<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: 811-07202
---------
North Carolina Municipals Portfolio
-----------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
August 31
---------
Date of Fiscal Year End
August 31, 2004
---------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
NORTH CAROLINA MUNICIPALS PORTFOLIO as of August 31, 2004
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.6%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------
EDUCATION -- 10.5%
$ 2,950 North Carolina Educational Facilities Finance Agency,
(Duke University), 5.125%, 10/1/41 $ 3,002,982
300 North Carolina Educational Facilities Finance Agency,
(High Point University), 5.125%, 9/1/21 311,790
7,410 University of North Carolina at Chapel Hill, 0.00%, 8/1/17 4,223,478
1,980 University of North Carolina at Chapel Hill, 0.00%, 8/1/21 887,535
- ------------------------------------------------------------------------------------------------
$ 8,425,785
- ------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 20.4%
$ 5,000 North Carolina Eastern Municipal Power Agency,
6.125%, 1/1/09(1) $ 5,583,900
1,250 North Carolina Eastern Municipal Power Agency,
6.75%, 1/1/26 1,383,975
3,500 North Carolina Municipal Power Agency, (Catawba),
6.50%, 1/1/20 3,886,715
2,000 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 1,195,540
2,000 Puerto Rico Electric Power Authority, 0.00%, 7/1/17 1,189,540
2,000 Puerto Rico Electric Power Authority,
Variable Rate, 7/1/29(2)(3) 2,089,540
1,000 Wake County, Industrial Facilities and Pollution Control
Financing Authority, (Carolina Power and Light Co.),
5.375%, 2/1/17 1,077,220
- ------------------------------------------------------------------------------------------------
$ 16,406,430
- ------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 15.2%
$ 1,000 Charlotte, Water and Sewer, Prerefunded to 6/1/10,
5.25%, 6/1/25(4) $ 1,133,490
1,000 New Hanover County, Prerefunded to 11/1/10,
5.75%, 11/1/17 1,172,720
3,000 North Carolina Eastern Municipal Power Agency, Escrowed to
Maturity, 4.00%, 1/1/18 3,004,500
2,210 North Carolina Eastern Municipal Power Agency, Escrowed to
Maturity, 5.00%, 1/1/17 2,450,912
440 North Carolina Eastern Municipal Power Agency, Escrowed to
Maturity, 5.00%, 1/1/21 484,519
1,500 North Carolina Medical Care Commission, (Annie Penn
Memorial Hospital), Prerefunded to 1/1/15,
5.375%, 1/1/22 1,657,965
2,000 Winston-Salem, Water and Sewer System, Prerefunded to
6/1/11, 5.125%, 6/1/28 2,257,460
- ------------------------------------------------------------------------------------------------
$ 12,161,566
- ------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 2.7%
$ 1,000 Charlotte, 5.00%, 7/1/29 $ 1,028,340
1,000 Charlotte, 5.60%, 6/1/20 1,135,510
- ------------------------------------------------------------------------------------------------
$ 2,163,850
- ------------------------------------------------------------------------------------------------
HOSPITAL -- 7.0%
$ 1,750 Charlotte-Mecklenberg Hospital Authority, 5.00%, 1/15/31 $ 1,757,402
1,250 North Carolina Medical Care Commission,
(Duke University Hospital), 0.00%, 6/1/09 1,053,300
1,000 North Carolina Medical Care Commission,
(Gaston Health Care), 5.00%, 2/15/29 1,000,680
250 North Carolina Medical Care Commission,
(Novant Health, Inc.), 5.00%, 11/1/20 260,817
1,000 North Carolina Medical Care Commission, (Southeastern
Regional Medical Center), 5.375%, 6/1/32 1,011,740
500 North Carolina Medical Care Commission, (Union Regional
Medical Center), 5.375%, 1/1/32 506,610
- ------------------------------------------------------------------------------------------------
$ 5,590,549
- ------------------------------------------------------------------------------------------------
HOUSING -- 3.5%
$ 1,400 Charlotte Housing Authority, (Double Oaks), FHA, (FNMA),
7.35%, 5/15/26 $ 1,482,586
285 Guam Housing Corp., Single Family, (AMT), 5.75%, 9/1/31 312,220
875 North Carolina HFA, MFMR, (AMT), 6.45%, 9/1/27 905,363
970 Raleigh Housing Authority, Multifamily, (Cedar Point),
7.00%, 11/1/30(5) 98,213
- ------------------------------------------------------------------------------------------------
$ 2,798,382
- ------------------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 1.2%
$ 850 Robeson County, Industrial Facilities and Pollution Control
Financing Authority, (Campbell Soup), 6.40%, 12/1/06 $ 931,362
- ------------------------------------------------------------------------------------------------
$ 931,362
- ------------------------------------------------------------------------------------------------
INSURED-EDUCATION -- 5.9%
$ 1,375 East Carolina University, (AMBAC), 5.25%, 11/1/21 $ 1,469,779
1,320 North Carolina Educational Facilities Finance Agency,
(Johnson & Wales University), (XLCA), 5.00%, 4/1/33 1,339,734
1,900 University of North Carolina, (MBIA), 4.50%, 10/1/18(1) 1,952,345
- ------------------------------------------------------------------------------------------------
$ 4,761,858
- ------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 1.0%
$ 1,300 Puerto Rico Electric Power Authority, (MBIA),
0.00%, 7/1/17 $ 781,014
- ------------------------------------------------------------------------------------------------
$ 781,014
- ------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
98
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<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 4.5%
$ 1,000 Puerto Rico Commonwealth, (FGIC), 5.50%, 7/1/22 $ 1,159,910
280 Puerto Rico, (MBIA), Variable Rate, 7/1/20(3)(6) 422,909
945 Smithville Township, Brunswick County, (MBIA),
5.00%, 6/1/23 994,329
995 Smithville Township, Brunswick County, (MBIA),
5.00%, 6/1/24 1,041,725
- ------------------------------------------------------------------------------------------------
$ 3,618,873
- ------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 5.2%
$ 1,200 North Carolina Medical Care Commission, (Betsy Johnson),
(FSA), 5.375%, 10/1/24 $ 1,291,908
935 North Carolina Medical Care Commission, (Memorial Mission
Hospital), (FSA), 0.00%, 10/1/06 897,955
1,000 North Carolina Medical Care Commission, (Wakemed),
(AMBAC), 5.00%, 10/1/32 1,018,460
1,500 North Carolina Medical Care Commission, (Wilson Memorial
Hospital), (AMBAC), 0.00%, 11/1/15 938,070
- ------------------------------------------------------------------------------------------------
$ 4,146,393
- ------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 0.7%
$ 420 Puerto Rico Public Finance Corp., (AMBAC),
Variable Rate, 6/1/24(3)(6) $ 538,759
- ------------------------------------------------------------------------------------------------
$ 538,759
- ------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 1.0%
$ 800 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(2)(3) $ 835,176
- ------------------------------------------------------------------------------------------------
$ 835,176
- ------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 5.2%
$ 500 Charlotte Airport, (MBIA), (AMT), 5.25%, 7/1/21(7) $ 527,670
1,375 Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/36 1,508,746
1,000 Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 7/1/36(3)(6) 1,098,970
1,000 Raleigh Durham, Airport Authority, (FGIC), 5.00%, 11/1/31 1,015,520
- ------------------------------------------------------------------------------------------------
$ 4,150,906
- ------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 4.9%
$ 1,745 Broad River, Water Authority Water System, (MBIA),
5.375%, 6/1/26 $ 1,856,785
500 Brunswick County, (FSA), Enterprise System Water and
Sewer Revenue, 5.25%, 4/1/26 529,510
1,500 Kannapolis, Water and Sewer, (FSA), (AMT), 5.25%, 2/1/26 1,547,790
- ------------------------------------------------------------------------------------------------
$ 3,934,085
- ------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.2%
$ 1,000 Charlotte, (Government Facilities), 5.00%, 6/1/28 $ 1,017,510
1,500 Charlotte, (Government Facilities), 5.00%, 6/1/33 1,520,580
- ------------------------------------------------------------------------------------------------
$ 2,538,090
- ------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.5%
$ 1,000 Puerto Rico Infrastructure Financing Authority,
Variable Rate, 10/1/34(3)(6) $ 1,243,230
- ------------------------------------------------------------------------------------------------
$ 1,243,230
- ------------------------------------------------------------------------------------------------
WATER AND SEWER -- 6.0%
$ 1,700 Charlotte, Storm Water, 5.00%, 6/1/25 $ 1,756,457
2,975 Charlotte, Water and Sewer, 5.125%, 6/1/26 3,095,131
- ------------------------------------------------------------------------------------------------
$ 4,851,588
- ------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 99.6%
(IDENTIFIED COST $74,514,548) $ 79,877,896
- ------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.4% $ 304,604
- ------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 80,182,500
- ------------------------------------------------------------------------------------------------
</Table>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Portfolio invests primarily in debt securities issued by North Carolina
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at August 31, 2004, 28.5% 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 12.8% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(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 sold in transactions exempt from
registration, normally to qualified institutional buyers. At August 31,
2004, the aggregate value of the securities is $6,228,584 or 7.8% of the
Portfolio's net assets.
(4) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(5) Defaulted bond.
(6) Security has been issued as a leveraged inverse floater bond.
(7) When-issued security.
See notes to financial statements
99
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of August 31, 2004
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2004
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 55,808,214 $ 40,841,005 $ 49,287,477 $ 57,200,522
Unrealized appreciation 3,258,007 2,233,413 4,030,134 5,604,884
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 59,066,221 $ 43,074,418 $ 53,317,611 $ 62,805,406
- -------------------------------------------------------------------------------------------------------------------------
Cash $ 613,765 $ 37,144 $ 311,408 $ 305,335
Receivable for investments sold -- -- -- 85,000
Interest receivable 717,478 599,300 724,120 760,417
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 60,397,464 $ 43,710,862 $ 54,353,139 $ 63,956,158
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open
financial futures contracts $ 88,406 $ 89,817 $ 76,255 $ 92,719
Payable for open swap contracts -- 55,822 -- --
Accrued expenses 11,896 11,097 12,186 12,922
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 100,302 $ 156,736 $ 88,441 $ 105,641
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 60,297,162 $ 43,554,126 $ 54,264,698 $ 63,850,517
- -------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions
and withdrawals $ 57,179,646 $ 41,418,777 $ 50,312,936 $ 58,392,291
Net unrealized appreciation (computed on
the basis of identified cost) 3,117,516 2,135,349 3,951,762 5,458,226
- -------------------------------------------------------------------------------------------------------------------------
TOTAL $ 60,297,162 $ 43,554,126 $ 54,264,698 $ 63,850,517
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
109
<Page>
<Table>
<Caption>
NORTH CAROLINA
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 25,373,561 $ 70,268,945 $ 51,607,707 $ 74,514,548
Unrealized appreciation 1,637,308 325,440 4,864,659 5,363,348
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 27,010,869 $ 70,594,385 $ 56,472,366 $ 79,877,896
- -------------------------------------------------------------------------------------------------------------------------
Cash $ 6,553 $ 92,291 $ 482,869 $ 154,763
Receivable for investments sold 14,552 255,000 40,000 120,000
Interest receivable 358,620 874,167 631,361 899,899
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 27,390,594 $ 71,815,843 $ 57,626,596 $ 81,052,558
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on
open financial futures contracts $ 28,750 $ 127,937 $ 69,062 $ 171,196
Payable for open swap contracts -- -- -- 167,467
Payable for when-issued securities -- -- -- 518,965
Accrued expenses 11,373 13,115 11,907 12,430
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 40,123 $ 141,052 $ 80,969 $ 870,058
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 27,350,471 $ 71,674,791 $ 57,545,627 $ 80,182,500
- -------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions
and withdrawals $ 25,752,708 $ 71,549,022 $ 52,751,548 $ 75,060,551
Net unrealized appreciation (computed on
the basis of identified cost) 1,597,763 125,769 4,794,079 5,121,949
- -------------------------------------------------------------------------------------------------------------------------
TOTAL $ 27,350,471 $ 71,674,791 $ 57,545,627 $ 80,182,500
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
110
<Page>
<Table>
<Caption>
SOUTH CAROLINA TENNESSEE
OREGON PORTFOLIO PORTFOLIO PORTFOLIO VIRGINIA PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 76,268,687 $ 49,551,839 $ 46,178,573 $ 97,252,907
Unrealized appreciation 3,300,327 2,666,597 3,732,793 8,937,816
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 79,569,014 $ 52,218,436 $ 49,911,366 $ 106,190,723
- -------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 209,804 $ 909,559 $ 29,550
Receivable for investments sold 790,272 383,876 -- 178,800
Interest receivable 1,036,677 853,406 589,207 1,403,442
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 81,395,963 $ 53,665,522 $ 51,410,132 $ 107,802,515
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open
financial futures contracts $ 186,075 $ 86,250 $ 67,625 $ 118,594
Demand note payable 600,000 -- -- 500,000
Payable for open swap contracts 27,911 -- -- --
Due to bank 53,078 -- -- --
Accrued expenses 12,121 12,514 11,492 14,430
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 879,185 $ 98,764 $ 79,117 $ 633,024
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 80,516,778 $ 53,566,758 $ 51,331,015 $ 107,169,491
- -------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions
and withdrawals $ 77,290,169 $ 50,993,484 $ 47,666,731 $ 98,394,799
Net unrealized appreciation (computed on
the basis of identified cost) 3,226,609 2,573,274 3,664,284 8,774,692
- -------------------------------------------------------------------------------------------------------------------------
TOTAL $ 80,516,778 $ 53,566,758 $ 51,331,015 $ 107,169,491
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
111
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2004
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 3,429,801 $ 2,460,261 $ 3,186,338 $ 3,677,208
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 3,429,801 $ 2,460,261 $ 3,186,338 $ 3,677,208
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 201,589 $ 112,673 $ 165,936 $ 216,845
Trustees' fees and expenses 6,158 1,530 6,158 6,158
Legal and accounting services 31,275 28,037 28,163 27,822
Custodian fee 41,367 30,143 35,949 42,405
Miscellaneous 7,442 7,592 7,181 6,897
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 287,831 $ 179,975 $ 243,387 $ 300,127
- -------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 2,408 $ 2,205 $ 2,464 $ 3,325
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 2,408 $ 2,205 $ 2,464 $ 3,325
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 285,423 $ 177,770 $ 240,923 $ 296,802
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,144,378 $ 2,282,491 $ 2,945,415 $ 3,380,406
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 1,376,904 $ 154,279 $ 15,698 $ 134,409
Financial futures contracts (977,035) (708,179) (987,635) (991,084)
Interest rate swap contracts -- (274,450) -- --
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 399,869 $ (828,350) $ (971,937) $ (856,675)
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 218,842 $ 1,499,428 $ 2,259,351 $ 1,487,950
Financial futures contracts (88,645) (42,242) (88,258) (93,947)
Interest rate swap contracts -- 15,108 -- --
- -------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 130,197 $ 1,472,294 $ 2,171,093 $ 1,394,003
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 530,066 $ 643,944 $ 1,199,156 $ 537,328
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,674,444 $ 2,926,435 $ 4,144,571 $ 3,917,734
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
112
<Page>
<Table>
<Caption>
NORTH CAROLINA
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,604,056 $ 4,195,033 $ 3,294,962 $ 4,628,795
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,604,056 $ 4,195,033 $ 3,294,962 $ 4,628,795
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 56,476 $ 257,347 $ 174,558 $ 300,509
Trustees' fees and expenses 1,530 6,158 6,158 6,158
Legal and accounting services 25,797 28,766 31,094 28,766
Custodian fee 22,333 46,721 36,687 51,121
Miscellaneous 5,543 8,466 7,185 10,056
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 111,679 $ 347,458 $ 255,682 $ 396,610
- -------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 2,191 $ 2,871 $ 3,806 $ 2,307
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 2,191 $ 2,871 $ 3,806 $ 2,307
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 109,488 $ 344,587 $ 251,876 $ 394,303
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,494,568 $ 3,850,446 $ 3,043,086 $ 4,234,492
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 271,892 $ 666,368 $ 214,696 $ 1,966,569
Financial futures contracts (500,732) (1,474,209) (887,068) (1,634,730)
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (228,840) $ (807,841) $ (672,372) $ 331,839
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 909,724 $ 1,148,201 $ 1,997,752 $ 586,827
Financial futures contracts (50,053) (120,172) (88,808) (102,591)
Interest rate swap contracts -- -- -- (167,467)
- -------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 859,671 $ 1,028,029 $ 1,908,944 $ 316,769
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 630,831 $ 220,188 $ 1,236,572 $ 648,608
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,125,399 $ 4,070,634 $ 4,279,658 $ 4,883,100
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
113
<Page>
<Table>
<Caption>
SOUTH CAROLINA
OREGON PORTFOLIO PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 4,953,259 $ 3,181,695 $ 2,662,324 $ 6,204,941
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 4,953,259 $ 3,181,695 $ 2,662,324 $ 6,204,941
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 300,312 $ 159,381 $ 134,765 $ 428,953
Trustees' fees and expenses 6,159 6,158 1,530 7,994
Legal and accounting services 30,147 26,573 26,112 31,065
Custodian fee 49,395 34,724 32,090 64,406
Miscellaneous 9,171 8,576 6,862 11,630
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 395,184 $ 235,412 $ 201,359 $ 544,048
- -------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 4,615 $ 4,017 $ 4,507 $ 4,358
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 4,615 $ 4,017 $ 4,507 $ 4,358
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 390,569 $ 231,395 $ 196,852 $ 539,690
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 4,562,690 $ 2,950,300 $ 2,465,472 $ 5,665,251
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 605,840 $ 390,190 $ 99,747 $ 294,262
Financial futures contracts (1,518,037) (732,669) (853,846) (2,009,582)
Interest rate swap contracts (748,500) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (1,660,697) $ (342,479) $ (754,099) $ (1,715,320)
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 2,058,936 $ 1,845,199 $ 1,540,246 $ 4,209,576
Financial futures contracts (45,807) (87,150) (83,319) (203,247)
Interest rate swap contracts 165,535 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 2,178,664 $ 1,758,049 $ 1,456,927 $ 4,006,329
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 517,967 $ 1,415,570 $ 702,828 $ 2,291,009
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,080,657 $ 4,365,870 $ 3,168,300 $ 7,956,260
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
114
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2004
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 3,144,378 $ 2,282,491 $ 2,945,415 $ 3,380,406
Net realized gain (loss) from investments,
financial futures contracts and interest
rate swap contracts transactions 399,869 (828,350) (971,937) (856,675)
Net change in unrealized appreciation
(depreciation) from investments,
financial futures contracts and interest
rate swap contracts 130,197 1,472,294 2,171,093 1,394,003
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,674,444 $ 2,926,435 $ 4,144,571 $ 3,917,734
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,455,097 $ 3,374,987 $ 4,819,980 $ 6,779,936
Withdrawals (12,548,719) (6,445,964) (8,814,638) (14,422,445)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (8,093,622) $ (3,070,977) $ (3,994,658) $ (7,642,509)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (4,419,178) $ (144,542) $ 149,913 $ (3,724,775)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 64,716,340 $ 43,698,668 $ 54,114,785 $ 67,575,292
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 60,297,162 $ 43,554,126 $ 54,264,698 $ 63,850,517
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
115
<Page>
<Table>
<Caption>
NORTH CAROLINA
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 1,494,568 $ 3,850,446 $ 3,043,086 $ 4,234,492
Net realized gain (loss) from investments
and financial futures contracts
transactions (228,840) (807,841) (672,372) 331,839
Net change in unrealized appreciation
(depreciation) from investments,
financial futures contracts and interest
rate swap contracts 859,671 1,028,029 1,908,944 316,769
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,125,399 $ 4,070,634 $ 4,279,658 $ 4,883,100
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,117,790 $ 5,514,247 $ 6,164,365 $ 6,843,532
Withdrawals (5,394,458) (16,588,470) (10,215,971) (21,088,551)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (3,276,668) $ (11,074,223) $ (4,051,606) $ (14,245,019)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (1,151,269) $ (7,003,589) $ 228,052 $ (9,361,919)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 28,501,740 $ 78,678,380 $ 57,317,575 $ 89,544,419
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 27,350,471 $ 71,674,791 $ 57,545,627 $ 80,182,500
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
116
<Page>
<Table>
<Caption>
SOUTH CAROLINA TENNESSEE VIRGINIA
OREGON PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 4,562,690 $ 2,950,300 $ 2,465,472 $ 5,665,251
Net realized loss from investments,
financial futures contracts and interest
rate swap contracts transactions (1,660,697) (342,479) (754,099) (1,715,320)
Net change in unrealized appreciation
(depreciation) from investments,
financial futures contracts and interest
rate swap contracts 2,178,664 1,758,049 1,456,927 4,006,329
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,080,657 $ 4,365,870 $ 3,168,300 $ 7,956,260
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,456,953 $ 8,031,589 $ 9,626,281 $ 10,200,148
Withdrawals (14,736,542) (10,044,447) (9,924,146) (24,464,529)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (7,279,589) $ (2,012,858) $ (297,865) $ (14,264,381)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (2,198,932) $ 2,353,012 $ 2,870,435 $ (6,308,121)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 82,715,710 $ 51,213,746 $ 48,460,580 $ 113,477,612
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 80,516,778 $ 53,566,758 $ 51,331,015 $ 107,169,491
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
117
<Page>
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 3,313,142 $ 2,300,813 $ 3,017,352 $ 3,496,419
Net realized gain (loss) from investments
and financial futures contracts
transactions 134,430 527,436 (333,635) (2,678,901)
Net change in unrealized appreciation
(depreciation) from investments,
financial futures contracts and
interest rate swap contracts (1,468,945) (1,636,116) (612,968) 1,374,471
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,978,627 $ 1,192,133 $ 2,070,749 $ 2,191,989
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,826,188 $ 4,263,125 $ 6,128,727 $ 6,168,539
Withdrawals (9,563,241) (5,016,611) (10,414,983) (10,294,305)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (1,737,053) $ (753,486) $ (4,286,256) $ (4,125,766)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 241,574 $ 438,647 $ (2,215,507) $ (1,933,777)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 64,474,766 $ 43,260,021 $ 56,330,292 $ 69,509,069
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 64,716,340 $ 43,698,668 $ 54,114,785 $ 67,575,292
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
118
<Page>
<Table>
<Caption>
NORTH CAROLINA
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 1,570,788 $ 4,158,293 $ 3,185,742 $ 4,690,094
Net realized gain (loss) from investments
and financial futures contracts
transactions 234,944 437,591 375,821 (833,851)
Net change in unrealized appreciation
(depreciation) from investments and
financial futures contracts (896,513) (2,115,611) (1,480,015) (1,726,154)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 909,219 $ 2,480,273 $ 2,081,548 $ 2,130,089
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,630,038 $ 8,575,652 $ 5,893,727 $ 7,117,679
Withdrawals (4,426,484) (17,793,080) (9,406,029) (15,522,233)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (1,796,446) $ (9,217,428) $ (3,512,302) $ (8,404,554)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (887,227) $ (6,737,155) $ (1,430,754) $ (6,274,465)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 29,388,967 $ 85,415,535 $ 58,748,329 $ 95,818,884
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 28,501,740 $ 78,678,380 $ 57,317,575 $ 89,544,419
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
119
<Page>
<Table>
<Caption>
SOUTH CAROLINA
OREGON PORTFOLIO PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
From operations --
Net investment income $ 4,649,972 $ 2,630,849 $ 2,480,931 $ 6,057,000
Net realized gain (loss) from investments
and financial futures contracts
transactions 53,387 444,288 132,379 (166,417)
Net change in unrealized appreciation
(depreciation) from investments,
financial futures contracts and interest
rate swap contracts (2,528,160) (1,603,577) (763,780) (2,469,255)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,175,199 $ 1,471,560 $ 1,849,530 $ 3,421,328
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 9,291,990 $ 10,958,295 $ 8,308,589 $ 7,960,993
Withdrawals (12,365,559) (7,921,651) (9,554,586) (17,554,176)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (3,073,569) $ 3,036,644 $ (1,245,997) $ (9,593,183)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (898,370) $ 4,508,204 $ 603,533 $ (6,171,855)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 83,614,080 $ 46,705,542 $ 47,857,047 $ 119,649,467
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 82,715,710 $ 51,213,746 $ 48,460,580 $ 113,477,612
- -------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
120
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of August 31, 2004
FINANCIAL STATEMENTS
SUPPLEMENTARY DATA
<Table>
<Caption>
ALABAMA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.45% 0.46% 0.45% 0.46% 0.49%
Expenses after custodian fee reduction 0.45% 0.44% 0.44% 0.44% 0.48%
Net investment income 4.93% 5.08% 5.21% 5.31% 5.57%
Portfolio Turnover 23% 10% 25% 14% 8%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.91% 3.09% 4.86% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 60,297 $ 64,716 $ 64,475 $ 64,271 $ 66,653
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.20% to 5.21%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
121
<Page>
<Table>
<Caption>
ARKANSAS PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.40% 0.41% 0.40% 0.39% 0.46%
Expenses after custodian fee reduction 0.40% 0.39% 0.39% 0.37% 0.45%
Net investment income 5.17% 5.22% 5.38% 5.48% 5.65%
Portfolio Turnover 15% 25% 23% 9% 14%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 6.83% 2.81% 5.83% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 43,554 $ 43,699 $ 43,260 $ 42,662 $ 42,233
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.37% to 5.38%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
122
<Page>
<Table>
<Caption>
GEORGIA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.44% 0.46% 0.46% 0.45% 0.49%
Expenses after custodian fee reduction 0.44% 0.44% 0.45% 0.42% 0.47%
Net investment income 5.35% 5.38% 5.55% 5.47% 5.69%
Portfolio Turnover 3% 16% 18% 8% 13%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 7.85% 3.82% 4.82% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 54,265 $ 54,115 $ 56,330 $ 63,673 $ 63,067
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.54% to 5.55%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
123
<Page>
<Table>
<Caption>
KENTUCKY PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.45% 0.46% 0.45% 0.48% 0.52%
Expenses after custodian fee reduction 0.44% 0.44% 0.44% 0.44% 0.50%
Net investment income 5.07% 5.05% 5.25% 5.17% 5.75%
Portfolio Turnover 3% 10% 5% 15% 11%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 6.11% 3.22% 4.39% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 63,851 $ 67,575 $ 69,509 $ 79,821 $ 81,708
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.23% to 5.25%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
124
<Page>
<Table>
<Caption>
LOUISIANA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.40% 0.40% 0.40% 0.43% 0.39%
Expenses after custodian fee reduction 0.39% 0.38% 0.38% 0.40% 0.35%
Net investment income 5.32% 5.33% 5.43% 5.28% 5.63%
Portfolio Turnover 9% 21% 25% 14% 14%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 7.92% 3.16% 5.02% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 27,350 $ 28,502 $ 29,389 $ 29,155 $ 28,441
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.28% to 5.43%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
125
<Page>
<Table>
<Caption>
MARYLAND PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.46% 0.47% 0.48% 0.47% 0.51%
Expenses after custodian fee reduction 0.46% 0.45% 0.46% 0.42% 0.49%
Net investment income 5.13% 4.96% 5.12% 5.30% 5.18%
Portfolio Turnover 12% 28% 25% 18% 9%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.47% 2.90% 5.17% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 71,675 $ 78,678 $ 85,416 $ 82,797 $ 81,676
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets by less than 0.01%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
126
<Page>
<Table>
<Caption>
MISSOURI PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.45% 0.45% 0.44% 0.45% 0.49%
Expenses after custodian fee reduction 0.44% 0.43% 0.43% 0.43% 0.48%
Net investment income 5.34% 5.39% 5.60% 5.65% 5.80%
Portfolio Turnover 10% 20% 8% 8% 8%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 7.91% 3.65% 5.24% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 57,546 $ 57,318 $ 58,748 $ 57,548 $ 58,927
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.59% to 5.60%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
127
<Page>
<Table>
<Caption>
NORTH CAROLINA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.47% 0.48% 0.48% 0.49% 0.52%
Expenses after custodian fee reduction 0.46% 0.46% 0.48% 0.46% 0.49%
Net investment income 4.98% 4.99% 5.28% 5.34% 5.66%
Portfolio Turnover 19% 21% 21% 28% 17%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.83% 2.29% 4.43% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 80,183 $ 89,544 $ 95,819 $ 101,025 $ 110,493
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.27% to 5.28%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
128
<Page>
<Table>
<Caption>
OREGON PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.48% 0.49% 0.46% 0.48% 0.51%
Expenses after custodian fee reduction 0.47% 0.47% 0.45% 0.47% 0.50%
Net investment income 5.51% 5.50% 5.46% 5.45% 5.63%
Portfolio Turnover 6% 16% 21% 13% 25%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 6.40% 2.58% 5.28% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 80,517 $ 82,716 $ 83,614 $ 83,951 $ 83,712
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.43% to 5.46%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
129
<Page>
<Table>
<Caption>
SOUTH CAROLINA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.44% 0.43% 0.40% 0.39% 0.44%
Expenses after custodian fee reduction 0.43% 0.41% 0.38% 0.34% 0.42%
Net investment income 5.53% 5.36% 5.49% 5.56% 5.77%
Portfolio Turnover 59% 37% 15% 21% 12%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 8.72% 3.15% 5.07% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 53,567 $ 51,214 $ 46,706 $ 39,821 $ 35,070
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.46% to 5.49%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
130
<Page>
<Table>
<Caption>
TENNESSEE PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.41% 0.42% 0.40% 0.41% 0.44%
Expenses after custodian fee reduction 0.40% 0.39% 0.38% 0.37% 0.42%
Net investment income 5.01% 5.05% 5.27% 5.39% 5.61%
Portfolio Turnover 20% 17% 19% 11% 9%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 6.54% 3.90% 5.38% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 51,331 $ 48,461 $ 47,857 $ 47,369 $ 45,015
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets by less than 0.01%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
131
<Page>
<Table>
<Caption>
VIRGINIA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.48% 0.50% 0.49% 0.49% 0.54%
Expenses after custodian fee reduction 0.48% 0.49% 0.49% 0.47% 0.53%
Net investment income 5.04% 5.13% 5.31% 5.28% 5.61%
Portfolio Turnover 14% 20% 33% 39% 23%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 7.30% 2.89% 4.25% -- --
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 107,169 $ 113,478 $ 119,649 $ 122,103 $ 115,776
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) The Portfolio has adopted the provisions of the revised AICPA AUDIT AND
ACCOUNTING GUIDE FOR INVESTMENT COMPANIES and began using the interest
method to amortize premiums on fixed-income securities. The effect of this
change for the year ended August 31, 2002 was to increase the ratio of net
investment income to average net assets from 5.30% to 5.31%. Ratios for the
periods prior to September 1, 2001 have not been restated to reflect this
change in presentation.
(2) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
See notes to financial statements
132
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of August 31, 2004
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Alabama Municipals Portfolio (Alabama Portfolio), Arkansas Municipals
Portfolio (Arkansas Portfolio), Georgia Municipals Portfolio (Georgia
Portfolio), Kentucky Municipals Portfolio (Kentucky Portfolio), Louisiana
Municipals Portfolio (Louisiana Portfolio), Maryland Municipals Portfolio
(Maryland Portfolio), Missouri Municipals Portfolio (Missouri Portfolio),
North Carolina Municipals Portfolio (North Carolina Portfolio), Oregon
Municipals Portfolio (Oregon Portfolio), South Carolina Municipals Portfolio
(South Carolina Portfolio), Tennessee Municipals Portfolio (Tennessee
Portfolio) and Virginia Municipals Portfolio (Virginia Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940, as amended, as non-diversified open-end management investment
companies. The Portfolios, which were organized as trusts under the laws of
the State of New York on May 1, 1992, seek to achieve current income exempt
from regular federal income tax and from particular state or local income or
other taxes. The Declarations of Trust permit the Trustees to issue interests
in the Portfolios. At August 31, 2004, Eaton Vance Alabama Municipals Fund,
Eaton Vance Arkansas Municipals Fund, Eaton Vance Georgia Municipals Fund,
Eaton Vance Kentucky Municipals Fund, Eaton Vance Louisiana Municipals Fund,
Eaton Vance Maryland Municipals Fund, Eaton Vance Missouri Municipals Fund,
Eaton Vance North Carolina Municipals Fund, Eaton Vance Oregon Municipals
Fund, Eaton Vance South Carolina Municipals Fund, Eaton Vance Tennessee
Municipals Fund and Eaton Vance Virginia Municipals Fund each held an
approximate 99.9% interest in its corresponding Portfolio. The following is a
summary of significant accounting policies of the Portfolios. The policies
are in conformity with accounting principles generally accepted in the United
States of America.
A INVESTMENT VALUATIONS -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Financial futures contracts and
options on financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Over-the-counter options on financial
futures contracts are normally valued at the mean between the latest bid and
asked prices. Interest rate swaps are normally valued on the basis of
valuations furnished by a broker. Short-term obligations, maturing in sixty
days or less, are valued at amortized cost, which approximates value.
Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
C FEDERAL TAXES -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit. Interest income received by the Portfolios on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from federal income tax
when allocated to each Portfolio's investors. The portion of such interest,
if any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed for both hedging
against anticipated future changes in interest rates and investment purposes.
Should interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a 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.
133
<Page>
F LEGAL FEES -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
G WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Portfolios may engage
in when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
H INTEREST RATE SWAPS -- A Portfolio may enter into interest rate swap
agreements to enhance return, to hedge against fluctuations in securities
prices or interest rates or as substitution for the purchase or sale of
securities. Pursuant to these agreements, the Portfolios make semi-annual
payments at a fixed interest rate. In exchange, a Portfolio receives payments
based on the interest rate of a benchmark industry index. During the term of
the outstanding swap agreement, changes in the underlying value of the swap
are recorded as unrealized gains and losses. The value of the swap is
determined by changes in the relationship between two rates of interest. The
Portfolio is exposed to credit loss in the event of non-performance by the
swap counterparty. However, the Portfolio does not anticipate non-performance
by the counterparty. Risk may also arise from the unanticipated movements in
value of interest rates.
I OTHER -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
J EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolios. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the
average daily cash balances each Portfolio maintains with IBT. All credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statements of Operations.
K USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
L INDEMNIFICATIONS -- Under 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.
2 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended August 31, 2004, the Portfolios paid advisory
fees as follows:
<Table>
<Caption>
PORTFOLIO AMOUNT EFFECTIVE RATE*
---------------------------------------------------------------------------------
Alabama $ 201,589 0.32%
Arkansas 112,673 0.26%
Georgia 165,936 0.30%
Kentucky 216,845 0.33%
Louisiana 56,476 0.20%
Maryland 257,347 0.34%
Missouri 174,558 0.31%
North Carolina 300,509 0.35%
Oregon 300,312 0.36%
South Carolina 159,381 0.30%
Tennessee 134,765 0.27%
Virginia 428,953 0.38%
</Table>
* As a percentage of average daily net assets.
134
<Page>
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation Plan.
For the year ended August 31, 2004, no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
During the year ended August 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
------------------------------------------------------------------------------
Arkansas $ 507,980 $ 1,327,058
Georgia 306,603 --
Oregon -- 753,753
North Carolina 753,753 --
Tennessee -- 109,163
</Table>
3 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended August 31,
2004, were as follows:
<Table>
ALABAMA PORTFOLIO
Purchases $ 14,127,017
Sales 20,901,962
ARKANSAS PORTFOLIO
Purchases $ 6,533,475
Sales 8,185,209
GEORGIA PORTFOLIO
Purchases $ 1,547,766
Sales 3,954,934
KENTUCKY PORTFOLIO
Purchases $ 1,997,320
Sales 7,797,750
LOUISIANA PORTFOLIO
Purchases $ 2,469,834
Sales 4,997,982
MARYLAND PORTFOLIO
Purchases $ 9,126,288
Sales 16,679,583
MISSOURI PORTFOLIO
Purchases $ 5,383,645
Sales 7,603,172
NORTH CAROLINA PORTFOLIO
Purchases $ 16,309,778
Sales 28,028,295
OREGON PORTFOLIO
Purchases $ 4,836,508
Sales 9,940,749
SOUTH CAROLINA PORTFOLIO
Purchases $ 31,059,558
Sales 32,933,990
TENNESSEE PORTFOLIO
Purchases $ 11,946,430
Sales 9,625,055
VIRGINIA PORTFOLIO
Purchases $ 14,910,945
Sales 24,731,606
</Table>
4 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at August 31, 2004, as computed on a
federal income tax basis, are as follows:
<Table>
ALABAMA PORTFOLIO
AGGREGATE COST $ 55,794,588
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 3,686,777
Gross unrealized depreciation (415,144)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,271,633
---------------------------------------------------------------------------------
</Table>
135
<Page>
<Table>
ARKANSAS PORTFOLIO
AGGREGATE COST $ 40,830,048
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 2,699,711
Gross unrealized depreciation (455,341)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,244,370
---------------------------------------------------------------------------------
GEORGIA PORTFOLIO
AGGREGATE COST $ 49,219,575
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 5,450,142
Gross unrealized depreciation (1,352,106)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,098,036
---------------------------------------------------------------------------------
KENTUCKY PORTFOLIO
AGGREGATE COST $ 57,283,738
Gross unrealized appreciation $ 5,765,433
Gross unrealized depreciation (243,765)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,521,668
---------------------------------------------------------------------------------
LOUISIANA PORTFOLIO
AGGREGATE COST $ 25,157,361
Gross unrealized appreciation $ 2,007,560
Gross unrealized depreciation (154,052)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,853,508
---------------------------------------------------------------------------------
MARYLAND PORTFOLIO
AGGREGATE COST $ 70,239,953
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 4,472,059
Gross unrealized depreciation (4,117,627)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 354,432
---------------------------------------------------------------------------------
MISSOURI PORTFOLIO
AGGREGATE COST $ 51,559,965
Gross unrealized appreciation $ 5,110,332
Gross unrealized depreciation (197,931)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,912,401
---------------------------------------------------------------------------------
NORTH CAROLINA PORTFOLIO
AGGREGATE COST $ 74,416,476
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 6,397,584
Gross unrealized depreciation (936,164)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,461,420
---------------------------------------------------------------------------------
OREGON PORTFOLIO
AGGREGATE COST $ 76,184,991
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 4,740,432
Gross unrealized depreciation (1,356,409)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,384,023
---------------------------------------------------------------------------------
SOUTH CAROLINA PORTFOLIO
AGGREGATE COST $ 49,549,030
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 2,874,132
Gross unrealized depreciation (204,726)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,669,406
---------------------------------------------------------------------------------
TENNESSEE PORTFOLIO
AGGREGATE COST $ 46,171,352
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 3,800,330
Gross unrealized depreciation (60,316)
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,740,014
---------------------------------------------------------------------------------
VIRGINIA PORTFOLIO
AGGREGATE COST $ 97,170,787
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 9,019,936
Gross unrealized depreciation --
---------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 9,019,936
---------------------------------------------------------------------------------
</Table>
5 LINE OF CREDIT
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolios solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. At August 31,
2004, the Oregon Portfolio and the Virginia Portfolio had balances
outstanding pursuant to this line of credit of $600,000 and $500,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended August 31, 2004.
136
<Page>
6 OVERDRAFT ADVANCES
Pursuant to the custodian agreement between the Portfolios and Investors Bank
& Trust (the Bank), the Bank may in its discretion advance funds to the
Portfolios to make properly authorized payments. When such payments result in
an overdraft by the Portfolios, the Portfolios are obligated to repay the
Bank at the current rate of interest charged by the Bank for secured loans
(currently, a rate above the federal funds rate). This obligation is payable
on demand to the Bank. At August 31, 2004, the Oregon Portfolio's payment due
to the Bank pursuant to the foregoing arrangement was $53,078.
7 FINANCIAL INSTRUMENTS
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and interest rate swaps and may involve, to a
varying degree, elements of risk in excess of the amounts recognized for
financial statement purposes. The notional or contractual amounts of these
instruments represent the investment a Portfolio has in particular classes of
financial instruments and does not necessarily represent the amounts
potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations held under these financial instruments at August 31,
2004, is as follows:
<Table>
<Caption>
FUTURES CONTRACTS
------------------------------------------------------------------------------------------------------------------------
NET UNREALIZED
EXPIRATION AGGREGATE APPRECIATION
PORTFOLIO DATE CONTRACTS POSITION COST VALUE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------
Alabama 12/04 123 U.S. Treasury Bond Short $ (13,550,946) $ (13,691,437) $ (140,491)
-----------------------------------------------------------------------------------------------------------------------
Arkansas 12/04 75 U.S. Treasury Bond Short $ (8,351,048) $ (8,348,437) $ 2,611
12/04 85 U.S. Treasury Note Short (9,501,709) (9,546,562) (44,853)
-----------------------------------------------------------------------------------------------------------------------
Georgia 12/04 106 U.S. Treasury Bond Short $ (11,720,753) $ (11,799,125) $ (78,372)
-----------------------------------------------------------------------------------------------------------------------
Kentucky 12/04 129 U.S. Treasury Bond Short $ (14,212,655) $ (14,359,313) $ (146,658)
-----------------------------------------------------------------------------------------------------------------------
Louisiana 12/04 40 U.S. Treasury Bond Short $ (4,412,955) $ (4,452,500) $ (39,545)
-----------------------------------------------------------------------------------------------------------------------
Maryland 12/04 178 U.S. Treasury Bond Short $ (19,613,954) $ (19,813,625) $ (199,671)
-----------------------------------------------------------------------------------------------------------------------
Missouri 12/04 96 U.S. Treasury Bond Short $ (10,615,420) $ (10,686,000) $ (70,580)
-----------------------------------------------------------------------------------------------------------------------
North Carolina 12/04 150 U.S. Treasury Bond Short $ (16,702,097) $ (16,696,875) $ 5,222
12/04 150 U.S. Treasury Note Short (16,767,721) (16,846,875) (79,154)
-----------------------------------------------------------------------------------------------------------------------
Oregon 12/04 200 U.S. Treasury Bond Short $ (22,269,462) $ (22,262,500) $ 6,962
12/04 100 U.S. Treasury Note Short (11,178,481) (11,231,250) (52,769)
-----------------------------------------------------------------------------------------------------------------------
South Carolina 12/04 120 U.S. Treasury Bond Short $ (13,264,177) $ (13,357,500) $ (93,323)
-----------------------------------------------------------------------------------------------------------------------
Tennessee 12/04 94 U.S. Treasury Bond Short $ (10,394,866) $ (10,463,375) $ (68,509)
-----------------------------------------------------------------------------------------------------------------------
Virginia 12/04 165 U.S. Treasury Bond Short $ (18,529,686) $ (18,366,562) $ (163,124)
</Table>
At August 31, 2004, the Portfolios had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
At August 31, 2004, the Arkansas Portfolio, the North Carolina Portfolio, and
the Oregon Portfolio have entered into interest rate swap agreements with
Morgan Stanley Capital Services, Inc. whereby the Portfolios make bi-annual
payments at a fixed rate equal to 5.1225% on the notional amounts of
$2,000,000, $6,000,000, and $1,000,000, respectively. In exchange, the
Portfolios receive payments at a rate equal to the USD-LIBOR on the same
notional amounts. The value of the contracts, which terminate February 7,
2015, are recorded as a payable for open swap contracts on the Arkansas
Portfolio, the North Carolina Portfolio, and the Oregon Portfolio of $55,822,
$167,467, and $27,911, respectively at August 31, 2004.
137
<Page>
EATON VANCE MUNICIPALS PORTFOLIOS as of August 31, 2004
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE TRUSTEES AND INVESTORS OF ALABAMA MUNICIPALS PORTFOLIO, ARKANSAS
MUNICIPALS PORTFOLIO, GEORGIA MUNICIPALS PORTFOLIO, KENTUCKY MUNICIPALS
PORTFOLIO, LOUISIANA MUNICIPALS PORTFOLIO, MARYLAND MUNICIPALS PORTFOLIO,
MISSOURI MUNICIPALS PORTFOLIO, NORTH CAROLINA MUNICIPALS PORTFOLIO, OREGON
MUNICIPALS PORTFOLIO, SOUTH CAROLINA MUNICIPALS PORTFOLIO, TENNESSEE MUNICIPALS
PORTFOLIO AND VIRGINIA MUNICIPALS PORTFOLIO:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Alabama Municipals Portfolio, Arkansas
Municipals Portfolio, Georgia Municipals Portfolio, Kentucky Municipals
Portfolio, Louisiana Municipals Portfolio, Maryland Municipals Portfolio,
Missouri Municipals Portfolio, North Carolina Municipals Portfolio, Oregon
Municipals Portfolio, South Carolina Municipals Portfolio, Tennessee Municipals
Portfolio and Virginia Municipals Portfolio (the "Portfolios") as of August 31,
2004, and the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended August 31, 2004 and 2003
and supplementary data for each of the years in the five year period ended
August 31, 2004. These financial statements and supplementary data are the
responsibility of the Portfolios' management. Our responsibility is to express
an opinion on the financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and supplementary data are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned at August 31, 2004, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at August 31, 2004, the results of their operations, the changes in
their net assets and their supplementary data for the respective stated periods,
in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 21, 2004
138
<Page>
EATON VANCE MUNICIPALS FUNDS
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Municipals Trust (the Trust),
Alabama Municipals Portfolio (ALP), Arkansas Municipals Portfolio (ARP), Georgia
Municipals Portfolio (GAP), Kentucky Municipals Portfolio (KYP), Louisiana
Municipals Portfolio (LAP), Maryland Municipals Portfolio (MDP), Missouri
Municipals Portfolio (MOP), North Carolina Municipals Portfolio (NCP), Oregon
Municipals Portfolio (ORP), South Carolina Municipals Portfolio (SCP), Tennessee
Municipals Portfolio (TNP) and Virginia Municipals Portfolio (VAP) are
responsible for the overall management and supervision of the Trust's and
Portfolios' affairs. The Trustees and officers of the Trust and the Portfolios
are listed below. Except as indicated, each individual has held the office shown
or other offices in the same company for the last five years. Trustees and
officers of the Trust and the Portfolios hold indefinite terms of office. The
"noninterested Trustees" consist of those Trustees who are not "interested
persons" of the Trust and the Portfolios, as that term is defined under the 1940
Act. The business address of each Trustee and officer is The Eaton Vance
Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC"
refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to
Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD"
refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and
trustee, respectively, of EVM and BMR. EVD is the Funds' principal underwriter,
the Portfolios' placement agent and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
James B. Hawkes Trustee and Trustee and Chairman, President 195 Director of EVC
11/9/41 Vice President Vice President of the and Chief Executive
Trust since 1985; of the Officer of BMR, EVC,
Portfolios since 1992 EVM and EV; Director
of EV; Vice President
and Director of EVD.
Trustee and/or
officer of
195 registered
investment companies
in the Eaton Vance
Fund Complex.
Mr. Hawkes is
an interested person
because of his
positions with BMR,
EVM, EVC and EV,
which are affiliates
of the Trust and the
Portfolios.
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III Trustee Trustee of the Trust since Jacob H. Schiff 195 Director of
2/23/35 1986; of ALP, GAP, KYP, Professor of Tiffany & Co.
MDP, MOP, NCP, ORP, Investment Banking (specialty
TNP and VAP since Emeritus, Harvard retailer) and
1992; of ARP, LAP and University Graduate Telect, Inc.
SCP since 1993 School of Business (telecommunication
Administration. services company)
William H. Park Trustee Since 2003 President and Chief 194 None
9/19/47 Executive Officer,
Prizm Capital
Management, LLC
(investment
management firm)
(since 2002).
Executive Vice
President and Chief
Financial Officer,
United Asset
Management
Corporation (a
holding company
owning institutional
investment management
firms) (1982-2001).
Ronald A. Pearlman Trustee Since 2003 Professor of Law, 194 None
7/10/40 Georgetown University
Law Center (since
1999). Tax Partner,
Covington & Burling,
Washington, DC
(1991-2000).
Norton H. Reamer Trustee Trustee of the Trust since President, Chief 195 None
9/21/35 1985; of ALP, GAP, KYP, Executive Officer and
MDP, MOP, NCP, ORP, a Director of Asset
TNP and VAP since Management Finance
1992; of ARP, LAP and Corp. (a specialty
SCP since 1993 finance company
serving the
investment management
industry) (since
October 2003).
President, Unicorn
Corporation (an
investment and
financial advisory
services company)
(since September
2000). Formerly,
Chairman, Hellman,
Jordan Management
Co., Inc. (an
investment management
company) (2000-
2003). Formerly,
Advisory Director of
Berkshire Capital
Corporation
(investment banking
firm) (2002-2003).
Formerly Chairman of
the Board, United
Asset Management
Corporation (a
holding company
owning institutional
investment management
firms) and Chairman,
President and
Director, UAM Funds
(mutual funds)
(1980-2000).
</Table>
139
<Page>
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S)
(CONTINUED)
Lynn A. Stout Trustee Since 1998 Professor of Law, 195 None
9/14/57 University of
California at Los
Angeles School of Law
(since July 2001).
Formerly, Professor
of Law, Georgetown
University Law
Center.
</Table>
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS
- ----------------------------------------------------------------------------------------------------------------------------
Thomas J. Fetter President Since 1993 Vice President of EVM and BMR. Officer
8/20/43 of 124 registered investment companies
managed by EVM or BMR.
William H. Ahern, Jr. Vice President of the Vice President of the Trust Vice President of EVM and BMR. Officer
7/28/59 Trust, ALP, KYP since 2004; ALP since 1997; of 77 registered investment companies
and MDP of KYP since 1998; of MDP managed by EVM or BMR.
since 2000
Craig R. Brandon Vice President of Since 2004 Vice President of EVM and BMR. Officer
12/31/66 the Trust of 44 registered investment companies
managed by EVM or BMR.
Cynthia J. Clemson Vice President of the Vice President of the Trust Vice President of EVM and BMR. Officer
3/2/63 Trust, GAP, MOP since 2004; of GAP, MOP of 84 registered investment companies
and TNP and TNP since 1995 managed by EVM or BMR.
Robert B. MacIntosh Vice President Since 1993 Vice President of EVM and BMR. Officer
1/22/57 of 124 registered investment companies
managed by EVM or BMR.
Thomas M. Metzold Vice President of the Vice President of the Trust Vice President of EVM and BMR. Officer
8/3/58 Trust, ARP, NCP and NCP since 2004; of ARP of 48 registered investment companies
and ORP since 2000; of ORP managed by EVM or BMR.
since 1996
Alan R. Dynner Secretary Since 1997 Vice President, Secretary and Chief
10/10/40 Legal Officer of BMR, EVM, EVD, EV and
EVC. Officer of 195 registered investment
companies managed by EVM or BMR.
Kristin S. Anagnost Treasurer of LAP, MOP, Since 2002(2) Assistant Vice President of EVM and BMR.
6/12/65 ORP and TNP Officer of 107 registered investment
companies managed by EVM or BMR.
Barbara E. Campbell Treasurer of ALP, ARP, Since 2002(2) Vice President of EVM and BMR. Officer
6/19/57 GAP, KYP, MDP, NCP, of 195 registered investment companies
SCP and VAP managed by EVM or BMR.
James L. O'Connor Treasurer of the Trust Since 1989 Vice President of BMR, EVM and EVD.
4/1/45 Officer of 116 registered investment
companies managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(2) Prior to 2002, Ms. Anagnost served as Assistant Treasurer since 1998 and
Ms. Campbell served as Assistant Treasurer since 1993.
The SAI for the Funds includes additional information about the Trustees and
officers of the Funds and the Portfolios and can be obtained without charge by
calling 1-800-225-6265.
140
<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
(a)-(d)
The following table presents aggregate fees billed to the registrant for the
fiscal years ended August 31, 2003, and August 31, 2004 by the registrant's
principal accountant for professional services rendered for the audit of the
registrant's annual financial statements and fees billed for other services
rendered by the principal accountant during those periods.
<Table>
<Caption>
FISCAL YEARS ENDED 08/31/03 08/31/04
- ------------------------------------------------------------------------
Audit Fees $ 19,570 $ 20,188
Audit-Related Fees(1) $ 0 $ 0
Tax Fees(2) $ 4,000 $ 4,100
All Other Fees(3) $ 0 $ 0
-------------------------
Total $ 23,570 $ 24,288
=========================
</Table>
<Page>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the audit of
the registrant's financial statements and are not reported under the category of
audit fees.
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax advice, and
tax planning and specifically include fees for tax return preparation.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the registrant's principal accountant other than audit,
audit-related, and tax services. During the fiscal year ended August 31, 2004,
$35,000 was billed by the registrant's principal accountant, Deloitte and Touche
LLP, for work done in connection with its Rule 17Ad-13 examination of Eaton
Vance Management's assertion that it has maintained an effective internal
control structure over sub-transfer agent and registrar functions, such services
being pre-approved in accordance with Rule 2-01(c)(7)(ii) of Regulation S-X.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed to the registrant by the
registrant's principal accountant for the last two fiscal years of the
registrant; and (ii) the aggregate non-audit fees (i.e., fees for audit-related,
tax, and other services) billed to the Eaton Vance organization by the
registrant's principal accountant for the last two fiscal years of the
registrant.
<Table>
<Caption>
FISCAL YEARS ENDED 08/31/03 08/31/04
- ------------------------------------------------------------------------
Registrant $ 4,000 $ 4,100
Eaton Vance (1) $ 435,295 $ 291,084
</Table>
<Page>
(1) The investment adviser to the registrant, as well as any of its affiliates
that provide ongoing services to the registrant, are subsidiaries of Eaton
Vance Corp.
(h) The registrant's audit committee has considered whether the provision by the
registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
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.
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
<Page>
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no 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.
North Carolina Municipals Portfolio
- -----------------------------------
By: /s/ Thomas J. Fetter
------------------------------------
Thomas J. Fetter
President
Date: October 21, 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/ Barbara E. Campbell
------------------------------------
Barbara E. Campbell
Treasurer
Date: October 21, 2004
By: /s/ Thomas J. Fetter
------------------------------------
Thomas J. Fetter
President
Date: October 21, 2004