Eaton Vance Massachusetts Municipal Income Trust

 

 

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: 811-09147

 

 

Eaton Vance Massachusetts Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

November 30

Date of Fiscal Year End

November 30, 2012

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


 

Eaton Vance

Municipal Income Trusts

 

Annual Report

November 30, 2012

 

 

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California (CEV)    •    Massachusetts (MMV)     •    Michigan (EMI)    •    New Jersey (EVJ)

New York (EVY)    •    Ohio (EVO)    •    Pennsylvania (EVP)

 

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Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.


Annual Report November 30, 2012

Eaton Vance

Municipal Income Trusts

Table of Contents

 

Management’s Discussion of Fund Performance

     2   

Performance and Fund Profile

  
  

California Municipal Income Trust

     4   

Massachusetts Municipal Income Trust

     5   

Michigan Municipal Income Trust

     6   

New Jersey Municipal Income Trust

     7   

New York Municipal Income Trust

     8   

Ohio Municipal Income Trust

     9   

Pennsylvania Municipal Income Trust

     10   
  

Endnotes and Additional Disclosures

     11   

Financial Statements

     12   

Report of Independent Registered Public Accounting Firm

     60   

Federal Tax Information

     61   

Dividend Reinvestment Plan

     62   

Management and Organization

     64   

Important Notices

     67   


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

In December 2011, an equity rally took hold and continued into early April 2012, fueled by stronger economic growth in the fourth quarter, falling unemployment and what the markets perceived as a successful restructuring of Greek debt. Then in May 2012, the third annual mid-year economic slowdown arrived, instigated by renewed concerns in Europe, slowing growth in China and continuing political uncertainty in the United States with the upcoming presidential election.

Despite a slowdown in consumer spending and weakening employment data, however, stocks moved upward intermittently from June 2012 through early fall — in part because investors anticipated that worsening economic news would prompt the U.S. Federal Reserve to initiate another round of quantitative easing to stimulate the economy, which it did in September 2012. U.S. Treasury yields, meanwhile, fell to all-time lows in July 2012. In the final weeks of the period, however, during the run-up to the election and after President Obama’s victory, the equity market retreated as investors turned their attention to the so-called fiscal cliff, the automatic triggering of spending cuts and expiration of tax cuts set to occur on New Year’s Day 2013.

Against this backdrop, municipal bonds rallied during the one-year period ended November 30, 2012, led by the long end of the yield curve. The Barclays Capital Municipal Bond Index2 — an unmanaged index of municipal bonds traded in the United States — returned 10.17% for the period, while the Funds’ benchmark, the Barclays Capital Long (22+) Municipal Bond Index (the Index), returned 16.10%. As yields on high quality bonds fell, investors moved out on the yield curve, buying longer-maturity municipal bonds to potentially take advantage of higher yields. In their quest for income during a period of historically low interest rates, investors also favored lower-quality, higher-yielding issues over higher-quality bonds. As a result, longer-duration, lower credit-quality bonds were the best performers in the municipal space during the period.

Municipal bonds offered higher taxable-equivalent yields than Treasuries for much of the period. The ratio of 30-year AAA6 municipal yields to 30-year Treasury yields — which historically has averaged less than 100% because municipal yields are federally tax-exempt — began the period at 125.9%, making municipal bonds attractive relative to Treasuries. After the election, however, investors seemed to view Obama’s win as an indication that marginal tax

rates were likely to go up. That sentiment led to higher demand for tax-exempt municipals, driving the municipal-to-Treasury yield ratio down to 87.9% at period-end on November 30, 2012. For the one-year period, municipal bonds outperformed Treasuries.

Fund Performance

For the fiscal year ended November 30, 2012, all of the Funds’ shares at net asset value (NAV) outperformed the 16.10% return of the Index.

The Funds’ overall strategy is to invest in bonds with maturities of 10 years or more, in order to capture their generally higher yields and potentially greater income payments at the long end of the yield curve. Management tends to hedge to various degrees against the greater potential risk of volatility at the long end of the yield curve by using Treasury futures in seeking to provide downside protection.

For all Funds except the Massachusetts Fund, an overweighting in zero-coupon bonds — which were the strongest-performing coupon structure in the Index during the period — contributed to those Funds’ relative outperformance versus the Index. However, security selection in the zero-coupon issues detracted from results relative to the Index for all Funds, as none was able to beat the 38.10% return of the zero-coupon allocation in the Index.

The Funds’ use of leverage5 contributed to the outperformance of all Funds versus the Index during the one-year period. In managing the Funds, management employs leverage to seek to enhance the Funds’ tax-exempt income. The use of leverage has the effect of achieving additional exposure to the municipal market. Leverage magnifies the Funds’ exposure to their underlying investments in both up and down markets. During this period of strong performance by municipal bonds, leverage was a key contributor to the Funds’ relative outperformance versus the unleveraged Index.

As a risk-management tactic within the overall Fund strategy mentioned above, interest-rate hedging is intended to moderate performance on both the upside and the downside of the market. During the one-year period, when municipal bonds and Treasuries performed strongly, the hedging strategy moderated a portion of the positive performance versus the Index of all Funds to various degrees.

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  2  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Management’s Discussion of Fund Performance—continued

 

 

State-specific Results

Eaton Vance California Municipal Income Trust shares at NAV returned 25.59%, surpassing the 16.10% return of the Index. In addition to leverage and an overweighting in zero-coupon bonds, the Fund’s longer call protection, relative to the Index, contributed to the Fund’s relative outperformance. In a period of falling interest rates, such as occurred during the Fund’s fiscal year, bond issuers tend to retire bonds as soon as they are callable and replace them with lower-interest issues. Thus in a rallying market, it may be beneficial for a fund to own bonds with longer call protection, because it allows the Fund to hold onto higher-yielding issues. Notable detractors from Fund performance versus the Index included the Fund’s hedging strategy, security selection in zero-coupon bonds, and an underweighting in A-rated issues, which were the strongest-performing rating category in the Index. Underweighted positions in hospital bonds, industrial development revenue (IDR) bonds and lease revenue/certificates of participation (COP) bonds dragged on performance relative to the Index as well.

Eaton Vance Massachusetts Municipal Income Trust shares at NAV returned 22.28%, outperforming the 16.10% return of the Index. Key contributors to performance versus the Index included leverage, longer call protection, and an overweighting and security selection in the education sector, which performed well during the period. Detractors from performance versus the Index included security selection in zero-coupon bonds, the Fund’s hedging strategy, and underweights and security selection in A-rated and BBB-rated issues.

Eaton Vance Michigan Municipal Income Trust shares at NAV returned 20.92%, outperforming the 16.10% return of the Index. Leverage and an overweighting in zero-coupon bonds were contributors to relative outperformance versus the Index. The key detractors from performance versus the Index were security selection in zero-coupon bonds, an underweighting and security selection in IDR bonds, and an overweighting in high-quality, intermediate-maturity general obligation (GO) bonds.

Eaton Vance New Jersey Municipal Income Trust shares at NAV returned 20.18%, outpacing the 16.10% return of the Index. The Fund’s relative outperformance versus the Index was driven by leverage, overweights in zero-coupon bonds and IDR bonds, and longer call protection. Primary detractors from the Fund’s performance versus the Index included the

Fund’s hedging strategy as well as security selection in both zero-coupon bonds and IDR bonds.

Eaton Vance New York Municipal Income Trust shares at NAV returned 24.30%, outperforming the 16.10% return of the Index. Key contributors to results versus the Index included leverage, an overweighting in zero-coupon bonds, an overweighting and security selection in IDR bonds, and longer call protection. Detractors from the Fund’s performance versus the Index included security selection in zero-coupon bonds, the Fund’s hedging strategy, and an underweighting and security selection in A-rated bonds.

Eaton Vance Ohio Municipal Income Trust shares at NAV returned 24.71%, outperforming the 16.10% return of the Index. Leverage, an overweighting in zero-coupon bonds, and longer call protection were the main drivers of results versus the Index. In contrast, security selection in zero-coupon bonds, the Fund’s hedging strategy, and an underweighting in A-rated and BBB-rated bonds detracted from results versus the Index.

Eaton Vance Pennsylvania Municipal Income Trust shares at NAV returned 18.20%, outperforming the 16.10% return of the Index. The Fund’s relative outperformance versus the Index was driven by leverage and an overweighing in zero-coupon bonds. Detractors from the Fund’s performance versus the Index included security selection in zero-coupon bonds, the Fund’s hedging strategy, an overweighting in pre-refunded bonds, and security selection in hospital and IDR issues.

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  3  


Eaton Vance

California Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         25.59      6.25      6.52

Fund at Market Price

             22.22         9.26         7.24   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              0.15
           
Distributions4                                

Total Distributions per share for the period

            $ 0.839   

Distribution Rate at NAV

              5.57

Taxable-Equivalent Distribution Rate at NAV

              9.55

Distribution Rate at Market Price

              5.56

Taxable-Equivalent Distribution Rate at Market Price

              9.54
           
% Total Leverage5                                

Auction Preferred Shares (APS)

              29.22

Residual Interest Bond (RIB)

              8.58   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    8.4   

BBB

    10.7

AA

    54.3      

BB

    1.6   

A

    20.8      

Not Rated

    4.2   

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  4  


Eaton Vance

Massachusetts Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager Craig R. Brandon, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         22.28      8.14      7.31

Fund at Market Price

             16.41         11.19         6.57   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              0.93
           
Distributions4                                

Total Distributions per share for the period

            $ 0.805   

Distribution Rate at NAV

              4.91

Taxable-Equivalent Distribution Rate at NAV

              7.98

Distribution Rate at Market Price

              4.87

Taxable-Equivalent Distribution Rate at Market Price

              7.91
           
% Total Leverage5                                

APS

              28.86

RIB

              7.03   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    19.0   

BBB

    8.4

AA

    41.5      

BB

    2.3   

A

    27.8      

Not Rated

    1.0   

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  5  


Eaton Vance

Michigan Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager William H. Ahern, Jr., CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         20.92      7.78      6.94

Fund at Market Price

             24.67         10.25         6.84   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              –4.05
           
Distributions4                                

Total Distributions per share for the period

            $ 0.773   

Distribution Rate at NAV

              5.02

Taxable-Equivalent Distribution Rate at NAV

              8.07

Distribution Rate at Market Price

              5.23

Taxable-Equivalent Distribution Rate at Market Price

              8.41
           
% Total Leverage5                                

APS

              35.08

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  6  


Eaton Vance

New Jersey Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager Adam Weigold, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         20.18      6.52      6.93

Fund at Market Price

             29.62         12.13         7.77   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              10.75
           
Distributions4                                

Total Distributions per share for the period

            $ 0.797   

Distribution Rate at NAV

              5.33

Taxable-Equivalent Distribution Rate at NAV

              9.01

Distribution Rate at Market Price

              4.81

Taxable-Equivalent Distribution Rate at Market Price

              8.13
           
% Total Leverage5                                

APS

              29.84

RIB

              8.44   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    12.1   

BB

    0.6

AA

    28.9      

B

    2.1   

A

    43.4      

Not Rated

    0.8   

BBB

    12.1        

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  7  


Eaton Vance

New York Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager Craig R. Brandon, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         24.30      7.32      7.00

Fund at Market Price

             27.89         9.84         8.07   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              3.93
           
Distributions4                                

Total Distributions per share for the period

            $ 0.910   

Distribution Rate at NAV

              5.86

Taxable-Equivalent Distribution Rate at NAV

              9.89

Distribution Rate at Market Price

              5.63

Taxable-Equivalent Distribution Rate at Market Price

              9.50
           

% Total Leverage5

                                   

APS

              24.43

RIB

              13.99   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    12.3   

BBB

    13.4

AA

    37.0      

BB

    2.6   

A

    27.2      

Not Rated

    7.5   

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  8  


Eaton Vance

Ohio Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager William H. Ahern, Jr., CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         24.71      7.83      7.37

Fund at Market Price

             33.34         12.26         7.56   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           
% Premium/Discount to NAV                                
              5.99
           
Distributions4                                

Total Distributions per share for the period

            $ 0.831   

Distribution Rate at NAV

              5.24

Taxable-Equivalent Distribution Rate at NAV

              8.57

Distribution Rate at Market Price

              4.95

Taxable-Equivalent Distribution Rate at Market Price

              8.09
           
% Total Leverage5                                

APS

              32.71

RIB

              2.09   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  9  


Eaton Vance

Pennsylvania Municipal Income Trust

November 30, 2012

 

Performance2,3

 

Portfolio Manager Adam Weigold, CFA

 

% Average Annual Total Returns    Inception Date      One Year      Five Years      Ten Years  

Fund at NAV

     01/29/1999         18.20      6.43      6.64

Fund at Market Price

             17.23         10.11         7.09   

Barclays Capital Long (22+) Municipal Bond Index

             16.10      6.73      6.29
           

% Premium/Discount to NAV

                                   
              2.17
           
Distributions4                                

Total Distributions per share for the period

            $ 0.827   

Distribution Rate at NAV

              5.46

Taxable-Equivalent Distribution Rate at NAV

              8.67

Distribution Rate at Market Price

              5.34

Taxable-Equivalent Distribution Rate at Market Price

              8.48
           
% Total Leverage5                                

APS

              33.60

RIB

              2.62   

Fund Profile

 

Credit Quality (% of total investments)6

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    3.4   

BB

    6.3

AA

    44.5      

Not Rated

    3.1   

A

    42.7        

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

 

  10  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Endnotes and Additional Disclosures

 

 

1

The views expressed in this report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as “forward looking statements”. The Fund’s actual future results may differ significantly from those stated in any forward looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund’s filings with the Securities and Exchange Commission.

 

2 

Barclays Capital Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. Barclays Capital Long (22+) Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

3 

Performance results reflect the effects of leverage.

 

4 

The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be composed of ordinary income, tax- exempt income, net realized capital gains and return of capital. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes. Subsequent distributions declared, but not reflected in Fund Performance, reflect a reduction of the monthly distribution for Ohio Municipal Income Trust.

5 

Fund employs RIB financing and/or APS leverage. The leverage created by RIB investments and APS provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short-term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. APS leverage represents the liquidation value of the Fund’s APS outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS and Floating Rate Notes. The Fund is required to maintain prescribed asset coverage for its APS, which could be reduced if Fund asset values decline. Floating Rate Notes in both calculations reflect the effect of RIBs purchased in secondary market transactions, if applicable.

 

6 

Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. Ratings of BBB or higher by Standard and Poor’s or Fitch (Baa or higher by Moody’s) are considered to be investment grade quality.

 

  

Fund profile subject to change due to active management.

 

 

  11  


Eaton Vance

California Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 159.5%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 18.1%

  

California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39

  $ 3,135      $ 3,591,080   

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31

    195        234,938   

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36

    330        388,912   

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30

    745        849,039   

California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29

    2,580        2,659,490   

California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23

    1,600        2,095,184   

California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36

    235        295,947   

California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/39

    2,490        2,976,795   

California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30

    630        741,705   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31

    415        483,720   

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35

    285        323,848   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26

    810        980,586   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27

    850        1,022,678   

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28

    895        1,072,926   

University of California, 5.25%, 5/15/39

    1,250        1,495,387   
                 
    $ 19,212,235   
                 

Electric Utilities — 14.2%

  

Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34

  $ 270      $ 324,648   

Chula Vista, (San Diego Gas and Electric), (AMT), 5.00%, 12/1/27

    2,275        2,556,122   

Colton Public Financing Authority, Electric System Revenue, 5.00%, 4/1/27

    1,500        1,763,340   

Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32

    2,170        2,594,821   

Northern California Power Agency, 5.25%, 8/1/24

    1,500        1,784,550   

Sacramento Municipal Utility District, 5.00%, 8/15/27

    1,335        1,624,415   

Sacramento Municipal Utility District, 5.00%, 8/15/28

    1,795        2,179,381   

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

    680        789,405   

Vernon, Electric System Revenue, 5.125%, 8/1/21

    1,300        1,483,521   
                 
    $ 15,100,203   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations — 19.7%

  

California, 5.50%, 11/1/35

  $ 1,600      $ 1,975,904   

California, 6.00%, 4/1/38

    750        931,965   

California, (AMT), 5.05%, 12/1/36

    1,030        1,063,320   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/35

    1,000        1,206,370   

Cupertino Union School District, (Election of 2012), 5.00%, 8/1/36

    1,630        1,960,189   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/32

    195        223,306   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/33

    215        243,303   

Larkspur-Corte Madera School District, (Election of 2011), 4.00%, 8/1/34

    235        264,363   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/35

    230        262,441   

Larkspur-Corte Madera School District, (Election of 2011), 4.25%, 8/1/36

    280        318,324   

Larkspur-Corte Madera School District, (Election of 2011), 4.50%, 8/1/39

    1,000        1,158,790   

Menlo Park City School District, 5.00%, 7/1/30

    1,035        1,297,942   

Palo Alto, (Election of 2008), 5.00%, 8/1/40

    3,655        4,323,975   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33

    740        900,491   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

    860        1,039,112   

Santa Clara County, (Election of 2008), 5.00%, 8/1/39(1)(2)

    3,180        3,752,114   
                 
    $ 20,921,909   
                 

Hospital — 17.4%

  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

  $ 1,000      $ 1,178,970   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

    190        222,783   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32

    1,000        1,101,690   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/35

    910        1,052,506   

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/39

    910        1,056,728   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/27

    2,000        2,436,480   

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/33

    1,000        1,178,090   

California Health Facilities Financing Authority, (Providence Health System), 6.50%, 10/1/38

    1,475        1,818,262   

California Health Facilities Financing Authority, (Stanford Hospital and Clinics), 5.00%, 8/15/51

    1,530        1,758,888   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34

    600        667,098   
 

 

  12   See Notes to Financial Statements.


Eaton Vance

California Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

               

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36

  $ 445      $ 494,764   

Torrance, (Torrance Memorial Medical Center), 5.50%, 6/1/31

    1,900        1,904,807   

Washington Township Health Care District, 5.00%, 7/1/32

    2,780        2,926,868   

Washington Township Health Care District, 5.25%, 7/1/29

    700        701,414   
                 
  $ 18,499,348   
                 

Housing — 1.0%

  

Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29

  $ 665      $ 677,318   

Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29

    392        398,841   
                 
  $ 1,076,159   
                 

Industrial Development Revenue — 1.3%

  

California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23

  $ 1,235      $ 1,351,115   
                 
  $ 1,351,115   
                 

Insured – Education — 4.3%

  

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35

  $ 2,660      $ 2,933,608   

California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23

    1,250        1,636,862   
                 
  $ 4,570,470   
                 

Insured – Electric Utilities — 3.0%

  

Glendale, Electric System Revenue, (AGC), 5.00%, 2/1/31

  $ 2,790      $ 3,147,120   
                 
  $ 3,147,120   
                 

Insured – Escrowed / Prerefunded — 3.6%

  

Foothill/Eastern Transportation Corridor Agency, Toll Road Bonds, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26

  $ 5,130      $ 3,840,267   
                 
  $ 3,840,267   
                 

Insured – General Obligations — 8.2%

  

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34

  $ 6,485      $ 2,065,408   

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35

    4,825        1,450,009   

Riverside Community College District, (Election of 2004), (AGM), (NPFG), 5.00%, 8/1/32

    2,005        2,306,211   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations (continued)

               

Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25

  $ 4,720      $ 2,951,227   
                 
  $ 8,772,855   
                 

Insured – Hospital — 9.1%

  

California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37

  $ 2,900      $ 3,224,800   

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 3/1/41
(1)

    750        824,227   

California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)

    5,000        5,684,100   
                 
  $ 9,733,127   
                 

Insured – Lease Revenue / Certificates of Participation — 10.0%

  

Anaheim Public Financing Authority, (Public Improvements), (AGM), 0.00%, 9/1/17

  $ 4,410      $ 3,912,375   

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

    2,000        2,865,580   

San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)

    3,500        3,913,560   
                 
  $ 10,691,515   
                 

Insured – Special Tax Revenue — 1.6%

  

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

  $ 9,465      $ 850,430   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    5,085        869,739   
                 
  $ 1,720,169   
                 

Insured – Transportation — 10.8%

               

Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29

  $ 5,000      $ 2,127,600   

Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31

    4,500        1,819,710   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)(2)

    740        848,995   

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/32

    10,000        3,746,400   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 5.00%, 3/1/37

    1,320        1,409,641   

San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47

    1,350        1,536,057   
                 
  $ 11,488,403   
                 
 

 

  13   See Notes to Financial Statements.


Eaton Vance

California Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Water and Sewer — 3.9%

               

East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32(1)

  $ 2,000      $ 2,307,840   

Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30

    1,830        1,835,106   
                 
  $ 4,142,946   
                 

Other Revenue — 2.1%

               

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32

  $ 385      $ 416,489   

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37

    315        337,333   

Golden State Tobacco Securitization Corp., 5.30%, (0.00% until 12/1/12), 6/1/37

    980        876,316   

Golden State Tobacco Securitization Corp., 5.75%, 6/1/47

    640        597,485   
                 
  $ 2,227,623   
                 

Senior Living / Life Care — 1.8%

               

ABAG Finance Authority for Nonprofit Corporations, (Episcopal Senior Communities), 6.00%, 7/1/31

  $ 290      $ 341,591   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.75%, 11/15/26

    175        179,436   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 4.875%, 11/15/36

    700        710,164   

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41

    600        699,768   
                 
  $ 1,930,959   
                 

Special Tax Revenue — 12.0%

               

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26

  $ 285      $ 286,961   

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34

    460        443,997   

Corona Public Financing Authority, 5.80%, 9/1/20

    935        939,432   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/27

    190        194,171   

Eastern Municipal Water District, Community Facilities District No. 2004-27, (Cottonwood Ranch), Special Tax Revenue, 5.00%, 9/1/36

    480        487,670   

Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27

    1,590        1,599,842   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/22

    240        281,172   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue (continued)

               

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/23

  $ 480      $ 558,134   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/24

    240        276,859   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/25

    335        385,250   

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/26

    240        275,066   

Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24

    420        421,844   

Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29

    750        753,090   

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

    2,400        2,901,600   

Santaluz Community Facilities District No. 2, 6.10%, 9/1/21

    250        251,665   

Santaluz Community Facilities District No. 2, 6.20%, 9/1/30

    490        492,558   

Temecula Unified School District, 5.00%, 9/1/27

    250        257,825   

Temecula Unified School District, 5.00%, 9/1/37

    400        405,980   

Tustin Community Facilities District, 6.00%, 9/1/37

    500        528,010   

Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23

    1,000        1,001,260   
                 
  $ 12,742,386   
                 

Transportation — 11.3%

               

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Escrowed to Maturity, 5.00%, 4/1/31

  $ 2,000      $ 2,293,800   

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.25%, 4/1/29

    1,000        1,222,790   

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)(2)

    2,120        2,455,914   

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30

    1,500        1,693,020   

Port of Redwood City, (AMT), 5.125%, 6/1/30

    1,170        1,174,458   

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35

    2,760        3,153,272   
                 
  $ 11,993,254   
                 

Water and Sewer — 6.1%

               

Beverly Hills Public Financing Authority, Water Revenue, 5.00%, 6/1/30

  $ 1,795      $ 2,270,460   

California Department of Water Resources, 5.00%, 12/1/29

    1,840        2,191,256   
 

 

  14   See Notes to Financial Statements.


Eaton Vance

California Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer (continued)

               

San Mateo, Sewer Revenue, 5.00%, 8/1/36

  $ 1,700      $ 2,008,295   
                 
  $ 6,470,011   
                 

Total Tax-Exempt Investments — 159.5%
(identified cost $151,193,761)

   

  $ 169,632,074   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (47.0)%

  

  $ (49,975,000
                 

Other Assets, Less Liabilities — (12.5)%

  

  $ (13,290,216
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 106,366,858   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
BHAC     Berkshire Hathaway Assurance Corp.
CIFG     CIFG Assurance North America, Inc.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
RADIAN     Radian Group, Inc.

The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 34.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 13.8% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 

(2)

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $2,712,022.

 

 

  15   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 153.5%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 6.1%

  

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33

  $ 910      $ 1,300,053   

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34

    990        1,421,472   
                 
    $ 2,721,525   
                 

Education — 27.3%

  

Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33

  $ 600      $ 609,084   

Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35

    1,080        1,259,658   

Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38

    625        671,181   

Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32

    1,500        1,705,440   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35

    1,640        2,377,278   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)

    1,500        1,762,920   

Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.00%, 7/1/38

    415        484,351   

Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35

    1,350        1,557,104   

Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38

    1,420        1,740,395   
                 
    $ 12,167,411   
                 

General Obligations — 16.9%

  

Boston, 4.00%, 4/1/24

  $ 300      $ 354,768   

Cambridge, 4.00%, 2/15/21

    595        723,764   

Danvers, 5.25%, 7/1/36

    885        1,078,488   

Lexington, 4.00%, 2/1/20

    320        386,797   

Lexington, 4.00%, 2/1/21

    415        506,387   

Lexington, 4.00%, 2/1/22

    430        526,965   

Lexington, 4.00%, 2/1/23

    355        436,909   

Newton, 5.00%, 4/1/36

    750        869,460   

Plymouth, 5.00%, 5/1/31

    345        417,836   

Plymouth, 5.00%, 5/1/32

    315        380,696   

Wayland, 5.00%, 2/1/33

    510        619,844   

Wayland, 5.00%, 2/1/36

    770        924,962   

Winchester, 5.00%, 4/15/36

    245        295,436   
                 
    $ 7,522,312   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital — 27.4%

  

Massachusetts Development Finance Agency, (Berkshire Health Systems), 5.00%, 10/1/31

  $ 1,000      $ 1,142,930   

Massachusetts Development Finance Agency, (Tufts Medical Center), 7.25%, 1/1/32

    600        772,644   

Massachusetts Development Finance Agency, (UMass Memorial), 5.50%, 7/1/31

    1,655        1,932,659   

Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center, Inc.), 5.75%, 7/1/36

    1,210        1,386,854   

Massachusetts Health and Educational Facilities Authority, (Children’s Hospital), 5.25%, 12/1/39

    500        572,790   

Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37

    1,135        1,272,619   

Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 6.75%, 10/1/33

    755        768,665   

Massachusetts Health and Educational Facilities Authority, (Lowell General Hospital), 5.125%, 7/1/35

    970        1,030,654   

Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/32(1)

    2,000        2,252,300   

Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29

    675        677,416   

Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29

    350        387,027   
                 
    $ 12,196,558   
                 

Housing — 6.3%

  

Massachusetts Housing Finance Agency, (AMT), 4.75%, 12/1/48

  $ 2,100      $ 2,149,350   

Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28

    650        672,932   
                 
    $ 2,822,282   
                 

Industrial Development Revenue — 1.6%

  

Massachusetts Development Finance Agency, (Covanta Energy), (AMT), 4.875%, 11/1/27

  $ 700      $ 709,625   
                 
    $ 709,625   
                 

Insured – Education — 10.2%

  

Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39

  $ 1,000      $ 1,438,970   

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)(2)

    1,365        1,911,874   

Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33

    1,165        1,191,946   
                 
    $ 4,542,790   
                 
 

 

  16   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Electric Utilities — 1.4%

  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29

  $ 570      $ 632,649   
                 
    $ 632,649   
                 

Insured – General Obligations — 3.2%

  

Massachusetts, (AMBAC), 5.50%, 8/1/30

  $ 1,000      $ 1,445,160   
                 
    $ 1,445,160   
                 

Insured – Hospital — 0.9%

  

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), 5.00%, 11/15/25

  $ 335      $ 379,602   
                 
    $ 379,602   
                 

Insured – Other Revenue — 1.9%

  

Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42

  $ 590      $ 834,437   
                 
    $ 834,437   
                 

Insured – Special Tax Revenue — 11.2%

  

Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32

  $ 1,450      $ 1,474,882   

Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29

    1,000        1,328,510   

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37(1)

    1,340        1,546,735   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

    3,385        304,143   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    1,825        312,148   
                 
    $ 4,966,418   
                 

Insured – Student Loan — 4.7%

  

Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30

  $ 365      $ 414,253   

Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33

    1,625        1,662,765   
                 
    $ 2,077,018   
                 

Insured – Transportation — 0.7%

  

Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/32

  $ 315      $ 333,276   
                 
    $ 333,276   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Other Revenue — 2.7%

  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/22

  $ 500      $ 599,230   

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/25

    505        596,102   
                 
    $ 1,195,332   
                 

Senior Living / Life Care — 5.6%

  

Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31

  $ 250      $ 250,105   

Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.625%, 7/1/29

    1,500        1,501,395   

Massachusetts Development Finance Agency, (Carleton-Willard Village), 5.625%, 12/1/30

    125        141,081   

Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.125%, 11/1/27

    140        141,387   

Massachusetts Development Finance Agency, (VOA Concord Assisted Living, Inc.), 5.20%, 11/1/41

    475        471,604   
                 
    $ 2,505,572   
                 

Special Tax Revenue — 7.6%

  

Massachusetts Bay Transportation Authority, 5.25%, 7/1/34

  $ 140      $ 166,089   

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/31

    1,665        746,819   

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/34

    5,195        1,990,049   

Virgin Islands Public Finance Authority, 5.00%, 10/1/39

    75        80,160   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    335        400,620   
                 
    $ 3,383,737   
                 

Transportation — 7.0%

  

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37

  $ 1,500      $ 1,710,225   

Massachusetts Port Authority, 5.00%, 7/1/28

    500        617,005   

Massachusetts Port Authority, 5.00%, 7/1/34

    670        807,832   
                 
    $ 3,135,062   
                 

Water and Sewer — 10.8%

  

Boston Water and Sewer Commission, 5.00%, 11/1/26

  $ 2,005      $ 2,468,556   

Boston Water and Sewer Commission, 5.00%, 11/1/29

    495        603,549   
 

 

  17   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer (continued)

  

Boston Water and Sewer Commission, 5.00%, 11/1/31

  $ 225      $ 272,050   

Massachusetts Water Resources Authority, 5.00%, 8/1/28

    1,195        1,479,553   
                 
    $ 4,823,708   
                 

Total Tax-Exempt Investments — 153.5%
(identified cost $59,981,205)

   

  $ 68,394,474   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (45.0)%

  

  $ (20,050,600
                 

Other Assets, Less Liabilities — (8.5)%

  

  $ (3,794,987
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 44,548,887   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 22.2% of total 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 1.2% to 13.4% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,001,874.

 

 

  18   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 150.9%   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 4.2%

               

Michigan Municipal Bond Authority, 5.00%, 10/1/29

  $ 600      $ 735,294   

Michigan Municipal Bond Authority, 5.00%, 10/1/30

    500        627,025   
                 
    $ 1,362,319   
                 

Education — 11.3%

               

Grand Valley State University, 5.625%, 12/1/29

  $ 525      $ 610,318   

Grand Valley State University, 5.75%, 12/1/34

    525        612,864   

Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35

    200        203,598   

Michigan State University, 5.00%, 2/15/40

    1,000        1,141,610   

Michigan State University, 5.00%, 2/15/44

    460        521,290   

Oakland University, 5.00%, 3/1/42

    500        567,490   
                 
    $ 3,657,170   
                 

Electric Utilities — 3.7%

               

Lansing Board of Water and Light, 5.50%, 7/1/41

  $ 500      $ 608,990   

Michigan Public Power Agency, 5.00%, 1/1/43

    550        603,620   
                 
    $ 1,212,610   
                 

Escrowed / Prerefunded — 1.8%

               

Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), Prerefunded to 11/15/13, 5.875%, 11/15/34

  $ 560      $ 590,162   
                 
    $ 590,162   
                 

General Obligations — 33.2%

               

Allegan Public Schools, 5.00%, 5/1/31

  $ 1,000      $ 1,161,130   

Ann Arbor Public Schools, 4.50%, 5/1/24

    350        396,032   

Comstock Park Public Schools, 5.00%, 5/1/28

    230        269,314   

Comstock Park Public Schools, 5.125%, 5/1/31

    275        322,094   

Comstock Park Public Schools, 5.25%, 5/1/33

    220        257,387   

Howell Public Schools, 4.50%, 5/1/29

    620        714,767   

Jenison Public Schools, 5.00%, 5/1/28

    500        578,535   

Jenison Public Schools, 5.00%, 5/1/30

    500        576,920   

Kent County, 5.00%, 1/1/25

    1,500        1,750,545   

Kent County, (AMT), 5.00%, 1/1/28

    1,000        1,172,260   

Livingston County, 4.00%, 6/1/28

    310        350,374   

Livingston County, 4.00%, 6/1/30

    335        374,115   

Michigan, 5.00%, 11/1/20

    1,000        1,283,470   

Michigan, 5.50%, 11/1/25

    270        329,937   

Northview Public Schools, 5.00%, 5/1/32

    725        838,796   

St. Clair County, (Convention Center), 3.75%, 4/1/42

    375        382,699   
                 
    $ 10,758,375   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital — 27.4%

               

Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25

  $ 185      $ 191,740   

Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37

    125        129,039   

Kent Hospital Finance Authority, (Spectrum Health),
5.50% to 1/15/15 (Put Date), 1/15/47

    275        302,010   

Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18

    360        360,817   

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

    500        569,805   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38

    675        716,344   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

    1,000        1,070,830   

Michigan Hospital Finance Authority, (McLaren Health Care), 5.00%, 6/1/35

    250        284,755   

Michigan Hospital Finance Authority, (McLaren Health Care), 5.00%, 8/1/35

    1,080        1,168,333   

Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21

    750        751,380   

Michigan Hospital Finance Authority, (MidMichigan Obligated Group), 6.125%, 6/1/39

    500        592,175   

Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/27

    1,000        1,182,300   

Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), 5.375%, 6/1/26

    425        456,288   

Saginaw Hospital Finance Authority, (Covenant Medical Center, Inc.), 5.00%, 7/1/30

    1,000        1,087,690   
                 
    $ 8,863,506   
                 

Housing — 1.4%

               

Michigan Housing Development Authority, 4.60%, 12/1/26

  $ 410      $ 459,237   
                 
    $ 459,237   
                 

Industrial Development Revenue — 4.7%

               

Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21

  $ 750      $ 705,630   

Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16

    800        802,800   
                 
    $ 1,508,430   
                 

Insured – Education — 4.9%

               

Ferris State University, (AGC), 5.125%, 10/1/33

  $ 570      $ 664,432   

Ferris State University, (AGC), 5.25%, 10/1/38

    500        586,820   

Wayne State University, (AGM), 5.00%, 11/15/35

    300        341,331   
                 
    $ 1,592,583   
                 
 

 

  19   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Electric Utilities — 5.2%

               

Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32

  $ 400      $ 400,832   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30

    220        241,162   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/32

    250        275,780   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34

    250        276,262   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29

    435        482,811   
                 
    $ 1,676,847   
                 

Insured – General Obligations — 16.3%

               

Battle Creek School District, (AGM), 5.00%, 5/1/37

  $ 1,105      $ 1,248,981   

Byron Center Public Schools, (AGM), 3.75%, 5/1/26

    650        698,406   

Byron Center Public Schools, (AGM), 4.00%, 5/1/28

    290        315,494   

Detroit School District, (AGM), 5.25%, 5/1/32

    300        387,006   

Hartland Consolidated Schools, (AGM), 5.25%, 5/1/29

    1,000        1,207,180   

Van Dyke Public Schools, (AGM), 5.00%, 5/1/38

    1,250        1,411,162   
                 
    $ 5,268,229   
                 

Insured – Hospital — 2.7%

               

Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35

  $ 860      $ 862,399   
                 
    $ 862,399   
                 

Insured – Lease Revenue / Certificates of Participation — 7.2%

  

Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29

  $ 1,000      $ 460,990   

Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30

    4,300        1,866,329   
                 
    $ 2,327,319   
                 

Insured – Special Tax Revenue — 1.4%

               

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

  $ 2,300      $ 206,655   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    1,475        252,284   
                 
    $ 458,939   
                 

Insured – Transportation — 3.4%

               

Wayne County Airport Authority, (AGC), (AMT), 5.375%, 12/1/32

  $ 1,000      $ 1,113,890   
                 
    $ 1,113,890   
                 

Insured – Water and Sewer — 10.5%

               

Detroit, Sewage Disposal System, (AGC), (FGIC), 5.00%, 7/1/36

  $ 560      $ 578,799   

Detroit, Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30

    1,650        1,652,657   

Grand Rapids, Water Supply System, (AGC), 5.10%, 1/1/39

    1,000        1,169,610   
                 
    $ 3,401,066   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue — 4.9%

               

Guam, Limited Obligation Bonds, 5.625%, 12/1/29

  $ 115      $ 131,712   

Guam, Limited Obligation Bonds, 5.75%, 12/1/34

    125        143,210   

Michigan Trunk Line Fund, 5.00%, 11/15/36

    1,000        1,190,250   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    110        131,547   
                 
    $ 1,596,719   
                 

Water and Sewer — 6.7%

               

Detroit, Water Supply System, 5.25%, 7/1/41

  $ 750      $ 816,112   

Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28

    790        1,063,585   

Port Huron, Water Supply System, 5.25%, 10/1/31

    250        285,545   
                 
    $ 2,165,242   
                 

Total Tax-Exempt Investments — 150.9%
(identified cost $44,172,592)

   

  $ 48,875,042   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (54.0)%

  

  $ (17,500,262
                 

Other Assets, Less Liabilities — 3.1%

  

  $ 1,016,355   
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 32,391,135   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 34.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.4% to 12.4% of total investments.

 

 

  20   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 159.6%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 22.7%

  

New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/27

  $ 250      $ 270,433   

New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/33

    250        268,770   

New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37

    220        237,191   

New Jersey Educational Facilities Authority, (Kean University), 5.50%, 9/1/36

    1,730        2,024,204   

New Jersey Educational Facilities Authority, (Princeton University), 4.50%, 7/1/38(1)

    3,500        4,041,485   

New Jersey Educational Facilities Authority, (Ramapo College), 4.00%, 7/1/27

    1,325        1,459,594   

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/37

    640        745,645   

New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.00%, 7/1/27

    1,650        1,795,909   

New Jersey Educational Facilities Authority, (University of Medicine and Dentistry), 7.50%, 12/1/32

    965        1,236,570   

Rutgers State University, 5.00%, 5/1/39(1)

    3,150        3,587,251   
   
    $ 15,667,052   
   

Electric Utilities — 4.5%

  

Puerto Rico Electric Power Authority, 5.00%, 7/1/29

  $ 500      $ 525,835   

Puerto Rico Electric Power Authority, 5.25%, 7/1/25

    1,000        1,081,060   

Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31

    1,500        1,517,520   
   
    $ 3,124,415   
   

General Obligations — 15.0%

  

Burlington County Bridge Commission, 4.00%, 8/15/23

  $ 320      $ 368,563   

Monmouth County Improvement Authority, 5.00%, 1/15/28

    1,850        2,274,390   

Monmouth County Improvement Authority, 5.00%, 1/15/30

    1,795        2,190,169   

Monroe Township Board of Education, Middlesex County, 4.00%, 8/1/24

    2,500        2,927,250   

Montgomery Township Board of Education, 3.00%, 9/1/20

    1,085        1,207,714   

Tenafly Board of Education, 4.00%, 7/15/27

    1,235        1,415,890   
   
    $ 10,383,976   
   

Hospital — 19.4%

  

Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

  $ 85      $ 89,114   

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34

    1,335        1,385,543   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27

  $ 2,290      $ 2,535,694   

New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37

    2,090        2,234,962   

New Jersey Health Care Facilities Financing Authority, (Chilton Memorial Hospital), 5.75%, 7/1/39

    915        1,030,839   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/21

    1,000        1,233,810   

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.00%, 7/1/31

    1,000        1,124,420   

New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46

    2,440        2,553,460   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), 5.75%, 7/1/33

    1,075        1,250,806   
   
    $ 13,438,648   
   

Housing — 3.4%

  

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37

  $ 680      $ 705,541   

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37

    1,555        1,631,910   
   
    $ 2,337,451   
   

Industrial Development Revenue — 7.0%

  

Middlesex County Pollution Control Authority, (Amerada Hess), 5.75%, 9/15/32

  $ 500      $ 501,055   

Middlesex County Pollution Control Authority, (Amerada Hess), 6.05%, 9/15/34

    540        560,817   

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.125%, 9/15/23

    50        51,331   

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 5.25%, 9/15/29

    135        139,397   

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 9.00% to 6/1/13 (Put Date), 6/1/33

    750        775,995   

New Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 5.10%, 6/1/23

    220        254,012   

New Jersey Economic Development Authority, (New Jersey-American Water Co., Inc.), (AMT), 5.70%, 10/1/39

    2,235        2,547,118   
   
    $ 4,829,725   
   

Insured – Electric Utilities — 1.0%

  

Puerto Rico Electric Power Authority, (FGIC), (NPFG),
5.25%, 7/1/35

  $ 595      $ 659,195   
   
    $ 659,195   
   
 

 

  21   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Gas Utilities — 5.5%

  

New Jersey Economic Development Authority, (New Jersey Natural Gas Co.), (FGIC), (NPFG), (AMT), 4.90% to 10/1/25 (Put Date), 10/1/40

  $ 3,540      $ 3,770,100   
   
    $ 3,770,100   
   

Insured – General Obligations — 3.8%

  

Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39

  $ 1,015      $ 1,156,592   

Lakewood Township, (AGC), 5.75%, 11/1/31

    1,240        1,485,173   
   
    $ 2,641,765   
   

Insured – Hospital — 4.9%

  

New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC),
5.25%, 1/1/36
(1)

  $ 750      $ 824,760   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), 5.00%, 7/1/38

    390        426,368   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC),
5.00%, 7/1/38
(1)

    500        546,625   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    1,380        1,571,930   
   
    $ 3,369,683   
   

Insured – Housing — 4.9%

  

New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (AGM), (AMT), 5.05%, 5/1/34

  $ 3,390      $ 3,393,763   
   
    $ 3,393,763   
   

Insured – Industrial Development Revenue — 3.1%

  

New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT), 4.875%, 11/1/25

  $ 1,940      $ 2,118,596   
   
    $ 2,118,596   
   

Insured – Lease Revenue / Certificates of Participation — 4.5%

  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34

  $ 1,500      $ 1,791,240   

New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 9/1/28

    1,000        1,356,530   
   
    $ 3,147,770   
   

Insured – Special Tax Revenue — 12.1%

  

Garden State Preservation Trust, (AGM), 0.00%, 11/1/25

  $ 5,250      $ 3,701,722   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26

    4,300        2,632,288   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Special Tax Revenue (continued)

  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27

  $ 2,020      $ 1,184,185   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

    3,195        287,071   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    3,330        569,563   
   
    $ 8,374,829   
   

Insured – Student Loan — 3.6%

  

New Jersey Higher Education Student Assistance Authority, (AGC), (AMT), 6.125%, 6/1/30

  $ 2,215      $ 2,511,433   
   
    $ 2,511,433   
   

Insured – Transportation — 0.5%

  

South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33

  $ 315      $ 374,806   
   
    $ 374,806   
   

Lease Revenue / Certificates of Participation — 5.7%

  

New Jersey Economic Development Authority, (School Facilities Construction), 5.25%, 12/15/33

  $ 1,500      $ 1,754,895   

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38

    1,700        1,893,205   

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31

    250        298,935   
                 
    $ 3,947,035   
                 

Other Revenue — 6.3%

  

Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/50

  $ 7,200      $ 562,320   

Children’s Trust Fund, PR, Tobacco Settlement,
0.00%, 5/15/55

    13,280        382,730   

New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48

    2,040        2,317,766   

New Jersey Economic Development Authority, (The Seeing Eye, Inc.), 5.00%, 6/1/32

    250        298,720   

Tobacco Settlement Financing Corp., 5.00%, 6/1/41

    900        814,086   
   
    $ 4,375,622   
   

Senior Living / Life Care — 3.2%

  

New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28

  $ 465      $ 507,389   

New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38

    770        835,350   

New Jersey Economic Development Authority, (Seabrook Village), 5.25%, 11/15/36

    815        839,752   
   
    $ 2,182,491   
   
 

 

  22   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue — 3.3%

  

New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27

  $ 100      $ 107,114   

New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37

    175        184,139   

Puerto Rico Sales Tax Financing Corp., 5.00%, 8/1/40

    750        831,390   

Puerto Rico Sales Tax Financing Corp., 5.75%, 8/1/37

    500        558,030   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    500        597,940   
   
    $ 2,278,613   
   

Student Loan — 3.6%

  

New Jersey Higher Education Student Assistance Authority, (AMT), 1.368%, 6/1/36(1)(2)(3)

  $ 2,500      $ 2,506,600   
   
    $ 2,506,600   
   

Transportation — 19.4%

  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

  $ 1,060      $ 1,222,541   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

    1,080        1,235,088   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31

    1,850        2,283,270   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38

    250        301,945   

New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38

    530        648,222   

New Jersey Turnpike Authority, 5.25%, 1/1/40

    3,600        4,128,264   

Port Authority of New York and New Jersey, (AMT),
5.75%, 3/15/35
(1)

    1,995        2,381,531   

South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33

    1,175        1,179,876   
   
    $ 13,380,737   
   

Water and Sewer — 2.2%

  

North Hudson Sewerage Authority, 5.00%, 6/1/29

  $ 1,275      $ 1,511,717   
   
    $ 1,511,717   
   

Total Tax-Exempt Investments — 159.6%
(identified cost $98,580,745)

   

  $ 110,326,022   
   

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (48.4)%

  

  $ (33,425,000
   

Other Assets, Less Liabilities — (11.2)%

  

  $ (7,766,047
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 69,134,975   
   

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 27.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.2% to 9.7% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $506,600.

 

(3) 

Variable rate security. The stated interest rate represents the rate in effect at November 30, 2012.

 

 

  23   See Notes to Financial Statements.


Eaton Vance

New York Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 159.3%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 5.8%

  

New York Environmental Facilities Corp., 5.00%, 10/15/39

  $ 1,730      $ 2,039,359   

New York Environmental Facilities Corp., (New York City Municipal Water Finance Authority), 5.00%, 6/15/37(1)

    2,535        2,906,529   
                 
    $ 4,945,888   
                 

Cogeneration — 1.4%

  

Suffolk County Industrial Development Agency, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23

  $ 1,150      $ 1,150,173   
                 
    $ 1,150,173   
                 

Education — 28.7%

  

Geneva Development Corp., (Hobart and William Smith Colleges), 5.00%, 9/1/32

  $ 775      $ 932,441   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/23

    150        177,450   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/24

    80        93,446   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/25

    50        57,915   

New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/34

    1,490        1,786,957   

New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39

    325        388,479   

New York Dormitory Authority, (Brooklyn Law School), 5.75%, 7/1/33

    510        596,394   

New York Dormitory Authority, (Columbia University), 5.00%, 7/1/38

    1,000        1,183,040   

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41

    725        873,611   

New York Dormitory Authority, (Cornell University), 5.00%, 7/1/34

    510        610,536   

New York Dormitory Authority, (Cornell University), 5.00%, 7/1/39

    2,000        2,372,840   

New York Dormitory Authority, (Fordham University), 5.50%, 7/1/36

    1,000        1,199,280   

New York Dormitory Authority, (New York University), 5.00%, 7/1/39

    1,745        2,093,197   

New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33

    2,250        2,888,640   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40

    2,500        2,901,175   

New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/27

    325        388,398   

New York Dormitory Authority, (Skidmore College), 5.25%, 7/1/29

    400        481,944   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education (continued)

  

New York Dormitory Authority, (St. Francis College), 5.00%, 10/1/40

  $ 1,695      $ 1,903,044   

New York Dormitory Authority, (The New School), 5.50%, 7/1/40

    2,000        2,345,080   

Onondaga Civic Development Corp., (Le Moyne College), 5.20%, 7/1/29

    280        314,538   

Onondaga Civic Development Corp., (Le Moyne College), 5.375%, 7/1/40

    735        830,543   
                 
    $ 24,418,948   
                 

Electric Utilities — 5.7%

  

Long Island Power Authority, Electric System Revenue, 6.00%, 5/1/33

  $ 1,420      $ 1,790,322   

Puerto Rico Electric Power Authority, 5.25%, 7/1/30

    1,310        1,382,404   

Suffolk County Industrial Development Agency, (KeySpan-Port Jefferson Energy Center, LLC), (AMT), 5.25%, 6/1/27

    1,645        1,678,821   
                 
    $ 4,851,547   
                 

Escrowed / Prerefunded — 0.4%

  

Geneva Industrial Development Agency, (Hobart and William Smith Colleges), Prerefunded to 2/1/13, 5.375%, 2/1/33

  $ 315      $ 317,750   
                 
    $ 317,750   
                 

General Obligations — 7.6%

  

Dutchess County Water and Wastewater Authority, 0.00%, 10/1/34

  $ 585      $ 303,042   

Dutchess County Water and Wastewater Authority, 0.00%, 10/1/35

    325        162,994   

New York, 5.00%, 2/15/34(1)

    4,000        4,742,680   

New York City, 6.25%, 10/15/28

    1,000        1,273,570   
                 
    $ 6,482,286   
                 

Health Care – Miscellaneous — 1.5%

  

New York City Industrial Development Agency, (A Very Special Place, Inc.), 5.75%, 1/1/29

  $ 1,095      $ 1,095,164   

Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class H, 7.50%, 9/1/15

    50        50,445   

Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class I, 7.50%, 9/1/15

    100        100,890   
                 
    $ 1,246,499   
                 

Hospital — 20.4%

  

Dutchess County Local Development Corp., (Health Quest Systems, Inc.), 5.75%, 7/1/30

  $ 130      $ 158,275   
 

 

  24   See Notes to Financial Statements.


Eaton Vance

New York Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

Dutchess County Local Development Corp., (Health Quest Systems, Inc.), 5.75%, 7/1/40

  $ 960      $ 1,146,893   

Fulton County Industrial Development Agency, (Nathan Littauer Hospital), 6.00%, 11/1/18

    975        977,155   

Monroe County Industrial Development Agency, (Highland Hospital), 5.00%, 8/1/25

    2,490        2,610,790   

Nassau County Local Economic Assistance Corp., (South Nassau Communities Hospital), 5.00%, 7/1/37

    1,000        1,121,670   

New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33

    2,000        2,055,500   

New York Dormitory Authority, (Mount Sinai Hospital), 5.00%, 7/1/26

    1,000        1,153,090   

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 11/1/34

    845        903,964   

New York Dormitory Authority, (NYU Hospital Center), 5.00%, 7/1/36

    750        806,970   

New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37

    1,250        1,389,300   

New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29

    415        469,685   

New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37

    835        936,745   

Oneida County Industrial Development Agency, (St. Elizabeth Medical Center), 5.75%, 12/1/19

    1,195        1,196,804   

Onondaga Civic Development Corp., (St. Joseph’s Hospital Health Center), 5.00%, 7/1/42

    255        265,233   

Saratoga County Industrial Development Agency, (Saratoga Hospital), 5.25%, 12/1/32

    650        698,236   

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28

    1,250        1,464,287   
                 
    $ 17,354,597   
                 

Housing — 14.7%

  

New York City Housing Development Corp., MFMR, (AMT), 5.05%, 11/1/39

  $ 1,500      $ 1,550,670   

New York City Housing Development Corp., MFMR, (AMT), 5.20%, 11/1/40

    2,620        2,772,772   

New York Housing Finance Agency, 5.25%, 11/1/41

    1,000        1,089,010   

New York Housing Finance Agency, (FNMA), (AMT), 5.40%, 11/15/42

    2,625        2,802,739   

New York Mortgage Agency, (AMT), 4.875%, 10/1/30

    1,500        1,574,535   

New York Mortgage Agency, (AMT), 4.90%, 10/1/37

    1,680        1,750,963   

New York Mortgage Agency, (AMT), 5.125%, 10/1/37

    900        944,568   
                 
    $ 12,485,257   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Industrial Development Revenue — 7.7%

  

Essex County Industrial Development Agency, (International Paper Company), (AMT), 6.625%, 9/1/32

  $ 1,000      $ 1,125,430   

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

    1,000        1,249,080   

Niagara Area Development Corp., (Covanta Energy), 5.25%, 11/1/42

    1,350        1,378,836   

Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), (AMT), 6.25%, 12/1/34

    2,500        2,506,375   

Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15

    280        286,972   
                 
    $ 6,546,693   
                 

Insured – Education — 6.5%

  

New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35

  $ 1,250      $ 1,618,413   

New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38(1)

    1,500        1,685,610   

Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/33

    5,365        2,207,590   
                 
    $ 5,511,613   
                 

Insured – Electric Utilities — 2.0%

  

Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33

  $ 1,365      $ 1,700,531   
                 
  $ 1,700,531   
                 

Insured – Other Revenue — 3.6%

  

New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/31

  $ 2,645      $ 1,325,991   

New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/32

    3,625        1,730,104   
                 
  $ 3,056,095   
                 

Insured – Special Tax Revenue — 3.2%

  

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/34

  $ 4,440      $ 1,275,923   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

    8,785        789,332   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    4,080        697,843   
                 
  $ 2,763,098   
                 

Insured – Transportation — 1.8%

  

Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (NPFG), (AMT), 5.625%, 4/1/29

  $ 1,475      $ 1,491,741   
                 
  $ 1,491,741   
                 
 

 

  25   See Notes to Financial Statements.


Eaton Vance

New York Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Water and Sewer — 1.2%

  

Nassau County Industrial Development Agency, (New York Water Services Corp.), (AMBAC), (AMT), 5.00%, 12/1/35

  $ 1,000      $ 1,044,580   
                 
  $ 1,044,580   
                 

Other Revenue — 8.2%

  

Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31

  $ 3,120      $ 1,410,053   

Brooklyn Arena Local Development Corp., (Barclays Center), 6.25%, 7/15/40

    380        446,686   

New York City Cultural Resources Trust, (Museum of Modern Art), 5.00%, 4/1/31

    1,415        1,689,411   

New York City Transitional Finance Authority, (Building Aid), 5.50%, 7/15/31

    1,000        1,193,530   

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 3/15/44

    2,000        2,223,540   
                 
  $ 6,963,220   
                 

Senior Living / Life Care — 4.0%

  

Mount Vernon Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29

  $ 1,450      $ 1,451,450   

New York Dormitory Authority, (Miriam Osborn Memorial Home Association), 5.00%, 7/1/29

    280        311,377   

New York Dormitory Authority, (Miriam Osborn Memorial Home Association), 5.00%, 7/1/42

    120        129,878   

Suffolk County Economic Development Corp., (Peconic Landing at Southold, Inc.), 6.00%, 12/1/40

    905        1,029,573   

Tompkins County Development Corp., (Kendal at Ithaca, Inc.), 4.25%, 7/1/32

    230        232,068   

Tompkins County Development Corp., (Kendal at Ithaca, Inc.), 4.50%, 7/1/42

    230        233,666   
                 
  $ 3,388,012   
                 

Special Tax Revenue — 18.6%

  

Metropolitan Transportation Authority, Dedicated Tax Revenue, 5.00%, 11/15/34

  $ 1,500      $ 1,731,390   

New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(2)

    2,100        2,626,218   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 3/15/33

    1,000        1,197,310   

New York Dormitory Authority, Personal Income Tax Revenue, (University & College Improvements), 5.25%, 3/15/38

    1,000        1,227,350   

New York Thruway Authority, Fuel Tax Revenue, 5.00%, 4/1/30(1)

    6,000        7,339,800   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue (continued)

  

New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/32

  $ 900      $ 1,032,255   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    545        651,755   
                 
  $ 15,806,078   
                 

Transportation — 10.5%

               

Metropolitan Transportation Authority, 5.00%, 11/15/37

  $ 790      $ 892,092   

New York Thruway Authority, 5.00%, 1/1/37

    1,200        1,416,276   

Port Authority of New York and New Jersey, 5.00%, 11/15/37(1)

    1,900        2,117,854   

Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(1)

    990        1,181,813   

Triborough Bridge and Tunnel Authority, 5.25%, 11/15/34(1)

    2,740        3,352,417   
                 
  $ 8,960,452   
                 

Water and Sewer — 5.8%

  

New York City Municipal Water Finance Authority, (Water and Sewer System), 5.75%, 6/15/40(1)(2)

  $ 3,105      $ 3,846,132   

Saratoga County Water Authority, 5.00%, 9/1/48

    1,000        1,109,200   
                 
    $ 4,955,332   
                 

Total Tax-Exempt Investments — 159.3%
(identified cost $119,161,298)

   

  $ 135,440,390   
                 
Miscellaneous — 1.0%    
   
Security   Units     Value  

Real Estate — 1.0%

               

CMS Liquidating Trust (3)(4)(5)

    257      $ 822,400   
                 

Total Miscellaneous — 1.0%
(identified cost $822,400)

   

  $ 822,400   
                 

Total Investments — 160.3%
(identified cost $119,983,698)

   

  $ 136,262,790   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (39.7)%

  

  $ (33,725,252
                 

Other Assets, Less Liabilities — (20.6)%

    $ (17,536,636
                 

Net Assets Applicable to Common Shares — 100.0%

    $ 85,000,902   
                 
 

 

  26   See Notes to Financial Statements.


Eaton Vance

New York Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
BHAC     Berkshire Hathaway Assurance Corp.
FNMA     Federal National Mortgage Association
MFMR     Multi-Family Mortgage Revenue
NPFG     National Public Finance Guaranty Corp.

The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 11.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.2% to 3.5% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $2,827,350.

 

(3) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At November 30, 2012, the aggregate value of these securities is $822,400 or 1.0% of the Trust’s net assets applicable to common shares.

 

(4) 

Non-income producing security.

 

(5) 

For fair value measurement purposes, security is categorized as Level 3 (see Note 10).

 

 

  27   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 148.7%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 9.2%

  

Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25

  $ 550      $ 581,207   

Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22

    1,020        1,055,802   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality), 5.00%, 12/1/28

    250        307,680   

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality), 5.00%, 6/1/30

    250        306,935   

Rickenbacker Port Authority, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

    1,245        1,631,610   

Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25

    295        300,210   
   
    $ 4,183,444   
   

Education — 19.0%

  

Miami University, 5.00%, 9/1/33

  $ 1,000      $ 1,199,320   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44

    440        483,780   

Ohio Higher Educational Facility Commission, (Kenyon College), 5.25%, 7/1/44

    1,250        1,403,900   

Ohio Higher Educational Facility Commission, (University of Dayton), 5.50%, 12/1/36

    1,000        1,192,990   

Ohio State University, 5.00%, 12/1/28

    480        650,765   

Ohio State University, 5.00%, 12/1/30

    1,605        2,199,315   

University of Cincinnati, 5.00%, 6/1/34

    500        586,790   

Wright State University, 5.00%, 5/1/31

    750        867,195   
   
    $ 8,584,055   
   

Electric Utilities — 2.5%

  

American Municipal Power, Inc., (AMP Fremont Energy Center), 5.00%, 2/15/32

  $ 470      $ 546,972   

Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40

    500        584,120   
   
    $ 1,131,092   
   

Escrowed / Prerefunded — 1.5%

  

Columbus, Prerefunded to 7/1/14, 5.00%, 7/1/23

  $ 500      $ 537,280   

Ohio State University, Escrowed to Maturity, 5.00%, 12/1/28

    20        28,165   

Ohio State University, Escrowed to Maturity, 5.00%, 12/1/30

    70        99,716   
   
    $ 665,161   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations — 22.4%

  

Barberton City School District, 4.50%, 12/1/33

  $ 900      $ 976,806   

Beavercreek City School District, 5.00%, 12/1/30

    1,750        2,084,512   

Central Ohio Solid Waste Authority, 5.125%, 9/1/27

    1,090        1,281,001   

Columbus City School District, 5.00%, 12/1/29

    1,000        1,209,290   

Cuyahoga County, 4.00%, 12/1/37(1)

    500        541,445   

Dayton, 4.00%, 12/1/30

    500        546,315   

Huber Heights City School District, 4.75%, 12/1/25

    595        697,477   

Maple Heights City School District, 5.00%, 1/15/37

    1,000        1,124,230   

Ohio, 4.50%, 2/1/32

    400        469,312   

Symmes Township, Hamilton County, (Parkland Acquisition and Improvement), 5.25%, 12/1/37

    1,000        1,212,470   
   
    $ 10,142,858   
   

Hospital — 14.9%

  

Butler County, (Kettering Health Network Obligated Group), 5.25%, 4/1/31

  $ 500      $ 566,050   

Franklin County, (Nationwide Children’s Hospital), 5.00%, 11/1/34

    800        899,024   

Hancock County, (Blanchard Valley Regional Health Center), 6.25%, 12/1/34

    750        907,612   

Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26

    500        538,070   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36

    500        566,720   

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41

    800        900,368   

Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34

    500        580,240   

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.50%, 1/1/39

    1,000        1,149,190   

Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40

    555        641,658   
   
    $ 6,748,932   
   

Housing — 8.3%

  

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 4.625%, 9/1/27

  $ 825      $ 866,077   

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 4.75%, 3/1/37

    95        97,975   

Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (FNMA), (GNMA), (AMT), 5.00%, 9/1/31

    105        108,828   

Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48

    2,500        2,667,250   
   
    $ 3,740,130   
   
 

 

  28   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Industrial Development Revenue — 1.2%

  

Cleveland, (Continental Airlines), (AMT), 5.375%, 9/15/27

  $ 555      $ 554,994   
   
    $ 554,994   
   

Insured – Education — 12.2%

  

Hamilton County, (University Heights Community Urban Development Corp.), (AGM), 5.00%, 6/1/30

  $ 750      $ 871,147   

Kent State University, (AGC), 5.00%, 5/1/26

    1,000        1,187,560   

Kent State University, (AGC), 5.00%, 5/1/29

    465        541,483   

Miami University, (AMBAC), 3.25%, 9/1/26

    635        659,816   

University of Akron, Series A, (AGM), 5.00%, 1/1/38

    1,500        1,691,865   

University of Akron, Series B, (AGM), 5.00%, 1/1/38

    500        563,955   
   
    $ 5,515,826   
   

Insured – Electric Utilities — 12.6%

  

American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39

  $ 1,000      $ 1,170,410   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/27

    710        401,058   

Cleveland Public Power System, (NPFG), 0.00%, 11/15/38(2)

    2,000        627,600   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25

    815        534,469   

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26

    3,000        1,881,150   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30

    210        230,200   

Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34

    250        276,262   

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

    500        567,535   
   
    $ 5,688,684   
   

Insured – General Obligations — 17.1%

  

Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36

  $ 500      $ 588,315   

Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30

    2,455        1,288,065   

Cincinnati School District, (FGIC), (NPFG), 5.25%, 12/1/30

    1,000        1,406,520   

Madeira City School District, (AGM), 3.50%, 12/1/27

    1,500        1,549,035   

Milford Exempt Village School District, (AGC), 5.25%, 12/1/36

    1,750        2,052,365   

St. Marys City School District, (AGM), 5.00%, 12/1/35

    750        853,357   
   
    $ 7,737,657   
   

Insured – Hospital — 5.6%

  

Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32

  $ 280      $ 286,297   

Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28

    1,500        1,538,745   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Hospital (continued)

  

Lorain County, (Catholic Healthcare Partners), (AGM),
17.973%, 2/1/29
(3)(4)(5)

  $ 485      $ 695,296   
   
    $ 2,520,338   
   

Insured – Special Tax Revenue — 1.6%

  

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

  $ 4,410      $ 396,239   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    2,025        346,356   
   
    $ 742,595   
   

Insured – Transportation — 7.4%

  

Cleveland, Airport System Revenue, (AGM), 5.00%, 1/1/30

  $ 600      $ 701,304   

Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24

    1,000        1,315,010   

Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26

    1,000        1,349,220   
   
    $ 3,365,534   
   

Lease Revenue / Certificates of Participation — 1.3%

  

Franklin County Convention Facilities Authority, 5.00%, 12/1/27

  $ 500      $ 589,190   
   
    $ 589,190   
   

Other Revenue — 3.4%

  

Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27

  $ 1,000      $ 1,034,130   

Summit County Port Authority, 5.00%, 12/1/31

    445        525,848   
   
    $ 1,559,978   
   

Senior Living / Life Care — 0.9%

  

Hamilton County, (Life Enriching Communities), 5.00%, 1/1/32

  $ 375      $ 410,918   
   
    $ 410,918   
   

Special Tax Revenue — 2.4%

  

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/26

  $ 180      $ 221,686   

Green, Income Tax Revenue, (Community Learning Centers), 5.00%, 12/1/28

    290        353,669   

Guam, Limited Obligation Bonds, 5.625%, 12/1/29

    155        177,525   

Guam, Limited Obligation Bonds, 5.75%, 12/1/34

    170        194,766   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    110        131,547   
   
    $ 1,079,193   
   
 

 

  29   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer — 5.2%

  

Cincinnati, Water System Revenue, 5.00%, 12/1/37

  $ 1,250      $ 1,496,625   

Hamilton County, Sewer System, 5.00%, 12/1/32

    750        862,350   
   
    $ 2,358,975   
   

Total Tax-Exempt Investments — 148.7%
(identified cost $58,389,790)

   

  $ 67,319,554   
   

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (50.2)%

  

  $ (22,725,510
   

Other Assets, Less Liabilities — 1.5%

  

  $ 689,690   
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 45,283,734   
   

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
FGIC     Financial Guaranty Insurance Company
FNMA     Federal National Mortgage Association
GNMA     Government National Mortgage Association
NPFG     National Public Finance Guaranty Corp.

The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 38.0% of total 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 1.6% to 17.9% of total investments.

 

(1) 

When-issued security.

 

(2) 

Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

(3) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At November 30, 2012, the aggregate value of these securities is $695,296 or 1.5% of the Trust’s net assets applicable to common shares.

 

(4) 

Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security held by the trust that issued the residual interest bond. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $1,455,000. However, such shortfall payment would be

  reduced by the proceeds from the sale of the security held by the trust that issued the residual interest bond.

 

(5) 

Security has been issued as a leveraged residual interest bond with a variable interest rate. The stated interest rate represents the rate in effect at November 30, 2012.

 

 

  30   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Income Trust

November 30, 2012

 

Portfolio of Investments

 

 

Tax-Exempt Investments — 154.4%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Cogeneration — 1.7%

               

Pennsylvania Economic Development Financing Authority, (Colver), (AMT), 5.125%, 12/1/15

  $ 275      $ 281,817   

Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.50%, 1/1/13(1)

    100        63,477   

Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.60%, 1/1/19(1)

    500        322,210   
                 
    $ 667,504   
                 

Education — 23.3%

               

Allegheny County Higher Education Building Authority, (Duquesne University), 5.50%, 3/1/31

  $ 1,050      $ 1,235,136   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/39

    500        577,110   

Cumberland County Municipal Authority, (Dickinson College), 5.00%, 11/1/39

    1,200        1,373,520   

Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39

    500        565,045   

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40

    440        498,463   

Pennsylvania Higher Educational Facilities Authority, (Temple University), 5.00%, 4/1/35

    750        878,985   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40

    625        710,487   

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/42

    600        693,372   

Pennsylvania Higher Educational Facilities Authority, (Ursinus College), 5.00%, 1/1/29

    560        645,837   

State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31

    750        894,907   

University of Pittsburgh, 5.25%, 9/15/29

    500        614,645   

Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30

    575        665,649   
                 
    $ 9,353,156   
                 

Electric Utilities — 4.4%

               

Puerto Rico Electric Power Authority, 5.00%, 7/1/29

  $ 1,095      $ 1,151,579   

York County Industrial Development Authority, (PSEG Power LLC), 5.50%, 9/1/20

    600        607,356   
                 
    $ 1,758,935   
                 

General Obligations — 10.5%

               

Chester County, 5.00%, 7/15/27

  $ 500      $ 600,875   

Daniel Boone Area School District, 5.00%, 8/15/32

    1,000        1,157,250   
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations (continued)

               

Delaware Valley Regional Finance Authority, 5.75%, 7/1/32

  $ 1,000      $ 1,270,030   

Philadelphia School District, 6.00%, 9/1/38

    1,000        1,189,660   
                 
    $ 4,217,815   
                 

Hospital — 25.7%

               

Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34

  $ 500      $ 576,900   

Chester County Health and Education Facilities Authority, (Jefferson Health System), 5.00%, 5/15/40

    750        851,985   

Dauphin County General Authority, (Pinnacle Health System), 6.00%, 6/1/29

    750        873,982   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 4.00%, 7/1/33(2)

    500        523,730   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32

    1,215        1,241,633   

Lycoming County Authority, (Susquehanna Health System), 5.75%, 7/1/39

    750        846,352   

Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43

    1,500        1,580,685   

Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital Obligated Group), 5.00%, 6/1/31

    1,095        1,271,470   

Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33

    250        281,263   

Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(3)

    1,000        1,225,930   

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31

    675        764,370   

South Fork Municipal Authority, (Conemaugh Health System), 5.50%, 7/1/29

    250        283,498   
                 
  $ 10,321,798   
                 

Housing — 12.9%

               

Allegheny County Residential Finance Authority, SFMR, (AMT), 4.95%, 11/1/37

  $ 380      $ 401,523   

Allegheny County Residential Finance Authority, SFMR, (AMT), 5.00%, 5/1/35

    1,035        1,081,026   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.70%, 10/1/37

    755        778,956   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.75%, 10/1/25

    500        540,845   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 4/1/26

    830        858,843   

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 10/1/31

    500        516,815   
 

 

  31   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Housing (continued)

               

Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.90%, 10/1/37

  $ 965      $ 990,573   
                 
  $ 5,168,581   
                 

Industrial Development Revenue — 8.4%

               

Luzerne County Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39

  $ 200      $ 230,346   

Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42

    750        827,452   

Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39

    250        297,348   

Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31

    1,115        1,490,688   

Pennsylvania Economic Development Financing Authority, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27

    500        529,690   
                 
  $ 3,375,524   
                 

Insured – Education — 7.9%

               

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37

  $ 500      $ 558,710   

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37

    1,110        1,224,485   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29

    375        420,851   

State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32

    875        988,698   
                 
  $ 3,192,744   
                 

Insured – Escrowed / Prerefunded — 8.6%

               

Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27

  $ 1,600      $ 1,613,760   

Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19

    2,000        1,850,680   
                 
  $ 3,464,440   
                 

Insured – General Obligations — 3.6%

               

Beaver County, (AGM), 5.55%, 11/15/31

  $ 500      $ 584,700   

Bethlehem Area School District, (AGM), 5.25%, 1/15/25

    750        884,040   
                 
  $ 1,468,740   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Hospital — 4.8%

               

Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24

  $ 250      $ 342,230   

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35

    1,440        1,584,043   
                 
  $ 1,926,273   
                 

Insured – Lease Revenue / Certificates of Participation — 4.8%

  

Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31

  $ 500      $ 572,815   

Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27

    1,195        1,354,031   
                 
  $ 1,926,846   
                 

Insured – Special Tax Revenue — 1.8%

  

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

  $ 4,385      $ 393,992   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    2,035        348,067   
                 
  $ 742,059   
                 

Insured – Transportation — 9.1%

               

Philadelphia, Airport Revenue, (AGM), (AMT), 5.00%, 6/15/27

  $ 525      $ 571,473   

Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29

    1,005        1,008,367   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(3)(4)

    1,800        2,065,122   
                 
  $ 3,644,962   
                 

Insured – Water and Sewer — 2.8%

               

Bucks County Water and Sewer Authority, (AGM), 5.00%, 12/1/35

  $ 500      $ 577,795   

Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 11/1/36

    525        552,400   
                 
  $ 1,130,195   
                 

Senior Living / Life Care — 2.4%

               

Cliff House Trust, (AMT), 6.625%, 6/1/27(1)

  $ 1,000      $ 527,530   

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24

    200        211,432   

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30

    200        208,802   
                 
  $ 947,764   
                 
 

 

  32   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Income Trust

November 30, 2012

 

Portfolio of Investments — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Special Tax Revenue — 0.3%

               

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

  $ 110      $ 131,547   
                 
  $ 131,547   
                 

Transportation — 15.9%

               

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

  $ 465      $ 536,303   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

    285        325,926   

Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 5.00%, 11/1/41

    455        507,525   

Pennsylvania Turnpike Commission, 5.25%, 6/1/39

    1,000        1,130,450   

Pennsylvania Turnpike Commission, 5.35%, (0.00% until 12/1/15), 12/1/30

    1,430        1,412,883   

Pennsylvania Turnpike Commission, 5.625%, 6/1/29

    750        881,385   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/23

    410        481,262   

Philadelphia, Airport Revenue, (AMT), 5.00%, 6/15/27

    970        1,111,746   
                 
  $ 6,387,480   
                 

Utilities — 1.6%

               

Philadelphia Gas Works, 5.25%, 8/1/40

  $ 600      $ 660,522   
                 
  $ 660,522   
                 

Water and Sewer — 3.9%

               

Harrisburg Water Authority, 5.25%, 7/15/31(5)

  $ 750      $ 688,155   

Philadelphia, Water and Wastewater Revenue, 5.00%, 1/1/36

    750        867,172   
                 
  $ 1,555,327   
                 

Total Tax-Exempt Investments — 154.4%
(identified cost $56,216,589)

   

  $ 62,042,212   
                 

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.7)%

  

  $ (21,175,634
                 

Other Assets, Less Liabilities — (1.7)%

  

  $ (678,983
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 40,187,595   
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
AMT     Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
CIFG     CIFG Assurance North America, Inc.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
SFMR     Single Family Mortgage Revenue

The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2012, 28.2% of total 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 3.3% to 11.2% of total investments.

 

(1) 

Defaulted bond.

 

(2) 

When-issued security.

 

(3) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1H).

 

(4) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,165,122.

 

(5) 

Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

 

  33   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Assets and Liabilities

 

 

    November 30, 2012  
Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust  

Investments —

       

Identified cost

  $ 151,193,761      $ 59,981,205      $ 44,172,592      $ 98,580,745   

Unrealized appreciation

    18,438,313        8,413,269        4,702,450        11,745,277   

Investments, at value

  $ 169,632,074      $ 68,394,474      $ 48,875,042      $ 110,326,022   

Cash

  $      $      $ 518,458      $   

Restricted cash*

    250,000        115,000        22,000        460,000   

Interest receivable

    1,750,392        905,654        528,006        1,542,247   

Receivable for investments sold

    699,300        449,044        35,700        86,914   

Deferred debt issuance costs

    28,039        2,288               3,186   

Total assets

  $ 172,359,805      $ 69,866,460      $ 49,979,206      $ 112,418,369   
Liabilities   

Payable for floating rate notes issued

  $ 14,680,000      $ 4,885,000      $      $ 9,455,000   

Payable for variation margin on open financial futures contracts

    14,938        5,313        937        22,656   

Due to custodian

    1,105,024        263,708               219,691   

Payable to affiliates:

       

Investment adviser fee

    87,675        34,973        26,472        56,873   

Administration fee

    26,771        10,679        8,083        17,366   

Trustees’ fees

    1,114        492        394        754   

Interest expense and fees payable

    19,756        11,065               19,035   

Accrued expenses

    82,669        55,743        51,923        67,019   

Total liabilities

  $ 16,017,947      $ 5,266,973      $ 87,809      $ 9,858,394   

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 49,975,000      $ 20,050,600      $ 17,500,262      $ 33,425,000   

Net assets applicable to common shares

  $ 106,366,858      $ 44,548,887      $ 32,391,135      $ 69,134,975   
Sources of Net Assets                                

Common shares, $0.01 par value, unlimited number of shares authorized

  $ 72,576      $ 27,505      $ 21,163      $ 46,759   

Additional paid-in capital

    104,154,215        39,728,155        29,330,770        66,988,613   

Accumulated net realized loss

    (16,918,010     (3,786,668     (1,780,426     (9,930,899

Accumulated undistributed net investment income

    663,177        169,079        117,612        359,123   

Net unrealized appreciation

    18,394,900        8,410,816        4,702,016        11,671,379   

Net assets applicable to common shares

  $ 106,366,858      $ 44,548,887      $ 32,391,135      $ 69,134,975   
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,999        802        700        1,337   
Common Shares Outstanding     7,257,591        2,750,521        2,116,294        4,675,855   
Net Asset Value Per Common Share   

Net assets applicable to common shares ÷ common shares issued and outstanding

  $ 14.66      $ 16.20      $ 15.31      $ 14.79   

 

* Represents restricted cash on deposit at the broker for open financial futures contracts.

 

  34   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Assets and Liabilities — continued

 

 

    November 30, 2012  
Assets   New York Trust     Ohio Trust     Pennsylvania Trust  

Investments —

     

Identified cost

  $ 119,983,698      $ 58,389,790      $ 56,216,589   

Unrealized appreciation

    16,279,092        8,929,764        5,825,623   

Investments, at value

  $ 136,262,790      $ 67,319,554      $ 62,042,212   

Cash

  $      $      $ 451,559   

Restricted cash*

    150,000        52,000        175,000   

Interest receivable

    1,676,376        988,717        802,264   

Receivable for investments sold

    791,625        383,712        176,232   

Total assets

  $ 138,880,791      $ 68,743,983      $ 63,647,267   
Liabilities   

Payable for floating rate notes issued

  $ 19,315,000      $      $ 1,650,000   

Payable for when-issued securities

           538,130        518,905   

Payable for variation margin on open financial futures contracts

    6,718        2,813        7,813   

Due to custodian

    634,282        90,746          

Payable to affiliates:

     

Investment adviser fee

    68,455        35,969        33,292   

Administration fee

    20,902        10,983        10,165   

Trustees’ fees

    887        504        479   

Interest expense and fees payable

    33,192               5,341   

Accrued expenses

    75,201        55,594        58,043   

Total liabilities

  $ 20,154,637      $ 734,739      $ 2,284,038   

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 33,725,252      $ 22,725,510      $ 21,175,634   

Net assets applicable to common shares

  $ 85,000,902      $ 45,283,734      $ 40,187,595   
Sources of Net Assets   

Common shares, $0.01 par value, unlimited number of shares authorized

  $ 54,709      $ 28,570      $ 27,199   

Additional paid-in capital

    79,319,580        40,158,982        38,076,743   

Accumulated net realized loss

    (11,212,585     (3,961,545     (3,927,242

Accumulated undistributed net investment income

    563,208        129,262        210,754   

Net unrealized appreciation

    16,275,990        8,928,465        5,800,141   

Net assets applicable to common shares

  $ 85,000,902      $ 45,283,734      $ 40,187,595   
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,349        909        847   
Common Shares Outstanding     5,470,944        2,856,954        2,719,918   
Net Asset Value Per Common Share                        

Net assets applicable to common shares ÷ common shares issued and outstanding

  $ 15.54      $ 15.85      $ 14.78   

 

* Represents restricted cash on deposit at the broker for open financial futures contracts.

 

  35   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Operations

 

 

    Year Ended November 30, 2012  
Investment Income   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust  

Interest

  $ 7,498,189      $ 2,881,440      $ 2,186,760      $ 4,941,268   

Total investment income

  $ 7,498,189      $ 2,881,440      $ 2,186,760      $ 4,941,268   
Expenses   

Investment adviser fee

  $ 1,046,300      $ 418,507      $ 317,736      $ 684,911   

Administration fee

    316,531        126,605        96,117        207,186   

Trustees’ fees and expenses

    6,987        3,099        2,474        4,727   

Custodian fee

    83,003        43,497        37,535        60,993   

Transfer and dividend disbursing agent fees

    19,216        19,060        18,995        19,193   

Legal and accounting services

    51,188        38,421        36,547        45,343   

Printing and postage

    17,200        10,003        10,487        13,916   

Interest expense and fees

    111,470        38,586               70,500   

Preferred shares service fee

    70,034        29,262        23,618        49,103   

Miscellaneous

    42,512        36,349        34,414        40,678   

Total expenses

  $ 1,764,441      $ 763,389      $ 577,923      $ 1,196,550   

Deduct —

       

Reduction of custodian fee

  $ 903      $ 552      $ 446      $ 520   

Total expense reductions

  $ 903      $ 552      $ 446      $ 520   

Net expenses

  $ 1,763,538      $ 762,837      $ 577,477      $ 1,196,030   

Net investment income

  $ 5,734,651      $ 2,118,603      $ 1,609,283      $ 3,745,238   
Realized and Unrealized Gain (Loss)   

Net realized gain (loss) —

       

Investment transactions

  $ (71,555   $ (45,453   $ (244,338   $ 395,787   

Financial futures contracts

    (903,437     (381,782     (102,698     (1,365,995

Net realized loss

  $ (974,992   $ (427,235   $ (347,036   $ (970,208

Change in unrealized appreciation (depreciation) —

       

Investments

  $ 17,894,526      $ 6,709,414      $ 4,454,782      $ 9,531,832   

Financial futures contracts

    (120,303     (18,749     (11,388     (250,376

Net change in unrealized appreciation (depreciation)

  $ 17,774,223      $ 6,690,665      $ 4,443,394      $ 9,281,456   

Net realized and unrealized gain

  $ 16,799,231      $ 6,263,430      $ 4,096,358      $ 8,311,248   

Distributions to preferred shareholders

                               

From net investment income

  $ (127,665   $ (51,813   $ (44,571   $ (84,946

Net increase in net assets from operations

  $ 22,406,217      $ 8,330,220      $ 5,661,070      $ 11,971,540   

 

  36   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Operations — continued

 

 

    Year Ended November 30, 2012  
Investment Income   New York Trust     Ohio Trust     Pennsylvania Trust  

Interest

  $ 6,138,728      $ 2,989,189      $ 2,862,880   

Total investment income

  $ 6,138,728      $ 2,989,189      $ 2,862,880   
Expenses   

Investment adviser fee

  $ 817,444      $ 429,301      $ 402,014   

Administration fee

    247,295        129,871        121,608   

Trustees’ fees and expenses

    5,569        3,153        2,993   

Custodian fee

    71,367        44,276        43,655   

Transfer and dividend disbursing agent fees

    19,105        18,944        19,262   

Legal and accounting services

    49,537        37,883        43,458   

Printing and postage

    15,943        10,627        11,160   

Interest expense and fees

    141,458               14,355   

Preferred shares service fee

    49,051        32,713        30,279   

Miscellaneous

    43,634        38,419        37,280   

Total expenses

  $ 1,460,403      $ 745,187      $ 726,064   

Deduct —

     

Reduction of custodian fee

  $ 480      $ 335      $ 236   

Total expense reductions

  $ 480      $ 335      $ 236   

Net expenses

  $ 1,459,923      $ 744,852      $ 725,828   

Net investment income

  $ 4,678,805      $ 2,244,337      $ 2,137,052   
Realized and Unrealized Gain (Loss)   

Net realized gain (loss) —

     

Investment transactions

  $ 58,792      $ (326,188   $ (247,281

Financial futures contracts

    (482,767     (219,914     (471,033

Net realized loss

  $ (423,975   $ (546,102   $ (718,314

Change in unrealized appreciation (depreciation) —

     

Investments

  $ 13,018,565      $ 7,636,132      $ 5,108,771   

Financial futures contracts

    (23,473     (25,239     (86,337

Net change in unrealized appreciation (depreciation)

  $ 12,995,092      $ 7,610,893      $ 5,022,434   

Net realized and unrealized gain

  $ 12,571,117      $ 7,064,791      $ 4,304,120   

Distributions to preferred shareholders

                       

From net investment income

  $ (86,286   $ (58,080   $ (54,721

Net increase in net assets from operations

  $ 17,163,636      $ 9,251,048      $ 6,386,451   

 

  37   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Changes in Net Assets

 

 

    Year Ended November 30, 2012  
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust  

From operations —

       

Net investment income

  $ 5,734,651      $ 2,118,603      $ 1,609,283      $ 3,745,238   

Net realized loss from investment transactions and financial futures contracts

    (974,992     (427,235     (347,036     (970,208

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    17,774,223        6,690,665        4,443,394        9,281,456   

Distributions to preferred shareholders —

       

From net investment income

    (127,665     (51,813     (44,571     (84,946

Net increase in net assets from operations

  $ 22,406,217      $ 8,330,220      $ 5,661,070      $ 11,971,540   

Distributions to common shareholders —

       

From net investment income

  $ (6,086,435   $ (2,212,744   $ (1,636,265   $ (3,723,547

Total distributions to common shareholders

  $ (6,086,435   $ (2,212,744   $ (1,636,265   $ (3,723,547

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $ 185,370      $ 59,017      $      $ 152,504   

Net increase in net assets from capital share transactions

  $ 185,370      $ 59,017      $      $ 152,504   

Net increase in net assets

  $ 16,505,152      $ 6,176,493      $ 4,024,805      $ 8,400,497   
Net Assets Applicable to Common Shares   

At beginning of year

  $ 89,861,706      $ 38,372,394      $ 28,366,330      $ 60,734,478   

At end of year

  $ 106,366,858      $ 44,548,887      $ 32,391,135      $ 69,134,975   
Accumulated undistributed net investment income
included in net assets applicable to common shares
                               

At end of year

  $ 663,177      $ 169,079      $ 117,612      $ 359,123   

 

  38   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended November 30, 2012  
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust  

From operations —

     

Net investment income

  $ 4,678,805      $ 2,244,337      $ 2,137,052   

Net realized loss from investment transactions and financial futures contracts

    (423,975     (546,102     (718,314

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    12,995,092        7,610,893        5,022,434   

Distributions to preferred shareholders —

     

From net investment income

    (86,286     (58,080     (54,721

Net increase in net assets from operations

  $ 17,163,636      $ 9,251,048      $ 6,386,451   

Distributions to common shareholders —

     

From net investment income

  $ (4,974,981   $ (2,373,528   $ (2,248,125

Total distributions to common shareholders

  $ (4,974,981   $ (2,373,528   $ (2,248,125

Capital share transactions —

     

Reinvestment of distributions to common shareholders

  $ 134,042      $ 27,594      $ 38,280   

Net increase in net assets from capital share transactions

  $ 134,042      $ 27,594      $ 38,280   

Net increase in net assets

  $ 12,322,697      $ 6,905,114      $ 4,176,606   
Net Assets Applicable to Common Shares   

At beginning of year

  $ 72,678,205      $ 38,378,620      $ 36,010,989   

At end of year

  $ 85,000,902      $ 45,283,734      $ 40,187,595   
Accumulated undistributed net investment income
included in net assets applicable to common shares
   

At end of year

  $ 563,208      $ 129,262      $ 210,754   

 

  39   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended November 30, 2011  
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust  

From operations —

       

Net investment income

  $ 6,690,748      $ 2,440,871      $ 1,747,303      $ 4,146,848   

Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts

    (5,812,389     (1,798,271     (379,490     (4,316,193

Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts

    5,840,558        2,417,110        1,565,378        3,472,721   

Distributions to preferred shareholders —

       

From net investment income

    (156,530     (62,477     (53,546     (104,690

Net increase in net assets from operations

  $ 6,562,387      $ 2,997,233      $ 2,879,645      $ 3,198,686   

Distributions to common shareholders —

       

From net investment income

  $ (6,404,210   $ (2,484,380   $ (1,775,591   $ (4,301,179

Total distributions to common shareholders

  $ (6,404,210   $ (2,484,380   $ (1,775,591   $ (4,301,179

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $ 308,410      $ 124,586      $      $ 120,167   

Net increase in net assets from capital share transactions

  $ 308,410      $ 124,586      $      $ 120,167   

Net increase (decrease) in net assets

  $ 466,587      $ 637,439      $ 1,104,054      $ (982,326
Net Assets Applicable to Common Shares   

At beginning of year

  $ 89,395,119      $ 37,734,955      $ 27,262,276      $ 61,716,804   

At end of year

  $ 89,861,706      $ 38,372,394      $ 28,366,330      $ 60,734,478   
Accumulated undistributed net investment income
included in net assets applicable to common shares
   

At end of year

  $ 1,202,450      $ 330,666      $ 198,605      $ 415,866   

 

  40   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended November 30, 2011  
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust  

From operations —

     

Net investment income

  $ 5,179,486      $ 2,427,846      $ 2,370,308   

Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts

    (3,463,693     (1,188,474     (1,720,683

Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts

    4,422,671        2,074,746        1,564,419   

Distributions to preferred shareholders —

     

From net investment income

    (103,791     (70,672     (65,985

Net increase in net assets from operations

  $ 6,034,673      $ 3,243,446      $ 2,148,059   

Distributions to common shareholders —

     

From net investment income

  $ (4,960,863   $ (2,454,993   $ (2,355,299

Total distributions to common shareholders

  $ (4,960,863   $ (2,454,993   $ (2,355,299

Capital share transactions —

     

Reinvestment of distributions to common shareholders

  $ 232,016      $ 127,253      $ 7,823   

Net increase in net assets from capital share transactions

  $ 232,016      $ 127,253      $ 7,823   

Net increase (decrease) in net assets

  $ 1,305,826      $ 915,706      $ (199,417
Net Assets Applicable to Common Shares   

At beginning of year

  $ 71,372,379      $ 37,462,914      $ 36,210,406   

At end of year

  $ 72,678,205      $ 38,378,620      $ 36,010,989   
Accumulated undistributed net investment income
included in net assets applicable to common shares
   

At end of year

  $ 940,604      $ 332,320      $ 385,127   

 

  41   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Statement of Cash Flows*

 

 

    Year Ended
November 30, 2012
 
Cash Flows From Operating Activities   New York Trust  

Net increase in net assets from operations

  $ 17,163,636   

Distributions to preferred shareholders

    86,286   

Net increase in net assets from operations excluding distributions to preferred shareholders

  $ 17,249,922   

Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:

 

Investments purchased

    (24,855,242

Investments sold

    22,616,269   

Net amortization/accretion of premium (discount)

    (321,652

Amortization of deferred debt issuance costs

    1,850   

Increase in restricted cash

    (150,000

Increase in interest receivable

    (43,456

Decrease in receivable for variation margin on open financial futures contracts

    29,298   

Increase in payable for variation margin on open financial futures contracts

    6,718   

Increase in payable to affiliate for investment adviser fee

    3,534   

Increase in payable to affiliate for administration fee

    1,523   

Increase in payable to affiliate for Trustees’ fees

    204   

Increase in interest expense and fees payable

    101   

Increase in accrued expenses

    2,945   

Net change in unrealized (appreciation) depreciation from investments

    (13,018,565

Net realized gain from investments

    (58,792

Net cash provided by operating activities

  $ 1,464,657   
Cash Flows From Financing Activities        

Distributions paid to common shareholders, net of reinvestments

  $ (4,840,939

Cash distributions paid to preferred shareholders

    (87,307

Proceeds from secured borrowings

    4,800,000   

Repayment of secured borrowings

    (5,940,000

Increase in due to custodian

    634,282   

Net cash used in financing activities

  $ (5,433,964

Net decrease in cash

  $ (3,969,307

Cash at beginning of year

  $ 3,969,307   

Cash at end of year

  $   
Supplemental disclosure of cash flow information:        

Noncash financing activities not included herein consist of:

 

Reinvestment of dividends and distributions

  $ 134,042   

Cash paid for interest and fees

    139,507   

 

* Statement of Cash Flows is not required for California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust.

 

  42   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights

 

Selected data for a common share outstanding during the periods stated

 

    California Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 12.410      $ 12.390      $ 12.330      $ 9.890      $ 15.120   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.791      $ 0.926      $ 0.945      $ 0.947      $ 0.943   

Net realized and unrealized gain (loss)

    2.316        0.002        0.026        2.321        (5.223

Distributions to preferred shareholders

         

From net investment income(1)

    (0.018     (0.022     (0.028     (0.047     (0.277

Total income (loss) from operations

  $ 3.089      $ 0.906      $ 0.943      $ 3.221      $ (4.557
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.839   $ (0.886   $ (0.883   $ (0.781   $ (0.673

Total distributions to common shareholders

  $ (0.839   $ (0.886   $ (0.883   $ (0.781   $ (0.673

Net asset value — End of year (Common shares)

  $ 14.660      $ 12.410      $ 12.390      $ 12.330      $ 9.890   

Market value — End of year (Common shares)

  $ 14.680      $ 12.770      $ 12.400      $ 12.170      $ 9.150   

Total Investment Return on Net Asset Value(2)

    25.59     7.99     7.73     34.24     (30.70 )% 

Total Investment Return on Market Value(2)

    22.22     11.04     9.25     43.19     (26.34 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 106,367      $ 89,862      $ 89,395      $ 88,720      $ 71,065   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.66     1.83     1.78     1.93     1.87

Interest and fee expense(4)

    0.11     0.17     0.18     0.23     0.37

Total expenses before custodian fee reduction

    1.77     2.00     1.96     2.16     2.24

Expenses after custodian fee reduction excluding interest and fees

    1.66     1.83     1.78     1.93     1.85

Net investment income

    5.77     7.81     7.34     8.35     6.91

Portfolio Turnover

    17     22     14     18     31

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.11     1.15     1.16     1.19     1.18

Interest and fee expense(4)

    0.07     0.11     0.11     0.15     0.24

Total expenses before custodian fee reduction

    1.18     1.26     1.27     1.34     1.42

Expenses after custodian fee reduction excluding interest and fees

    1.11     1.15     1.16     1.19     1.17

Net investment income

    3.84     4.93     4.77     5.18     4.39

Senior Securities:

         

Total preferred shares outstanding

    1,999        1,999        1,999        1,999        1,999   

Asset coverage per preferred share(5)

  $ 78,210      $ 69,954      $ 69,721      $ 69,383      $ 60,552   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3)

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5)

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6) 

Plus accumulated and unpaid dividends.

 

  43   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Massachusetts Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.970      $ 13.790      $ 13.590      $ 10.160      $ 14.860   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.771      $ 0.890      $ 0.926      $ 0.948      $ 0.947   

Net realized and unrealized gain (loss)

    2.283        0.219        0.210        3.356        (4.720

Distributions to preferred shareholders

         

From net investment income(1)

    (0.019     (0.023     (0.030     (0.049     (0.278

Total income (loss) from operations

  $ 3.035      $ 1.086      $ 1.106      $ 4.255      $ (4.051
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.805   $ (0.906   $ (0.906   $ (0.825   $ (0.649

Total distributions to common shareholders

  $ (0.805   $ (0.906   $ (0.906   $ (0.825   $ (0.649

Net asset value — End of year (Common shares)

  $ 16.200      $ 13.970      $ 13.790      $ 13.590      $ 10.160   

Market value — End of year (Common shares)

  $ 16.350      $ 14.810      $ 13.980      $ 13.260      $ 8.930   

Total Investment Return on Net Asset Value(2)

    22.28     8.49     8.16     43.29     (28.02 )% 

Total Investment Return on Market Value(2)

    16.41     13.45     12.38     58.91     (27.89 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 44,549      $ 38,372      $ 37,735      $ 37,011      $ 27,576   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.73     1.87     1.83     2.02     2.06

Interest and fee expense(4)

    0.09     0.11     0.09     0.14     0.26

Total expenses before custodian fee reduction

    1.82     1.98     1.92     2.16     2.32

Expenses after custodian fee reduction excluding interest and fees

    1.73     1.87     1.82     2.02     2.04

Net investment income

    5.06     6.70     6.51     7.77     7.03

Portfolio Turnover

    11     15     16     24     40

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.17     1.21     1.20     1.26     1.31

Interest and fee expense(4)

    0.06     0.07     0.06     0.09     0.16

Total expenses before custodian fee reduction

    1.23     1.28     1.26     1.35     1.47

Expenses after custodian fee reduction excluding interest and fees

    1.17     1.21     1.20     1.26     1.30

Net investment income

    3.42     4.32     4.29     4.85     4.47

Senior Securities:

         

Total preferred shares outstanding

    802        802        802        802        802   

Asset coverage per preferred share(5)

  $ 80,548      $ 72,846      $ 72,051      $ 71,150      $ 59,391   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5) 

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6) 

Plus accumulated and unpaid dividends.

 

  44   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Michigan Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.400      $ 12.880      $ 12.940      $ 10.860      $ 14.510   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.760      $ 0.826      $ 0.876      $ 0.918      $ 0.931   

Net realized and unrealized gain (loss)

    1.944        0.558        (0.044     1.990        (3.669

Distributions to preferred shareholders

         

From net investment income(1)

    (0.021     (0.025     (0.033     (0.056     (0.301

Total income (loss) from operations

  $ 2.683      $ 1.359      $ 0.799      $ 2.852      $ (3.039
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.773   $ (0.839   $ (0.859   $ (0.772   $ (0.611

Total distributions to common shareholders

  $ (0.773   $ (0.839   $ (0.859   $ (0.772   $ (0.611

Net asset value — End of year (Common shares)

  $ 15.310      $ 13.400      $ 12.880      $ 12.940      $ 10.860   

Market value — End of year (Common shares)

  $ 14.690      $ 12.470      $ 12.100      $ 11.530      $ 7.920   

Total Investment Return on Net Asset Value(2)

    20.92     11.66     6.57     28.08     (21.02 )% 

Total Investment Return on Market Value(2)

    24.67     10.60     12.36     56.49     (32.76 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 32,391      $ 28,366      $ 27,262      $ 27,392      $ 22,977   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.89     2.04     1.98     2.18     2.15

Interest and fee expense(4)

                         0.06     0.16

Total expenses before custodian fee reduction

    1.89     2.04     1.98     2.24     2.31

Expenses after custodian fee reduction excluding interest and fees

    1.89     2.04     1.98     2.18     2.13

Net investment income

    5.26     6.49     6.57     7.61     6.96

Portfolio Turnover

    14     18     14     23     24

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.20     1.24     1.22     1.29     1.33

Interest and fee expense(4)

                         0.04     0.10

Total expenses before custodian fee reduction

    1.20     1.24     1.22     1.33     1.43

Expenses after custodian fee reduction excluding interest and fees

    1.20     1.24     1.22     1.29     1.31

Net investment income

    3.35     3.93     4.06     4.52     4.30

Senior Securities:

         

Total preferred shares outstanding

    700        700        700        700        700   

Asset coverage per preferred share(5)

  $ 71,273      $ 65,524      $ 63,948      $ 64,132      $ 57,828   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5) 

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6)

Plus accumulated and unpaid dividends.

 

  45   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New Jersey Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.020      $ 13.260      $ 13.570      $ 9.400      $ 14.930   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.802      $ 0.890      $ 0.957      $ 0.971      $ 0.968   

Net realized and unrealized gain (loss)

    1.783        (0.185     (0.290     4.091        (5.579

Distributions to preferred shareholders

         

From net investment income(1)

    (0.018     (0.022     (0.029     (0.048     (0.289

Total income (loss) from operations

  $ 2.567      $ 0.683      $ 0.638      $ 5.014      $ (4.900
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.797   $ (0.923   $ (0.948   $ (0.844   $ (0.630

Total distributions to common shareholders

  $ (0.797   $ (0.923   $ (0.948   $ (0.844   $ (0.630

Net asset value — End of year (Common shares)

  $ 14.790      $ 13.020      $ 13.260      $ 13.570      $ 9.400   

Market value — End of year (Common shares)

  $ 16.380      $ 13.370      $ 13.520      $ 14.040      $ 8.500   

Total Investment Return on Net Asset Value(2)

    20.18     5.64     4.62     55.43     (33.57 )% 

Total Investment Return on Market Value(2)

    29.62     6.39     3.10     77.84     (29.88 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 69,135      $ 60,734      $ 61,717      $ 62,792      $ 43,459   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.71     1.81     1.79     1.99     1.96

Interest and fee expense(4)

    0.11     0.15     0.18     0.24     0.45

Total expenses before custodian fee reduction

    1.82     1.96     1.97     2.23     2.41

Expenses after custodian fee reduction excluding interest and fees

    1.71     1.81     1.79     1.99     1.94

Net investment income

    5.70     6.96     6.87     8.16     7.22

Portfolio Turnover

    14     11     9     48     54

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.14     1.16     1.18     1.24     1.23

Interest and fee expense(4)

    0.07     0.09     0.12     0.15     0.28

Total expenses before custodian fee reduction

    1.21     1.25     1.30     1.39     1.51

Expenses after custodian fee reduction excluding interest and fees

    1.14     1.16     1.18     1.24     1.21

Net investment income

    3.78     4.46     4.53     5.08     4.51

Senior Securities:

         

Total preferred shares outstanding

    1,337        1,337        1,337        1,337        1,366   

Asset coverage per preferred share(5)

  $ 76,709      $ 70,427      $ 71,162      $ 71,966      $ 56,817   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1)

Computed using average common shares outstanding.

 

(2)

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3)

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5)

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6)

Plus accumulated and unpaid dividends.

 

  46   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New York Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.310      $ 13.110      $ 12.920      $ 9.350      $ 15.240   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.856      $ 0.950      $ 0.954      $ 0.960      $ 0.987   

Net realized and unrealized gain (loss)

    2.300        0.179        0.166        3.493        (5.887

Distributions to preferred shareholders

         

From net investment income(1)

    (0.016     (0.019     (0.025     (0.042     (0.269

Total income (loss) from operations

  $ 3.140      $ 1.110      $ 1.095      $ 4.411      $ (5.169
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.910   $ (0.910   $ (0.905   $ (0.841   $ (0.721

Total distributions to common shareholders

  $ (0.910   $ (0.910   $ (0.905   $ (0.841   $ (0.721

Net asset value — End of year (Common shares)

  $ 15.540      $ 13.310      $ 13.110      $ 12.920      $ 9.350   

Market value — End of year (Common shares)

  $ 16.150      $ 13.450      $ 13.350      $ 13.200      $ 7.900   

Total Investment Return on Net Asset Value(2)

    24.30     9.06     8.48     49.00     (35.07 )% 

Total Investment Return on Market Value(2)

    27.89     8.18     8.16     80.12     (40.71 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 85,001      $ 72,678      $ 71,372      $ 69,857      $ 50,325   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.66     1.78     1.74     1.98     1.92

Interest and fee expense(4)

    0.18     0.22     0.21     0.24     0.55

Total expenses before custodian fee reduction

    1.84     2.00     1.95     2.22     2.47

Expenses after custodian fee reduction excluding interest and fees

    1.66     1.78     1.74     1.98     1.89

Net investment income

    5.90     7.40     7.02     8.40     7.21

Portfolio Turnover

    17     13     13     20     48

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.16     1.20     1.18     1.28     1.23

Interest and fee expense(4)

    0.13     0.15     0.15     0.15     0.35

Total expenses before custodian fee reduction

    1.29     1.35     1.33     1.43     1.58

Expenses after custodian fee reduction excluding interest and fees

    1.16     1.20     1.18     1.28     1.21

Net investment income

    4.14     5.00     4.82     5.43     4.63

Senior Securities:

         

Total preferred shares outstanding

    1,349        1,349        1,349        1,349        1,349   

Asset coverage per preferred share(5)

  $ 88,010      $ 78,877      $ 77,909      $ 76,785      $ 62,309   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1)

Computed using average common shares outstanding.

 

(2)

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3)

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5)

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6)

Plus accumulated and unpaid dividends.

 

  47   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Ohio Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.440      $ 13.170      $ 13.520      $ 10.450      $ 14.830   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.786      $ 0.851      $ 0.899      $ 0.945      $ 0.961   

Net realized and unrealized gain (loss)

    2.475        0.305        (0.325     2.974        (4.410

Distributions to preferred shareholders

         

From net investment income(1)

    (0.020     (0.025     (0.033     (0.055     (0.303

Total income (loss) from operations

  $ 3.241      $ 1.131      $ 0.541      $ 3.864      $ (3.752
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.831   $ (0.861   $ (0.891   $ (0.794   $ (0.628

Total distributions to common shareholders

  $ (0.831   $ (0.861   $ (0.891   $ (0.794   $ (0.628

Net asset value — End of year (Common shares)

  $ 15.850      $ 13.440      $ 13.170      $ 13.520      $ 10.450   

Market value — End of year (Common shares)

  $ 16.800      $ 13.320      $ 13.420      $ 13.430      $ 8.550   

Total Investment Return on Net Asset Value(2)

    24.71     9.21     3.96     38.58     (25.69 )% 

Total Investment Return on Market Value(2)

    33.34     6.25     6.64     68.25     (29.83 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 45,284      $ 38,379      $ 37,463      $ 38,295      $ 29,563   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.76     1.93     1.85     2.08     2.08

Interest and fee expense(4)

           0.01     0.02     0.02     0.26

Total expenses before custodian fee reduction

    1.76     1.94     1.87     2.10     2.34

Expenses after custodian fee reduction excluding interest and fees

    1.76     1.93     1.85     2.08     2.06

Net investment income

    5.31     6.64     6.53     7.77     7.12

Portfolio Turnover

    11     11     17     20     27

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.15     1.19     1.17     1.26     1.29

Interest and fee expense(4)

           0.01     0.01     0.01     0.16

Total expenses before custodian fee reduction

    1.15     1.20     1.18     1.27     1.45

Expenses after custodian fee reduction excluding interest and fees

    1.15     1.19     1.17     1.26     1.28

Net investment income

    3.45     4.09     4.13     4.68     4.41

Senior Securities:

         

Total preferred shares outstanding

    909        909        909        909        918   

Asset coverage per preferred share(5)

  $ 74,818      $ 67,221      $ 66,215      $ 67,131      $ 57,209   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2)

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3)

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5) 

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6)

Plus accumulated and unpaid dividends.

 

  48   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Pennsylvania Trust  
    Year Ended November 30,  
    2012     2011     2010     2009     2008  

Net asset value — Beginning of year (Common shares)

  $ 13.250      $ 13.330      $ 13.380      $ 10.320      $ 14.840   
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.786      $ 0.873      $ 0.912      $ 0.928      $ 0.986   

Net realized and unrealized gain (loss)

    1.591        (0.062     (0.063     2.973        (4.555

Distributions to preferred shareholders

         

From net investment income(1)

    (0.020     (0.024     (0.032     (0.053     (0.299

Total income (loss) from operations

  $ 2.357      $ 0.787      $ 0.817      $ 3.848      $ (3.868
Less Distributions to Common Shareholders                                        

From net investment income

  $ (0.827   $ (0.867   $ (0.867   $ (0.788   $ (0.652

Total distributions to common shareholders

  $ (0.827   $ (0.867   $ (0.867   $ (0.788   $ (0.652

Net asset value — End of year (Common shares)

  $ 14.780      $ 13.250      $ 13.330      $ 13.380      $ 10.320   

Market value — End of year (Common shares)

  $ 15.100      $ 13.660      $ 12.930      $ 13.050      $ 9.600   

Total Investment Return on Net Asset Value(2)

    18.20     6.53     6.13     39.16     (26.57 )% 

Total Investment Return on Market Value(2)

    17.23     13.15     5.57     45.88     (20.75 )% 
Ratios/Supplemental Data                                        

Net assets applicable to common shares, end of year (000’s omitted)

  $ 40,188      $ 36,011      $ 36,210      $ 36,255      $ 27,944   

Ratios (as a percentage of average daily net assets applicable to common shares):(3)

         

Expenses excluding interest and fees

    1.85     1.93     1.88     2.11     2.06

Interest and fee expense(4)

    0.04     0.05     0.06     0.21     0.37

Total expenses before custodian fee reduction

    1.89     1.98     1.94     2.32     2.43

Expenses after custodian fee reduction excluding interest and fees

    1.85     1.93     1.88     2.11     2.04

Net investment income

    5.57     6.71     6.61     7.61     7.23

Portfolio Turnover

    15     8     17     23     25

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)

         

Expenses excluding interest and fees

    1.20     1.21     1.20     1.28     1.28

Interest and fee expense(4)

    0.02     0.03     0.04     0.13     0.23

Total expenses before custodian fee reduction

    1.22     1.24     1.24     1.41     1.51

Expenses after custodian fee reduction excluding interest and fees

    1.20     1.21     1.20     1.28     1.27

Net investment income

    3.59     4.19     4.22     4.63     4.50

Senior Securities:

         

Total preferred shares outstanding

    847        847        847        847        889   

Asset coverage per preferred share(5)

  $ 72,448      $ 67,516      $ 67,752      $ 67,806      $ 56,439   

Involuntary liquidation preference per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(6)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2)

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

 

(3)

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(4)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(5)

Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(6)

Plus accumulated and unpaid dividends.

 

  49   See Notes to Financial Statements.


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust) and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust) (each individually referred to as the Trust, and collectively, the Trusts), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. Each Trust seeks to provide current income exempt from regular federal income tax and taxes in its specified state.

The following is a summary of significant accounting policies of the Trusts. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap rates provided by electronic data services or by broker/dealers. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Trust in a manner that fairly reflects the security’s value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

C  Federal Taxes — Each Trust’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.

At November 30, 2012, the following Trusts, for federal income tax purposes, had capital loss carryforwards and current year deferred capital losses which will reduce the respective Trust’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The current year deferred capital losses are treated as arising on the first day of the Trusts’ next taxable year and are treated as realized prior to the utilization of the capital loss carryforward. The amounts and expiration dates of the capital loss carryforwards and the amounts of the current year deferred capital losses are as follows:

 

Expiration Date  

California

Trust

    Massachusetts
Trust
    Michigan
Trust
   

New Jersey

Trust

   

New York

Trust

   

Ohio

Trust

   

Pennsylvania

Trust

 

November 30, 2013

  $      $      $ 224,050      $      $      $ 588,403      $ 389,289   

November 30, 2016

    6,689,345        692,532        517,712               2,354,581        736,482        800,874   

November 30, 2017

    4,084,290        991,790        337,540        3,185,143        3,171,310        840,450          

November 30, 2018

    355,871               34,334        1,512,852        671,928        41,243        329,527   

November 30, 2019

    5,299,748        1,780,081        345,052        4,137,608        3,607,489        1,169,431        1,724,760   

Total capital loss carryforward

  $ 16,429,254      $ 3,464,403      $ 1,458,688      $ 8,835,603      $ 9,805,308      $ 3,376,009      $ 3,244,450   

Current year deferred capital losses

  $ 1,073,756      $ 445,924      $ 361,063      $ 1,210,103      $ 654,735      $ 678,454      $ 783,890   

 

  50  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

As of November 30, 2012, the Trusts had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Trust files a U.S. federal tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Trusts. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Trust maintains with SSBT. All credit balances, if any, used to reduce each Trust’s custodian fees are reported as a reduction of expenses in the Statements of Operations.

E  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement 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.

F  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.

G Indemnifications — Under each Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Trust) could be deemed to have personal liability for the obligations of the Trust. However, each Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Trust enters into agreements with service providers that may contain indemnification clauses. Each Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred.

H  Floating Rate Notes Issued in Conjunction with Securities Held — The Trusts may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Trust may sell a variable or fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Trust, and which may have been, but is not required to be, the bond purchased from the Trust (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trusts account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 10) at November 30, 2012. Interest expense related to the Trusts’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At November 30, 2012, the amounts of the Trusts’ Floating Rate Notes and related interest rates and collateral were as follows:

 

     California
Trust
     Massachusetts
Trust
     New Jersey
Trust
     New York
Trust
     Pennsylvania
Trust
 

Floating Rate Notes Outstanding

  $ 14,680,000       $ 4,885,000       $ 9,455,000       $ 19,315,000       $ 1,650,000   

Interest Rate or Range of Interest Rates (%)

    0.16 - 0.22         0.16 - 0.22         0.16 - 0.36         0.16 - 0.22         0.17 - 0.22   

Collateral for Floating Rate Notes Outstanding

  $ 19,786,750       $ 7,473,829       $ 13,888,252       $ 29,799,053       $ 3,291,052   

 

  51  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

For the year ended November 30, 2012, the Trusts’ average Floating Rate Notes outstanding and the average interest rate including fees and amortization of deferred debt issuance costs were as follows:

 

    

California

Trust

     Massachusetts
Trust
     New Jersey
Trust
     New York
Trust
     Pennsylvania
Trust
 

Average Floating Rate Notes Outstanding

  $ 15,197,049       $ 4,885,000       $ 9,455,000       $ 19,534,016       $ 1,650,000   

Average Interest Rate

    0.73      0.79      0.75      0.71      0.87

The Trusts may enter into shortfall and forbearance agreements with the broker by which a Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trusts had no shortfalls as of November 30, 2012.

The Trusts may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.

The Trusts’ investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Trusts’ investment policies do not allow the Trusts to borrow money except as permitted by the 1940 Act. Management believes that the Trusts’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts’ restrictions apply. Residual interest bonds held by the Trusts are securities exempt from registration under Rule 144A of the Securities Act of 1933.

I  Financial Futures Contracts — Upon entering into a financial futures contract, a Trust is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Trust each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Trust. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.

J  Interest Rate Swaps — Pursuant to interest rate swap agreements, a Trust makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. Payments received or made are recorded as realized gains or losses. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Trust is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.

K  When-Issued Securities and Delayed Delivery Transactions — The Trusts may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trusts maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

L  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Trust is the amount included in the Trust’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.

2  Auction Preferred Shares

Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. The stated spread over the reference benchmark rate is determined based on the credit rating of the APS.

 

  52  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

The APS are redeemable at the option of each Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years’ dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in the Trusts’ By-laws and the 1940 Act. Each Trust pays an annual fee up to 0.15% of the liquidation value of the APS to broker/dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.

3  Distributions to Shareholders

Each Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for APS at November 30, 2012, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the year then ended were as follows:

 

     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

APS Dividend Rates at November 30, 2012

    0.27     0.27     0.27     0.27     0.27     0.27     0.29

Dividends Accrued to APS Shareholders

  $ 127,665      $ 51,813      $ 44,571      $ 84,946      $ 86,286      $ 58,080      $ 54,721   

Average APS Dividend Rates

    0.26     0.26     0.25     0.25     0.26     0.26     0.26

Dividend Rate Ranges (%)

    0.11 - 0.40        0.11 - 0.38        0.11 - 0.40        0.11 - 0.40        0.11 - 0.40        0.11 - 0.38        0.11 - 0.38   

Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of November 30, 2012.

The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

The tax character of distributions declared for the years ended November 30, 2012 and November 30, 2011 was as follows:

 

    Year Ended November 30, 2012  
     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Distributions declared from:

             

Tax-exempt income

  $ 6,213,859      $ 2,262,741      $ 1,680,836      $ 3,783,341      $ 5,057,060      $ 2,428,655      $ 2,302,056   

Ordinary income

  $ 241      $ 1,816      $      $ 25,152      $ 4,207      $ 2,953      $ 790   

 

    Year Ended November 30, 2011  
     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Distributions declared from:

             

Tax-exempt income

  $ 6,556,616      $ 2,546,610      $ 1,829,137      $ 4,405,869      $ 5,061,545      $ 2,516,322      $ 2,381,612   

Ordinary income

  $ 4,124      $ 247      $      $      $ 3,109      $ 9,343      $ 39,672   

 

  53  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

During the year ended November 30, 2012, the following amounts were reclassified due to expired capital loss carryforwards and differences between book and tax accounting, primarily for accretion of market discount and defaulted bond interest:

 

     California
Trust
     Massachusetts
Trust
     Michigan
Trust
     New Jersey
Trust
     New York
Trust
    

Ohio

Trust

     Pennsylvania
Trust
 

Change in:

                   

Paid-in capital

  $ (995,999    $       $ (697,198    $       $       $ (764,353    $ (502,868

Accumulated net realized loss

  $ 1,055,823       $ 15,633       $ 706,638       $ (6,512    $ (5,066    $ 780,140       $ 511,447   

Accumulated undistributed net investment income

  $ (59,824    $ (15,633    $ (9,440    $ 6,512       $ 5,066       $ (15,787    $ (8,579

These reclassifications had no effect on the net assets or net asset value per share of the Trusts.

As of November 30, 2012, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:

 

     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Undistributed tax-exempt income

  $ 663,177      $ 169,679      $ 117,874      $ 359,123      $ 563,460      $ 129,772      $ 270,618   

Capital loss carryforward and deferred capital losses

  $ (17,503,010   $ (3,910,327   $ (1,819,751   $ (10,045,706   $ (10,460,043   $ (4,054,463   $ (4,028,340

Net unrealized appreciation

  $ 18,979,900      $ 8,534,475      $ 4,741,341      $ 11,786,186      $ 15,523,448      $ 9,021,383      $ 5,842,009   

Other temporary differences

  $      $ (600   $ (262   $      $ (252   $ (510   $ (634

The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, residual interest bonds, futures contracts, accretion of market discount, defaulted bond interest and the timing of recognizing distributions to shareholders.

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. The fee is computed at an annual rate of 0.655% (0.670% prior to May 1, 2012) of each Trust’s average weekly gross assets and is payable monthly. Pursuant to a fee reduction agreement between each Trust and EVM that commenced on May 1, 2010, the annual adviser fee is reduced by 0.015% every May 1 thereafter for the next nineteen years. The fee reduction cannot be terminated without the consent of the Trustees and shareholders. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Trust, and the amount of any outstanding APS issued by the Trust. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Trust’s APS then outstanding and the amount payable by the Trust to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Trust. The administration fee is earned by EVM for administering the business affairs of each Trust and is computed at an annual rate of 0.20% of each Trust’s average weekly gross assets. For the year ended November 30, 2012, the investment adviser fees and administration fees were as follows:

 

     California
Trust
     Massachusetts
Trust
     Michigan
Trust
     New Jersey
Trust
     New York
Trust
    

Ohio

Trust

     Pennsylvania
Trust
 

Investment Adviser Fee

  $ 1,046,300       $ 418,507       $ 317,736       $ 684,911       $ 817,444       $ 429,301       $ 402,014   

Administration Fee

  $ 316,531       $ 126,605       $ 96,117       $ 207,186       $ 247,295       $ 129,871       $ 121,608   

Trustees and officers of the Trusts who are members of EVM’s organization receive remuneration for their services to the Trusts out of the investment adviser fee. Trustees of the Trusts who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended November 30, 2012, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.

 

  54  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

5  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the year ended November 30, 2012 were as follows:

 

     California
Trust
     Massachusetts
Trust
     Michigan
Trust
     New Jersey
Trust
     New York
Trust
    

Ohio

Trust

     Pennsylvania
Trust
 

Purchases

  $ 31,260,685       $ 9,953,807       $ 7,931,766       $ 17,408,726       $ 23,591,092       $ 8,763,797       $ 8,939,049   

Sales

  $ 27,897,716       $ 7,186,911       $ 6,333,098       $ 14,578,627       $ 21,977,425       $ 6,991,448       $ 9,368,493   

6  Common Shares of Beneficial Interest

Common shares issued pursuant to the Trusts’ dividend reinvestment plan for the years ended November 30, 2012 and November 30, 2011 were as follows:

 

     California
Trust
     Massachusetts
Trust
     New Jersey
Trust
     New York
Trust
    

Ohio

Trust

     Pennsylvania
Trust
 

Year Ended November 30, 2012

    13,698         3,879         10,907         9,350         1,890         2,720   

Year Ended November 30, 2011

    26,037         9,543         9,594         18,118         10,146         590   

7  Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments of each Trust at November 30, 2012, as determined on a federal income tax basis, were as follows:

 

    

California

Trust

    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Aggregate cost

  $ 135,972,174      $ 54,974,999      $ 44,133,701      $ 89,084,836      $ 101,424,342      $ 58,298,171      $ 54,550,203   

Gross unrealized appreciation

  $ 20,063,511      $ 8,817,151      $ 4,906,423      $ 12,669,436      $ 16,419,934      $ 9,321,050      $ 6,740,242   

Gross unrealized depreciation

    (1,083,611     (282,676     (165,082     (883,250     (896,486     (299,667     (898,233

Net unrealized appreciation

  $ 18,979,900      $ 8,534,475      $ 4,741,341      $ 11,786,186      $ 15,523,448      $ 9,021,383      $ 5,842,009   

8  Overdraft Advances

Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft, the Trusts are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to SSBT. SSBT has a lien on a Trust’s assets to the extent of any overdraft. At November 30, 2012, California Trust, Massachusetts Trust, New Jersey Trust, New York Trust and Ohio Trust had payments due to SSBT pursuant to the foregoing arrangement of $1,105,024, $263,708, $219,691, $634,282 and $90,746, respectively. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at November 30, 2012. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 10) at November 30, 2012. The Trusts’ average overdraft advances during the year ended November 30, 2012 were not significant.

9  Financial Instruments

The Trusts may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and do 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.

 

  55  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

A summary of obligations under these financial instruments at November 30, 2012 is as follows:

 

Futures Contracts  
Trust   Expiration
Month/Year
     Contracts    Position    Aggregate
Cost
     Value      Net
Unrealized
Depreciation
 
California     3/13      

68

U.S. 10-Year Treasury Note

   Short    $ (9,047,613    $ (9,087,563    $ (39,950
      3/13      

48

U.S. 30-Year Treasury Bond

   Short      (7,199,537      (7,203,000      (3,463
Massachusetts     3/13      

34

U.S. 30-Year Treasury Bond

   Short    $ (5,099,672    $ (5,102,125    $ (2,453
Michigan     3/13      

6

U.S. 30-Year Treasury Bond

   Short    $ (899,941    $ (900,375    $ (434
New Jersey     3/13      

145

U.S. 30-Year Treasury Bond

   Short    $ (21,685,165    $ (21,759,063    $ (73,898
New York     3/13      

43

U.S. 30-Year Treasury Bond

   Short    $ (6,449,586    $ (6,452,688    $ (3,102
Ohio     3/13      

18

U.S. 30-Year Treasury Bond

   Short    $ (2,699,826    $ (2,701,125    $ (1,299
Pennsylvania     3/13      

50

U.S. 30-Year Treasury Bond

   Short    $ (7,477,643    $ (7,503,125    $ (25,482

At November 30, 2012, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.

Each Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trusts hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trusts purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.

The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at November 30, 2012 were as follows:

 

     California
Trust
     Massachusetts
Trust
     Michigan
Trust
     New Jersey
Trust
     New York
Trust
    

Ohio

Trust

     Pennsylvania
Trust
 

Liability Derivative:

                   

Futures Contracts

  $ (43,413 )(1)     $ (2,453 )(1)     $ (434 )(1)     $ (73,898 )(1)     $ (3,102 )(1)     $ (1,299 )(1)     $ (25,482 )(1) 

Total

  $ (43,413    $ (2,453    $ (434    $ (73,898    $ (3,102    $ (1,299    $ (25,482

 

(1) 

Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.

 

  56  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the year ended November 30, 2012 was as follows:

 

     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ (903,437 )(1)    $ (381,782 )(1)    $ (102,698 )(1)    $ (1,365,995 )(1)    $ (482,767 )(1)    $ (219,914 )(1)    $ (471,033 )(1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ (120,303 )(2)    $ (18,749 )(2)    $ (11,388 )(2)    $ (250,376 )(2)    $ (23,473 )(2)    $ (25,239 )(2)    $ (86,337 )(2) 

 

(1) 

Statement of Operations location: Net realized gain (loss) – Financial futures contracts.

 

(2) 

Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts.

The average notional amount of futures contracts outstanding during the year ended November 30, 2012, which is indicative of the volume of this derivative type, was approximately as follows:

 

     California
Trust
    Massachusetts
Trust
    Michigan
Trust
    New Jersey
Trust
    New York
Trust
   

Ohio

Trust

    Pennsylvania
Trust
 

Average Notional Amount:

             

Futures Contracts

  $ 11,600,000      $ 3,600,000      $ 646,000      $ 14,500,000      $ 4,546,000      $ 1,846,000      $ 5,000,000   

10  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

Ÿ  

Level 1 – quoted prices in active markets for identical investments

 

Ÿ  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

Ÿ  

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

  57  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

At November 30, 2012, the hierarchy of inputs used in valuing the Trusts’ investments and open derivative instruments, which are carried at value, were as follows:

 

California Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 169,632,074       $         —       $ 169,632,074   

Total Investments

  $       $ 169,632,074       $       $ 169,632,074   

Liability Description

                                  

Futures Contracts

  $ (43,413    $       $       $ (43,413

Total

  $ (43,413    $       $       $ (43,413
          

Massachusetts Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 68,394,474       $       $ 68,394,474   

Total Investments

  $       $ 68,394,474       $       $ 68,394,474   

Liability Description

                                  

Futures Contracts

  $ (2,453    $       $       $ (2,453

Total

  $ (2,453    $       $       $ (2,453
          

Michigan Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 48,875,042       $         —       $ 48,875,042   

Total Investments

  $       $ 48,875,042       $       $ 48,875,042   

Liability Description

                                  

Futures Contracts

  $ (434    $       $       $ (434

Total

  $ (434    $       $       $ (434
          

New Jersey Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 110,326,022       $       $ 110,326,022   

Total Investments

  $       $ 110,326,022       $       $ 110,326,022   

Liability Description

                                  

Futures Contracts

  $ (73,898    $       $       $ (73,898

Total

  $ (73,898    $       $       $ (73,898
          

 

  58  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Notes to Financial Statements — continued

 

 

New York Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 135,440,390       $       $ 135,440,390   

Miscellaneous

                    822,400         822,400   

Total Investments

  $       $ 135,440,390       $ 822,400       $ 136,262,790   

Liability Description

                                  

Futures Contracts

  $ (3,102    $       $       $ (3,102

Total

  $ (3,102    $       $       $ (3,102
          

Ohio Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 67,319,554       $       $ 67,319,554   

Total Investments

  $       $ 67,319,554       $       $ 67,319,554   

Liability Description

                                  

Futures Contracts

  $ (1,299    $       $       $ (1,299

Total

  $ (1,299    $       $       $ (1,299
          

Pennsylvania Trust

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 62,042,212       $           —       $ 62,042,212   

Total Investments

  $       $ 62,042,212       $       $ 62,042,212   

Liability Description

                                  

Futures Contracts

  $ (25,482    $       $       $ (25,482

Total

  $ (25,482    $       $       $ (25,482

California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust held no investments or other financial instruments as of November 30, 2011 whose fair value was determined using Level 3 inputs. Level 3 investments held by New York Trust at the beginning and/or end of the period in relation to net assets applicable to common shares were not significant and accordingly, a reconciliation of Level 3 assets for the year ended November 30, 2012 is not presented.

At November 30, 2012, there were no investments transferred between Level 1 and Level 2 during the year then ended.

 

  59  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees and Shareholders of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust:

We have audited the accompanying statements of assets and liabilities of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (collectively, the “Trusts”), including the portfolios of investments, as of November 30, 2012, and the related statements of operations for the year then ended, the statement of cash flows of Eaton Vance New York Municipal Income Trust for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of each Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2012, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2012, the results of their operations for the year then ended, the cash flows of Eaton Vance New York Municipal Income Trust for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

January 16, 2013

 

  60  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in January 2013 will show the tax status of all distributions paid to your account in calendar year 2012. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Trusts. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding exempt-interest dividends.

Exempt-Interest Dividends.  The Trusts designate the following percentages of dividends from net investment income as exempt-interest dividends:

 

Eaton Vance California Municipal Income Trust

    100.00

Eaton Vance Massachusetts Municipal Income Trust

    99.92

Eaton Vance Michigan Municipal Income Trust

    100.00

Eaton Vance New Jersey Municipal Income Trust

    99.34

Eaton Vance New York Municipal Income Trust

    99.92

Eaton Vance Ohio Municipal Income Trust

    99.88

Eaton Vance Pennsylvania Municipal Income Trust

    99.97

 

  61  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Dividend Reinvestment Plan

 

 

Each Trust offers a dividend reinvestment plan (Plan) pursuant to which shareholders automatically have distributions reinvested in common shares (Shares) of the Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the NAV per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the NAV per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by American Stock Transfer & Trust Company, the Plan agent (Agent). Distributions subject to income tax (if any) are taxable whether or not Shares are reinvested.

If your Shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that the Trust’s transfer agent re-register your Shares in your name or you will not be able to participate.

The Agent’s service fee for handling distributions will be paid by the Trust. Plan participants will be charged their pro rata share of brokerage commissions on all open-market purchases.

Plan participants may withdraw from the Plan at any time by writing to the Agent at the address noted on the following page. If you withdraw, you will receive Shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Agent to sell part or all of his or her Shares and remit the proceeds, the Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.

If you wish to participate in the Plan and your Shares are held in your own name, you may complete the form on the following page and deliver it to the Agent. Any inquiries regarding the Plan can be directed to the Agent at 1-866-439-6787.

 

  62  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Application for Participation in Dividend Reinvestment Plan

 

 

 

This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

 

 

Please print exact name on account:

 

Shareholder signature                                                           Date

 

Shareholder signature                                                           Date

Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

Eaton Vance Municipal Income Trusts

c/o American Stock Transfer & Trust Company

P.O. Box 922

Wall Street Station

New York, NY 10269-0560

 

 

Number of Employees

Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and has no employees.

Number of Shareholders

As of November 30, 2012, Trust records indicate that there are 104, 95, 65, 113, 103, 85 and 106 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively, and approximately 2,196, 1,181, 1,204, 1,742, 2,192, 1,456 and 1,357 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively.

If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

NYSE MKT symbols

 

California Municipal Income Trust    CEV
Massachusetts Municipal Income Trust    MMV
Michigan Municipal Income Trust    EMI
New Jersey Municipal Income Trust    EVJ
New York Municipal Income Trust    EVY
Ohio Municipal Income Trust    EVO
Pennsylvania Municipal Income Trust    EVP
 

 

  63  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO) and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts’ affairs. The Trustees and officers of the Trusts 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. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trusts, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. 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 a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 187 portfolios in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee serves for a three year term. Each officer serves until his or her successor is elected.

 

Name and Year of Birth   

Position(s)

with the

Trusts

    

Term of Office;

Length of
Service

    

Principal Occupation(s) and Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

Thomas E. Faust Jr.

1958

  

Class II

Trustee

    

Until 2013.

3 years.

Trustee since 2007.

    

Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 187 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trusts.

Directorships in the Last Five Years.(1) Director of EVC and Hexavest Inc.

            

Noninterested Trustees

Scott E. Eston

1956

  

Class II

Trustee

    

Until 2013.

2 years.

Trustee since 2011.

    

Private investor. Formerly held various positions at Grantham, Mayo, Van Otterloo and Co., L.L.C. (investment management firm) (1997-2009), including Chief Operating Officer (2002-2009), Chief Financial Officer (1997-2009) and Chairman of the Executive Committee (2002-2008); President and Principal Executive Officer, GMO Trust (open-end registered investment company) (2006-2009). Former Partner, Coopers and Lybrand L.L.P. (now PricewaterhouseCoopers) (public accounting firm) (1987-1997).

Directorships in the Last Five Years. None.

Benjamin C. Esty(A)

1963

  

Class I

Trustee

    

Until 2015.

3 years.

Trustee since 2006.

    

Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration.

Directorships in the Last Five Years.(1) None.

Allen R. Freedman

1940

  

Class II

Trustee

    

Until 2013.

3 years.

Trustee since 2007.

    

Private Investor. Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Former Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007). Former Chief Executive Officer of Assurant, Inc. (insurance provider) (1979-2000).

Directorships in the Last Five Years.(1) Director of Stonemor Partners, L.P. (owner and operator of cemeteries). Formerly, Director of Assurant, Inc. (insurance provider) (1979-2011).

William H. Park

1947

  

Class III

Trustee

    

Until 2014.

3 years.

Trustee since 2003.

    

Consultant and private investor. Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1972-1981).

Directorships in the Last Five Years.(1) None.

 

  64  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Management and Organization — continued

 

 

Name and Year of Birth   

Position(s)

with the

Trusts

    

Term of Office;

Length of
Service

    

Principal Occupation(s) and Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

Ronald A. Pearlman

1940

  

Class I

Trustee

    

Until 2015.

3 years.

Trustee since 2003.

    

Professor of Law, Georgetown University Law Center. Formerly, Deputy Assistant Secretary (Tax Policy) and Assistant Secretary (Tax Policy), U.S. Department of the Treasury (1983-1985). Formerly, Chief of Staff, Joint Committee on Taxation, U.S. Congress (1988-1990).

Directorships in the Last Five Years.(1) None.

Helen Frame Peters

1948

  

Class III

Trustee

    

Until 2014.

3 years.

Trustee since 2008.

    

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Directorships in the Last Five Years.(1) Formerly, Director of BJ’s Wholesale Club, Inc. (wholesale club retailer) (2004-2011). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009).

Lynn A. Stout

1957

  

Class I

Trustee

    

Until 2015.

3 years.

Trustee since 1998.

    

Distinguished Professor of Corporate and Business Law, Jack G. Clarke Business Law Institute, Cornell University Law School. Formerly, the Paul Hastings Professor of Corporate and Securities Law (2006-2012) and Professor of Law (2001-2006), University of California at Los Angeles School of Law.

Directorships in the Last Five Years.(1) None.

Harriett Tee Taggart

1948

  

Class III

Trustee

    

Until 2014.

3 years.

Trustee since 2011.

    

Managing Director, Taggart Associates (a professional practice firm). Formerly, Partner and Senior Vice President, Wellington Management Company, LLP (investment management firm) (1983-2006).

Directorships in the Last Five Years. Director of Albemarle Corporation (chemicals manufacturer) (since 2007) and The Hanover Group (specialty property and casualty insurance company) (since 2009). Formerly, Director of Lubrizol Corporation (specialty chemicals) (2007-2011).

Ralph F. Verni(A)

1943

  

Chairman of the Board and

Class II

Trustee

    

Until 2013.

3 years.

Chairman of the Board since 2007 and Trustee since 2005.

    

Consultant and private investor. Formerly, Chief Investment Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (2002-2006).

Directorships in the Last Five Years.(1) None.

            

Principal Officers who are not Trustees

Name and Year of Birth   

Position(s)
with the

Trusts

    

Length of

Service

    

Principal Occupation(s)

During Past Five Years

Cynthia J. Clemson

1963

   President of CEV, EMI, EVY, EVO and EVP      Since 2005      Vice President of EVM and BMR.

Thomas M. Metzold

1958

   President of MMV and EVJ      Since 2010      Vice President of EVM and BMR.

Payson F. Swaffield

1956

   Vice President      Since 2011      Vice President and Chief Income Investment Officer of EVM and BMR.

Barbara E. Campbell

1957

   Treasurer      Since 2005      Vice President of EVM and BMR.

 

  65  


Eaton Vance

Municipal Income Trusts

November 30, 2012

 

Management and Organization — continued

 

 

Name and Year of Birth   

Position(s)
with the

Trusts

    

Length of

Service

    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

Maureen A. Gemma

1960

   Vice President, Secretary and Chief Legal Officer      Vice President since 2011, Secretary since 2007 and Chief Legal Officer since 2008      Vice President of EVM and BMR.

Paul M. O’Neil

1953

   Chief Compliance Officer      Since 2004      Vice President of EVM and BMR.

 

(1) 

During their respective tenures, the Trustees (except Mr. Eston and Ms. Taggart) also served as trustees of one or more of the following Eaton Vance funds (which operated in the years noted): Eaton Vance Credit Opportunities Fund (launched in 2005 and terminated in 2010); Eaton Vance Insured Florida Plus Municipal Bond Fund (launched in 2002 and terminated in 2009); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009).

(A) 

APS Trustee.

 

  66  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Privacy.  The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:

 

Ÿ  

Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

 

Ÿ  

None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers.

 

Ÿ  

Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

 

Ÿ  

We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

Additional Notice to Shareholders.  A Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that a Fund will take such action or that such purchases would reduce the discount. If applicable, a Fund may also redeem or purchase its outstanding auction preferred shares (APS) in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary.

Closed-End Fund Information.  The Eaton Vance closed-end funds make certain fund performance data and information about portfolio characteristics (such as top holdings and asset allocation) available on the Eaton Vance website after the end of each month. Certain fund performance data for the funds, including total returns, are posted to the website shortly after the end of each month. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under “Individual Investors — Closed-End Funds”.

 

  67  


 

 

This Page Intentionally Left Blank


Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Custodian

State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

Transfer Agent

American Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level

New York, NY 10038

 

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

 


LOGO

 

147-1/13   CE-MUNISRC7


Item 2. Code of Ethics

Not required in this filing.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).


Item 4. Principal Accountant Fees and Services

The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended November 30, 2011 and November 30, 2012 by the Fund’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by D&T during such periods.

 

Fiscal Years Ended

   11/30/11      11/30/12  

Audit Fees

   $ 24,500       $ 26,160   

Audit-Related Fees(1)

   $ 3,915       $ 3,915   

Tax Fees(2)

   $ 7,900       $ 8,360   

All Other Fees(3)

   $ 300       $ 0   
  

 

 

    

 

 

 

Total

   $ 36,615       $ 38,435   
  

 

 

    

 

 

 

 

(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 financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant’s auction preferred shares.

(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 and other related tax compliance/planning matters.

(3) 

All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.

(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 D&T for the registrant’s fiscal years ended November 30, 2011 and November 30, 2012; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.


Fiscal Years Ended

   11/30/11      11/30/12  

Registrant

   $ 12,115       $ 12,275   

Eaton Vance(1)

   $ 287,931       $ 662,119   

 

(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant’s investment adviser and administrator.

(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

The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Scott E. Eston, Helen Frame Peters, Lynn A. Stout and Ralph F. Verni are the members of the registrant’s audit committee.

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

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.

The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer them back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies.


The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personnel of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Cynthia J. Clemson, portfolio manager of Eaton Vance California Municipal Income Trust, William H. Ahern, Jr., portfolio manager of Eaton Vance Michigan Municipal Income Trust and Eaton Vance Ohio Municipal Income Trust, Craig R. Brandon, portfolio manager of Eaton Vance Massachusetts Municipal Income Trust and Eaton Vance New York Municipal Income Trust and Adam A. Weigold, portfolio manager of Eaton Vance New Jersey Municipal Income Trust and Eaton Vance Pennsylvania Municipal Income Trust are responsible for the overall and day-to-day management of each Fund’s investments.

Ms. Clemson has been an Eaton Vance portfolio manager since 1991 and is a co-Director of Municipal Investments and Vice President of Eaton Vance Management (“EVM”) and Boston Management and Research (“BMR”), an Eaton Vance subsidiary. Mr. Ahern has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr. Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a Vice President of EVM and BMR. Mr. Weigold has been a credit analyst with Eaton Vance since 1991 and a portfolio manager since 2007, and is a Vice President of EVM and BMR. This information is provided as of the date of filing of this report.

The following table shows, as of each Fund’s most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.


     Number
of All
Accounts
     Total
Assets

of  All
Accounts
     Number of
Accounts

Paying a
Performance
Fee
     Total Assets
of Accounts
Paying a
Performance
Fee
 

Cynthia J. Clemson

           

Registered Investment Companies

     10       $ 2,493.5         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   

William H. Ahern, Jr.

           

Registered Investment Companies

     13       $ 2,587.5         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     1       $ 23.4         0       $ 0   

Craig R. Brandon

           

Registered Investment Companies

     13       $ 1,498.8         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   

Adam A. Weigold

           

Registered Investment Companies

     13       $ 1,117.9         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     1       $ 23.4         0       $ 0   


The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Fund’s most recent fiscal year end.

 

Portfolio Manager and Fund Name

   Dollar Range of Equity
Securities  Owned in the
Fund

Cynthia J. Clemson

  

California Municipal Income Trust

   None

William H. Ahern, Jr.

  

Michigan Municipal Income Trust

   None

Ohio Municipal Income Trust

   None

Craig R. Brandon

  

Massachusetts Municipal Income Trust

   None

New York Municipal Income Trust

   None

Adam A. Weigold

  

New Jersey Municipal Income Trust

   None

Pennsylvania Municipal Income Trust

   None

Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of the Fund’s investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies which govern the investment adviser’s trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.

Compensation Structure for EVM

Compensation of EVM’s portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVC’s nonvoting common stock and/or restricted shares of EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.


Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio. Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a fund’s peer group as determined by Lipper or Morningstar is deemed by EVM’s management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the fund’s success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.

The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers’ performance in meeting them.

EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders

No Material Changes.


Item 11. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

 

(a)(1)    Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)    Treasurer’s Section 302 certification.
(a)(2)(ii)    President’s Section 302 certification.
(b)    Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Massachusetts Municipal Income Trust

 

By:  

/s/ Thomas M. Metzold

  Thomas M. Metzold
  President
Date:   January 8, 2013

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:   January 8, 2013

 

By:  

/s/ Thomas M. Metzold

  Thomas M. Metzold
  President
Date:   January 8, 2013