriter, received $3,947, $9,302, $13,124, $73,
$13,675, $8,684, $3,811, and $2,026 from the California Fund, Florida Fund,
Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island
Fund and West Virginia Fund, respectively, as its portion of the sales charge
on sales of Class A shares for the six months ended March 31, 2004.
42
<Page>
5 DISTRIBUTION AND SERVICE PLANS
Each Fund has in effect a distribution plan for Class B (Class B Plan)
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan for Class A (Class A Plans) (collectively, the Plans). In addition, the
California Fund and New York Fund each has in effect a distribution plan for
Class C (Class C Plan) pursuant to Rule 12b-1 under the Investment Company
Act of 1940. The Plans require the Class B and Class C shares to pay the
principal underwriter, EVD, amounts equal to 1/365 of 0.75% of each Fund's
daily net assets attributable to Class B shares and Class C shares (if
applicable) for providing ongoing distribution services and facilities to the
Fund. The Funds 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% (in the case of Class B) and 6.25%
(in the case of Class C) of the aggregate amount received by the Fund for
each class shares sold, plus (ii) interest calculated by applying the rate of
1% over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of contingent
deferred sales charges (see Note 6) and amounts theretofore paid to EVD. The
amount payable to EVD with respect to each day is accrued on such day as a
liability of each Class B and Class C and, accordingly, reduces Class B and
Class C net assets. For the six months ended March 31, 2004, Florida Fund,
Massachusetts Fund, Mississippi Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund, paid $875,761, $594,079, $56,126, $578,097, $159,550 and
$88,504 respectively, to EVD, representing 0.75% (annualized) of each Fund's
Class B average daily net assets. The California Fund and New York Fund paid
$204,855 and $196,562, representing 0.20% and 0.13% (annualized),
respectively, of the Fund's Class B average daily net assets. The California
Fund did not pay any fees to EVD attributable to Class C net assets for the
six months ended March 31, 2004. For the six months ended March 31, 2004, the
New York Fund paid $753 to EVD, representing 0.75% (annualized) of the Fund's
Class C average daily net assets. At March 31, 2004, the amount of Uncovered
Distribution Charges of EVD calculated under the Class B Plans for California
Fund, Florida Fund, Massachusetts Fund, Mississippi Fund, Ohio Fund, Rhode
Island Fund and West Virginia Fund were approximately $28,000, $1,484,000,
$1,524,000, $508,000, $681,000, $1,307,000 and $567,000, respectively, and
approximately $16,000 calculated under the Class C Plan for New York. The New
York Fund (Class B) had no Uncovered Distribution charges at March 31, 2004.
The Plans authorize each Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.20%, (0.25%
for the California Fund) (annualized) of each Fund's average daily net assets
attributable to Class A, Class B and, if applicable, 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 each
Fund to EVD, and as such are not subject to automatic discontinuance when
there are no outstanding Uncovered Distribution Charges of EVD. For the six
months ended March 31, 2004, California Fund, Florida Fund, Massachusetts
Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund paid or accrued service fees to EVD in the amount of $45,010,
$30,202, $48,525, $3,201, $45,411, $19,339, $12,268 and $3,941, respectively,
for Class A shares, and $261,416, $233,536, $158,421, $14,967, $305,439,
$154,159, $42,547 and $23,601, respectively, for Class B shares, and $198 for
Class C shares of the New York Fund.
Certain officers and Trustees of the Funds are officers or directors of the
above organization.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class A shares made within 18 months of purchase, Class B shares made
within six years of purchase and on redemptions of Class C shares made within
one year of purchase. Class A shares may be subject to a 1% CDSC if redeemed
within 18 months of purchase (depending on the circumstances of purchase).
Generally, the CDSC is based upon the lower of the net asset value at date of
redemption or date of purchase. No charge is levied on Class B and Class C
shares acquired by reinvestment of dividends or capital gains distributions.
Class A shares purchased at net asset value in amounts of $1 million or more
(other than shares purchased in a single transaction of $5 million or more)
are subject to a 1.00% CDSC if redeemed within 18 months of purchase. Class B
CDCS 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 are subject to a 1%
CDSC if redeemed within one year of purchase. No CDSC is levied on shares
which have been sold to EVD or its affiliates or to their respective
employees or clients and may be waived under certain other limited
conditions. CDSC received on Class B and Class C redemption charges are paid
to EVD to reduce the amount of Uncovered Distribution Charges calculated
under each Fund's Class B and, if applicable, Class C Plans (see Note 5).
CDSC charges received on Class B and Class C redemptions when no Uncovered
Distribution Charges exist
43
<Page>
will be credited to the Fund. EVD received approximately $11,000 and $5,000
of CDSC paid by Class A shareholders of Florida Fund and Ohio Fund,
respectively, $49,000, $25,000, $48,000, $3,000, $67,000, $41,000, $21,000
and $4,000 of CDSC paid by Class B shareholders of California Fund, Florida
Fund, Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode
Island Fund and West Virginia Fund, respectively, for the six months ended
March 31, 2004. During the six months ended March 31, 2004, $58,362 and
$63,681, respectively, was paid directly to the California Fund and the New
York Fund for days when no Uncovered Distribution Charges existed. EVD did
not receive any CDSC paid by Class C shareholders for the six months ended
March 31, 2004.
7 INVESTMENT TRANSACTIONS
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended March 31, 2004 were as follows:
<Table>
CALIFORNIA FUND
Increases $ 13,940,106
Decreases 21,133,678
FLORIDA FUND
Increases $ 185,412,048
Decreases 198,230,220
MASSACHUSETTS FUND
Increases $ 109,123,294
Decreases 108,807,716
MISSISSIPPI FUND
Increases $ 10,109,690
Decreases 9,623,192
NEW YORK FUND
Increases $ 17,241,848
Decreases 25,733,575
OHIO FUND
Increases $ 119,513,305
Decreases 128,541,356
RHODE ISLAND FUND
Increases $ 17,202,470
Decreases 18,828,625
WEST VIRGINIA FUND
Increases $ 15,501,044
Decreases 15,863,269
</Table>
8 SHAREHOLDER MEETING
The Funds held a Special Meeting of Shareholders on February 20, 2004. At the
Special Meeting, shareholders of each Fund other than Eaton Vance New York
Municipals Fund voted to change the Funds' diversification status from
diversified to non-diversified. The meeting with regard to Eaton Vance New
York Municipals Fund was adjourned until March 19, 2004, at which time it
also passed the proposal to change its diversification status. The results of
the vote were as follows:
<Table>
<Caption>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
-----------------------------------------------------------------------------------------
Affirmative 10,724,814 11,315,274 9,438,479 1,049,367
Against 1,426,692 989,453 692,823 36,523
Abstain 1,045,562 687,176 590,722 23,699
<Caption>
WEST VIRGINIA
NEW YORK FUND OHIO FUND RHODE ISLAND FUND FUND
--------------------------------------------------------------------------------------
Affirmative 13,410,101 8,332,966 2,570,725 1,533,400
Against 1,240,783 794,850 215,937 96,290
Abstain 1,134,415 641,186 104,043 93,433
</Table>
44
<Page>
CALIFORNIA 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 -- 1.7%
$ 4,000 Sacramento Power Authority, (Campbell's Soup),
6.00%, 7/1/22 $ 4,161,880
- -------------------------------------------------------------------------------------------------------
$ 4,161,880
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 2.9%
$ 2,500 California Educational Facilities Authority,
(Santa Clara University), 5.25%, 9/1/26 $ 2,764,775
4,000 California Educational Facilities Authority,
(Stanford University), 5.25%, 12/1/32 4,252,320
- -------------------------------------------------------------------------------------------------------
$ 7,017,095
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 21.4%
$ 4,000 Foothill/Eastern Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/20 $ 1,905,240
4,000 Sacramento Cogeneration Authority, (Procter & Gamble),
Prerefunded to 7/1/05, 6.50%, 7/1/21 4,348,640
6,000 Sacramento County, Single Family, (GNMA), (AMT),
Escrowed to Maturity, 8.25%, 1/1/21 8,606,880
11,285 Sacramento County, Single Family, (GNMA), (AMT),
Escrowed to Maturity, 8.50%, 11/1/16 16,379,726
12,000 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity, 0.00%, 1/1/14 8,113,200
5,765 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity, 0.00%, 1/1/26 1,921,820
35,975 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity, 0.00%, 1/1/27 11,376,734
- -------------------------------------------------------------------------------------------------------
$ 52,652,240
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.2%
$ 1,760 California, 5.00%, 2/1/21 $ 1,800,902
2,250 California, 5.00%, 2/1/33 2,252,340
1,000 California, 5.25%, 4/1/30 1,021,940
5,000 California, 5.50%, 11/1/33 5,240,650
- -------------------------------------------------------------------------------------------------------
$ 10,315,832
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 4.6%
$ 1,000 California Health Facilities Financing Authority,
(Marshall Medical Center), 5.00%, 11/1/33 $ 979,530
2,250 California Infrastructure and Economic Development,
(Kaiser Hospital), 5.50%, 8/1/31 2,337,165
1,850 California Statewide Communities Development Authority,
(Kaiser Permanente), 5.50%, 11/1/32 1,914,879
$ 1,500 California Statewide Communities Development Authority,
(Sonoma County Indian Health), 6.40%, 9/1/29 $ 1,538,820
575 Eastern Plumas Health Care District, 7.50%, 8/1/07 591,566
2,700 San Benito Health Care District, 5.40%, 10/1/20 2,683,989
1,250 Washington Township Health Care District,
5.25%, 7/1/29 1,289,025
- -------------------------------------------------------------------------------------------------------
$ 11,334,974
- -------------------------------------------------------------------------------------------------------
HOUSING -- 1.5%
$ 1,500 California Statewide Communities Development Authority,
(Corporate Fund for Housing), 6.50%, 12/1/29 $ 1,456,155
500 California Statewide Communities Development Authority,
(Corporate Fund for Housing), 7.25%, 12/1/34 494,470
1,467 Commerce (Hermitage III Senior Apartments),
6.50%, 12/1/29 1,373,065
442 Commerce (Hermitage III Senior Apartments),
6.85%, 12/1/29 410,847
- -------------------------------------------------------------------------------------------------------
$ 3,734,537
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 1.1%
$ 2,750 California Pollution Control Financing Authority, (Browning Ferris
Industries), (AMT), 5.80%, 12/1/16 $ 2,637,882
- -------------------------------------------------------------------------------------------------------
$ 2,637,882
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 0.6%
$ 1,330 Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental, Residual Certificates, (MBIA),
Variable Rate, 7/1/33(1)(2) $ 1,486,940
- -------------------------------------------------------------------------------------------------------
$ 1,486,940
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 9.6%
$ 4,100 California Pollution Control Financing Authority,
(San Diego Gas and Electric), (MBIA), 5.90%, 6/1/14 $ 4,922,624
5,000 California Pollution Control Financing Authority, PCR,
(Pacific Gas and Electric), (MBIA), (AMT),
5.35%, 12/1/16 5,465,100
3,000 Northern California Power Agency, (MBIA),
Variable Rate, 7/1/23(1)(2) 3,369,060
500 Puerto Rico Electric Power Authority, (FSA),
Variable Rate, 7/1/29(1)(2) 606,650
2,000 Sacramento Power Authority, (MBIA), 6.00%, 7/1/22 2,214,280
2,600 Southern California Public Power Authority,
(Magnolia Power), (MBIA), 5.00%, 7/1/33 2,698,306
7,070 Southern California Public Power Authority,
(MBIA), 0.00%, 7/1/15 4,349,605
- -------------------------------------------------------------------------------------------------------
$ 23,625,625
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
45
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 4.1%
$ 15,000 Foothill/Eastern Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, (FSA), 0.00%, 1/1/28 $ 4,499,100
1,500 Inland Empire Solid Waste Finance Authority, (FSA),
(AMT),Escrowed to Maturity, 6.25%, 8/1/11 1,741,740
3,000 Metropolitan Water District, CA, (Southern California
Waterworks), (MBIA), Prerefunded to 1/1/07,
Variable Rate, 7/1/27(1)(2) 3,812,160
- -------------------------------------------------------------------------------------------------------
$ 10,053,000
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 4.4%
$ 2,400 California, (AMBAC), 5.00%, 2/1/28 $ 2,578,944
2,500 California, Residual Certificates, (AMBAC),
Variable Rate, 10/1/30(1)(2) 3,079,275
2,285 Merced Unified School District, (FGIC),
0.00%, 8/1/19 1,106,626
3,300 Puerto Rico, (FSA), Variable Rate, 7/1/27(1)(2) 4,062,564
- -------------------------------------------------------------------------------------------------------
$ 10,827,409
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 1.9%
$ 2,550 California Statewide Communities Development
Authority, (Children's Hospital Los Angeles),
(MBIA), 5.25%, 8/15/29 $ 2,662,175
1,640 California Statewide Communities Development
Authority, (Sutter Health), (FSA), Variable
Rate, 8/15/27(1)(2) 2,077,076
- -------------------------------------------------------------------------------------------------------
$ 4,739,251
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 6.8%
$ 11,280 Anaheim Public Financing Authority, (Public
Improvements), (FSA), 0.00%, 9/1/30 $ 2,799,922
6,500 Anaheim Public Financing Authority, (Public
Improvements), (FSA), 0.00%, 9/1/22 2,591,940
5,000 Los Angeles County, (Disney Parking),
(AMBAC), 0.00%, 9/1/17 2,718,050
5,370 Los Angeles County, (Disney Parking),
(AMBAC), 0.00%, 3/1/18 2,811,249
13,985 Visalia Unified School District, (MBIA),
0.00%, 12/1/17 5,890,762
- -------------------------------------------------------------------------------------------------------
$ 16,811,923
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 1.4%
$ 1,440 Los Angeles County, Metropolitan Transportation
Authority, (AMBAC), Variable Rate, 7/1/23(1)(2) $ 1,602,720
$ 1,000 Los Angeles County, Metropolitan Transportation
Authority, (FGIC), 5.25%, 7/1/30 $ 1,057,160
1,800 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, (MBIA), 0.00%, 1/15/24 657,432
- -------------------------------------------------------------------------------------------------------
$ 3,317,312
- -------------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 0.8%
$ 2,000 Los Angeles Department of Water and Power,
(FGIC), 5.00%, 7/1/43 $ 2,053,160
- -------------------------------------------------------------------------------------------------------
$ 2,053,160
- -------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 3.0%
$ 1,670 California Water Resources, (Central Valley),
(FGIC), Variable Rate, 12/1/28(1)(2) $ 1,932,357
3,000 San Diego County Water Authority, (FGIC),
Variable Rate, 4/22/09(3) 3,896,280
1,500 San Diego, (Water Utility Fund), (FGIC),
4.75%, 8/1/28 1,507,200
- -------------------------------------------------------------------------------------------------------
$ 7,335,837
- -------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 18.6%
$ 6,500 California Public Works, (University of California),
5.00%, 6/1/23 $ 6,501,560
5,000 California Public Works, (University of California),
5.25%, 6/1/20 5,509,050
6,500 California Public Works, (University of California),
5.50%, 6/1/14(4) 7,459,205
5,115 Los Angeles County, (Disney Parking), 0.00%, 3/1/16 2,908,133
1,925 Los Angeles County, (Disney Parking), 0.00%, 3/1/17 1,030,722
3,100 Los Angeles County, (Disney Parking), 0.00%, 3/1/20 1,368,247
7,000 Los Angeles County, (Marina Del Ray), 6.50%, 7/1/08 7,134,190
7,660 Pasadena Parking Facility, 6.25%, 1/1/18 9,227,159
4,000 Sacramento City Financing Authority, 5.40%, 11/1/20 4,550,000
- -------------------------------------------------------------------------------------------------------
$ 45,688,266
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.0%
$ 2,500 California Statewide Communities Development Authority,
(East Valley Tourist Development Authority),
8.25%, 10/1/14 $ 2,563,450
- -------------------------------------------------------------------------------------------------------
$ 2,563,450
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
46
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 9.1%
$ 2,500 Bonita Canyon Public Financing Authority,
5.375%, 9/1/28 $ 2,504,525
2,550 Brentwood Infrastructure Financing Authority,
6.375%, 9/2/33 2,625,531
2,600 Capistrano Unified School District, 5.75%, 9/1/29 2,649,322
1,810 Corona Public Financing Authority, 5.80%, 9/1/20 1,813,656
1,500 Corona-Norco Unified School District Public
Financing Authority, 6.125%, 9/1/31 1,526,250
1,350 Fairfield Improvement Bond Act 1915,
(North Cordelia District), 7.375%, 9/2/18 1,403,082
2,255 Lincoln Public Financing Authority, Improvement
Bond Act 1915, (Twelve Bridges), 6.20%, 9/2/25 2,346,508
1,050 Murrieta Valley Unified School District, 6.20%, 9/1/35 1,055,933
995 Roseville Special Tax, 6.30%, 9/1/25 1,029,726
2,300 Santa Margarita Water District, 6.20%, 9/1/20 2,419,991
1,000 Santaluz Community Facilities District No. 2,
6.20%, 9/1/30 1,021,320
1,000 Torrance Redevelopment Agency, 5.625%, 9/1/28 1,004,750
900 Whittier Public Financing Authority, (Greenleaf Avenue
Redevelopment), 5.50%, 11/1/23 925,047
- -------------------------------------------------------------------------------------------------------
$ 22,325,641
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.7%
(IDENTIFIED COST $209,599,247) $ 242,682,254
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 3,316,976
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 245,999,230
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Portfolio invests primarily in debt securities issued by California
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, 33.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by an
individual financial institution ranged from 4.8% to 15.5% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security has been issued as an inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
47
<Page>
FLORIDA MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 2.5%
$ 6,275 Jacksonville Electric Power Authority, 5.25%, 10/1/39 $ 6,427,922
- -------------------------------------------------------------------------------------------------------
$ 6,427,922
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 0.8%
$ 1,675 Florida Mid-Bay Bridge Authority, Escrowed to Maturity,
6.875%, 10/1/22 $ 2,212,022
- -------------------------------------------------------------------------------------------------------
$ 2,212,022
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 0.9%
$ 1,000 Florida, Variable Rate, 7/1/27(1)(2) $ 1,046,700
2,300 Puerto Rico, 0.00%, 7/1/18 1,204,694
- -------------------------------------------------------------------------------------------------------
$ 2,251,394
- -------------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 0.8%
$ 2,056 Osceola County IDA Community Pooled Loan-93,
7.75%, 7/1/17 $ 2,076,992
- -------------------------------------------------------------------------------------------------------
$ 2,076,992
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 6.2%
$ 2,795 Cape Canaveral Hospital District, 5.25%, 1/1/28 $ 2,838,378
1,000 Halifax Medical Center, 7.25%, 10/1/24 1,084,870
1,000 Highlands County Health Facilities Authority,
(Adventist Health System), 5.375%, 11/15/35 1,031,390
2,750 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 2,906,530
1,250 Lakeland Hospital System, (Lakeland Regional
Health System), 5.50%, 11/15/32 1,291,987
4,000 Orange County Health Facilities Authority, (Adventist
Health System), 5.625%, 11/15/32 4,244,280
2,500 West Orange Healthcare District, 5.80%, 2/1/31 2,606,400
- -------------------------------------------------------------------------------------------------------
$ 16,003,835
- -------------------------------------------------------------------------------------------------------
HOUSING -- 2.4%
$ 1,800 Florida Capital Projects Finance Authority, Student Housing
Revenue, (Florida University), 7.75%, 8/15/20 $ 1,846,080
230 Florida Capital Projects Finance Authority, Student Housing
Revenue, (Florida University), 9.50%, 8/15/05 229,602
330 Florida Housing Finance Authority, 6.35%, 6/1/14 337,158
1,555 Florida Housing Finance Authority, (AMT), 6.35%, 7/1/28 1,642,811
2,145 Orange County HFA, (AMT), 6.60%, 4/1/28 2,204,073
- -------------------------------------------------------------------------------------------------------
$ 6,259,724
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 1.9%
$ 2,792 Broward County IDR, (Lynxs Cargoport), (AMT),
6.75%, 6/1/19 $ 2,584,666
2,385 Capital Trust Agency, (Fort Lauderdale Project),
(AMT), 5.75%, 1/1/32 2,285,092
- -------------------------------------------------------------------------------------------------------
$ 4,869,758
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 0.4%
$ 1,540 Manatee County Public Utility, (MBIA), 0.00%, 10/1/12 $ 1,133,994
- -------------------------------------------------------------------------------------------------------
$ 1,133,994
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 7.3%
$ 9,225 Dade County, (Baptist Hospital of Miami), (MBIA),
Escrowed to Maturity, 5.75%, 5/1/21 $ 10,821,571
3,835 Dade County, Professional Sports Franchise, (MBIA),
Escrowed to Maturity, 0.00%, 10/1/23 1,499,217
5,600 St. Lucie Utility System, (FGIC), Escrowed to Maturity,
6.00%, 10/1/20 6,781,432
- -------------------------------------------------------------------------------------------------------
$ 19,102,220
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 0.5%
$ 900 Puerto Rico, (MBIA), Variable Rate, 7/1/20(2)(3) $ 1,357,326
- -------------------------------------------------------------------------------------------------------
$ 1,357,326
- -------------------------------------------------------------------------------------------------------
INSURED-HEALTH CARE MISCELLANEOUS -- 0.2%
$ 464 Osceola County IDA, Community Provider Pooled
Loan Program, (FSA), 7.75%, 7/1/10 $ 477,711
- -------------------------------------------------------------------------------------------------------
$ 477,711
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 5.8%
$ 1,800 Miami-Dade County, Health Facilities Authority,
(Miami Children's Hospital), (AMBAC),
5.125%, 8/15/26 $ 1,882,134
9,500 Sarasota County Public Hospital Board, (Sarasota
Memorial Hospital), (MBIA), 5.50%, 7/1/28 10,809,005
2,250 South Miami Health Facility Authority Hospital Revenue,
(Baptist Health), (AMBAC), 5.25%, 11/15/33 2,379,307
- -------------------------------------------------------------------------------------------------------
$ 15,070,446
- -------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 4.8%
$ 3,000 Florida HFA, (Brittany of Rosemont), (AMBAC),
(AMT), 6.875%, 8/1/26 $ 3,103,920
6,530 Florida HFA, (Maitland Club Apartments), (AMBAC),
(AMT), 6.875%, 8/1/26 6,756,199
</Table>
See notes to financial statements
48
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-HOUSING (CONTINUED)
$ 2,635 Lee County Housing Finance, SCA Multifamily, (FSA),
(AMT), 7.05%, 1/1/30 $ 2,728,832
- -------------------------------------------------------------------------------------------------------
$ 12,588,951
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 1.4%
$ 1,100 Port Palm Beach District, (Public Improvements),
(XLCA), 0.00%, 9/1/22 $ 450,626
1,100 Port Palm Beach District, (Public Improvements),
(XLCA), 0.00%, 9/1/23 422,048
1,250 Puerto Rico Public Finance Corp., (AMBAC), Variable
Rate, 6/1/26(1)(2) 1,340,112
1,100 Puerto Rico Public Finance Corp., (AMBAC), Variable
Rate, 6/1/24(2)(3) 1,466,850
- -------------------------------------------------------------------------------------------------------
$ 3,679,636
- -------------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 1.2%
$ 2,610 Orange County Tourist Development, (AMBAC), Variable
Rate, 10/1/30(2)(3) $ 2,992,026
- -------------------------------------------------------------------------------------------------------
$ 2,992,026
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 10.6%
$ 2,115 Dade County, Residual Certificates, (AMBAC),
Variable Rate, 10/1/35(2)(3) $ 2,211,952
1,000 Jacksonville Excise Tax, (FGIC), (AMT), 0.00%, 10/1/11 765,890
2,000 Jacksonville Excise Tax, (FGIC), (AMT), 0.00%, 10/1/12 1,448,340
1,500 Jacksonville Transportation Revenue, (MBIA),
5.00%, 10/1/31 1,555,515
250 Jacksonville, Capital Improvement, (AMBAC),
5.00%, 10/1/30 260,272
1,185 Opa-Locka Sales Tax, (FGIC), 7.00%, 1/1/14 1,214,127
2,000 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/10 1,637,020
1,760 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/12 1,295,994
2,840 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/14 1,890,247
4,000 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/15 2,515,280
4,140 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/16 2,460,899
2,525 Sunrise Public Facilities, (MBIA), 0.00%, 10/1/17 1,417,055
2,000 Tampa Utility Tax, (AMBAC), 0.00%, 10/1/18 1,057,100
6,800 Tampa Utility Tax, (AMBAC), 0.00%, 4/1/19 3,464,804
5,000 Tampa Utility Tax, (AMBAC), 0.00%, 10/1/19 2,491,050
4,000 Tampa Utility Tax, (AMBAC), 0.00%, 10/1/20 1,871,720
- -------------------------------------------------------------------------------------------------------
$ 27,557,265
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 16.3%
$ 3,475 Dade County Aviation Facilities, (MBIA), (AMT),
6.00%, 10/1/24 $ 3,726,625
10,000 Florida Turnpike Authority, (Department of
Transportation), (FGIC), 4.50%, 7/1/27(4) 9,928,100
6,075 Florida Turnpike Authority, (FSA), 4.50%, 7/1/28 6,021,479
2,900 Greater Orlando Aviation Authority, (FGIC), (AMT),
Variable Rate, 10/1/18(2)(3) 3,351,791
4,000 Miami-Dade County Expressway Authority, (FGIC),
5.125%, 7/1/29 4,202,800
2,000 Orlando and Orange County Expressway Authority,
(FGIC), 8.25%, 7/1/14 2,825,940
5,000 Puerto Rico Highway and Transportation Authority,
(FSA), 4.75%, 7/1/38 5,154,050
6,300 Puerto Rico Highway and Transportation Authority,
(MBIA), 5.50%, 7/1/36 7,196,553
- -------------------------------------------------------------------------------------------------------
$ 42,407,338
- -------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 18.7%
$ 1,500 Cocoa Water and Sewer, (FGIC), 4.50%, 10/1/26 $ 1,490,550
5,000 Fort Myers Utility, (FGIC), Variable Rate, 10/1/29(1) 5,955,900
1,250 JEA Water and Sewer, (AMBAC), 4.75%, 10/1/43 1,252,563
1,300 JEA Water and Sewer, (MBIA), 5.00%, 10/1/41 1,321,294
12,675 Marco Island, Utility System, (MBIA), 5.00%, 10/1/33 13,235,235
3,000 Marion County Utility System, (MBIA), 5.00%, 12/1/33 3,134,310
4,350 Martin County Utilities System, (AMBAC),
5.00%, 10/1/28 4,550,187
2,000 Miami Beach, Storm Water, (FGIC), 5.375%, 9/1/30 2,136,340
10,525 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 11,104,086
1,000 Tampa Bay Water Utility System, (FGIC),
4.75%, 10/1/27 1,010,470
3,375 Tampa Bay Water Utility System, (FGIC), Variable
Rate, 10/1/27(1)(2) 3,445,673
- -------------------------------------------------------------------------------------------------------
$ 48,636,608
- -------------------------------------------------------------------------------------------------------
NURSING HOME -- 4.0%
$ 4,885 Dade County IDA, (Gramercy Park Nursing Care),
(FHA), 6.60%, 8/1/23 $ 4,990,076
2,855 Okaloosa County, Retirement Rental Housing,
(Encore Retirement Partners), 6.125%, 2/1/14 2,570,299
3,500 Orange County Health Facilities Authority,
(Westminister Community Care), 6.60%, 4/1/24 2,747,255
- -------------------------------------------------------------------------------------------------------
$ 10,307,630
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
49
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.4%
$ 1,000 Capital Trust Agency, (Seminole Tribe Convention),
8.95%, 10/1/33 $ 1,176,180
2,000 Capital Trust Agency, (Seminole Tribe Convention),
10.00%, 10/1/33 2,485,360
- -------------------------------------------------------------------------------------------------------
$ 3,661,540
- -------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 3.3%
$ 500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/21 $ 508,520
2,775 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 2,779,079
3,955 North Miami Health Facilities Authority, (Imperial Club),
6.75%, 1/1/33 3,546,963
1,750 Plantation Health Facilities Authority, (Covenant Village
of Florida), 5.125%, 12/1/22 1,747,795
- -------------------------------------------------------------------------------------------------------
$ 8,582,357
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 5.6%
$ 1,250 Concorde Estates Community Development District,
5.85%, 5/1/35 $ 1,233,188
170 Fleming Island Plantation Community Development
District, 6.30%, 2/1/05 170,672
245 Gateway Service Community Development District,
Special Assessment, 6.50%, 5/1/33 252,005
675 Heritage Harbor South, Community Development
District, 6.20%, 5/1/35 693,198
1,165 Heritage Harbour South Community Development
District, (Capital Improvements), 5.40%, 11/1/08 1,176,464
500 Heritage Harbour South Community Development
District, (Capital Improvements), 6.50%, 5/1/34 526,605
1,160 Lexington Oaks Community Development District,
7.20%, 5/1/30 1,232,570
910 Longleaf Community Development District,
6.20%, 5/1/09 888,624
1,605 Longleaf Community Development District,
6.65%, 5/1/20 1,519,373
1,015 Northern Palm Beach County, (Water Control and
Improvements), 6.00%, 8/1/25 1,038,751
1,670 Sterling Hill, Community Development District,
6.20%, 5/1/35 1,713,303
3,125 University Square Community Development District,
6.75%, 5/1/20 3,311,031
635 Vista Lakes Community Development District,
7.20%, 5/1/32 687,349
- -------------------------------------------------------------------------------------------------------
$ 14,443,133
- -------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.2%
$ 3,000 Florida Mid-Bay Bridge Authority, 6.10%, 10/1/22 $ 3,105,690
- -------------------------------------------------------------------------------------------------------
$ 3,105,690
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.2%
(IDENTIFIED COST $230,823,493) $ 255,205,518
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.8% $ 4,790,615
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 259,996,133
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 2004, 68.5% 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 0.3% to 26.3% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
50
<Page>
MASSACHUSETTS MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 8.4%
$ 1,000 Massachusetts HEFA, (Massachusetts Institute of
Technology), 5.25%, 7/1/30(1) $ 1,134,020
2,190 Massachusetts Development Finance Agency,
(Belmont Hill School), 5.00%, 9/1/31 2,246,984
5,500 Massachusetts Development Finance Agency,
(Boston University), 5.45%, 5/15/59 5,858,710
1,000 Massachusetts Development Finance Agency,
(Middlesex School), 5.00%, 9/1/33 1,022,960
1,000 Massachusetts Development Finance Agency,
(Wheeler School), 6.50%, 12/1/29 1,054,230
1,700 Massachusetts HEFA, (Harvard University),
5.125%, 7/15/37 1,783,878
2,000 Massachusetts IFA, (Belmont Hill School),
5.25%, 9/1/28 2,045,240
1,220 Massachusetts IFA, (Dana Hall), 5.90%, 7/1/27 1,249,182
2,000 Massachusetts IFA, (St. Johns High School, Inc.),
5.35%, 6/1/28 2,016,440
- -------------------------------------------------------------------------------------------------------
$ 18,411,644
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 4.1%
$ 3,000 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 $ 1,638,120
13,230 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 7,301,240
- -------------------------------------------------------------------------------------------------------
$ 8,939,360
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 11.6%
$ 1,010 Massachusetts Bay Transportation Authority, Sales Tax,
Prerefunded to 7/01/10, 5.50%, 7/1/30 $ 1,168,136
2,000 Massachusetts HEFA, (Daughters of Charity Health
System), Prerefunded to 7/1/06, 6.10%, 7/1/14 2,073,460
20,000 Massachusetts Turnpike Authority, Escrowed to
Maturity, 5.00%, 1/1/20 22,020,800
- -------------------------------------------------------------------------------------------------------
$ 25,262,396
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.1%
$ 3,000 Massachusetts, 5.25%, 8/1/28 $ 3,303,630
3,120 Massachusetts, 5.25%, 11/1/30 3,566,441
1,725 Massachusetts, 5.25%, 11/1/30 1,971,830
- -------------------------------------------------------------------------------------------------------
$ 8,841,901
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 15.3%
$ 1,000 Massachusetts HEFA, (Berkshire Health System),
6.25%, 10/1/31 $ 1,049,540
$ 3,300 Massachusetts HEFA, (Central New England Health
Systems), 6.125%, 8/1/13 $ 3,309,801
2,600 Massachusetts HEFA, (Healthcare System-Covenant
Health), 6.00%, 7/1/22 2,813,330
965 Massachusetts HEFA, (Jordan Hospital),
6.875%, 10/1/15 966,959
4,100 Massachusetts HEFA, (Partners Healthcare System),
5.25%, 7/1/29 4,234,685
1,000 Massachusetts HEFA, (Partners Healthcare System),
5.75%, 7/1/32 1,078,930
4,000 Massachusetts IFA, (Biomedical Research Corp.),
0.00%, 8/1/08 3,546,400
9,000 Massachusetts IFA, (Biomedical Research Corp.),
0.00%, 8/1/09 7,615,350
11,000 Massachusetts IFA, (Biomedical Research Corp.),
0.00%, 8/1/10 8,836,520
- -------------------------------------------------------------------------------------------------------
$ 33,451,515
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 1.1%
$ 2,325 Massachusetts IFA, (American Hingham Water Co.),
(AMT), 6.60%, 12/1/15 $ 2,465,290
- -------------------------------------------------------------------------------------------------------
$ 2,465,290
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 8.5%
$ 2,500 Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/28 $ 2,852,400
5,000 Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/33 5,730,650
2,000 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,094,600
1,000 Massachusetts Development Finance Agency,
(Merrimack College), (MBIA), 5.20%, 7/1/32 1,053,720
1,150 Massachusetts HEFA, (Berklee College of Music),
(MBIA), Variable Rate, 10/1/27(2)(3) 1,227,441
130 Massachusetts HEFA, (Berklee College of Music),
(MBIA), 7.20%, 7/1/09 133,516
2,000 Massachusetts HEFA, (UMass Worcester Campus),
(FGIC), 5.25%, 10/1/31 2,108,260
3,080 Massachusetts IFA, (College of the Holy Cross),
(MBIA), 5.625%, 3/1/26 3,318,053
- -------------------------------------------------------------------------------------------------------
$ 18,518,640
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 1.1%
$ 2,000 Puerto Rico Electric Power Authority, RITES, (FSA),
Variable Rate, 7/1/29(3)(4) $ 2,426,600
- -------------------------------------------------------------------------------------------------------
$ 2,426,600
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
51
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 0.1%
$ 200 Massachusetts Turnpike Authority, (MBIA), Escrowed to
Maturity, 5.00%, 1/1/20 $ 220,208
- -------------------------------------------------------------------------------------------------------
$ 220,208
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 5.2%
$ 2,600 Ipswich, (FGIC), 5.00%, 11/15/19 $ 2,780,544
2,900 Martha's Vineyard, (AMBAC), 5.00%, 5/1/32 3,016,232
3,000 Massachusetts, (AMBAC), Variable Rate, 8/1/30(3)(4) 4,402,800
500 Plymouth, (MBIA), 5.25%, 10/15/20 547,080
400 Puerto Rico, (MBIA), Variable Rate, 7/1/20(3)(4) 603,256
- -------------------------------------------------------------------------------------------------------
$ 11,349,912
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 6.3%
$ 3,750 Massachusetts HEFA, (Beth Israel Hospital), (AMBAC),
(AMT), Variable Rate, 7/1/25(2) $ 3,821,850
750 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA),
5.00%, 7/1/05 783,757
2,600 Massachusetts HEFA, (St. Luke's Hospital), (MBIA),
Variable Rate, 8/15/13(2) 2,720,094
2,600 Massachusetts HEFA, (St. Luke's Hospital), (MBIA),
Variable Rate, 8/15/23(2) 2,718,716
2,950 Massachusetts HEFA, (The Medical Center of Central
Massachusetts), (AMBAC), Variable Rate, 6/23/22(2) 3,756,087
- -------------------------------------------------------------------------------------------------------
$ 13,800,504
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 3.9%
$ 7,500 Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34 $ 7,803,600
600 Puerto Rico Public Finance Corp., (AMBAC), Variable
Rate, 6/1/24(3)(4) 800,100
- -------------------------------------------------------------------------------------------------------
$ 8,603,700
- -------------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 2.3%
$ 3,300 Massachusetts Development Finance Agency, (WGBH
Educational Foundation), (AMBAC), 5.75%, 1/1/42 $ 3,964,290
1,000 Massachusetts Development Finance Agency, (WGBH
Educational Foundation), (AMBAC), 5.375%, 1/1/42 1,066,090
- -------------------------------------------------------------------------------------------------------
$ 5,030,380
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 6.0%
$ 19,000 Massachusetts Turnpike Authority, (MBIA),
0.00%, 1/1/28 $ 5,723,940
10,750 Massachusetts Turnpike Authority, Metropolitan
Highway System, (MBIA), 0.00%, 1/1/22 4,587,132
$ 1,000 Puerto Rico Highway and Transportation Authority,
(FSA), 4.75%, 7/1/38 $ 1,030,810
1,000 Puerto Rico Highway and Transportation Authority,
(MBIA), 4.75%, 7/1/38 1,030,810
665 Puerto Rico Highway and Transportation Authority,
(MBIA), Variable Rate, 7/1/36(3)(4) 796,983
- -------------------------------------------------------------------------------------------------------
$ 13,169,675
- -------------------------------------------------------------------------------------------------------
NURSING HOME -- 2.6%
$ 2,400 Massachusetts HEFA, (Christopher House),
6.875%, 1/1/29 $ 2,350,512
3,225 Massachusetts IFA, (Age Institute of Massachusetts),
8.05%, 11/1/25 3,237,932
- -------------------------------------------------------------------------------------------------------
$ 5,588,444
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 0.9%
$ 1,485 Puerto Rico Infrastructure Financing Authority,
Variable Rate, 10/1/34(3)(4) $ 2,011,136
- -------------------------------------------------------------------------------------------------------
$ 2,011,136
- -------------------------------------------------------------------------------------------------------
POOLED LOANS -- 1.0%
$ 2,000 New England Educational Loan Marketing Corp.,
(AMT), 6.90%, 11/1/09 $ 2,214,600
- -------------------------------------------------------------------------------------------------------
$ 2,214,600
- -------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 0.9%
$ 165 Massachusetts IFA, (Briscoe House), (FHA),
7.125%, 2/1/36 $ 165,891
1,830 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 1,746,168
- -------------------------------------------------------------------------------------------------------
$ 1,912,059
- -------------------------------------------------------------------------------------------------------
SOLID WASTE -- 1.5%
$ 3,250 Massachusetts IFA, Resource Recovery,
(Ogden Haverhill), (AMT), 5.60%, 12/1/19 $ 3,168,718
185 Pittsfield, Solid Waste Disposal, (Vicon Recovery
Associates), 7.95%, 11/1/04 185,104
- -------------------------------------------------------------------------------------------------------
$ 3,353,822
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 2.7%
$ 4,000 Massachusetts Bay Transportation Authority,
Sales Tax, 5.00%, 7/1/32 $ 4,144,680
1,250 Massachusetts Bay Transportation Authority,
Sales Tax, 5.25%, 7/1/23 1,401,688
</Table>
See notes to financial statements
52
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE (CONTINUED)
$ 240 Massachusetts Bay Transportation Authority,
Sales Tax, 5.50%, 7/1/30 $ 262,145
- -------------------------------------------------------------------------------------------------------
$ 5,808,513
- -------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.7%
$ 3,500 Massachusetts Bay Transportation Authority,
Variable Rate, 3/1/27(2)(3) $ 3,663,905
- -------------------------------------------------------------------------------------------------------
$ 3,663,905
- -------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 8.9%
$ 11,370 Boston, IDA, (Harbor Electric Energy Co.), (AMT),
7.375%, 5/15/15(5)(6) $ 11,420,824
3,000 Massachusetts Water Pollution Abatement Trust,
5.25%, 8/1/33 3,192,090
4,165 Massachusetts Water Resources Authority,
5.25%, 12/1/15 4,741,894
- -------------------------------------------------------------------------------------------------------
$ 19,354,808
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.2%
(IDENTIFIED COST $194,941,612) $ 214,399,012
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.8% $ 3,880,023
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 218,279,035
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FHA - Federal Housing Authority
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by Massachusetts
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, 34.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by an
individual financial institution ranged from 2.0% to 15.2% of total investments.
(1) When-issued security.
(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) Security has been issued as a leveraged inverse floater bond.
(5) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(6) Security (or a portion thereof) has been segregated to cover when-issued
securities.
See notes to financial statements
53
<Page>
MISSISSIPPI MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.1%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 2.8%
$ 470 University of Mississippi Educational Building Corp.,
6.20%, 6/1/16 $ 525,479
- -------------------------------------------------------------------------------------------------------
$ 525,479
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 3.0%
$ 250 Mississippi Business Finance Corp., (System Energy
Resources, Inc.), 5.90%, 5/1/22 $ 252,820
300 Warren County, (Mississippi Power & Light), 7.00%, 4/1/22 306,264
- -------------------------------------------------------------------------------------------------------
$ 559,084
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 8.4%
$ 2,500 Mississippi Housing Finance Corp., Single Family,
Escrowed to Maturity, (AMT), 0.00%, 6/1/15 $ 1,552,900
- -------------------------------------------------------------------------------------------------------
$ 1,552,900
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 1.5%
$ 250 Mississippi, 5.00%, 11/1/21 $ 282,615
- -------------------------------------------------------------------------------------------------------
$ 282,615
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 3.8%
$ 500 Jones County, (South Central Regional Medical Center),
5.50%, 12/1/17 $ 506,325
200 Mississippi Hospital Equipment and Facilities Authority, (Rush
Medical Foundation), 6.00%, 1/1/22 201,330
- -------------------------------------------------------------------------------------------------------
$ 707,655
- -------------------------------------------------------------------------------------------------------
HOUSING -- 6.3%
$ 500 Hinds County, (Woodridge Apartments), (FHA),
6.25%, 11/1/27 $ 515,465
235 Mississippi Home Corp., Single Family, (GNMA), (AMT),
6.625%, 4/1/27 241,112
160 Mississippi Home Corp., Single Family, (GNMA), (AMT),
7.55%, 12/1/27 161,491
80 Mississippi Home Corp., Single Family, (GNMA), (AMT),
8.10%, 12/1/24 84,696
160 Mississippi Home Corp., Single Family, (GNMA), (AMT),
8.125%, 12/1/24 168,302
- -------------------------------------------------------------------------------------------------------
$ 1,171,066
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 5.0%
$ 200 Lowndes County, (Weyerhaeuser), 6.80%, 4/1/22 $ 240,320
350 Mississippi Business Finance Corp., (E.I. DuPont
deNemours), (AMT), 7.15%, 5/1/16 358,662
300 Warren County, (International Paper), (AMT),
6.70%, 8/1/18 332,241
- -------------------------------------------------------------------------------------------------------
$ 931,223
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 5.9%
$ 500 Mississippi State University Educational Building Corp.,
(MBIA), 5.25%, 8/1/17 $ 566,015
500 Southern Mississippi University Educational Building Corp.,
(AMBAC), 5.00%, 3/1/21 527,550
- -------------------------------------------------------------------------------------------------------
$ 1,093,565
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 4.1%
$ 350 Puerto Rico Electric Power Authority, (MBIA),
5.00%, 7/1/20 $ 388,619
100 Puerto Rico Electric Power Authority, (MBIA), Variable
Rate, 7/1/16(1)(2) 153,273
100 Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/16 115,571
85 Puerto Rico Electric Power Authority, DRIVERS, (FSA),
Variable Rate, 7/1/29(1)(2) 103,130
- -------------------------------------------------------------------------------------------------------
$ 760,593
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 2.8%
$ 500 Mississippi Educational Facilities Authority, (Milsaps
College), (MBIA), Prerefunded to 11/1/04,
6.50%, 11/1/19 $ 525,865
- -------------------------------------------------------------------------------------------------------
$ 525,865
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 10.7%
$ 200 De Soto County, School District, (FSA), 4.60%, 4/1/17 $ 209,504
500 Hinds County, (MBIA), 6.25%, 3/1/11 600,770
85 Mississippi, (FSA), Variable Rate, 11/1/21(1)(2) 119,240
500 Puerto Rico, (FGIC), 5.00%, 7/1/32 525,300
250 Puerto Rico, (FSA), 5.125%, 7/1/30 264,117
220 Puerto Rico, (FSA), Variable Rate, 7/1/27(1)(2) 270,838
- -------------------------------------------------------------------------------------------------------
$ 1,989,769
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 12.1%
$ 750 Gulfport, (Gulfport Memorial Hospital), (MBIA),
6.20%, 7/1/18 $ 773,220
600 Hinds County, (Mississippi Methodist Hospital),
(AMBAC), 5.60%, 5/1/12(3) 684,576
</Table>
See notes to financial statements
54
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL (CONTINUED)
$ 250 Mississippi Hospital Equipment and Facilities Authority,
(Forrest County General Hospital), (FSA),
5.50%, 1/1/27 $ 268,133
500 Mississippi Hospital Equipment and Facilities Authority,
(Mississippi Baptist Medical Center), (MBIA),
6.00%, 5/1/13 532,435
- -------------------------------------------------------------------------------------------------------
$ 2,258,364
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 2.0%
$ 200 Puerto Rico Public Finance Corp., (AMBAC), Variable
Rate, 6/1/24(1)(2) $ 266,700
100 Puerto Rico Public Finance Corp., (MBIA),
5.00%, 8/1/21 106,847
- -------------------------------------------------------------------------------------------------------
$ 373,547
- -------------------------------------------------------------------------------------------------------
INSURED-OTHER REVENUE -- 6.2%
$ 585 Mississippi Development Bank, (Capital Projects),
(AMBAC), 5.00%, 7/1/24 $ 620,749
500 Mississippi Development Bank, (Madison County Road
and Bridge), (AMBAC), 5.10%, 6/1/20 538,335
- -------------------------------------------------------------------------------------------------------
$ 1,159,084
- -------------------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 2.8%
$ 500 Mississippi Development Bank, (Waste Water Treatment),
(FSA), 5.00%, 2/1/28 $ 520,355
- -------------------------------------------------------------------------------------------------------
$ 520,355
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 1.0%
$ 180 Puerto Rico Infrastructure Financing Authority, (AMBAC),
5.00%, 7/1/28 $ 186,287
- -------------------------------------------------------------------------------------------------------
$ 186,287
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 5.5%
$ 250 Guam International Airport Authority, (MBIA),
5.25%, 10/1/22 $ 271,308
350 Puerto Rico Highway and Transportation Authority,
(AMBAC), 5.00%, 7/1/28 363,290
175 Puerto Rico Highway and Transportation Authority,
(MBIA), 4.75%, 7/1/38 180,392
200 Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/36 213,230
- -------------------------------------------------------------------------------------------------------
$ 1,028,220
- -------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 7.4%
$ 300 Gautier Utility District, (FGIC), 5.125%, 3/1/19 $ 321,585
600 Harrison County, Wastewater Management and Solid
Waste, (FGIC), 4.75%, 2/1/27 603,396
435 Mississippi Development Bank, (Combined Water &
Sewer System), (AMBAC), 5.00%, 7/1/23 448,620
- -------------------------------------------------------------------------------------------------------
$ 1,373,601
- -------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 5.5%
$ 500 Mississippi Development Bank, (Golden Triangle Solid
Waste), 6.00%, 7/1/15 $ 510,595
500 Mississippi State University Educational Building Corp.,
6.15%, 6/15/15 511,455
- -------------------------------------------------------------------------------------------------------
$ 1,022,050
- -------------------------------------------------------------------------------------------------------
NURSING HOME -- 1.3%
$ 290 Mississippi Business Finance Corp., (Magnolia Healthcare),
7.99%, 7/1/25 $ 232,493
- -------------------------------------------------------------------------------------------------------
$ 232,493
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.1%
(IDENTIFIED COST $16,937,769) $ 18,253,815
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.9% $ 356,232
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 18,610,047
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FHA - Federal Housing Authority
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by Mississippi
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, 61.7% 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 0.6% to 23.6% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
55
<Page>
NEW YORK MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.8%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
COGENERATION -- 1.7%
$ 2,005 Port Authority of New York and New Jersey, (KIAC),
(AMT), 6.75%, 10/1/19 $ 2,051,676
4,250 Suffolk County IDA, (Nissequogue Cogeneration Partners
Facility), (AMT), 5.50%, 1/1/23 4,095,597
- -------------------------------------------------------------------------------------------------------
$ 6,147,273
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 22.9%
$ 8,000 New York Dormitory Authority, (City University),
5.625%, 7/1/16 $ 9,286,720
8,500 New York Dormitory Authority, (City University),
6.00%, 7/1/20 10,171,015
5,100 New York Dormitory Authority, (City University),
7.00%, 7/1/09 5,698,128
4,325 New York Dormitory Authority, (City University),
7.50%, 7/1/10 5,113,231
9,985 New York Dormitory Authority, (State University
Educational Facilities), 5.25%, 5/15/15 11,239,615
18,775 New York Dormitory Authority, (State University
Educational Facilities), 5.25%, 5/15/19(1)(2) 20,975,618
14,680 New York Dormitory Authority, (State University
Educational Facilities), 5.25%, 5/15/21 16,272,193
2,000 New York Dormitory Authority, (State University
Educational Facilities), 5.50%, 5/15/19 2,289,980
- -------------------------------------------------------------------------------------------------------
$ 81,046,500
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 5.2%
$ 1,500 Long Island Power Authority, Electric System Revenue,
5.00%, 9/1/24 $ 1,542,495
4,000 Long Island Power Authority, Electric System Revenue,
5.375%, 9/1/25 4,212,040
7,200 Long Island Power Authority, Electric System Revenue,
5.50%, 12/1/23 7,669,944
4,900 Suffolk County, IDA, (Keyspan-Port Jefferson), (AMT),
5.25%, 6/1/27 4,992,806
- -------------------------------------------------------------------------------------------------------
$ 18,417,285
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 7.1%
$ 1,595 New York City Transitional Finance Authority, (Future
Tax), Prerefunded to 5/1/09, 5.50%, 5/1/25 $ 1,845,957
820 New York City, Prerefunded to 2/15/06,
5.875%, 2/15/19 898,818
2,865 New York City, Prerefunded to 5/15/30,
6.00%, 5/15/30 3,417,830
$ 1,000 Tompkins County IDA, (Cornell University), Prerefunded
to 7/1/10, 5.75%, 7/1/30 $ 1,180,520
12,080 Triborough Bridge and Tunnel Authority, Escrowed to
Maturity, 5.50%, 1/1/17 14,054,114
3,000 Triborough Bridge and Tunnel Authority, Escrowed to
Maturity, 6.125%, 1/1/21 3,671,790
- -------------------------------------------------------------------------------------------------------
$ 25,069,029
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 2.3%
$ 2,500 New York City, 5.375%, 12/1/26 $ 2,637,875
4,380 New York City, 5.875%, 2/15/19 4,712,398
635 New York City, 6.00%, 5/15/30 702,951
- -------------------------------------------------------------------------------------------------------
$ 8,053,224
- -------------------------------------------------------------------------------------------------------
HEALTH CARE-MISCELLANEOUS -- 1.9%
$ 380 New York City IDA, (A Very Special Place),
5.75%, 1/1/29 $ 313,694
4,870 New York Dormitory Authority, (Mental Health Facilities),
5.375%, 2/15/26 5,313,170
180 New York Dormitory Authority, (Mental Health Facilities),
5.375%, 2/15/26 186,086
290 Suffolk County Industrial Development Agency, Civic
Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 311,219
110 Suffolk County Industrial Development Agency, Civic
Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 110,393
290 Suffolk County Industrial Development Agency, Civic
Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 311,219
300 Suffolk County Industrial Development Agency, Civic
Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 321,951
- -------------------------------------------------------------------------------------------------------
$ 6,867,732
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 6.1%
$ 1,165 Chautauqua County IDA, (Womans Christian Association),
6.35%, 11/15/17 $ 1,099,073
3,210 Chautauqua County IDA, (Womans Christian Association),
6.40%, 11/15/29 3,043,754
2,885 Fulton County IDA, (Nathan Littauer Hospital),
6.00%, 11/1/18 2,795,017
1,010 Nassau County Industrial Development Agency, (North
Shore Health System), 5.875%, 11/1/11 1,132,291
4,500 New York Dormitory Authority, (Lenox Hill Hospital),
5.50%, 7/1/30 4,698,135
2,750 Oneida County Industrial Development Agency,
(Elizabeth Medical Center), 5.875%, 12/1/29 2,464,220
1,000 Oneida County Industrial Development Agency,
(Elizabeth Medical Center), 6.00%, 12/1/29 911,260
</Table>
See notes to financial statements
56
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
HOSPITAL (CONTINUED)
$ 5,000 Suffolk County Industrial Development Agency,
(Huntington Hospital), 5.875%, 11/1/32 $ 5,247,600
- -------------------------------------------------------------------------------------------------------
$ 21,391,350
- -------------------------------------------------------------------------------------------------------
HOUSING -- 1.1%
$ 3,816 New York City HDC, Allerville, 6.50%, 11/15/18 $ 3,819,999
- -------------------------------------------------------------------------------------------------------
$ 3,819,999
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 2.7%
$ 3,500 New York City Industrial Development Agency, (American
Airlines, Inc.-JFK International Airport), (AMT),
8.00%, 8/1/12 $ 2,817,570
2,500 New York Energy Research and Development Authority,
(Brooklyn Union Gas), (AMT), Variable Rate, 7/1/26(3) 3,038,025
1,975 Onondaga County IDA, (Senior Air Cargo) (AMT),
6.125%, 1/1/32 2,016,317
1,600 Port Authority of New York and New Jersey, (Continental
Airlines), (AMT), 9.125%, 12/1/15 1,636,160
- -------------------------------------------------------------------------------------------------------
$ 9,508,072
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 2.0%
$ 2,000 Madison County, Industrial Development Agency, Civic
Facility Revenue, (Colgate University), (MBIA),
4.50%, 7/1/34(4) $ 1,958,420
2,500 New York Dormitory Authority, (MBIA), Variable
Rate, 7/1/27(3)(5) 4,950,325
- -------------------------------------------------------------------------------------------------------
$ 6,908,745
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 0.8%
$ 1,500 Puerto Rico Electric Power Authority, (FSA), Variable
Rate, 7/1/29(5)(6) $ 1,819,950
750 Puerto Rico Electric Power Authority, (FSA), Variable
Rate, 7/1/29(3)(5) 856,650
- -------------------------------------------------------------------------------------------------------
$ 2,676,600
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.6%
$ 5,200 Metropolitan Transportation Authority of New York,
(FGIC), Prerefunded to 10/1/15, 4.75%, 4/1/28 $ 5,751,304
- -------------------------------------------------------------------------------------------------------
$ 5,751,304
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 1.4%
$ 700 Bethlehem Central School District, (AMBAC),
7.10%, 11/1/08 $ 844,130
700 Bethlehem Central School District, (AMBAC),
7.10%, 11/1/09 863,401
700 Jamestown, (AMBAC), 7.10%, 3/15/11 878,101
675 Jamestown, (AMBAC), 7.10%, 3/15/12 861,597
675 Jamestown, (AMBAC), 7.10%, 3/15/13 870,467
515 Jamestown, (AMBAC), 7.10%, 3/15/14 672,492
- -------------------------------------------------------------------------------------------------------
$ 4,990,188
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 1.9%
$ 4,715 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/27 $ 1,545,671
17,945 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/30 5,055,107
- -------------------------------------------------------------------------------------------------------
$ 6,600,778
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 0.5%
$ 1,367 Puerto Rico Public Building Authority, (CIFG), Variable
Rate, 7/1/36(5)(6) $ 1,603,082
- -------------------------------------------------------------------------------------------------------
$ 1,603,082
- -------------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 1.8%
$ 5,045 New York City Trust Cultural Resources, (AMBAC),
Variable Rate, 7/1/29(5)(6) $ 6,336,671
- -------------------------------------------------------------------------------------------------------
$ 6,336,671
- -------------------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 1.4%
$ 4,495 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 4,860,983
- -------------------------------------------------------------------------------------------------------
$ 4,860,983
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 2.3%
$ 3,500 New York City Transitional Finance Authority, (AMBAC),
(Future Tax), 5.00%, 5/1/30 $ 3,647,385
2,950 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(3)(5) 3,156,058
1,225 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(6) 1,353,356
- -------------------------------------------------------------------------------------------------------
$ 8,156,799
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
57
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 2.6%
$ 3,165 Monroe County, Airport Authority, (MBIA), (AMT),
Variable Rate, 1/1/19(3)(5) $ 4,169,476
1,750 Niagara Frontier Airport Authority, (Buffalo Niagara
International Airport), (MBIA), (AMT), Variable
Rate, 4/1/29(3)(5) 2,016,490
3,000 Puerto Rico Highway and Transportation Authority, (FSA),
4.75%, 7/1/38 3,092,430
- -------------------------------------------------------------------------------------------------------
$ 9,278,396
- -------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 10.9%
$ 5,000 New York Housing Finance Agency, New York City Health
Facilities, Variable Rate, 5/1/06(3)(5) $ 5,840,900
27,940 New York Urban Development Corp., 5.70%, 4/1/20 32,555,409
- -------------------------------------------------------------------------------------------------------
$ 38,396,309
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.9%
$ 2,000 Albany Industrial Development Agency Civic Facility,
(Charitable Leadership), 5.75%, 7/1/26 $ 2,053,920
3,500 Puerto Rico Infrastructure Financing Authority, Escrow
Fund, Variable Rate, 10/1/32(5)(6) 4,740,050
- -------------------------------------------------------------------------------------------------------
$ 6,793,970
- -------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 0.8%
$ 2,795 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 2,794,217
- -------------------------------------------------------------------------------------------------------
$ 2,794,217
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 8.4%
$ 6,080 New York City Transitional Finance Authority,
4.75%, 11/1/23 $ 6,176,611
2,000 New York City Transitional Finance Authority, (Future
Tax), 5.50%, 5/1/25 2,171,780
19,830 New York State Local Government Assistance Corp.,
5.00%, 4/1/21 21,429,488
- -------------------------------------------------------------------------------------------------------
$ 29,777,879
- -------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 4.4%
$ 5,000 Metropolitan Transportation Authority,
5.25%, 11/15/31 $ 5,237,950
3,500 Metropolitan Transportation Authority,
5.25%, 11/15/32 3,690,400
2,500 Port Authority of New York and New Jersey,
6.125%, 6/1/94 2,938,725
$ 3,800 Port Authority of New York and New Jersey, (AMT),
Variable Rate, 6/15/33(3)(5) $ 3,710,738
- -------------------------------------------------------------------------------------------------------
$ 15,577,813
- -------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 4.1%
$ 4,950 New York City Municipal Water Finance Authority,
5.00%, 6/15/32 $ 5,098,995
2,000 New York City Municipal Water Finance Authority,
5.00%, 6/15/35 2,071,960
6,500 New York City Municipal Water Finance Authority,
5.75%, 6/15/29 7,168,460
- -------------------------------------------------------------------------------------------------------
$ 14,339,415
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 97.8%
(IDENTIFIED COST $302,566,703) $ 345,163,613
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 2.2% $ 7,936,244
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 353,099,857
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Portfolio invests primarily in debt securities issued by New York
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, 16.6% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by an
individual financial institution ranged from 0.5% to 7.1% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(3) Security has been issued as an inverse floater bond.
(4) When-issued security.
(5) 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.
(6) Security has been issued as a leveraged inverse floater bond.
See notes to financial statements
58
<Page>
OHIO MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.5%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
COGENERATION -- 1.3%
$ 2,300 Ohio Water Development Authority, Solid Waste
Disposal, (Bay Shore Power), (AMT), 5.875%, 9/1/20 $ 2,202,779
- -------------------------------------------------------------------------------------------------------
$ 2,202,779
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 5.7%
$ 550 Ohio Higher Educational Facilities Authority, (Case
Western University), 6.50%, 10/1/20 $ 699,869
5,875 Ohio Higher Educational Facilities Authority,
(Oberlin College), Variable Rate, 10/1/29(1)(2) 6,253,056
2,500 Ohio Higher Educational Facilities, (Case Western
Reserve University), 5.50%, 10/1/21 2,775,400
- -------------------------------------------------------------------------------------------------------
$ 9,728,325
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.2%
$ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 2,095,940
- -------------------------------------------------------------------------------------------------------
$ 2,095,940
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 2.4%
$ 850 Tuscarawas County Public Library Improvement,
6.90%, 12/1/11 $ 852,142
3,010 Youngstown, 7.35%, 7/1/05 3,211,068
- -------------------------------------------------------------------------------------------------------
$ 4,063,210
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 11.5%
$ 1,500 Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29 $ 1,570,155
3,000 Erie County Hospital Facilities, (Firelands
Regional Medical Center), 5.625%, 8/15/32 3,140,790
2,095 Highland County, (Township Hospital), 6.75%, 12/1/29 1,957,358
1,000 Mahoning County Ohio Hospital Facility, (Forum
Health Obligation Group), 6.00%, 11/15/32 1,070,530
3,800 Miami, (Upper Valley Medical Center), 6.375%, 5/15/26 3,947,060
1,000 Parma, (Parma Community General
Hospital Association), 5.35%, 11/1/18 1,045,710
4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 4,344,265
2,500 Richland County Hospital Facilities, (Medcentral
Health Systems), 6.375%, 11/15/30 2,685,500
- -------------------------------------------------------------------------------------------------------
$ 19,761,368
- -------------------------------------------------------------------------------------------------------
HOUSING -- 2.5%
$ 4,000 Franklin County, (Tuttle Park), (FHA), (AMT),
6.60%, 3/1/36 $ 4,332,600
- -------------------------------------------------------------------------------------------------------
$ 4,332,600
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 9.8%
$ 2,000 Cleveland Airport, (Continental Airlines), (AMT),
5.375%, 9/15/27 $ 1,412,320
4,500 Cleveland Airport, (Continental Airlines), (AMT),
5.70%, 12/1/19 3,513,375
2,890 Dayton, Special Facilities Revenue, (Emery Air Freight),
5.625%, 2/1/18 2,639,581
1,000 Ohio Environmental Facilities, (Ford Motor), (AMT),
5.95%, 9/1/29 1,020,650
2,500 Ohio Environmental Facilities, (Ford Motor), (AMT),
6.15%, 6/1/30 2,587,750
1,000 Ohio Pollution Control, (Standard Oil), 6.75%, 12/1/15 1,264,490
4,000 Ohio Sewer and Solid Waste Disposal Facilities,
(Anheuser Busch), (AMT), 6.00%, 7/1/35 4,316,640
- -------------------------------------------------------------------------------------------------------
$ 16,754,806
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 4.4%
$ 700 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental, Residual Certificates, (MBIA),
Variable Rate, 7/1/33(2)(3) $ 782,600
2,000 University of Akron, (FGIC), Variable Rate, 1/1/29(1)(2) 2,678,660
4,000 University of Cincinnati, (FGIC), 5.00%, 6/1/31 4,150,400
- -------------------------------------------------------------------------------------------------------
$ 7,611,660
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 7.7%
$ 2,000 Cuyahoga County Utility Systems, (Medical Center Co.),
(MBIA), (AMT), 6.10%, 8/15/15 $ 2,147,260
4,445 Ohio Air Quality Development Authority, (Ohio Power),
RITES, (AMBAC), Variable Rate, 5/1/26(2)(3) 5,031,607
3,000 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26 982,770
2,500 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/27 774,950
4,750 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/28 1,397,592
2,900 Puerto Rico Electric Power Authority, (XLCA),
4.75%, 7/1/24 2,952,374
- -------------------------------------------------------------------------------------------------------
$ 13,286,553
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
59
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 0.3%
$ 495 Cuyahoga County Hospital, (MBIA), Escrowed to Maturity,
5.125%, 1/1/29 $ 512,939
- -------------------------------------------------------------------------------------------------------
$ 512,939
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 9.8%
$ 1,500 Amherst School District, (FGIC), 5.00%, 12/1/26 $ 1,558,440
1,250 Athens City School District, (FSA), 6.00%, 12/1/24 1,446,737
2,110 Hudson Local School District, (FGIC), 0.00%, 12/15/09 1,785,440
1,500 Lima City School District, (AMBAC), 6.00%, 12/1/22 1,760,970
1,300 Minerva Local School District, (Classroom Facility), (MBIA),
5.30%, 12/1/29 1,391,884
1,600 Norwalk City School District, (AMBAC), 4.75%, 12/1/26 1,612,944
1,500 Pickering Local School District, (FGIC), 0.00%, 12/1/16 882,720
5,000 Plain School District, (FGIC), 5.00%, 12/1/30 5,210,600
1,000 Springfield City School District, (Clark County), (FGIC),
5.20%, 12/1/23 1,078,390
- -------------------------------------------------------------------------------------------------------
$ 16,728,125
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 3.5%
$ 3,000 Akron, Bath, Copley, Joint Township Hospital District,
(Children's Hospital Medical Center), (FSA),
5.25%, 11/15/25 $ 3,182,430
500 Cuyahoga County Hospital, (Cleveland Clinic), (MBIA),
5.125%, 1/1/29 518,120
2,300 Franklin County, (Ohio Health Corp.), (MBIA),
5.00%, 5/15/33 2,370,380
- -------------------------------------------------------------------------------------------------------
$ 6,070,930
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 6.4%
$ 3,000 Hamilton County Sales Tax, (AMBAC), 5.25%, 12/1/32 $ 3,168,840
1,500 Hamilton County Sales Tax, (MBIA), 4.75%, 12/1/27 1,508,760
2,990 Hamilton County Sales Tax, (MBIA), 5.00%, 12/1/27 3,070,132
1,350 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(1)(2) 1,444,298
1,575 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(3) 1,740,029
- -------------------------------------------------------------------------------------------------------
$ 10,932,059
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 8.7%
$ 3,000 Cleveland Airport System, (FSA), 5.00%, 1/1/31(4) $ 3,095,970
1,500 Ohio Turnpike Commission, (FGIC), 4.50%, 2/15/24 1,497,000
7,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 8,017,730
2,250 Puerto Rico Highway and Transportation Authority, (FSA),
4.75%, 7/1/38 2,319,323
- -------------------------------------------------------------------------------------------------------
$ 14,930,023
- -------------------------------------------------------------------------------------------------------
NURSING HOME -- 10.4%
$ 2,000 Cuyahoga County Health Care Facilities, (Benjamin
Rose Institute), 5.50%, 12/1/17 $ 1,931,120
2,100 Cuyahoga County Health Care Facilities, (Benjamin
Rose Institute), 5.50%, 12/1/28 1,864,317
1,305 Cuyahoga County Health Care Facilities, (Maple Care
Center) (GNMA), (AMT), 8.00%, 8/20/16 1,514,296
1,000 Hamilton County, (Wesley Hall), 6.50%, 3/1/15 1,040,740
1,205 North Canton Health Care Facilities, (St. Luke Lutheran),
(GNMA), 6.10%, 9/20/16 1,353,721
6,455 North Canton Health Care Facilities, (St. Luke Lutheran),
(GNMA), 9.55%, 3/20/32 8,257,882
2,235 Ohio HFA, Retirement Rental Housing, (Encore Retirement
Partners), 6.75%, 3/1/19 1,944,919
- -------------------------------------------------------------------------------------------------------
$ 17,906,995
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 2.4%
$ 3,000 Puerto Rico Infrastructure Financing Authority,
Variable Rate, 10/1/32(2)(3) $ 4,062,900
- -------------------------------------------------------------------------------------------------------
$ 4,062,900
- -------------------------------------------------------------------------------------------------------
POOLED LOANS -- 7.7%
$ 375 Ohio Economic Development Commission, (Burrows
Paper), (AMT), 7.625%, 6/1/11 $ 376,789
60 Ohio Economic Development Commission, (Cheryl & Co.),
(AMT), 5.50%, 12/1/04 60,947
530 Ohio Economic Development Commission, (Cheryl & Co.),
(AMT), 5.90%, 12/1/09 549,721
960 Ohio Economic Development Commission, (Consolidated
Biscuit), (AMT), 7.00%, 12/1/09 1,011,619
2,495 Ohio Economic Development Commission, (J J & W LP),
(AMT), 6.70%, 12/1/14 2,584,571
650 Ohio Economic Development Commission, (Ohio Enterprise),
(AMT), 7.625%, 12/1/11 652,054
1,220 Ohio Economic Development Commission, (Progress
Plastic Products), (AMT), 7.80%, 12/1/09 1,292,029
900 Ohio Economic Development Commission, (Royal
Appliance Manufacturing), (AMT), 7.625%, 12/1/11 901,791
5,300 Rickenbacker Port Authority Capital Funding (Oasbo),
5.375%, 1/1/32 5,730,042
- -------------------------------------------------------------------------------------------------------
$ 13,159,563
- -------------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 0.6%
$ 1,000 Allen County Lima, (Convalescent Home Foundation),
(GNMA), 6.40%, 1/1/21 $ 1,003,840
40 Hamilton County Hospital Facilities, (Episcopal
Retirement Home), 6.80%, 1/1/08 40,168
- -------------------------------------------------------------------------------------------------------
$ 1,044,008
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
60
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 2.2%
$ 2,000 Cleveland-Cuyahoga County Port Authority,
7.00%, 12/1/18 $ 2,099,240
1,415 Cuyahoga County Economic Development,
(Shaker Square), 6.75%, 12/1/30 1,661,012
- -------------------------------------------------------------------------------------------------------
$ 3,760,252
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.5%
(IDENTIFIED COST $155,068,824) $ 168,945,035
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.5% $ 2,622,654
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 171,567,689
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by Ohio
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, 41.5% 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 1.7% to 15.9% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
61
<Page>
RHODE ISLAND MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.9%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 3.5%
$ 905 Rhode Island HEFA, (Higher Education Facility-Brown University),
5.00%, 9/1/23 $ 937,851
500 Rhode Island HEFA, (Higher Education Facility-Salve Regina),
5.125%, 3/15/32 511,575
500 Rhode Island State HEFA, (Brown University),
4.75%, 9/1/33 503,190
- -------------------------------------------------------------------------------------------------------
$ 1,952,616
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.0%
$ 500 Puerto Rico Electric Power Authority, Variable
Rate, 7/1/29(1)(2) $ 544,870
- -------------------------------------------------------------------------------------------------------
$ 544,870
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 4.3%
$ 230 Rhode Island Depositors Economic Protection Corp.,
Escrowed to Maturity, 5.75%, 8/1/21 $ 270,600
555 Rhode Island Depositors Economic Protection Corp.,
Escrowed to Maturity, 6.375%, 8/1/22 693,112
1,250 Rhode Island HEFA, (South County Hospital),
Prerefunded to 11/15/07, 5.75%, 11/15/26 1,434,800
- -------------------------------------------------------------------------------------------------------
$ 2,398,512
- -------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 0.2%
$ 225 Puerto Rico, 0.00%, 7/1/16 $ 131,704
- -------------------------------------------------------------------------------------------------------
$ 131,704
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 6.9%
$ 1,000 Rhode Island HEFA, (Hospital Financing-Lifespan
Obligation Group), 6.50%, 8/15/32 $ 1,044,470
750 Rhode Island HEFA, (Westerly Hospital),
5.60%, 7/1/31 770,355
500 Rhode Island HEFA, (Newport Hospital),
5.30%, 7/1/29 501,895
725 Rhode Island HEFA, (St. Joseph Health Services),
5.50%, 10/1/29 658,162
830 Rhode Island HEFA, (Westerly Hospital),
6.00%, 7/1/14 832,183
- -------------------------------------------------------------------------------------------------------
$ 3,807,065
- -------------------------------------------------------------------------------------------------------
HOUSING -- 0.3%
$ 135 Rhode Island Housing and Mortgage Finance Corp.,
(AMT), 7.55%, 10/1/22 $ 135,198
- -------------------------------------------------------------------------------------------------------
$ 135,198
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 20.8%
$ 1,000 Rhode Island HEFA, (Providence College), (XLCA),
5.00%, 11/1/24 $ 1,042,100
1,000 Rhode Island HEFA, (Rhode Island College), (AMBAC),
5.625%, 9/15/30 1,111,190
2,350 Rhode Island HEFA, (School of Design), (MBIA),
5.00%, 6/1/31 2,445,386
2,590 Rhode Island HEFA, (Bryant College), (AMBAC),
5.00%, 12/1/31 2,680,676
1,575 Rhode Island HEFA, (Johnson and Wales University),
(MBIA), 5.00%, 4/1/29 1,627,164
500 Rhode Island HEFA, (Roger Williams College),
(AMBAC), 5.00%, 11/15/24 515,020
400 Rhode Island HEFA, (Roger Williams College),
(AMBAC), 5.00%, 11/15/28 411,256
1,000 Rhode Island HEFA, (University of Rhode Island),
(AMBAC), 5.70%, 9/15/30 1,122,280
500 Rhode Island HEFA, (University of Rhode Island),
(MBIA), 5.50%, 9/15/19 558,735
- -------------------------------------------------------------------------------------------------------
$ 11,513,807
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 3.3%
$ 1,750 Puerto Rico Electric Power Authority, (MBIA),
0.00%, 7/1/17 $ 955,570
300 Puerto Rico Electric Power Authority, (MBIA),
Variable Rate, 7/1/16(2)(3) 459,819
335 Puerto Rico Electric Power Authority, DRIVERS,
(FSA), Variable Rate, 7/1/29(2)(3) 406,455
- -------------------------------------------------------------------------------------------------------
$ 1,821,844
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 5.1%
$ 1,000 Kent County Water Authority, (MBIA), Prerefunded to
7/15/04, 6.35%, 7/15/14 $ 1,034,010
500 Rhode Island Depositors Economic Protection Corp.,
(MBIA), Escrowed to Maturity, 5.80%, 8/1/09 582,105
1,000 Rhode Island Depositors Economic Protection Corp.,
(MBIA), Escrowed to Maturity, 5.80%, 8/1/12 1,186,970
- -------------------------------------------------------------------------------------------------------
$ 2,803,085
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 8.2%
$ 340 Cranston, (FSA), 5.00%, 2/15/24 $ 357,707
1,000 North Kingstown, (FGIC), 5.875%, 10/1/25(4) 1,141,350
</Table>
See notes to financial statements
62
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS (CONTINUED)
$ 1,000 Providence, (FGIC), 5.00%, 1/15/26 $ 1,041,360
500 Puerto Rico, (FSA), Variable Rate, 7/1/27(2)(3) 615,540
375 Rhode Island and Providence Plantations, (FGIC),
4.75%, 9/1/17 390,735
335 Rhode Island and Providence Plantations,
(FGIC), 5.375%, 6/1/19 369,337
575 Warwick, (AMBAC), 5.00%, 7/15/21 607,959
- -------------------------------------------------------------------------------------------------------
$ 4,523,988
- -------------------------------------------------------------------------------------------------------
INSURED-HEALTH CARE MISCELLANEOUS -- 2.8%
$ 1,500 Rhode Island HEFA, (Higher Education Facilities), (MBIA),
5.00%, 9/15/23 $ 1,570,755
- -------------------------------------------------------------------------------------------------------
$ 1,570,755
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 3.5%
$ 1,900 Rhode Island HEFA, (Lifespan), (MBIA),
5.25%, 5/15/26 $ 1,951,927
- -------------------------------------------------------------------------------------------------------
$ 1,951,927
- -------------------------------------------------------------------------------------------------------
INSURED-HOUSING -- 4.7%
$ 1,000 Rhode Island Housing and Mortgage Finance Corp.,
(Rental Housing Program), (FSA), (AMT),
5.25%, 10/1/31 $ 1,032,010
1,000 Rhode Island Housing and Mortgage Finance Corp.,
(Rental Housing Program), (FSA), (AMT),
5.55%, 10/1/32 1,051,790
500 Villa Excelsior Housing Development Corp.,
(MBIA), 6.85%, 1/1/24 511,770
- -------------------------------------------------------------------------------------------------------
$ 2,595,570
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 2.3%
$ 500 Providence Public Building Authority, (School and Public
Facilities Projects), (FSA), 5.00%, 12/15/18 $ 534,340
750 Providence Public Building Authority, (School Projects),
(MBIA), 4.50%, 12/15/23 751,298
- -------------------------------------------------------------------------------------------------------
$ 1,285,638
- -------------------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 1.4%
$ 750 Rhode Island Resource Recovery Corp., (MBIA),
(AMT), 5.00%, 3/1/22 $ 771,443
- -------------------------------------------------------------------------------------------------------
$ 771,443
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 6.5%
$ 2,300 Convention Center Authority of Rhode Island,
(MBIA), 5.25%, 5/15/15 $ 2,614,662
500 Puerto Rico Infrastructure Financing Authority,
(AMBAC), Variable Rate, 7/1/28(1)(2) 534,925
420 Puerto Rico Infrastructure Financing Authority,
(AMBAC), Variable Rate, 7/1/28(3) 464,008
- -------------------------------------------------------------------------------------------------------
$ 3,613,595
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 5.6%
$ 1,000 Puerto Rico Highway and Transportation Authority,
(FSA), 4.75%, 7/1/38 $ 1,030,810
250 Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/38 258,655
250 Rhode Island Economic Development Corp. Airport,
(FSA), 5.00%, 7/1/23 257,690
1,500 Rhode Island Economic Development Corp. Airport,
(FSA), 5.00%, 7/1/28 1,540,770
- -------------------------------------------------------------------------------------------------------
$ 3,087,925
- -------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 4.7%
$ 1,115 Rhode Island Clean Water Finance Agency, (MBIA),
5.00%, 10/1/28 $ 1,163,848
1,000 Rhode Island Clean Water Finance Agency, (MBIA),
5.00%, 10/1/35 1,039,640
350 Rhode Island Clean Water, Water Pollution Control,
(MBIA), 5.40%, 10/1/15 402,875
- -------------------------------------------------------------------------------------------------------
$ 2,606,363
- -------------------------------------------------------------------------------------------------------
NURSING HOME -- 5.1%
$ 500 Rhode Island HEFA, (Roger Williams Realty),
6.50%, 8/1/29 $ 552,160
1,275 Rhode Island HEFA, (Steere House), 5.80%, 7/1/20 1,237,694
1,000 Rhode Island HEFA, (Tockwotton Home),
6.25%, 8/15/22 1,005,860
- -------------------------------------------------------------------------------------------------------
$ 2,795,714
- -------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 3.3%
$ 515 Puerto Rico Infrastructure Financing Authority,
Variable Rate, 10/1/32(2)(3) $ 697,465
1,000 Puerto Rico Infrastructure Financing Authority,
5.50%, 10/1/40 1,115,020
- -------------------------------------------------------------------------------------------------------
$ 1,812,485
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
63
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 3.6%
$ 1,500 Providence, Tax Increment, 7.65%, 6/1/16 $ 1,498,005
500 Tiverton, Obligation Tax Increment,
(Mount Hope Bay Village), 6.875%, 5/1/22 505,755
- -------------------------------------------------------------------------------------------------------
$ 2,003,760
- -------------------------------------------------------------------------------------------------------
WATER AND SEWER -- 1.8%
$ 955 Rhode Island Clean Water, PCR, 5.00%, 10/1/22 $ 1,008,088
- -------------------------------------------------------------------------------------------------------
$ 1,008,088
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.9%
(IDENTIFIED COST $50,722,977) $ 54,735,952
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.1% $ 601,803
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 55,337,755
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by Rhode Island
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, 69.7% 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 1.9% to 36.3% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
64
<Page>
WEST VIRGINIA MUNICIPALS PORTFOLIO as of March 31, 2004
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.9%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
EDUCATION -- 2.7%
$ 750 Sheperd College Board of Governors,
5.125%, 12/1/33 $ 761,805
- -------------------------------------------------------------------------------------------------------
$ 761,805
- -------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.8%
$ 500 Mason County PCR, (Appalachian Power Co.),
5.50%, 10/1/22 $ 506,275
- -------------------------------------------------------------------------------------------------------
$ 506,275
- -------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 8.1%
$ 1,820 West Virginia Health Facilities Authority, (Charleston Area
Medical Center), Escrowed to Maturity, 6.50%, 9/1/23 $ 2,264,553
- -------------------------------------------------------------------------------------------------------
$ 2,264,553
- -------------------------------------------------------------------------------------------------------
HOSPITAL -- 3.6%
$ 1,000 Berkeley Building Commission, (City Hospital),
6.50%, 11/1/22(1) $ 1,004,000
- -------------------------------------------------------------------------------------------------------
$ 1,004,000
- -------------------------------------------------------------------------------------------------------
HOUSING -- 3.6%
$ 6,000 West Virginia Housing Development Fund,
0.00%, 11/1/37 $ 1,000,680
- -------------------------------------------------------------------------------------------------------
$ 1,000,680
- -------------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 2.7%
$ 500 Braxton County, (Weyerhaeuser), (AMT),
5.80%, 6/1/27 $ 515,895
240 Jefferson, (Royal Venders), (AMT), 5.90%, 8/1/04 242,909
- -------------------------------------------------------------------------------------------------------
$ 758,804
- -------------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 11.4%
$ 750 Fairmont College Student Activity Revenue,
(FGIC), 5.00%, 6/1/32 $ 779,070
455 West Virginia Higher Education Interim Governing Board,
(Marshall University), (FGIC), 5.00%, 5/1/31 469,346
500 West Virginia State University System, (West Virginia
University Project), (AMBAC), 0.00%, 4/1/24 183,690
500 West Virginia University System, (Marshall University
Library), (AMBAC), 5.75%, 4/1/16 541,695
$ 2,000 West Virginia University System, (West Virginia University
Project), (AMBAC), 0.00%, 4/1/31 $ 500,120
2,050 West Virginia University System, (West Virginia University
Project), (AMBAC), 0.00%, 4/1/25 710,509
- -------------------------------------------------------------------------------------------------------
$ 3,184,430
- -------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 7.2%
$ 450 Marshall PCR, (Ohio Power), (MBIA), 5.45%, 7/1/14 $ 460,444
250 Pleasants County PCR, (Potomac Edison), (AMBAC),
(AMT), 5.50%, 4/1/29 262,307
1,000 Pleasants County PCR, (West Pennsylvania), (AMBAC),
(AMT), 5.50%, 4/1/29 1,050,300
150 Puerto Rico Electric Power Authority, (MBIA),
Variable Rate, 7/1/16(2)(3) 229,910
- -------------------------------------------------------------------------------------------------------
$ 2,002,961
- -------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 5.1%
$ 2,500 Kanawha-Putnam, Single Family, (AMBAC), Escrowed
to Maturity, 0.00%, 12/1/16 $ 1,433,400
- -------------------------------------------------------------------------------------------------------
$ 1,433,400
- -------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 11.0%
$ 250 Ohio County Board of Education, (MBIA), 5.125%, 6/1/18 $ 269,970
500 Puerto Rico, (FSA), 5.125%, 7/1/30 528,235
300 Puerto Rico, (FSA), Variable Rate, 7/1/27(2)(3) 369,324
500 West Virginia School Building Authority, (AMBAC),
5.60%, 7/1/17 558,885
2,200 West Virginia, (FGIC), 0.00%, 11/1/19 1,054,042
250 West Virginia, (FGIC), 5.75%, 11/1/21 275,985
- -------------------------------------------------------------------------------------------------------
$ 3,056,441
- -------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 15.0%
$ 500 Harrison County Building Commission, (Maplewood
Retirement), (AMBAC), 5.25%, 4/1/28 $ 512,945
500 Randolph County Commission Health System, (Davis
Health System Inc.), (FSA), 5.20%, 11/1/21 534,575
1,000 West Virginia Health Facilities Authority, (Cabell
Huntington Hospital), (AMBAC), 6.25%, 1/1/19 1,023,700
850 West Virginia Health Facilities Authority, (Charleston
Area Medical Center), (MBIA), 5.75%, 9/1/13 912,943
1,200 West Virginia Health Facilities Authority, (West Virginia
University Medical Corp.), (MBIA), 6.10%, 1/1/18 1,204,296
- -------------------------------------------------------------------------------------------------------
$ 4,188,459
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
65
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 3.7%
$ 500 West Virginia Economic Development Authority,
(Correctional Juvenile and Public), (MBIA),
5.00%, 6/1/26 $ 522,055
500 West Virginia Economic Development Authority,
(West Virginia University), (AMBAC), 5.00%, 7/15/31 516,930
- -------------------------------------------------------------------------------------------------------
$ 1,038,985
- -------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 5.1%
$ 400 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(2)(4) $ 427,940
910 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(3) 1,005,350
- -------------------------------------------------------------------------------------------------------
$ 1,433,290
- -------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 1.0%
$ 250 West Virginia Parkways, Economic Development and
Tourism Authority, (FGIC), 5.25%, 5/15/19 $ 283,818
- -------------------------------------------------------------------------------------------------------
$ 283,818
- -------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 15.4%
$ 250 Berkeley Public Service District Sewer, (MBIA),
5.75%, 10/1/25 $ 275,160
500 Crab Orchard - MacArthur Public Service District Sewer
System, (AMBAC), 5.50%, 10/1/25 542,810
500 Martinsburg Water and Sewer, (MBIA), 5.00%, 9/1/31 518,030
1,000 Parkersburg Waterworks and Sewer, (FSA),
5.80%, 9/1/19 1,108,260
750 West Virginia Water Development Authority, (AMBAC),
5.00%, 10/1/28 784,305
500 West Virginia Water Development, (Loan Program II),
(AMBAC), 5.00%, 11/1/33 521,490
500 West Virginia Water Development, (Loan Program III),
(AMBAC), (AMT), 5.65%, 7/1/40 532,885
- -------------------------------------------------------------------------------------------------------
$ 4,282,940
- -------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 1.5%
$ 400 West Virginia Economic Development Authority,
(State Office Building), 5.00%, 10/1/26 $ 409,316
- -------------------------------------------------------------------------------------------------------
$ 409,316
- -------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 98.9%
(IDENTIFIED COST $25,583,267) $ 27,610,157
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.1% $ 309,665
- -------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 27,919,822
- -------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Portfolio invests primarily in debt securities issued by West Virginia
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, 75.7% 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 9.2% to 40.2% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security has been issued as an inverse floater bond.
See notes to financial statements
66
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of March 31, 2004
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2004
<Table>
<Caption>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 209,599,247 $ 230,823,493
Unrealized appreciation 33,083,007 24,382,025
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 242,682,254 $ 255,205,518
- ----------------------------------------------------------------------------------------------------------------------------------
Cash $ 613,893 $ --
Receivable for investments sold -- 1,105,000
Interest receivable 3,114,788 4,953,389
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 246,410,935 $ 261,263,907
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open financial futures contracts $ 385,000 $ 364,375
Demand note payable -- 800,000
Payable for when-issued securities -- --
Due to bank -- 78,675
Payable to affiliate for Trustees' fees -- 44
Accrued expenses 26,705 24,680
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 411,705 $ 1,267,774
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 245,999,230 $ 259,996,133
- ----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 214,331,729 $ 236,953,782
Net unrealized appreciation (computed on the basis of identified cost) 31,667,501 23,042,351
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 245,999,230 $ 259,996,133
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 194,941,612 $ 16,937,769
Unrealized appreciation 19,457,400 1,316,046
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 214,399,012 $ 18,253,815
- ----------------------------------------------------------------------------------------------------------------------------------
Cash $ 732,695 $ 63,265
Receivable for investments sold 1,798,800 40,135
Interest receivable 2,755,925 280,687
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 219,686,432 $ 18,637,902
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open financial futures contracts $ 240,625 $ 17,187
Demand note payable -- --
Payable for when-issued securities 1,144,139 --
Due to bank -- --
Payable to affiliate for Trustees' fees -- --
Accrued expenses 22,633 10,668
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,407,397 $ 27,855
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 218,279,035 $ 18,610,047
- ----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 199,518,032 $ 17,357,193
Net unrealized appreciation (computed on the basis of identified cost) 18,761,003 1,252,854
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 218,279,035 $ 18,610,047
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
67
<Page>
<Table>
<Caption>
NEW YORK PORTFOLIO OHIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 302,566,703 $ 155,068,824
Unrealized appreciation 42,596,910 13,876,211
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 345,163,613 $ 168,945,035
- ----------------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold $ 4,297,409 $ --
Interest receivable 6,391,430 2,909,004
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 355,852,452 $ 171,854,039
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open financial futures contracts $ 532,812 $ 144,375
Demand note payable 200,000 100,000
Payable for when-issued securities 1,967,380 --
Due to bank 22,584 24,076
Accrued expenses 29,819 17,899
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 2,752,595 $ 286,350
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 353,099,857 $ 171,567,689
- ----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 312,007,802 $ 158,087,814
Net unrealized appreciation (computed on the basis of identified cost) 41,092,055 13,479,875
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 353,099,857 $ 171,567,689
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 50,722,977 $ 25,583,267
Unrealized appreciation 4,012,975 2,026,890
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 54,735,952 $ 27,610,157
- ----------------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold $ -- $ --
Interest receivable 841,747 383,020
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 55,577,699 $ 27,993,177
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open financial futures contracts $ 58,437 $ 25,437
Demand note payable 100,000 --
Payable for when-issued securities -- --
Due to bank 68,019 35,882
Accrued expenses 13,488 12,036
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 239,944 $ 73,355
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 55,337,755 $ 27,919,822
- ----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 51,493,165 $ 25,966,745
Net unrealized appreciation (computed on the basis of identified cost) 3,844,590 1,953,077
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 55,337,755 $ 27,919,822
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
68
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 7,182,065 $ 7,610,607
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 7,182,065 $ 7,610,607
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 581,422 $ 577,239
Trustees fees and expenses 6,835 7,924
Legal and accounting services 25,052 21,779
Custodian fee 61,965 66,062
Miscellaneous 5,886 7,076
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 681,160 $ 680,080
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 6,500,905 $ 6,930,527
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 673,506 $ 1,335,818
Financial futures contracts (4,106,428) (4,289,717)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (3,432,922) $ (2,953,899)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 2,831,008 $ 4,052,116
Financial futures contracts 1,216,639 1,316,883
- ----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,047,647 $ 5,368,999
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 614,725 $ 2,415,100
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,115,630 $ 9,345,627
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 6,210,744 $ 495,745
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 6,210,744 $ 495,745
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 461,125 $ 14,011
Trustees fees and expenses 6,834 86
Legal and accounting services 19,877 11,900
Custodian fee 53,989 7,724
Miscellaneous 5,120 2,510
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 546,945 $ 36,231
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 5,663,799 $ 459,514
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (394,425) $ (7,688)
Financial futures contracts (2,365,761) (167,204)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (2,760,186) $ (174,892)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 3,335,177 $ 43,858
Financial futures contracts 1,570,375 25,628
- ----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,905,552 $ 69,486
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 2,145,366 $ (105,406)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,809,165 $ 354,108
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
69
<Page>
<Table>
<Caption>
NEW YORK PORTFOLIO OHIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 10,146,601 $ 5,289,276
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 10,146,601 $ 5,289,276
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 783,766 $ 370,968
Trustees fees and expenses 8,924 5,791
Legal and accounting services 24,962 31,739
Custodian fee 80,988 47,069
Miscellaneous 10,413 6,003
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 909,053 $ 461,570
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 9,237,548 $ 4,827,706
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 2,830,411 $ 354,309
Financial futures contracts (3,909,449) (1,567,164)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (1,079,038) $ (1,212,855)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 2,450,533 $ 3,484,697
Financial futures contracts 90,114 300,253
- ----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 2,540,647 $ 3,784,950
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 1,461,609 $ 2,572,095
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 10,699,157 $ 7,399,801
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,502,439 $ 742,323
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,502,439 $ 742,323
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 81,114 $ 26,981
Trustees fees and expenses 3,354 870
Legal and accounting services 18,512 14,243
Custodian fee 17,640 10,659
Miscellaneous 4,589 2,567
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 125,209 $ 55,320
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,377,230 $ 687,003
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 167,041 $ 63,947
Financial futures contracts (568,308) (232,614)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (401,267) $ (168,667)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 940,426 $ 391,763
Financial futures contracts 338,656 134,969
- ----------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,279,082 $ 526,732
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 877,815 $ 358,065
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,255,045 $ 1,045,068
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
70
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 6,500,905 $ 6,930,527
Net realized loss (3,432,922) (2,953,899)
Net change in unrealized appreciation (depreciation) 4,047,647 5,368,999
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,115,630 $ 9,345,627
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 13,940,106 $ 185,412,048
Withdrawals (21,133,678) (198,230,220)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (7,193,572) $ (12,818,172)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (77,942) $ (3,472,545)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 246,077,172 $ 263,468,678
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 245,999,230 $ 259,996,133
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,663,799 $ 459,514
Net realized loss (2,760,186) (174,892)
Net change in unrealized appreciation (depreciation) 4,905,552 69,486
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,809,165 $ 354,108
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 109,123,294 $ 10,109,690
Withdrawals (108,807,716) (9,623,192)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 315,578 $ 486,498
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 8,124,743 $ 840,606
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 210,154,292 $ 17,769,441
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 218,279,035 $ 18,610,047
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
71
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 9,237,548 $ 4,827,706
Net realized loss (1,079,038) (1,212,855)
Net change in unrealized appreciation (depreciation) 2,540,647 3,784,950
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 10,699,157 $ 7,399,801
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 17,241,848 $ 119,513,305
Withdrawals (25,733,575) (128,541,356)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (8,491,727) $ (9,028,051)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 2,207,430 $ (1,628,250)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 350,892,427 $ 173,195,939
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 353,099,857 $ 171,567,689
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
INCREASE (DECREASE) IN NET ASSETS RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,377,230 $ 687,003
Net realized loss (401,267) (168,667)
Net change in unrealized appreciation (depreciation) 1,279,082 526,732
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,255,045 $ 1,045,068
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 17,202,470 $ 15,501,044
Withdrawals (18,828,625) (15,863,269)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (1,626,155) $ (362,225)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 628,890 $ 682,843
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period $ 54,708,865 $ 27,236,979
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 55,337,755 $ 27,919,822
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
72
<Page>
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,269,091 $ 14,512,264
Net realized gain (loss) 4,984,724 786,408
Net change in unrealized appreciation (depreciation) (13,091,792) (7,443,956)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,162,023 $ 7,854,716
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 23,798,371 $ 26,225,264
Withdrawals (42,285,179) (47,354,415)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (18,486,808) $ (21,129,151)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (13,324,785) $ (13,274,435)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 259,401,957 $ 276,743,113
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 246,077,172 $ 263,468,678
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 11,461,097 $ 902,700
Net realized gain (loss) 1,131,203 (17,586)
Net change in unrealized appreciation (depreciation) (5,241,750) (257,415)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,350,550 $ 627,699
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 24,852,504 $ 2,769,831
Withdrawals (38,833,260) (3,028,657)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (13,980,756) $ (258,826)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (6,630,206) $ 368,873
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 216,784,498 $ 17,400,568
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 210,154,292 $ 17,769,441
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
73
<Page>
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 18,278,025 $ 10,165,393
Net realized gain (loss) 2,557,327 (946,600)
Net change in unrealized appreciation (depreciation) (8,037,923) (616,783)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 12,797,429 $ 8,602,010
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 44,894,206 $ 18,064,188
Withdrawals (57,610,886) (34,437,970)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (12,716,680) $ (16,373,782)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 80,749 $ (7,771,772)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 350,811,678 $ 180,967,711
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 350,892,427 $ 173,195,939
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
INCREASE (DECREASE) IN NET ASSETS RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,836,223 $ 1,378,196
Net realized gain (loss) 44,174 265,377
Net change in unrealized appreciation (depreciation) (1,477,521) (948,957)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,402,876 $ 694,616
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 9,379,686 $ 3,397,711
Withdrawals (10,954,064) (4,266,029)
- ----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ (1,574,378) $ (868,318)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (171,502) $ (173,702)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 54,880,367 $ 27,410,681
- ----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 54,708,865 $ 27,236,979
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
74
<Page>
SUPPLEMENTARY DATA
<Table>
<Caption>
CALIFORNIA PORTFOLIO
--------------------------------------------------------------------------
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 0.55%(2) 0.56% 0.55% 0.57% 0.58% 0.56%
Expenses after custodian fee reduction 0.55%(2) 0.55% 0.55% 0.54% 0.57% 0.54%
Net investment income 5.29%(2) 5.30% 5.44% 5.26% 5.65% 5.30%
Portfolio Turnover 4% 21% 3% 26% 13% 28%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.99% 2.28% 9.03% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 245,999 $ 246,077 $ 259,402 $ 248,056 $ 238,820 $ 270,200
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.40% To 5.44%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
75
<Page>
<Table>
<Caption>
FLORIDA PORTFOLIO
--------------------------------------------------------------------------
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 0.51%(2) 0.53% 0.54% 0.54% 0.56% 0.52%
Expenses after custodian fee reduction 0.51%(2) 0.52% 0.50% 0.48% 0.51% 0.48%
Net investment income 5.25%(2) 5.39% 5.72% 5.68% 5.72% 5.26%
Portfolio Turnover 7% 23% 19% 11% 12% 40%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.76% 2.96% 8.73% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 259,996 $ 263,469 $ 276,743 $ 272,972 $ 277,857 $ 346,843
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.71% To 5.72%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
76
<Page>
<Table>
<Caption>
MASSACHUSETTS PORTFOLIO
--------------------------------------------------------------------------
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 0.51%(2) 0.52% 0.51% 0.52% 0.54% 0.52%
Expenses after custodian fee reduction 0.51%(2) 0.51% 0.49% 0.48% 0.52% 0.50%
Net investment income 5.26%(2) 5.36% 5.53% 5.47% 5.79% 5.40%
Portfolio Turnover 12% 16% 10% 8% 15% 24%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.81% 3.51% 8.76% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 218,279 $ 210,154 $ 216,784 $ 196,997 $ 177,160 $ 212,277
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.49% To 5.53%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
77
<Page>
<Table>
<Caption>
MISSISSIPPI PORTFOLIO
--------------------------------------------------------------------------
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 0.40%(2) 0.40% 0.40% 0.42% 0.47% 0.36%
Expenses after custodian fee reduction 0.40%(2) 0.38% 0.38% 0.37% 0.45% 0.34%
Net investment income 5.04%(2) 5.22% 5.34% 5.33% 5.55% 5.30%
Portfolio Turnover 3% 11% 10% 11% 4% 16%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.17% 3.64% 8.08% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 18,610 $ 17,769 $ 17,401 $ 17,031 $ 15,827 $ 17,937
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.24% To 5.34%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
78
<Page>
<Table>
<Caption>
NEW YORK PORTFOLIO
--------------------------------------------------------------------------
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 0.52%(2) 0.51% 0.52% 0.53% 0.54% 0.53%
Expenses after custodian fee reduction 0.52%(2) 0.51% 0.52% 0.53% 0.54% 0.52%
Net investment income 5.25%(2) 5.28% 5.41% 5.15% 5.56% 5.30%
Portfolio Turnover 10% 19% 7% 19% 27% 41%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.07% 3.83% 9.84% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 353,100 $ 350,892 $ 350,812 $ 338,850 $ 335,488 $ 402,118
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.39% To 5.41%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
79
<Page>
<Table>
<Caption>
OHIO PORTFOLIO
--------------------------------------------------------------------------
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 0.53%(2) 0.52% 0.52% 0.53% 0.57% 0.55%
Expenses after custodian fee reduction 0.53%(2) 0.51% 0.51% 0.52% 0.57% 0.54%
Net investment income 5.56%(2) 5.75% 5.72% 5.87% 6.00% 5.54%
Portfolio Turnover 3% 15% 15% 22% 28% 59%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.31% 5.10% 7.43% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 171,568 $ 173,196 $ 180,968 $ 183,059 $ 183,968 $ 216,464
- ---------------------------------------------------------------------------------------------------------------------------------
</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 by less than 0.01%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
80
<Page>
<Table>
<Caption>
RHODE ISLAND PORTFOLIO
--------------------------------------------------------------------------
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%(2) 0.43% 0.41% 0.40% 0.43% 0.39%
Expenses after custodian fee reduction 0.46%(2) 0.42% 0.38% 0.35% 0.40% 0.35%
Net investment income 5.01%(2) 5.13% 5.23% 5.33% 5.66% 5.24%
Portfolio Turnover 10% 19% 13% 14% 15% 18%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.27% 2.57% 8.57% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 55,338 $ 54,709 $ 54,880 $ 45,366 $ 37,755 $ 41,732
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.21% To 5.23%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
81
<Page>
<Table>
<Caption>
WEST VIRGINIA PORTFOLIO
--------------------------------------------------------------------------
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 0.40%(2) 0.39% 0.37% 0.39% 0.45% 0.40%
Expenses after custodian fee reduction 0.40%(2) 0.37% 0.36% 0.35% 0.43% 0.38%
Net investment income 4.98%(2) 5.06% 5.19% 5.32% 5.48% 5.13%
Portfolio Turnover 6% 21% 19% 12% 7% 32%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.84% 2.54% 9.41% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 27,920 $ 27,237 $ 27,411 $ 24,976 $ 24,930 $ 26,961
- ---------------------------------------------------------------------------------------------------------------------------------
</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 5.16% To 5.19%. Ratios for
the periods prior to October 1, 2001 have not been restated to reflect this
change in presentation.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
82
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of March 31, 2004
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 SIGNIFICANT ACCOUNTING POLICIES
California Municipals Portfolio (California Portfolio), Florida Municipals
Portfolio (Florida Portfolio), Massachusetts Municipals Portfolio
(Massachusetts Portfolio), Mississippi Municipals Portfolio (Mississippi
Portfolio), New York Municipals Portfolio (New York Portfolio), Ohio
Municipals Portfolio (Ohio Portfolio), Rhode Island Municipals Portfolio
(Rhode Island Portfolio) and West Virginia Municipals Portfolio (West
Virginia Portfolio), collectively, the Portfolios, are registered under the
Investment Company Act of 1940, as amended, as non-diversified, open-end
management investment companies. The Portfolios were organized as trusts
under the laws of the State of New York on May 1, 1992. The Declarations of
Trust permit the trustees to issue interests in the Portfolios. At March
31, 2004, Eaton Vance California Municipals Fund, Eaton Vance Florida
Municipals Fund, Eaton Vance Massachusetts Municipals Fund, Eaton Vance
Mississippi Municipals Fund, Eaton Vance New York Municipals Fund, Eaton
Vance Ohio Municipals Fund, Eaton Vance Rhode Island Municipals Fund and
Eaton Vance West Virginia Municipals Fund held an approximate 99.9%
interest in its corresponding Portfolio. The following is a summary of
significant accounting policies consistently followed by the Portfolios in
the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United
States of America.
A INVESTMENT VALUATIONS -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts and options
on futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on futures contracts are
normally valued at the mean between the latest bid and asked prices.
Interest rate swaps are normally valued on the basis of valuations
furnished by a broker. Short-term obligations, maturing in sixty days or
less, are valued at amortized cost, which approximates value. Investments
for which valuations or market quotations are not readily available are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
C FEDERAL TAXES -- The Portfolios are treated as a partnership for federal
tax purposes. No provision is made by the Portfolios for federal or state
taxes on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
its investors to satisfy them. The Portfolios will allocate at least
annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income under
the Internal Revenue Code, will retain its status as income exempt from
federal income tax when allocated to each Portfolio's investors. The
portion of such interest, if any, earned on private activity bonds issued
after August 7, 1986 may be considered a tax preference item for investors.
D FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio (margin maintenance) each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed for both
hedging against anticipated future changes in interest rates and investment
purposes. Should interest rates move unexpectedly, a Portfolio may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss.
E OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put
option on a financial futures contract by a Portfolio, the premium paid is
recorded as an investment, the value of which is marked-to-market daily.
When a purchased option expires, a Portfolio will realize a loss in the
amount of the cost of the option. When a Portfolio enters into a closing
sale transaction, a Portfolio will realize a gain or loss depending on
whether the sales proceeds from the closing sale transaction are greater or
less than the cost of the option. When a Portfolio exercises a put option,
settlement is made in cash. The risk associated with purchasing put options
is limited to the premium originally paid.
83
<Page>
F WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Portfolios may
engage in when-issued and delayed delivery transactions. The Portfolios
record when-issued securities on trade date and maintain security positions
such that sufficient liquid assets will be available to make payments for
the securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G INTEREST RATE SWAPS -- A Portfolio may enter into interest rate swap
agreements to enhance return, to hedge against fluctuations in securities
prices or interest rates or as substitution for the purchase or sale of
securities. Pursuant to these agreements, the 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.
H 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.
I OTHER -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
J 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.
K INDEMNIFICATIONS -- Under each 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 each Portfolio.
Interestholders in each Portfolio are jointly and severally liable for the
liabilities and obligations of each Portfolio in the event that each
Portfolio fails to satisfy such liabilities and obligations; provided,
however, that, to the extent assets are available in each Portfolio, each
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 each Portfolio.
Additionally, in the normal course of business, each Portfolio enters into
agreements with service providers that may contain indemnification clauses.
Each Portfolio's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against each Portfolio
that have not yet occurred.
L EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined
based on the average daily cash balances each Portfolio maintains with IBT.
All significant credit balances used to reduce the Portfolios' custodian
fees are reported as a reduction of total expenses in the Statements of
Operations.
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
Portfolios' management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of
84
<Page>
gross income (i.e., income other than gains from the sale of securities).
For the six months ended March 31, 2004, each Portfolio paid advisory fees
as follows:
<Table>
<Caption>
PORTFOLIO AMOUNT EFFECTIVE RATE
--------------------------------------------------
California $ 581,422 0.47%
Florida 577,239 0.44%
Massachusetts 461,125 0.43%
Mississippi 14,011 0.15%
New York 783,766 0.45%
Ohio 370,968 0.43%
Rhode Island 81,114 0.30%
West Virginia 26,981 0.20%
</Table>
* Advisory fees paid as a percentage of average daily net assets
(annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or
BMR's organization, officers and Trustees receive remuneration for their
services to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios 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.
During the six months ended March 31, 2004, certain Portfolios engaged in
purchase and sale transactions with other Portfolios that also utilize BMR
as an investment adviser. These purchase and sale transactions complied
with Rule 17a-7 under the Investment Company Act of 1940 and amounted to:
<Table>
<Caption>
PORTFOLIO PURCHASES SALES
-------------------------------------------------
Florida -- $ 500,750
Massachusetts $ 513,965 $ 249,413
Mississippi $ 313,565 --
</Table>
3 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities,
purchased option transactions and short-term obligations, for the six
months ended March 31, 2004 were as follows:
<Table>
CALIFORNIA PORTFOLIO
Purchases $ 10,022,052
Sales 13,502,120
FLORIDA PORTFOLIO
Purchases $ 17,830,819
Sales 30,161,605
MASSACHUSETTS PORTFOLIO
Purchases $ 28,877,131
Sales 26,435,647
MISSISSIPPI PORTFOLIO
Purchases $ 1,510,248
Sales 556,712
NEW YORK PORTFOLIO
Purchases $ 33,237,085
Sales 39,230,815
OHIO PORTFOLIO
Purchases $ 5,391,816
Sales 10,820,107
RHODE ISLAND PORTFOLIO
Purchases $ 5,402,872
Sales 5,805,913
WEST VIRGINIA PORTFOLIO
Purchases $ 1,552,376
Sales 1,675,163
</Table>
85
<Page>
4 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation (depreciation) in the value of the
investments owned by each Portfolio at March 31, 2004, as computed on a
federal income tax basis, were as follows:
<Table>
CALIFORNIA PORTFOLIO
AGGREGATE COST $ 208,855,469
---------------------------------------------------------------------------
Gross unrealized appreciation $ 34,109,767
Gross unrealized depreciation (282,982)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 33,826,785
---------------------------------------------------------------------------
FLORIDA PORTFOLIO
AGGREGATE COST $ 230,537,645
---------------------------------------------------------------------------
Gross unrealized appreciation $ 26,369,814
Gross unrealized depreciation (1,701,941)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 24,667,873
---------------------------------------------------------------------------
MASSACHUSETTS PORTFOLIO
AGGREGATE COST $ 194,145,224
---------------------------------------------------------------------------
Gross unrealized appreciation $ 20,403,050
Gross unrealized depreciation (149,262)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 20,253,788
---------------------------------------------------------------------------
MISSISSIPPI PORTFOLIO
AGGREGATE COST $ 16,795,507
---------------------------------------------------------------------------
Gross unrealized appreciation $ 1,512,692
Gross unrealized depreciation (54,384)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,458,308
---------------------------------------------------------------------------
NEW YORK PORTFOLIO
AGGREGATE COST $ 302,076,189
---------------------------------------------------------------------------
Gross unrealized appreciation $ 44,146,785
Gross unrealized depreciation (1,059,361)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 43,087,424
---------------------------------------------------------------------------
OHIO PORTFOLIO
AGGREGATE COST $ 154,982,093
---------------------------------------------------------------------------
Gross unrealized appreciation $ 15,704,802
Gross unrealized depreciation (1,741,860)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,962,942
---------------------------------------------------------------------------
RHODE ISLAND PORTFOLIO
AGGREGATE COST $ 50,658,189
---------------------------------------------------------------------------
Gross unrealized appreciation $ 4,127,075
Gross unrealized depreciation (49,312)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,077,763
---------------------------------------------------------------------------
WEST VIRGINIA PORTFOLIO
AGGREGATE COST $ 25,536,533
---------------------------------------------------------------------------
Gross unrealized appreciation $ 2,084,154
Gross unrealized depreciation (10,530)
---------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,073,624
---------------------------------------------------------------------------
</Table>
5 LINE OF CREDIT
The Portfolios participate with other portfolios and funds managed by BMR
and EVM and their affiliates in a committed $150 million unsecured line of
credit agreement with a group of banks. Borrowings will be made by the
portfolios or funds solely to facilitate the handling of unusual and/or
unanticipated short-term cash requirements. Interest is charged to each
portfolio or fund based on its borrowings at an amount above either the
Eurodollar rate or Federal Funds rate. In addition, a fee computed at an
annual rate of 0.10% on the daily unused portion of the facility is
allocated among the participating portfolios and funds at the end of each
quarter. At March 31, 2004, the Florida Portfolio, New York Portfolio, Ohio
Portfolio, and Rhode Island Portfolio had outstanding balances pursuant to
this line of credit of $800,000, $200,000, $100,000, and $100,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the six months ended March 31, 2004.
6 FINANCIAL INSTRUMENTS
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include
86
<Page>
futures contracts and interest rate swaps and may involve, to a varying
degree, elements of risk in excess of the amounts recognized for financial
statement purposes. The notional or contractual amounts of these
instruments represent the investment a Portfolio has in particular classes
of financial instruments and does not necessarily represent the amounts
potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations under these financial instruments at March 31,
2004 is as follows:
FUTURES CONTRACTS
<Table>
<Caption>
EXPIRATION NET UNREALIZED
PORTFOLIO DATE CONTRACTS POSITION DEPRECIATION
----------------------------------------------------------------------------------------
California 6/04 560 U.S. Treasury Bond Short $ (1,415,506)
----------------------------------------------------------------------------------------
Florida 6/04 530 U.S. Treasury Bond Short (1,339,674)
----------------------------------------------------------------------------------------
Massachusetts 6/04 350 U.S. Treasury Bond Short (696,397)
----------------------------------------------------------------------------------------
Mississippi 6/04 25 U.S. Treasury Bond Short (63,192)
----------------------------------------------------------------------------------------
New York 6/04 775 U.S. Treasury Bond Short (1,504,855)
----------------------------------------------------------------------------------------
Ohio 6/04 210 U.S. Treasury Bond Short (396,336)
----------------------------------------------------------------------------------------
Rhode Island 6/04 85 U.S. Treasury Bond Short (168,385)
----------------------------------------------------------------------------------------
West Virginia 6/04 37 U.S. Treasury Bond Short (73,813)
</Table>
At March 31, 2004, the Portfolios had sufficient cash and/or securities to
cover margin requirements on open future contracts.
7 INTERESTHOLDER MEETING
Each Portfolio held a Special Meeting of Interestholders on February 20,
2004. At the Special Meeting, interestholders of each Portfolio other than
New York Municipals Portfolio voted to change the Portfolios'
diversification status from diversified to non-diversified. The meeting
with regard to New York Municipals Portfolio was adjourned until March 19,
2004, at which time it also passed the proposal to change its
diversification status. The results of the vote were as follows. Results
are rounded to the nearest whole number:
<Table>
<Caption>
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------
Affirmative 81% 87% 88% 95%
Against 11% 8% 6% 3%
Abstain 8% 5% 6% 2%
<Caption>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------------
Affirmative 85% 85% 89% 89%
Against 8% 8% 7% 6%
Abstain 7% 7% 4% 5%
</Table>
87
<Page>
EATON VANCE MUNICIPALS FUNDS
INVESTMENT MANAGEMENT
EATON VANCE MUNICIPALS FUNDS
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
MUNICIPALS PORTFOLIOS
OFFICERS
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolios
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts,
Rhode Island, and West Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of California,
Florida, and Mississippi
Municipals Portfolios
Kristin S. Anagnost
Treasurer of California,
Massachusetts, Mississippi, New York,
and Rhode Island Portfolios
Barbara E. Campbell
Treasurer of Florida, Ohio, and
West Virginia Portfolios
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
88
<Page>
PORTFOLIO INVESTMENT ADVISER
BOSTON MANAGEMENT AND RESEARCH
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
FUND ADMINISTRATOR
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>
438-5/04 MUNISRC
<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 CALIFORNIA 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
------------
<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 FLORIDA 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
------------
<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 MASSACHUSETTS 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
------------
<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 MISSISSIPPI 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
------------
<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 NEW YORK 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
------------
<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 OHIO 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
------------
<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 RHODE ISLAND 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
------------
<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 WEST VIRGINIA 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
------------