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
May 31, 2009
Date of Reporting Period
 
 

 


 

Item 1. Reports to Stockholders

 


 

(IMAGE)

 


 

 
IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING
 
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:
 
  •  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.
 
  •  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.
 
  •  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.
 
  •  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our 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, Boston Management and Research, and Eaton Vance Distributors, Inc.
 
In addition, our Privacy Policy only applies 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 adviser/broker-dealer, it is likely that only such adviser’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 (the “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 adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise.
 
If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
 
Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.
 
 
 
 
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its 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 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. This description is also available on the SEC’s website at www.sec.gov.


 

Eaton Vance Municipal Income Trusts as of May 31, 2009
TABLE OF CONTENTS
         
    2  
 
       
       
 
       
    4  
    5  
    6  
    7  
    8  
    9  
    10  
 
       
Financial Statements
    11  
 
       
Annual Meeting of Shareholders
    65  
 
       
Dividend Reinvestment Plan
    66  
 
       
Board of Trustees’ Annual Approval of the Investment Advisory Agreements
    68  
 
       
Officers and Trustees
    71  

1


 

Eaton Vance Municipal Income Trusts as of May 31, 2009
INVESTMENT UPDATE
Eaton Vance Municipal Income Trusts (the “Trusts”) are closed-end Trusts, traded on the NYSE Amex, which are designed to provide current income exempt from regular federal income tax and state personal income taxes. This income is earned by investing primarily in investment-grade municipal securities.
Economic and Market Conditions
During the six-month period ending May 31, 2009, investors began to see signs of hope as the capital markets generally rallied and began to stabilize. Despite continued economic weakness — the U.S. economy contracted by 6.3% (annualized) in the fourth quarter of 2008 and 5.5% (annualized) in the first quarter of 2009 — the Obama administration’s massive spending proposals served as a catalyst for optimism. February was a particularly strong month for economic data: factory orders increased 1.8%; new home sales rose 4.7%; and existing home sales surged 5.1%. The upturn in the housing market was bolstered by historically low mortgage rates, an $8,000 tax credit for first-time home buyers that was part of President Obama’s stimulus legislation, and a plethora of distressed properties on the market. Unemployment, on the other hand, rose to 9.4% in May 2009 from 7.2% in December 2008.
On February 17, 2009, President Obama signed a historic $787 billion stimulus program into law and outlined a $50 billion foreclosure rescue plan. These programs followed the $700 billion financial institution rescue legislation passed last fall. Additionally, the U.S. Federal Reserve kept the federal funds rate at a range of 0.0% to 0.25%.
During the period, municipals rallied strongly from extremely oversold levels reached in December 2008. As a result, returns for municipals were impressive for the six-month period, helping to make up for the losses incurred in the fall of 2008. The Barclays Capital Municipal Bond Index (the Index) — a broad-based, unmanaged index of municipal bonds — gained 9.0%, while many of the state Lipper categories average returns ranged from 20% to 30% for the six-month period.1
Management Discussion
Relative to the Index, the Trusts outperformed for the six-month period ending May 31, 2009. The six-month results reflect several factors, including strong demand for longer-maturity municipal bonds and the ebbing of negative technical factors that had plagued the municipal market throughout 2008. The period included December, an important demarcation point for the municipal market, as municipal spreads reached all-time peaks during the month amid especially high uncertainty in the markets. In the period following December, the municipal market witnessed five months of dramatic rebound as headline risk abated, demand returned from investors who had sought the relative safety of Treasury bonds in 2008 and cautious optimism spread on signs of a mildly improving economy. The renewed appetite for municipal bonds was buoyed by legislative efforts aimed at supporting the municipal market, much of which focused on reducing tax-exempt municipal supply through the Build America Bonds program and the federal stimulus provided to states through the American Recovery & Reinvestment Act of 2009. The result of these events during the period was a dramatic rally for the sector as yields fell and prices rose across the yield curve.
The Trusts invest primarily in bonds with stated maturities of 10 years or longer, as longer-maturity bonds historically have provided greater tax-exempt income for investors than shorter-maturity bonds. While the price declines experienced by municipals in 2008 were most pronounced on the long end of the yield curve, longer-maturity bonds outperformed shorter maturities during the period, thus providing the basis for much of the Trusts’ outperformance relative to the Index. Higher allocations to revenue bonds also contributed positively as general obligation bonds trailed revenue issues during the period.
The employment of leverage and leveraged investments in the Trusts, through which additional exposure to the municipal market is achieved, was yet another positive factor during the period. Leverage has the impact
 
1   It is not possible to invest directly in an Index or a Lipper Classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
 
    Past performance is no guarantee of future results.

2


 

Eaton Vance Municipal Income Trusts as of May 31, 2009
INVESTMENT UPDATE
of enhancing returns during up markets while exacerbating performance on the downside. Given the broad rally in the municipal sector during the period, the use of leverage was a contributor to performance.
As we move ahead, we maintain our long-term perspective on the markets against the backdrop of relatively short periods of market volatility. We will continue to actively manage municipals in this environment — like in all others — with the same income-focused, relative value approach we have always employed. We believe that this approach, which is based on careful credit research and our decades of experience in the municipal market, has served municipal investors well over the long term. In addition, many state governments, particularly California, face significant budget deficits that are driven primarily by a steep decline in tax revenues. We will continue to monitor any new developments as state legislatures formulate solutions to address these fiscal problems.
A Note Regarding The Use Of Leverage
The Trusts employ leverage through the issuance of Auction Preferred Shares (APS) and the use of tender option bond (TOB) financing.1 Each Trust’s APS and TOB percentage leverage as of May 31, 2009 is reflected on the Trust-specific pages following this letter. The leverage created by APS and TOB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and share price of the common shares).
During the period, certain of the Trusts redeemed a portion of their outstanding APS to reduce the amount of the Trusts’ financial leverage. Information relating to these redemptions is contained in Note 2 to the Financial Statements.
 
1   See Note 1H to the Financial Statements for more information on TOB investments.

Trust 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.

The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in the report may not be representative of the Trusts’ current or future investments and may change due to active management.

3


 

Eaton Vance California Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   CEV  
Average Annual Total Returns (by share price)
 
Six Months
    25.27 %
One Year
    -13.84  
Five Years
    0.83  
Ten Years
    4.10  
Life of Trust (1/29/99)
    3.00  
         
Average Annual Total Returns (by net asset value)        
 
Six Months
    23.52 %
One Year
    -13.00  
Five Years
    1.32  
Ten Years
    4.17  
Life of Trust (1/29/99)
    3.64  
 
       
Premium/(Discount) to NAV
    -6.21 %
         
Market Yields        
 
Market Yield2
    7.03 %
Taxable-Equivalent Market Yield3
    11.93  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper California Municipal Debt Funds Classification (by net asset value)
 
Six Months
    14.99 %
One Year
    -6.65  
Five Years
    2.94  
Ten Years
    4.36  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: Cynthia J. Clemson
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is AA-:
     
AAA
  27.1%
AA
  30.7%
A
  24.7%
BBB
  10.4%
Not Rated
  7.1%
Trust Statistics7
           
  Number of Issues:   96   
  Average Maturity:   22.1 years   
  Average Effective Maturity:   18.4 years   
  Average Call Protection:   7.9 years   
  Average Dollar Price: $ 84.11   
  APS Leverage**:   32.6  %
  TOB Leverage**:   12.4  %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification (closed-end) contained 24, 24, 24 and 14 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

4


 

Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   MMV
Average Annual Total Returns (by share price)        
 
Six Months
    45.98 %
One Year
    -3.53  
Five Years
    2.51  
Ten Years
    4.91  
Life of Trust (1/29/99)
    4.09  
 
Average Annual Total Returns (by net asset value)        
 
Six Months
    28.43 %
One Year
    -5.96  
Five Years
    2.38  
Ten Years
    4.67  
Life of Trust (1/29/99)
    4.09  
 
       
Premium/(Discount) to NAV
    0.00 %
         
Market Yields        
 
Market Yield2
    6.66 %
Taxable-Equivalent Market Yield3
    10.82  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)
 
Six Months
    15.92 %
One Year
    -0.60  
Five Years
    3.80  
Ten Years
    4.66  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: Robert B. MacIntosh, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is A+:
     
AAA
  8.5%
AA
  39.4%
A
  33.0%
BBB
  11.4%
BB
  1.0%
Not Rated
  6.7%
Trust Statistics7
           
  Number of Issues:   62
  Average Maturity:   26.9 years
  Average Effective Maturity:   23.1 years
  Average Call Protection:   9.4 years
  Average Dollar Price: $ 89.83
  APS Leverage**:   34.5 %
  TOB Leverage**:   6.7 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 43, 43, 43 and 20 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

5


 

Eaton Vance Michigan Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   EMI  
Average Annual Total Returns (by share price)        
 
Six Months
    43.51 %
One Year
    -5.07  
Five Years
    -1.01  
Ten Years
    3.07  
Life of Trust (1/29/99)
    2.85  
 
Average Annual Total Returns (by net asset value)
 
Six Months
    17.84 %
One Year
    -5.12  
Five Years
    2.35  
Ten Years
    4.55  
Life of Trust (1/29/99)
    4.03  
 
       
Premium/(Discount) to NAV
    -11.18 %
         
Market Yields        
 
Market Yield2
    7.13 %
Taxable-Equivalent Market Yield3
    11.47  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Michigan Municipal Debt Funds Classification (by net asset value)
 
Six Months
    14.20 %
One Year
    -1.19  
Five Years
    3.49  
Ten Years
    4.81  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is AA-:
     
AAA
  26.0%
AA
  38.4%
A
  18.2%
BBB
  12.8%
BB
  1.1%
CCC
  0.7%
Not Rated
  2.8%
Trust Statistics7
         
  Number of Issues:   66
  Average Maturity:   21.5 years
  Average Effective Maturity:   15.3 years
  Average Call Protection:   5.6 years
  Average Dollar Price: $ 92.20
  APS Leverage**:   39.1 %
  TOB Leverage**:   2.5 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification (closed-end) contained 4, 4, 4 and 3 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

6


 

Eaton Vance New Jersey Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   EVJ  
Average Annual Total Returns (by share price)        
 
Six Months
    46.46 %
One Year
    -0.65  
Five Years
    2.20  
Ten Years
    4.32  
Life of Trust (1/29/99)
    3.84  
         
Average Annual Total Returns (by net asset value)        
 
Six Months
    37.74 %
One Year
    -6.38  
Five Years
    2.99  
Ten Years
    4.70  
Life of Trust (1/29/99)
    4.23  
 
       
Premium/(Discount) to NAV
    -3.85 %
         
Market Yields        
 
Market Yield2
    7.01 %
Taxable-Equivalent Market Yield3
    11.85  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New Jersey Municipal Debt Funds Classification (by net asset value)
 
Six Months
    18.45 %
One Year
    -2.76  
Five Years
    3.55  
Ten Years
    4.51  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: Robert B. MacIntosh, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is A+:
     
AAA
  22.7%
AA
  29.2%
A
  24.4%
BBB
  20.2%
B
  1.5%
Not Rated
  2.0%
Trust Statistics7
         
  Number of Issues:   76
  Average Maturity:   25.4 years
  Average Effective Maturity:   19.8 years
  Average Call Protection:   8.4 years
  Average Dollar Price: $ 87.87
  APS Leverage**:   32.4 %
  TOB Leverage**:   11.8 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification (closed-end) contained 10, 10, 10 and 6 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

7


 

Eaton Vance New York Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   EVY
Average Annual Total Returns (by share price)        
 
Six Months
    65.31 %
One Year
    -6.45  
Five Years
    3.73  
Ten Years
    5.26  
Life of Trust (1/29/99)
    4.39  
         
Average Annual Total Returns (by net asset value)
 
Six Months
    32.65 %
One Year
    -12.66  
Five Years
    1.35  
Ten Years
    4.37  
Life of Trust (1/29/99)
    3.87  
 
       
Premium/(Discount) to NAV
    5.29 %
         
Market Yields        
 
Market Yield2
    6.81 %
Taxable-Equivalent Market Yield3
    11.25  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New York Municipal Debt Funds Classification (by net asset value)
 
Six Months
    15.56 %
One Year
    -6.05  
Five Years
    3.00  
Ten Years
    4.68  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is A+:
     
AAA
  15.5%
AA
  39.0%
A
  17.9%
BBB
  11.8%
BB
  4.5%
B
  3.1%
Not Rated
  8.2%
Trust Statistics7
         
  Number of Issues:   82
  Average Maturity:   24.6 years
  Average Effective Maturity:   19.6 years
  Average Call Protection:   8.9 years
  Average Dollar Price: $ 87.69
  APS Leverage**:   29.8 %
  TOB Leverage**:   13.4 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) out standing at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 39.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Municipal Debt Funds Classification (closed-end) contained 17, 17, 17 and 8 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

8


 

Eaton Vance Ohio Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Turst Performance1
         
NYSE Amex Symbol   EVO
Average Annual Total Returns (by share price)        
 
Six Months
    49.63 %
One Year
    3.02  
Five Years
    2.50  
Ten Years
    4.14  
Life of Trust (1/29/99)
    3.96  
         
Average Annual Total Returns (by net asset value)
 
Six Months     24.41 %
One Year
    -5.24  
Five Years
    2.82  
Ten Years
    4.58  
Life of Trust (1/29/99)
    4.13  
 
       
Premium/(Discount) to NAV
    -1.59 %
         
Market Yields        
 
Market Yield2
    6.41 %
Taxable-Equivalent Market Yield3
    10.55  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)
 
Six Months
    15.92 %
One Year
    -0.60  
Five Years
    3.80  
Ten Years
    4.66  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is AA-:
     
AAA
  27.4%
AA
  41.1%
A
  16.2%
BBB
  7.8%
B
  1.6%
Not Rated
  5.9%
Trust Statistics7
         
  Number of Issues:   77
  Average Maturity:   22.5 years
  Average Effective Maturity:   16.3 years
  Average Call Protection:   7.4 years
  Average Dollar Price: $ 90.44
  APS Leverage**:   37.6 %
  TOB Leverage**:   3.8 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect the effect of TOBs purchased in secondary market transactions.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 39.26% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 43, 43, 43 and 20 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

9


 

Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Trust Performance1
         
NYSE Amex Symbol   EVP
Average Annual Total Returns (by share price)        
 
Six Months
    29.18 %
One Year
    -0.80  
Five Years
    2.57  
Ten Years
    4.47  
Life of Trust (1/29/99)
    3.72  
         
Average Annual Total Returns (by net asset value)
 
Six Months
    26.90 %
One Year
    -6.30  
Five Years
    2.93  
Ten Years
    4.77  
Life of Trust (1/29/99)
    4.27  
 
       
Premium/(Discount) to NAV
    -5.31 %
         
Market Yields        
 
Market Yield2
    6.61 %
Taxable-Equivalent Market Yield3
    10.49  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index     Barclays Capital Long (22+) Municipal Bond Index  
 
Six Months
    9.00 %     14.40 %
One Year
    3.57       -2.50  
Five Years
    4.41       3.81  
Ten Years
    4.95       4.69  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value)
 
Six Months
    17.05 %
One Year
    -3.39  
Five Years
    2.65  
Ten Years
    4.37  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current 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.
Portfolio Manager: Adam A. Weigold, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at May 31, 2009, is as follows, and the average rating is AA-:
     
AAA
  17.9%
AA
  43.6%
A
  22.8%
BBB
  4.6%
BB
  1.7%
B
  1.4%
CCC
  1.3%
Not Rated
  6.7%
Trust Statistics7
         
  Number of Issues:   79
  Average Maturity:   21.6 years
  Average Effective Maturity:   16.1 years
  Average Call Protection:   7.2 years
  Average Dollar Price: $ 93.18
  APS Leverage**:   35.7 %
  TOB Leverage**:   6.8 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Tender Option Bond (TOB) Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 5/31/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
 
1   Six-month returns are cumulative. Returns are historical and are calculated by determining the percentage change in share price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and TOB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last dividend paid per common share of the semiannual period by the share price at the end of the semiannual period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification (closed-end) contained 7, 7, 7 and 4 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or 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. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

10


 

Eaton Vance California Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 177.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 14.9%
 
$ 2,000     California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39   $ 1,966,520      
  2,770     California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29     2,304,557      
  500     California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29     502,240      
  1,350     California Educational Facilities Authority,
(Santa Clara University), 5.00%, 9/1/23
    1,429,137      
  4,000     California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(1)     4,000,400      
  2,500     San Diego County, Certificates of Participation, (University of San Diego), 5.375%, 10/1/41     2,382,875      
 
 
            $ 12,585,729      
 
 
 
 
Electric Utilities — 4.0%
 
$ 2,275     Chula Vista, (San Diego Gas), (AMT), 5.00%, 12/1/27   $ 2,067,725      
  1,300     Vernon, Electric System Revenue, 5.125%, 8/1/21     1,278,316      
 
 
            $ 3,346,041      
 
 
 
 
General Obligations — 11.9%
 
$ 750     California, 6.00%, 4/1/38   $ 772,388      
  1,610     California, (AMT), 5.05%, 12/1/36     1,380,237      
  4,770     San Francisco Bay Area Rapid Transit District, (Election of 2004), 4.75%, 8/1/37(2)     4,661,077      
  3,180     Santa Clara County, (Election of 2008), 5.00%, 8/1/39(2)     3,225,394      
 
 
            $ 10,039,096      
 
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 226,770      
 
 
            $ 226,770      
 
 
 
 
Hospital — 32.8%
 
$ 1,000     California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32   $ 984,070      
  2,935     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34     2,660,666      
  1,500     California Health Facilities Financing Authority, (Providence Health System), 6.50%, 10/1/38     1,607,145      
  3,480     California Health Facilities Financing Authority, (Sutter Health), 5.25%, 11/15/46(2)     3,213,734      
  750     California Infrastructure and Economic Development Bank, (Kaiser Hospital), 5.50%, 8/1/31     720,255      
  3,900     California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35     3,468,543      
  1,750     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36     1,579,270      
  1,650     California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32     1,580,832      
  1,750     California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29     1,570,905      
  1,500     California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28     1,511,700      
  1,500     Duarte, (Hope National Medical Center), 5.25%, 4/1/24     1,453,320      
  410     Tahoe Forest Hospital District, 5.85%, 7/1/22     378,565      
  2,000     Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31     1,928,340      
  1,250     Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34     838,787      
  2,000     Washington Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29     1,834,860      
  2,780     Washington Township Health Care District, 5.00%, 7/1/32     2,388,381      
 
 
            $ 27,719,373      
 
 
 
 
Housing — 2.6%
 
$ 1,750     California Housing Finance Agency, (AMT), 4.75%, 8/1/42   $ 1,267,263      
  722     Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29     578,357      
  421     Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29     334,331      
 
 
            $ 2,179,951      
 
 
 
 
Industrial Development Revenue — 3.9%
 
$ 800     California Pollution Control Financing Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27   $ 800,248      
  1,235     California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23     1,120,577      
  2,000     California Statewide Communities Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46     1,394,280      
 
 
            $ 3,315,105      
 
 
 

 
See notes to financial statements

11


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Education — 7.8%
 
$ 400     California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35   $ 388,000      
  3,270     California Educational Facilities Authority, (Pooled College and University), (NPFG), 5.10%, 4/1/23     3,273,761      
  3,000     California State University, (AMBAC), 5.00%, 11/1/33     2,962,380      
 
 
            $ 6,624,141      
 
 
 
 
Insured-Electric Utilities — 10.2%
 
$ 2,500     California Pollution Control Financing Authority, (Pacific Gas and Electric), (NPFG), (AMT), 5.35%, 12/1/16   $ 2,491,000      
  3,250     California Pollution Control Financing Authority, (Southern California Edison Co.), (NPFG), (AMT), 5.55%, 9/1/31     2,875,145      
  3,510     Los Angeles Department of Water and Power, (FSA), 4.625%, 7/1/37     3,208,666      
 
 
            $ 8,574,811      
 
 
 
 
Insured-Escrowed / Prerefunded — 2.9%
 
$ 5,130     Foothill/Eastern Transportation Corridor Agency, (FSA), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26   $ 2,416,384      
 
 
            $ 2,416,384      
 
 
 
 
Insured-General Obligations — 6.7%
 
$ 7,000     Coast Community College District,
(Election of 2002), (FSA), 0.00%, 8/1/34
  $ 1,503,040      
  4,825     Coast Community College District,
(Election of 2002), (FSA), 0.00%, 8/1/35
    967,943      
  7,995     Sweetwater Union High School District,
(Election 2000), (FSA), 0.00%, 8/1/25
    3,226,702      
 
 
            $ 5,697,685      
 
 
 
 
Insured-Hospital — 18.5%
 
$ 3,100     California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37   $ 3,112,276      
  3,200     California Statewide Communities Development Authority, (Children’s Hospital Los Angeles), (NPFG), 5.25%, 8/15/29     2,973,824      
  750     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(2)     744,038      
  5,000     California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(2)     5,016,200      
  3,735     California Statewide Communities Development Authority, (Sutter Health), (FSA), 5.75%, 8/15/27(2)     3,781,899      
 
 
            $ 15,628,237      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 11.9%
 
$ 6,475     Anaheim Public Financing Authority, Lease Revenue, (Public Improvements), (FSA), 0.00%, 9/1/17   $ 4,384,028      
  2,000     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     2,258,340      
  3,500     San Diego County Water Authority, (FSA), 5.00%, 5/1/38(2)     3,416,210      
 
 
            $ 10,058,578      
 
 
 
 
Insured-Other Revenue — 2.0%
 
$ 1,855     Golden State Tobacco Securitization Corp., (AGC), (FGIC), 5.00%, 6/1/38   $ 1,711,238      
 
 
            $ 1,711,238      
 
 
 
 
Insured-Special Tax Revenue — 4.4%
 
$ 24,800     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54   $ 1,371,192      
  4,225     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     470,665      
  8,380     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     874,621      
  5,270     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     513,720      
  480     Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28     521,198      
 
 
            $ 3,751,396      
 
 
 
 
Insured-Transportation — 8.6%
 
$ 5,000     Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29   $ 1,374,750      
  8,000     Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31     2,058,480      
  740     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     724,242      

 
See notes to financial statements

12


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Transportation (continued)
 
                     
$ 10,000     San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/32   $ 1,736,400      
  1,350     San Jose Airport Revenue, (AMBAC), (BHAC), (FSA), (AMT), 6.00%, 3/1/47     1,349,851      
 
 
            $ 7,243,723      
 
 
 
 
Insured-Water and Sewer — 3.7%
 
$ 4,400     Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30   $ 3,110,756      
 
 
            $ 3,110,756      
 
 
 
 
Other Revenue — 2.2%
 
$ 385     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32   $ 373,099      
  580     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37     549,666      
  1,420     Golden State Tobacco Securitization Corp., 5.75%, 6/1/47     946,487      
 
 
            $ 1,869,252      
 
 
 
 
Senior Living / Life Care — 0.7%
 
$ 175     California Statewide Communities Development Authority, (Senior Living -Presbyterian Homes), 4.75%, 11/15/26   $ 133,049      
  700     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 4.875%, 11/15/36     483,161      
 
 
            $ 616,210      
 
 
 
 
Special Tax Revenue — 17.3%
 
$ 1,000     Bonita Canyon Public Financing Authority, 5.375%, 9/1/28   $ 751,750      
  285     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26     206,856      
  460     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34     301,369      
  1,000     Corona Public Financing Authority, 5.80%, 9/1/20     889,950      
  200     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27     141,470      
  500     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36     318,110      
  1,590     Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27     1,599,445      
  900     Lincoln Public Financing Authority, Improvement Bond Act of 1915, (Twelve Bridges), 6.20%, 9/2/25     792,144      
  420     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24     355,337      
  750     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29     601,147      
  2,340     Oakland Joint Powers Financing Authority, 5.40%, 9/2/18     2,395,458      
  960     Oakland Joint Powers Financing Authority, 5.50%, 9/2/24     980,899      
  1,325     San Pablo Redevelopment Agency, 5.65%, 12/1/23     1,332,725      
  1,095     Santa Margarita Water District, 6.20%, 9/1/20     1,100,344      
  250     Santaluz Community Facilities District No. 2, 6.10%, 9/1/21     225,095      
  500     Santaluz Community Facilities District No. 2, 6.20%, 9/1/30     419,565      
  250     Temecula Unified School District, 5.00%, 9/1/27     180,217      
  400     Temecula Unified School District, 5.00%, 9/1/37     258,268      
  500     Turlock Public Financing Authority, 5.45%, 9/1/24     461,900      
  500     Tustin Community Facilities District, 6.00%, 9/1/37     414,180      
  1,000     Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23     878,300      
 
 
            $ 14,604,529      
 
 
 
 
Transportation — 5.3%
 
$ 2,000     Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.00%, 4/1/31(3)   $ 2,005,600      
  1,500     Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30     1,459,170      
  1,170     Port of Redwood City, (AMT), 5.125%, 6/1/30     984,707      
 
 
            $ 4,449,477      
 
 
 
 
Water and Sewer — 5.3%
 
$ 1,840     California Department of Water Resources, 5.00%, 12/1/29   $ 1,922,745      
  2,500     Metropolitan Water District of Southern California, 5.00%, 1/1/34     2,568,925      
 
 
            $ 4,491,670      
 
 
 
Total Tax-Exempt Investments — 177.9%
(identified cost $160,807,471)
  $ 150,260,152      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (59.2)%
  $ (49,976,933 )    
 
 
             
Other Assets, Less Liabilities — (18.7)%
  $ (15,805,786 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 84,477,433      
 
 

 
See notes to financial statements

13


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
 
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.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
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 May 31, 2009, 43.1% 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 16.1% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(3) Security (or a portion thereof) has been pledged as collateral for open swap contracts.

 
See notes to financial statements

14


 

Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 165.4%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 33.8%
 
$ 2,440     Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59   $ 2,382,709      
  600     Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33     577,914      
  1,000     Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38     820,810      
  1,500     Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29     1,455,435      
  1,000     Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29     863,200      
  1,500     Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32     1,481,580      
  1,250     Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35     1,391,150      
  1,500     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     1,550,520      
  1,000     Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38     1,050,680      
 
 
            $ 11,573,998      
 
 
 
 
Electric Utilities — 9.1%
 
$ 1,000     Massachusetts Development Finance Agency, (Devens Electric System), 6.00%, 12/1/30   $ 1,015,510      
  1,870     Massachusetts Development Finance Agency, (Dominion Energy Brayton Point), (AMT), 5.00%, 2/1/36     1,564,049      
  570     Puerto Rico Electric Power Authority, 5.00%, 7/1/25     532,865      
 
 
            $ 3,112,424      
 
 
 
 
Escrowed / Prerefunded — 6.6%
 
$ 400     Massachusetts Development Finance Agency, (Western New England College), Prerefunded to 12/1/12, 6.125%, 12/1/32   $ 467,268      
  235     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), Prerefunded to 1/1/12, 6.00%, 7/1/31     264,814      
  960     Massachusetts Health and Educational Facilities Authority, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30     1,023,178      
  1,000     Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20     502,730      
 
 
            $ 2,257,990      
 
 
 
General Obligations — 2.3%
 
$ 750     Newton, 5.00%, 4/1/36   $ 780,105      
 
 
            $ 780,105      
 
 
 
 
Health Care-Miscellaneous — 2.9%
 
$ 510     Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29   $ 377,171      
  700     Massachusetts Health and Educational Facilities Authority, (Learning Center for Deaf Children), 6.125%, 7/1/29     532,077      
  100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     75,590      
 
 
            $ 984,838      
 
 
 
 
Hospital — 22.6%
 
$ 1,000     Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20   $ 1,024,910      
  1,000     Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center), 5.75%, 7/1/33     962,150      
  400     Massachusetts Health and Educational Facilities Authority, (Berkshire Health System), 6.25%, 10/1/31     353,616      
  850     Massachusetts Health and Educational Facilities Authority, (Beth Israel Deaconess Medical Center, Inc.), 5.125%, 7/1/38     746,087      
  105     Massachusetts Health and Educational Facilities Authority, (Central New England Health Systems), 6.30%, 8/1/18     104,994      
  1,135     Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37     1,069,329      
  865     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), 6.00%, 7/1/31     867,344      
  2,000     Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/32(1)     1,970,320      
  675     Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29     634,439      
 
 
            $ 7,733,189      
 
 
 
 
Housing — 14.9%
 
$ 2,100     Massachusetts Housing Finance Agency, (AMT), 4.75%, 12/1/48   $ 1,767,990      
  1,000     Massachusetts Housing Finance Agency, (AMT), 4.85%, 6/1/40     875,670      

 
See notes to financial statements

15


 

 
Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Housing (continued)
 
                     
$ 650     Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28   $ 615,875      
  2,000     Massachusetts Housing Finance Agency, (AMT), 5.10%, 12/1/37     1,853,060      
 
 
            $ 5,112,595      
 
 
 
 
Industrial Development Revenue — 2.0%
 
$ 695     Massachusetts Industrial Finance Agency, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15   $ 695,083      
 
 
            $ 695,083      
 
 
 
 
Insured-Education — 12.0%
 
$ 1,000     Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39   $ 1,075,510      
  1,365     Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)     1,488,759      
  1,600     Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33     1,559,376      
 
 
            $ 4,123,645      
 
 
 
 
Insured-General Obligations — 9.3%
 
$ 1,000     Massachusetts, (AMBAC), 5.50%, 8/1/30   $ 1,148,950      
  2,255     Milford, (FSA), 4.25%, 12/15/46     2,029,297      
 
 
            $ 3,178,247      
 
 
 
 
Insured-Other Revenue — 3.7%
 
$ 1,225     Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42   $ 1,251,387      
 
 
            $ 1,251,387      
 
 
 
 
Insured-Special Tax Revenue — 14.7%
 
$ 1,450     Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32   $ 1,455,568      
  1,250     Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37     1,266,712      
  1,000     Massachusetts Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29     1,032,800      
  8,945     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     494,569      
  2,530     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     281,842      
  3,015     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     314,676      
  1,905     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     185,699      
 
 
            $ 5,031,866      
 
 
 
 
Insured-Student Loan — 6.3%
 
$ 600     Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30   $ 607,476      
  1,985     Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33     1,559,158      
 
 
            $ 2,166,634      
 
 
 
 
Insured-Transportation — 5.4%
 
$ 410     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/32   $ 350,001      
  1,820     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/38     1,499,898      
 
 
            $ 1,849,899      
 
 
 
 
Nursing Home — 2.8%
 
$ 500     Boston Industrial Development Authority, (Alzheimer’s Center), (FHA), 6.00%, 2/1/37   $ 500,175      
  565     Massachusetts Health and Educational Facilities Authority, (Christopher House), 6.875%, 1/1/29     475,024      
 
 
            $ 975,199      
 
 
 
 
Senior Living / Life Care — 6.7%
 
$ 250     Massachusetts Development Finance Agency, (Berkshire Retirement), 5.15%, 7/1/31   $ 182,898      
  1,500     Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29     1,188,765      
  140     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.125%, 11/1/27     95,658      
  475     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.20%, 11/1/41     282,349      
  910     Massachusetts Development Finance Agency, (Linden Ponds, Inc.), 5.75%, 11/15/42     554,090      
 
 
            $ 2,303,760      
 
 
 

 
See notes to financial statements

16


 

 
Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Special Tax Revenue — 5.1%
 
$ 1,665     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/31   $ 489,460      
  5,195     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/34     1,254,073      
 
 
            $ 1,743,533      
 
 
 
 
Water and Sewer — 5.2%
 
$ 215     Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27   $ 217,612      
  2,000     Massachusetts Water Resources Authority, 4.00%, 8/1/46     1,566,640      
 
 
            $ 1,784,252      
 
 
     
Total Tax-Exempt Investments — 165.4%
   
(identified cost $60,775,600)
  $ 56,658,644      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (58.5)%
  $ (20,051,912 )    
 
 
             
Other Assets, Less Liabilities — (6.9)%
  $ (2,351,223 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 34,255,509      
 
 
 
ACA - ACA Financial Guaranty Corporation
 
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
 
FHA - Federal Housing Administration
 
FSA - Financial Security Assurance, Inc.
 
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 May 31, 2009, 31.1% 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 1.1% to 15.3% of total investments.
 
(1) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).

 
See notes to financial statements

17


 

Eaton Vance Michigan Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 166.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 11.4%
 
$ 525     Grand Valley State University, 5.625%, 12/1/29   $ 541,348      
  525     Grand Valley State University, 5.75%, 12/1/34     534,917      
  1,250     Michigan Higher Education Facilities Authority, (Creative Studies), 5.90%, 12/1/27     1,406,525      
  540     Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35     483,214      
 
 
            $ 2,966,004      
 
 
 
 
Electric Utilities — 2.9%
 
$ 360     Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29   $ 342,187      
  435     Puerto Rico Electric Power Authority, 5.00%, 7/1/25     406,660      
 
 
            $ 748,847      
 
 
 
 
Escrowed / Prerefunded — 17.5%
 
$ 500     Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31   $ 549,900      
  560     Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), Prerefunded to 11/15/13, 5.875%, 11/15/34     656,611      
  750     Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26     776,903      
  750     Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36     838,987      
  600     Puerto Rico Electric Power Authority, Prerefunded to 7/1/12, 5.25%, 7/1/31     677,382      
  1,000     White Cloud Public Schools, Prerefunded to 5/1/11, 5.125%, 5/1/31     1,078,630      
 
 
            $ 4,578,413      
 
 
 
 
General Obligations — 15.1%
 
$ 500     East Grand Rapids Public School District, 5.00%, 5/1/25   $ 517,775      
  1,500     Kent County, 5.00%, 1/1/25     1,578,120      
  750     Manistee Area Public Schools, 5.00%, 5/1/24     758,182      
  270     Michigan, 5.50%, 11/1/25     283,900      
  345     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     304,376      
  500     Wayne Charter County, 5.70%, 8/1/38     509,610      
 
 
            $ 3,951,963      
 
 
 
                     
Health Care-Miscellaneous — 0.3%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 75,590      
 
 
            $ 75,590      
 
 
 
 
Hospital — 25.4%
 
$ 500     Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21   $ 463,400      
  185     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25     152,965      
  125     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37     94,483      
  275     Kent Hospital Finance Authority, (Spectrum Health), 5.50% to 1/15/15 (Put Date), 1/15/47     285,890      
  500     Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18     436,725      
  1,000     Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27     889,130      
  750     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38     581,468      
  1,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46     789,650      
  1,080     Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35     924,318      
  750     Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21     709,132      
  1,000     Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27     1,023,040      
  425     Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), 5.375%, 6/1/26     289,748      
 
 
            $ 6,639,949      
 
 
 
 
Housing — 3.7%
 
$ 1,000     Michigan Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48   $ 969,550      
 
 
            $ 969,550      
 
 
 
 
Industrial Development Revenue — 5.8%
 
$ 1,000     Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21   $ 462,880      
  800     Dickinson County Electronic Development Corp., (International Paper Co.), 5.75%, 6/1/16     764,280      
  625     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     289,087      
 
 
            $ 1,516,247      
 
 
 

 
See notes to financial statements

18


 

 
Eaton Vance Michigan Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Education — 2.2%
 
$ 570     Ferris State University, (AGC), 5.125%, 10/1/33   $ 575,227      
 
 
            $ 575,227      
 
 
 
 
Insured-Electric Utilities — 7.8%
 
$ 1,000     Michigan Strategic Fund, (Detroit Edison Co.), (NPFG), (AMT), 5.55%, 9/1/29   $ 879,450      
  500     Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32     462,495      
  220     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30     212,375      
  500     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     472,045      
 
 
            $ 2,026,365      
 
 
 
 
Insured-Escrowed / Prerefunded — 12.4%
 
$ 1,000     Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31   $ 1,084,940      
  2,000     Novi Building Authority, (FSA), Prerefunded to 10/1/10, 5.50%, 10/1/25     2,148,480      
 
 
            $ 3,233,420      
 
 
 
 
Insured-General Obligations — 10.9%
 
$ 650     Detroit City School District, (FGIC), 4.75%, 5/1/28   $ 601,003      
  750     Detroit City School District, (FSA), 5.25%, 5/1/32     702,532      
  200     Eaton Rapids Public Schools, (NPFG), 4.75%, 5/1/25     200,158      
  100     Lincoln Consolidated School District, (FSA), 5.00%, 5/1/10     104,078      
  1,250     Van Dyke Public Schools, (FSA), 5.00%, 5/1/38     1,236,750      
 
 
            $ 2,844,521      
 
 
 
 
Insured-Hospital — 7.0%
 
$ 1,000     Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35   $ 859,870      
  1,000     Saginaw Hospital Finance Authority, (Covenant Medical Center), (NPFG), 5.50%, 7/1/24     967,120      
 
 
            $ 1,826,990      
 
 
 
                     
 
Insured-Lease Revenue / Certificates of Participation — 5.3%
 
$ 1,000     Michigan Building Authority, (FGIC), (FSA), 0.00%, 10/15/29   $ 277,000      
  4,300     Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30     1,103,165      
 
 
            $ 1,380,165      
 
 
 
                     
Insured-Special Tax Revenue — 11.6%
 
$ 5,160     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54   $ 285,296      
  2,030     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     226,142      
  2,430     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     253,619      
  1,470     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     143,296      
  2,250     Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (NPFG), 5.00%, 12/1/30     2,122,673      
 
 
            $ 3,031,026      
 
 
 
 
Insured-Student Loan — 6.7%
 
$ 1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31   $ 823,490      
  1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25     919,120      
 
 
            $ 1,742,610      
 
 
 
 
Insured-Transportation — 4.2%
 
$ 1,000     Wayne Charter County Airport, (AGC), (AMT), 5.375%, 12/1/32   $ 865,400      
  300     Wayne Charter County Airport, (NPFG), (AMT), 5.00%, 12/1/28     245,493      
 
 
            $ 1,110,893      
 
 
 
 
Insured-Water and Sewer — 7.6%
 
$ 1,650     Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30   $ 1,479,390      
  500     Grand Rapids Water Supply System, (AGC), 5.10%, 1/1/39     494,700      
 
 
            $ 1,974,090      
 
 
 
 
Lease Revenue / Certificates of Participation — 1.0%
 
$ 250     Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22   $ 250,083      
 
 
            $ 250,083      
 
 
 
 
Other Revenue — 1.3%
 
$ 500     Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48   $ 347,625      
 
 
            $ 347,625      
 
 
 

 
See notes to financial statements

19


 

 
Eaton Vance Michigan Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Transportation — 5.8%
 
$ 1,500     Kent County Airport Facility, 5.00%, 1/1/25(1)   $ 1,517,445      
 
 
            $ 1,517,445      
 
 
 
 
Water and Sewer — 1.0%
 
$ 250     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.25%, 10/1/11(2)   $ 273,218      
 
 
            $ 273,218      
 
 
     
Total Tax-Exempt Investments — 166.9%
   
(identified cost $46,421,911)
  $ 43,580,241      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (67.0)%
  $ (17,500,993 )    
 
 
             
Other Assets, Less Liabilities — 0.1%
  $ 30,589      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 26,109,837      
 
 
 
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
 
FSA - Financial Security Assurance, Inc.
 
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 May 31, 2009, 45.3% 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 1.1% to 21.0% of total investments.
 
(1) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(2) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 
See notes to financial statements

20


 

Eaton Vance New Jersey Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 177.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 16.1%
 
$ 250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/27   $ 220,483      
  250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/33     203,610      
  220     New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37     181,524      
  3,500     New Jersey Educational Facilities Authority, (Princeton University), 4.50%, 7/1/38(1)     3,449,635      
  1,105     New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.00%, 7/1/27     974,533      
  965     New Jersey Educational Facilities Authority, (University of Medicine and Dentistry), 7.50%, 12/1/32     1,007,759      
  3,150     Rutgers State University, 5.00%, 5/1/39(1)     3,231,700      
 
 
            $ 9,269,244      
 
 
 
 
Electric Utilities — 2.9%
 
$ 270     Puerto Rico Electric Power Authority, 5.00%, 7/1/37   $ 234,522      
  1,500     Salem County Pollution Control Financing, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31     1,426,560      
 
 
            $ 1,661,082      
 
 
 
 
General Obligations — 4.5%
 
$ 1,210     Gloucester County Improvement Authority, (Landfill Project), 4.50%, 3/1/30   $ 1,185,921      
  1,595     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     1,407,189      
 
 
            $ 2,593,110      
 
 
 
 
Health Care-Miscellaneous — 0.4%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 226,770      
 
 
            $ 226,770      
 
 
 
 
Hospital — 27.2%
 
$ 90     Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35   $ 62,237      
  100     Camden County Improvement Authority, (Cooper Health System), 5.25%, 2/15/27     77,683      
  2,750     Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34     2,081,585      
  2,060     New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27     1,940,561      
  3,000     New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37     2,703,540      
  2,000     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34     1,989,700      
  1,525     New Jersey Health Care Facilities Financing Authority, (Kennedy Health System), 5.625%, 7/1/31     1,482,666      
  1,750     New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31     1,747,725      
  2,930     New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46     2,513,266      
  1,075     New Jersey Health Care Facilities Financing Authority, (Virtua Health), 5.75%, 7/1/33     1,079,838      
 
 
            $ 15,678,801      
 
 
 
 
Housing — 8.2%
 
$ 715     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37   $ 615,736      
  4,490     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37     4,115,085      
 
 
            $ 4,730,821      
 
 
 
 
Industrial Development Revenue — 13.3%
 
$ 1,000     Gloucester County Improvements Authority, (Waste Management, Inc.), (AMT), 7.00% to 12/1/09 (Put Date), 12/1/29   $ 1,013,980      
  500     Middlesex County Pollution Control Authority, (Amerada Hess), 5.75%, 9/15/32     488,355      
  800     Middlesex County Pollution Control Authority, (Amerada Hess), 6.05%, 9/15/34     809,904      
  3,220     New Jersey Economic Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.95%, 3/1/47     2,315,534      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29     592,538      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 9.00%, 6/1/33     756,352      
  2,080     Virgin Islands Public Financing Authority, (HOVENSA LLC), (AMT), 4.70%, 7/1/22     1,706,016      
 
 
            $ 7,682,679      
 
 
 

 
See notes to financial statements

21


 

 
Eaton Vance New Jersey Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Education — 6.0%
 
$ 3,365     New Jersey Educational Facilities Authority, (College of New Jersey), (FSA), 5.00%, 7/1/35(1)   $ 3,446,332      
 
 
            $ 3,446,332      
 
 
 
 
Insured-Electric Utilities — 2.1%
 
$ 1,250     Vineland, (Electric Utility), (NPFG), (AMT), 5.25%, 5/15/26   $ 1,215,787      
 
 
            $ 1,215,787      
 
 
 
 
Insured-Gas Utilities — 8.4%
 
$ 5,000     New Jersey Economic Development Authority, (New Jersey Natural Gas Co.), (FGIC), (NPFG), (AMT), 4.90% to 10/1/25 (Put Date), 10/1/40   $ 4,857,300      
 
 
            $ 4,857,300      
 
 
 
 
Insured-General Obligations — 5.4%
 
$ 760     Egg Harbor Township School District, (FSA), 3.50%, 4/1/28   $ 643,994      
  1,240     Lakewood Township, (AGC), 5.75%, 11/1/31     1,358,916      
  1,100     Woodbridge Township, (FSA), 4.10%, 2/1/20     1,137,763      
 
 
            $ 3,140,673      
 
 
 
 
Insured-Hospital — 7.8%
 
$ 750     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)   $ 754,598      
  1,905     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38     1,870,519      
  500     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1)     490,950      
  1,380     New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38     1,377,930      
 
 
            $ 4,493,997      
 
 
 
 
Insured-Housing — 5.5%
 
$ 3,390     New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (FSA), (AMT), 5.05%, 5/1/34   $ 3,162,497      
 
 
            $ 3,162,497      
 
 
 
                     
Insured-Industrial Development Revenue — 1.3%
 
$ 885     New Jersey Economic Development Authority, (New Jersey American Water Co, Inc.), (FGIC), (NPFG), (AMT), 5.25%, 7/1/38   $ 736,240      
 
 
            $ 736,240      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 2.8%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34   $ 1,598,775      
 
 
            $ 1,598,775      
 
 
 
 
Insured-Other Revenue — 1.8%
 
$ 1,015     Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39   $ 1,039,533      
 
 
            $ 1,039,533      
 
 
 
 
Insured-Special Tax Revenue — 13.3%
 
$ 6,000     Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/25   $ 2,771,040      
  4,315     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26     1,621,534      
  2,020     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27     701,404      
  1,000     Puerto Rico Infrastructure Financing Authority, (AMBAC), 5.50%, 7/1/23     953,750      
  7,185     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     397,259      
  2,745     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     305,793      
  5,445     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     568,295      
  3,425     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     333,869      
 
 
            $ 7,652,944      
 
 
 
 
Insured-Student Loan — 3.6%
 
$ 2,000     New Jersey Higher Education Assistance Authority, (AGC), 6.125%, 6/1/30   $ 2,067,760      
 
 
            $ 2,067,760      
 
 
 
 
Insured-Transportation — 2.7%
 
$ 5,570     New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31   $ 1,552,415      
 
 
            $ 1,552,415      
 
 
 

 
See notes to financial statements

22


 

 
Eaton Vance New Jersey Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Water and Sewer — 5.0%
 
$ 3,195     New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT), 4.875%, 11/1/25(2)   $ 2,906,651      
 
 
            $ 2,906,651      
 
 
 
 
Lease Revenue / Certificates of Participation — 7.0%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), 5.25%, 12/15/33(3)   $ 1,500,000      
  2,500     New Jersey Health Care Facilities Financing Authority, (Contract Hospital Asset Transportation Program), 5.25%, 10/1/38     2,516,325      
 
 
            $ 4,016,325      
 
 
 
 
Other Revenue — 9.0%
 
$ 7,200     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/50   $ 230,760      
  13,280     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/55     218,456      
  2,700     New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(1)     2,757,415      
  4,270     Tobacco Settlement Financing Corp., 0.00%, 6/1/41     199,196      
  2,925     Tobacco Settlement Financing Corp., 5.00%, 6/1/41     1,770,766      
 
 
            $ 5,176,593      
 
 
 
 
Senior Living / Life Care — 2.7%
 
$ 465     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28   $ 395,594      
  770     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38     626,341      
  815     New Jersey Economic Development Authority, (Seabrook Village), 5.25%, 11/15/36     528,634      
 
 
            $ 1,550,569      
 
 
 
 
Special Tax Revenue — 1.4%
 
$ 750     New Jersey Economic Development Authority, (Cigarette Tax), 5.50%, 6/15/31   $ 588,082      
  100     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27     80,426      
  175     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37     129,670      
 
 
            $ 798,178      
 
 
 
                     
Transportation — 19.5%
 
$ 1,000     New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38   $ 1,077,550      
  815     New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38     885,913      
  2,600     New Jersey Turnpike Authority, 5.25%, 1/1/40     2,646,930      
  2,500     Port Authority of New York and New Jersey, 4.50%, 11/1/33     2,392,725      
  1,070     Port Authority of New York and New Jersey, 5.00%, 9/1/38     1,075,050      
  1,995     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(1)     2,017,863      
  1,175     South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33     1,178,760      
 
 
            $ 11,274,791      
 
 
     
Total Tax-Exempt Investments — 177.9%
   
(identified cost $109,009,960)
  $ 102,529,867      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (58.0)%
  $ (33,426,095 )    
 
 
             
Other Assets, Less Liabilities — (19.9)%
  $ (11,480,376 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 57,623,396      
 
 
 
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.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
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 May 31, 2009, 36.9% 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 1.5% to 10.9% of total investments.
 
(1) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(2) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(3) When-issued security.

 
See notes to financial statements

23


 

Eaton Vance New York Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 171.2%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.3%
 
$ 1,150     Suffolk County Industrial Development Agency, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23   $ 823,423      
 
 
            $ 823,423      
 
 
 
 
Education — 11.4%
 
$ 315     Geneva Industrial Development Agency, (Hobart & William Smith Project), 5.375%, 2/1/33   $ 315,129      
  975     New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/34     995,066      
  1,000     New York Dormitory Authority, (Columbia University), 5.00%, 7/1/38(1)     1,036,920      
  510     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/34     527,131      
  2,000     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/39     2,054,160      
  2,250     New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33     2,378,947      
 
 
            $ 7,307,353      
 
 
 
 
Electric Utilities — 5.3%
 
$ 1,420     Long Island Power Authority, Electric System Revenue, 6.00%, 5/1/33   $ 1,561,446      
  2,100     Suffolk County Industrial Development Agency, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27     1,854,237      
 
 
            $ 3,415,683      
 
 
 
 
Escrowed / Prerefunded — 0.3%
 
$ 200     New York City Industrial Development Agency, (Ohel Children’s Home), Escrowed to Maturity, 6.25%, 8/15/22   $ 205,884      
 
 
            $ 205,884      
 
 
 
 
General Obligations — 12.1%
 
$ 6,000     New York City, 5.25%, 9/15/33(2)   $ 6,058,260      
  1,000     New York City, 6.25%, 10/15/28     1,115,600      
  680     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     599,930      
 
 
            $ 7,773,790      
 
 
 
                     
Health Care-Miscellaneous — 6.4%
 
$ 1,115     New York City Industrial Development Agency, (A Very Special Place, Inc.), 5.75%, 1/1/29   $ 824,297      
  1,200     New York City Industrial Development Agency, (Ohel Children’s Home), 6.25%, 8/15/22     863,640      
  200     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     151,180      
  50     Suffolk County Industrial Development Agency, (Alliance of LI), Series A, Class H, 7.50%, 9/1/15     49,446      
  100     Suffolk County Industrial Development Agency, (Alliance of LI), Series A, Class I, 7.50%, 9/1/15     98,892      
  2,600     Westchester County Industrial Development Agency, (Children’s Village), 5.375%, 3/15/19     2,132,234      
 
 
            $ 4,119,689      
 
 
 
 
Hospital — 28.1%
 
$ 190     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.35%, 11/15/17   $ 169,172      
  485     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.40%, 11/15/29     367,227      
  1,250     Fulton County Industrial Development Agency, (Nathan Littauer Hospital), 6.00%, 11/1/18     1,053,288      
  2,500     Monroe County Industrial Development Agency, (Highland Hospital), 5.00%, 8/1/25     2,097,000      
  400     Nassau County Industrial Development Agency, (North Shore Health System), 6.25%, 11/1/21     410,156      
  1,500     New York Dormitory Authority, (Lenox Hill Hospital), 5.50%, 7/1/30     1,137,480      
  4,000     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 5.00%, 7/1/36(2)     3,924,160      
  2,000     New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33     1,490,140      
  845     New York Dormitory Authority, (North Shore Hospital), 5.00%, 11/1/34     775,592      
  1,250     New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37     1,102,275      
  415     New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29     330,020      
  835     New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37     623,695      
  950     New York Dormitory Authority, (St. Lukes Roosevelt Hospital), 4.90%, 8/15/31     894,748      
  1,250     Oneida County Industrial Development Agency, (St. Elizabeth’s Medical Center), 5.75%, 12/1/19     1,021,775      
  650     Saratoga County Industrial Development Agency, (Saratoga Hospital), 5.25%, 12/1/32     544,583      
  2,105     Suffolk County Industrial Development Agency, (Huntington Hospital), 6.00%, 11/1/22     2,104,874      
 
 
            $ 18,046,185      
 
 
 

 
See notes to financial statements

24


 

 
Eaton Vance New York Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Housing — 18.1%
 
$ 1,500     New York City Housing Development Corp.,
(Multi-Family Housing), (AMT), 5.05%, 11/1/39
  $ 1,386,225      
  2,620     New York City Housing Development Corp.,
(Multi-Family Housing), (AMT), 5.20%, 11/1/40
    2,462,066      
  1,000     New York Housing Finance Agency, 5.25%, 11/1/41     989,200      
  2,625     New York Housing Finance Agency, (FNMA), (AMT), 5.40%, 11/15/42     2,651,565      
  1,500     New York Mortgage Agency, (AMT), 4.875%, 10/1/30     1,386,540      
  2,000     New York Mortgage Agency, (AMT), 4.90%, 10/1/37     1,778,800      
  1,000     New York Mortgage Agency, (AMT), 5.125%, 10/1/37     936,870      
 
 
            $ 11,591,266      
 
 
 
 
Industrial Development Revenue — 13.9%
 
$ 1,000     Essex County Industrial Development Agency, (International Paper Company), (AMT), 6.625%, 9/1/32   $ 833,540      
  2,525     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(2)     2,366,098      
  1,500     New York Industrial Development Agency, (American Airlines, Inc. — JFK International Airport), (AMT), 8.00%, 8/1/12     1,462,095      
  1,000     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), 4.875%, 7/1/41     885,730      
  2,500     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), (AMT), 6.25%, 12/1/34     2,323,125      
  775     Onondaga County Industrial Development Agency, (Senior Air Cargo), (AMT), 6.125%, 1/1/32     571,818      
  495     Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15     495,446      
 
 
            $ 8,937,852      
 
 
 
 
Insured-Education — 6.3%
 
$ 1,250     New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35   $ 1,134,500      
  1,500     New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38     1,516,320      
  5,460     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/33     1,357,520      
 
 
            $ 4,008,340      
 
 
 
                     
Insured-Electric Utilities — 2.3%
 
$ 1,365     Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33   $ 1,502,769      
 
 
            $ 1,502,769      
 
 
 
 
Insured-General Obligations — 1.5%
 
$ 910     New Rochelle City School District, (AGC), 4.00%, 11/15/21   $ 935,799      
 
 
            $ 935,799      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 4.5%
 
$ 3,600     Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47   $ 2,914,524      
 
 
            $ 2,914,524      
 
 
 
 
Insured-Other Revenue — 2.6%
 
$ 2,645     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/31   $ 724,756      
  3,625     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/32     931,770      
 
 
            $ 1,656,526      
 
 
 
 
Insured-Special Tax Revenue — 7.8%
 
$ 1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45   $ 835,040      
  1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     891,280      
  4,500     Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/34     686,565      
  19,745     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     1,091,701      
  3,380     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     376,532      
  6,705     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     699,801      
  4,225     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     411,853      
 
 
            $ 4,992,772      
 
 
 
 
Insured-Transportation — 9.0%
 
$ 6,235     Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (NPFG), (AMT), 5.625%, 4/1/29   $ 5,761,514      
 
 
            $ 5,761,514      
 
 
 

 
See notes to financial statements

25


 

 
Eaton Vance New York Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Water and Sewer — 1.3%
 
$ 1,000     Nassau County Industrial Development Agency, (Water Services Corp.), (AMBAC), (AMT), 5.00%, 12/1/35   $ 849,400      
 
 
            $ 849,400      
 
 
 
 
Lease Revenue / Certificates of Participation — 5.0%
 
$ 2,500     New York City Transitional Finance Authority, (Building Aid), 4.50%, 1/15/38   $ 2,170,550      
  1,000     New York City Transitional Finance Authority, (Building Aid), 5.50%, 7/15/31     1,029,570      
 
 
            $ 3,200,120      
 
 
 
 
Other Revenue — 1.5%
 
$ 1,285     Albany Industrial Development Agency, Civic Facility, (Charitable Leadership), 5.75%, 7/1/26   $ 990,298      
 
 
            $ 990,298      
 
 
 
 
Senior Living / Life Care — 2.9%
 
$ 1,450     Mount Vernon Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29   $ 1,128,970      
  900     Suffolk County Industrial Development Agency, (Jefferson’s Ferry Project), 5.00%, 11/1/28     696,123      
 
 
            $ 1,825,093      
 
 
 
 
Special Tax Revenue — 1.6%
 
$ 1,000     New York Dormitory Authority, Personal Income Tax Revenue, (University & College Improvements), 5.25%, 3/15/38   $ 1,024,550      
 
 
            $ 1,024,550      
 
 
 
 
Transportation — 17.3%
 
$ 1,700     Metropolitan Transportation Authority, 4.50%, 11/15/37   $ 1,472,183      
  3,200     Metropolitan Transportation Authority, 4.50%, 11/15/38     2,786,048      
  1,900     Port Authority of New York and New Jersey, 5.00%, 11/15/37(2)     1,924,814      
  1,190     Port Authority of New York and New Jersey, (AMT), 4.75%, 6/15/33     1,058,648      
  990     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2)     1,001,345      
  2,750     Triborough Bridge and Tunnel Authority, 5.25%, 11/15/34     2,836,818      
 
 
            $ 11,079,856      
 
 
 
                     
Water and Sewer — 10.7%
 
$ 3,105     New York City Municipal Water Finance Authority, 5.75%, 6/15/40   $ 3,336,975      
  2,535     New York Environmental Facilities Corp., Clean Water, (Municipal Water Finance), 5.00%, 6/15/37(2)     2,584,838      
  5     New York Environmental Facilities Corp., Clean Water, (Municipal Water Finance), 5.00%, 6/15/37     5,098      
  1,000     Saratoga County Water Authority, 5.00%, 9/1/48     959,650      
 
 
            $ 6,886,561      
 
 
     
Total Tax-Exempt Investments — 171.2%
   
(identified cost $118,524,977)
  $ 109,849,247      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (52.6)%
  $ (33,726,431 )    
 
 
             
Other Assets, Less Liabilities — (18.6)%
  $ (11,940,830 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 64,181,986      
 
 
 
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
 
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 May 31, 2009, 20.6% 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 2.4% to 10.5% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).

 
See notes to financial statements

26


 

Eaton Vance Ohio Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 163.1%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.4%
 
$ 385     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 5.875%, 9/1/20   $ 310,830      
  200     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 6.625%, 9/1/20     172,160      
 
 
            $ 482,990      
 
 
 
 
Electric Utilities — 1.0%
 
$ 360     Clyde, Electric System Revenue, (AMT), 6.00%, 11/15/14   $ 350,939      
 
 
            $ 350,939      
 
 
 
 
Escrowed / Prerefunded — 8.0%
 
$ 1,000     Delaware County, Prerefunded to 12/1/10, 6.00%, 12/1/25   $ 1,088,940      
  1,000     Hamilton City School District, Prerefunded to 12/1/09, 5.625%, 12/1/24     1,036,500      
  670     Richland County Hospital Facilities, (Medcentral Health Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22     729,121      
 
 
            $ 2,854,561      
 
 
 
 
General Obligations — 7.4%
 
$ 1,000     Barberton City School District, 4.50%, 12/1/33   $ 944,650      
  1,090     Central Ohio Solid Waste Authority, 5.125%, 9/1/27     1,146,930      
  500     Columbus, 5.00%, 7/1/23(1)     531,435      
 
 
            $ 2,623,015      
 
 
 
 
Health Care-Miscellaneous — 0.2%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 75,590      
 
 
            $ 75,590      
 
 
 
 
Hospital — 10.8%
 
$ 600     Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.25%, 8/15/46   $ 457,992      
  1,500     Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32     1,280,055      
  500     Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26     420,015      
  750     Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.), 4.75%, 1/15/36     591,915      
  1,000     Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.), 4.75%, 1/15/46     758,780      
  330     Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22     336,854      
 
 
            $ 3,845,611      
 
 
 
 
Housing — 13.2%
 
$ 1,000     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.625%, 9/1/27   $ 903,120      
  1,000     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.75%, 3/1/37     869,530      
  600     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 5.00%, 9/1/31     559,524      
  2,500     Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48     2,362,575      
 
 
            $ 4,694,749      
 
 
 
 
Industrial Development Revenue — 12.5%
 
$ 1,385     Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27   $ 936,080      
  1,300     Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18     1,309,321      
  2,250     Ohio Water Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 6.00%, 8/1/38     1,991,722      
  225     Ohio Water Development Authority, Solid Waste Disposal, (Allied Waste North America, Inc.), (AMT), 5.15%, 7/15/15     214,466      
 
 
            $ 4,451,589      
 
 
 
 
Insured-Education — 7.3%
 
$ 730     Miami University, (AMBAC), 3.25%, 9/1/26   $ 570,371      
  1,500     University of Akron, Series A, (FSA), 5.00%, 1/1/38     1,505,130      
  500     University of Akron, Series B, (FSA), 5.00%, 1/1/38     501,710      
 
 
            $ 2,577,211      
 
 
 
 
Insured-Electric Utilities — 17.0%
 
$ 1,000     American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39   $ 1,036,720      
  710     Cleveland Public Power System, (NPFG), 0.00%, 11/15/27     268,132      
  2,000     Cleveland Public Power System, (NPFG), 0.00%, 11/15/38     372,800      

 
See notes to financial statements

27


 

 
Eaton Vance Ohio Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
$ 830     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25   $ 337,005      
  3,000     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26     1,129,800      
  2,225     Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34     1,960,714      
  210     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30     202,721      
  250     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     236,023      
  500     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26     491,675      
 
 
            $ 6,035,590      
 
 
 
 
Insured-Escrowed / Prerefunded — 5.3%
 
$ 245     Cuyahoga County Hospital, (Cleveland Clinic), (NPFG), Escrowed to Maturity, 5.125%, 1/1/29   $ 248,199      
  1,000     Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), Prerefunded to 12/1/10, 5.50%, 12/1/30     1,075,010      
  500     University of Cincinnati, (FGIC), Prerefunded to 6/1/11, 5.25%, 6/1/24     546,515      
 
 
            $ 1,869,724      
 
 
 
 
Insured-General Obligations — 16.9%
 
$ 280     Bowling Green City School District, (FSA), 5.00%, 12/1/34   $ 280,549      
  200     Brookfield Local School District, (FSA), 5.00%, 1/15/30     204,632      
  500     Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36     501,875      
  2,455     Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30     722,236      
  1,500     Madeira City School District, (FSA), 3.50%, 12/1/27     1,264,260      
  1,750     Milford Exempt Village School District, (AGC), 5.25%, 12/1/36     1,796,095      
  500     Olmsted Falls City School District, (XLCA), 5.00%, 12/1/35     482,910      
  750     St. Mary’s School District, (FSA), 5.00%, 12/1/35     742,388      
 
 
            $ 5,994,945      
 
 
 
 
Insured-Hospital — 8.9%
 
$ 255     Cuyahoga County, (Cleveland Clinic), (NPFG), 5.125%, 1/1/29   $ 255,054      
  980     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32     917,731      
  1,500     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28     1,460,055      
  485     Lorain County, (Catholic Healthcare Partners), (FSA), Variable Rate, 17.408%, 2/1/29(2)(3)(4)     507,261      
 
 
            $ 3,140,101      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 1.3%
 
$ 500     Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33   $ 471,700      
 
 
            $ 471,700      
 
 
 
 
Insured-Special Tax Revenue — 4.7%
 
$ 405     Hamilton County, Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32   $ 393,814      
  9,905     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     547,647      
  1,690     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     188,266      
  3,350     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     349,640      
  2,100     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     204,708      
 
 
            $ 1,684,075      
 
 
 
 
Insured-Transportation — 7.6%
 
$ 385     Cleveland Airport System, (FSA), 5.00%, 1/1/31   $ 385,100      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24     1,166,740      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26     1,158,850      
 
 
            $ 2,710,690      
 
 
 
 
Insured-Water and Sewer — 2.6%
 
$ 270     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46   $ 239,857      
  750     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47     665,273      
 
 
            $ 905,130      
 
 
 

 
See notes to financial statements

28


 

 
Eaton Vance Ohio Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Lease Revenue / Certificates of Participation — 7.3%
 
$ 500     Franklin County Convention Facilities Authority, 5.00%, 12/1/27   $ 526,170      
  1,000     Mahoning County, (Career and Technical Center), 6.25%, 12/1/36     1,005,730      
  1,155     Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19     1,049,918      
 
 
            $ 2,581,818      
 
 
 
 
Other Revenue — 11.6%
 
$ 7,345     Buckeye Tobacco Settlement Financing Authority, 0.00%, 6/1/47   $ 182,670      
  710     Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47     463,836      
  2,530     Puerto Rico Infrastructure Financing Authority, 5.50%, 10/1/32     2,657,841      
  1,000     Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27     818,220      
 
 
            $ 4,122,567      
 
 
 
 
Pooled Loans — 12.5%
 
$ 550     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25   $ 538,021      
  1,020     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22     1,035,014      
  1,245     Rickenbacher Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5)     1,263,758      
  310     Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25     224,440      
  750     Toledo-Lucas County Port Authority, 4.80%, 11/15/35     458,243      
  1,100     Toledo-Lucas County Port Authority, 5.40%, 5/15/19     924,495      
 
 
            $ 4,443,971      
 
 
 
 
Special Tax Revenue — 5.6%
 
$ 560     Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18   $ 542,494      
  1,385     Cuyahoga County Economic Development, (Shaker Square), 6.75%, 12/1/30     1,436,231      
 
 
            $ 1,978,725      
 
 
 
Total Tax-Exempt Investments — 163.1%
   
(identified cost $60,501,547)
  $ 57,895,291      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (64.0)%
  $ (22,726,757 )    
 
 
             
Other Assets, Less Liabilities — 0.9%
  $ 334,658      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 35,503,192      
 
 
 
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
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
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 May 31, 2009, 43.9% 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 2.4% to 16.8% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2009, the aggregate value of these securities is $507,261 or 1.4% of the Trust’s net assets applicable to common shares.
 
(3) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2009.
 
(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 underlying the inverse floater. 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 underlying the inverse floater.
 
(5) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).

 
See notes to financial statements

29


 

Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 172.4%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Bond Bank — 3.2%
 
$ 1,000     Delaware Valley Regional Finance Authority, 5.75%, 7/1/32   $ 1,084,700      
 
 
            $ 1,084,700      
 
 
 
 
Cogeneration — 4.3%
 
$ 160     Carbon County Industrial Development Authority, (Panther Creek Partners), (AMT), 6.65%, 5/1/10   $ 160,760      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.50%, 1/1/13     408,835      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.60%, 1/1/19     377,390      
  625     Pennsylvania Economic Development Financing Authority, (Resource Recovery-Colver), (AMT), 5.125%, 12/1/15     509,944      
 
 
            $ 1,456,929      
 
 
 
 
Education — 1.5%
 
$ 500     Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39   $ 502,325      
 
 
            $ 502,325      
 
 
 
 
Electric Utilities — 3.3%
 
$ 600     Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36   $ 570,810      
  600     York County Industrial Development Authority, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20     547,416      
 
 
            $ 1,118,226      
 
 
 
 
Escrowed / Prerefunded — 4.0%
 
$ 600     Allegheny County Industrial Development Authority, (Residential Resources, Inc.), Prerefunded to 9/1/11, 6.50%, 9/1/21   $ 671,472      
  600     Bucks County Industrial Development Authority, (Pennswood), Prerefunded to 10/1/12, 6.00%, 10/1/27     692,346      
 
 
            $ 1,363,818      
 
 
 
                     
General Obligations — 7.6%
 
$ 500     Chester County, 5.00%, 7/15/27(1)   $ 540,845      
  1,000     Daniel Boone Area School District, 5.00%, 8/15/32     1,010,220      
  1,000     Philadelphia School District, 6.00%, 9/1/38     1,061,110      
 
 
            $ 2,612,175      
 
 
 
 
Health Care-Miscellaneous — 0.2%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 75,590      
 
 
            $ 75,590      
 
 
 
 
Hospital — 15.7%
 
$ 500     Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34(2)   $ 495,245      
  1,250     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32     1,122,087      
  1,500     Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43     1,294,005      
  1,000     Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(3)     1,089,970      
  850     Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31     870,417      
  500     Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17     512,190      
 
 
            $ 5,383,914      
 
 
 
 
Housing — 15.8%
 
$ 515     Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT), 4.95%, 11/1/37   $ 462,660      
  1,170     Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT), 5.00%, 5/1/35     1,130,384      
  985     Pennsylvania Housing Finance Agency, (AMT), 4.70%, 10/1/37     844,559      
  1,200     Pennsylvania Housing Finance Agency, (AMT), 4.875%, 4/1/26     1,135,512      
  1,000     Pennsylvania Housing Finance Agency, (AMT), 4.90%, 10/1/37     908,960      
  1,000     Pennsylvania Housing Finance Agency, (AMT), 5.15%, 10/1/37     933,680      
 
 
            $ 5,415,755      
 
 
 
 
Industrial Development Revenue — 10.3%
 
$ 750     Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42   $ 638,363      
  500     New Morgan Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.50%, 4/1/19     500,000      

 
See notes to financial statements

30


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Industrial Development Revenue (continued)
 
                     
$ 250     Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39   $ 262,170      
  1,000     Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31     953,690      
  500     Pennsylvania Economic Development Financing Authority, Solid Waste Disposal, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27     438,955      
  1,550     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     716,937      
 
 
            $ 3,510,115      
 
 
 
 
Insured-Education — 23.5%
 
$ 500     Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37   $ 509,065      
  1,900     Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32     1,624,861      
  1,115     Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37     1,098,453      
  2,000     Pennsylvania Higher Educational Facilities Authority, (State System Higher Education), (FSA), 5.00%, 6/15/24     2,000,680      
  1,000     Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 5.00%, 4/1/33     993,050      
  500     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/27     523,610      
  375     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/29     386,869      
  875     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/32     887,425      
 
 
            $ 8,024,013      
 
 
 
 
Insured-Electric Utilities — 1.7%
 
$ 630     Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), (NPFG), 4.75%, 2/15/27   $ 567,655      
 
 
            $ 567,655      
 
 
 
 
Insured-Escrowed / Prerefunded — 18.4%
 
$ 650     Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09, 6.00%, 11/1/29   $ 676,838      
  1,600     Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27(4)     1,600,496      
  2,500     Puerto Rico Electric Power Authority, Prerefunded to 7/1/10, 5.25%, 7/1/29(3)     2,650,392      
  2,000     Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19     1,365,560      
 
 
            $ 6,293,286      
 
 
 
 
Insured-General Obligations — 2.4%
 
$ 500     Beaver County, (FSA), 5.55%, 11/15/31   $ 525,815      
  300     West Mifflin Area School District, (FSA), 5.125%, 4/1/31     306,342      
 
 
            $ 832,157      
 
 
 
 
Insured-Hospital — 15.0%
 
$ 250     Allegheny County Hospital Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24   $ 271,815      
  500     Delaware County General Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26     443,095      
  1,440     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (FSA), 5.00%, 7/1/35(3)     1,344,607      
  1,500     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (NPFG), 5.25%, 7/1/29     1,321,815      
  2,000     Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28     1,760,580      
 
 
            $ 5,141,912      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 7.5%
 
$ 500     Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31   $ 503,130      
  1,195     Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (FSA), 4.75%, 2/15/27     1,199,147      
  750     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     846,877      
 
 
            $ 2,549,154      
 
 
 
 
Insured-Special Tax Revenue — 6.6%
 
$ 1,000     Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24   $ 985,630      
  9,870     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     545,712      
  1,690     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44     188,266      
  3,350     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45     349,640      
  2,100     Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46     204,708      
 
 
            $ 2,273,956      
 
 
 

 
See notes to financial statements

31


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Transportation — 12.4%
 
$ 1,000     Pennsylvania Turnpike Commission, (AGC), 5.00%, 6/1/38   $ 1,013,020      
  500     Philadelphia Airport Commission, (FSA), (AMT), 5.00%, 6/15/27     474,350      
  1,005     Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29     992,769      
  1,800     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(3)     1,761,669      
 
 
            $ 4,241,808      
 
 
 
 
Insured-Water and Sewer — 6.9%
 
$ 275     Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22   $ 293,128      
  585     Chester County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 2/1/40     495,378      
  875     Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 11/1/36     738,351      
  500     Delaware County Industrial Development Authority, (Water Facilities), (FGIC), (NPFG), (AMT), 6.00%, 6/1/29     500,525      
  360     Philadelphia Water and Wastewater Revenue, (FGIC), (NPFG), 5.00%, 11/1/31     348,667      
 
 
            $ 2,376,049      
 
 
 
 
Senior Living / Life Care — 5.4%
 
$ 1,000     Cliff House Trust, (AMT), 6.625%, 6/1/27(5)   $ 544,220      
  500     Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29     388,405      
  500     Lancaster County Hospital Authority, (Willow Valley Retirement Communities), 5.875%, 6/1/31     489,430      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24     175,042      
  300     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30     247,059      
 
 
            $ 1,844,156      
 
 
 
 
Transportation — 4.4%
 
$ 40     Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09   $ 39,976      
  485     Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16     433,027      
  270     Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 6.25%, 11/1/31     222,658      
  750     Pennsylvania Turnpike Commission, 5.625%, 6/1/29     795,938      
 
 
            $ 1,491,599      
 
 
 
                     
Water and Sewer — 2.3%
 
$ 750     Harrisburg Water Authority, 5.25%, 7/15/31   $ 770,198      
 
 
            $ 770,198      
 
 
     
Total Tax-Exempt Investments — 172.4%
   
(identified cost $61,986,630)
  $ 58,929,490      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (62.0)%
  $ (21,176,240 )    
 
 
             
Other Assets, Less Liabilities — (10.4)%
  $ (3,573,962 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 34,179,288      
 
 
 
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.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
The Trust invests primarily in debt securities issued by Pennsylvania municipalities. In addition, 12.5% of the Trust’s total investments at May 31, 2009 were invested in municipal obligations issued by Puerto Rico. 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 May 31, 2009, 54.8% 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 14.9% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) When-issued security.
 
(3) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(4) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(5) Security is in default with respect to scheduled principal payments.

 
See notes to financial statements

32


 

Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited)
 
Statements of Assets and Liabilities
 
                                     
As of May 31, 2009   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Assets
 
Investments —
                                   
Identified cost
  $ 160,807,471     $ 60,775,600     $ 46,421,911     $ 109,009,960      
Unrealized depreciation
    (10,547,319 )     (4,116,956 )     (2,841,670 )     (6,480,093 )    
 
 
Investments, at value
  $ 150,260,152     $ 56,658,644     $ 43,580,241     $ 102,529,867      
 
 
Cash
  $ 3,844,834     $ 463,119     $ 576,268     $ 2,196,729      
Interest receivable
    1,917,670       1,077,663       606,843       1,562,247      
Receivable for investments sold
    9,500                        
Receivable for open swap contracts
    401,481       147,063       47,060       257,360      
Deferred debt issuance costs
    34,830       5,131             4,566      
 
 
Total assets
  $ 156,468,467     $ 58,351,620     $ 44,810,412     $ 106,550,769      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 18,945,000     $ 3,880,000     $ 1,125,000     $ 12,172,000      
Payable for investments purchased
    2,505,441                   1,509,496      
Payable for when-issued securities
                      1,500,000      
Payable for variation margin on open financial futures contracts
    140,625             12,953            
Payable for open swap contracts
    250,019       92,654             160,307      
Payable to affiliates:
                                   
Investment adviser fee
    84,602       31,089       25,694       50,391      
Administration fee
    22,706       9,396       7,341       14,479      
Trustees’ fees
    1,023       450       383       677      
Interest expense and fees payable
    29,991       8,741       8,725       63,921      
Accrued expenses
    34,694       21,869       19,486       30,007      
 
 
Total liabilities
  $ 22,014,101     $ 4,044,199     $ 1,199,582     $ 15,501,278      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 49,976,933     $ 20,051,912     $ 17,500,993     $ 33,426,095      
 
 
Net assets applicable to common shares
  $ 84,477,433     $ 34,255,509     $ 26,109,837     $ 57,623,396      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 71,855     $ 27,195     $ 21,163     $ 46,242      
Additional paid-in capital
    104,250,556       39,662,611       31,113,305       66,724,505      
Accumulated net realized loss
    (10,270,902 )     (1,872,334 )     (2,552,656 )     (3,629,072 )    
Accumulated undistributed net investment income
    887,845       500,584       322,628       864,761      
Net unrealized depreciation
    (10,461,921 )     (4,062,547 )     (2,794,603 )     (6,383,040 )    
 
 
Net assets applicable to common shares
  $ 84,477,433     $ 34,255,509     $ 26,109,837     $ 57,623,396      
 
 
 
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      1,999       802       700       1,337      
 
 
 
Common Shares Outstanding
 
      7,185,509       2,719,495       2,116,294       4,624,183      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 11.76     $ 12.60     $ 12.34     $ 12.46      
 
 

 
See notes to financial statements

33


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Assets and Liabilities
 
                             
As of May 31, 2009   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Assets
 
Investments —
                           
Identified cost
  $ 118,524,977     $ 60,501,547     $ 61,986,630      
Unrealized depreciation
    (8,675,730 )     (2,606,256 )     (3,057,140 )    
 
 
Investments, at value
  $ 109,849,247     $ 57,895,291     $ 58,929,490      
 
 
Cash
  $ 851,236     $ 212,414     $ 240,372      
Interest receivable
    1,591,367       1,053,601       1,007,575      
Receivable for investments sold
          5,000            
Receivable for open swap contracts
    1,196,829       88,238            
Deferred debt issuance costs
    31,895                  
 
 
Total assets
  $ 113,520,574     $ 59,254,544     $ 60,177,437      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 15,150,000     $ 830,000     $ 4,035,000      
Payable for when-issued securities
                491,585      
Payable for variation margin on open financial futures contracts
    117,187       26,695       97,656      
Payable for open swap contracts
    188,250       95,596       107,361      
Payable to affiliates:
                           
Investment adviser fee
    63,752       34,696       32,525      
Administration fee
    14,559       9,913       9,532      
Trustees’ fees
    761       470       448      
Interest expense and fees payable
    40,602       4,553       25,179      
Accrued expenses
    37,046       22,672       22,623      
 
 
Total liabilities
  $ 15,612,157     $ 1,024,595     $ 4,821,909      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 33,726,431     $ 22,726,757     $ 21,176,240      
 
 
Net assets applicable to common shares
  $ 64,181,986     $ 35,503,192     $ 34,179,288      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 53,886     $ 28,293     $ 27,085      
Additional paid-in capital
    78,302,391       41,408,825       38,995,386      
Accumulated net realized loss
    (7,120,436 )     (3,811,039 )     (1,987,094 )    
Accumulated undistributed net investment income
    635,998       490,713       426,554      
Net unrealized depreciation
    (7,689,853 )     (2,613,600 )     (3,282,643 )    
 
 
Net assets applicable to common shares
  $ 64,181,986     $ 35,503,192     $ 34,179,288      
 
 
 
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      1,349       909       847      
 
 
 
Common Shares Outstanding
 
      5,388,551       2,829,304       2,708,462      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 11.91     $ 12.55     $ 12.62      
 
 

 
See notes to financial statements

34


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Operations
 
                                     
For the Six Months Ended May 31, 2009   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Investment Income
 
Interest
  $ 4,211,463     $ 1,659,283     $ 1,278,784     $ 2,803,083      
 
 
Total investment income
  $ 4,211,463     $ 1,659,283     $ 1,278,784     $ 2,803,083      
 
 
                                     
                                     
 
Expenses
 
Investment adviser fee
  $ 470,520     $ 180,925     $ 144,944     $ 298,959      
Administration fee
    133,701       51,693       41,412       85,417      
Trustees’ fees and expenses
    3,256       1,780       1,519       2,713      
Custodian fee
    27,326       14,653       15,760       25,629      
Transfer and dividend disbursing agent fees
    10,362       11,934       9,332       12,247      
Legal and accounting services
    36,953       26,622       24,741       40,273      
Printing and postage
    5,125       2,280       2,145       1,500      
Interest expense and fees
    101,048       29,683       15,080       51,406      
Preferred shares service fee
    49,975       19,968       17,500       33,397      
Miscellaneous
    11,505       579       7,396       12,555      
 
 
Total expenses
  $ 849,771     $ 340,117     $ 279,829     $ 564,096      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 4,534     $ 841     $ 978     $ 1,013      
 
 
Total expense reductions
  $ 4,534     $ 841     $ 978     $ 1,013      
 
 
                                     
Net expenses
  $ 845,237     $ 339,276     $ 278,851     $ 563,083      
 
 
                                     
Net investment income
  $ 3,366,226     $ 1,320,007     $ 999,933     $ 2,240,000      
 
 
                                     
                                     
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ (480,446 )   $ 146,136     $ 113,073     $ (1,342,062 )    
Financial futures contracts
    (132,526 )           (26,868 )          
Swap contracts
    (2,962,593 )     (1,080,073 )     (180,662 )     (1,898,918 )    
 
 
Net realized loss
  $ (3,575,565 )   $ (933,937 )   $ (94,457 )   $ (3,240,980 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ 12,347,016     $ 5,977,497     $ 2,752,590     $ 14,656,507      
Financial futures contracts
    283,185             42,789            
Swap contracts
    3,819,439       1,395,159       261,295       2,448,221      
 
 
Net change in unrealized appreciation (depreciation)
  $ 16,449,640     $ 7,372,656     $ 3,056,674     $ 17,104,728      
 
 
                                     
Net realized and unrealized gain
  $ 12,874,075     $ 6,438,719     $ 2,962,217     $ 13,863,748      
 
 
Distributions to preferred shareholders
                                   
From net investment income
  $ (219,188 )   $ (85,802 )   $ (77,148 )   $ (143,964 )    
 
 
                                     
Net increase in net assets from operations
  $ 16,021,113     $ 7,672,924     $ 3,885,002     $ 15,959,784      
 
 

 
See notes to financial statements

35


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Operations
 
                             
For the Six Months Ended May 31, 2009   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Investment Income
 
Interest
  $ 3,354,917     $ 1,706,651     $ 1,665,244      
 
 
Total investment income
  $ 3,354,917     $ 1,706,651     $ 1,665,244      
 
 
                             
                             
 
Expenses
 
Investment adviser fee
  $ 347,496     $ 192,189     $ 183,373      
Administration fee
    95,565       54,911       52,392      
Trustees’ fees and expenses
    3,044       1,506       1,792      
Custodian fee
    20,103       18,259       18,742      
Transfer and dividend disbursing agent fees
    9,831       9,701       11,559      
Legal and accounting services
    50,440       27,835       28,788      
Printing and postage
    2,755       1,228       1,950      
Interest expense and fees
    186,157       5,661       50,769      
Preferred shares service fee
    33,725       22,762       21,340      
Miscellaneous
    11,115       10,337       10,842      
 
 
Total expenses
  $ 760,231     $ 344,389     $ 381,547      
 
 
Deduct —
                           
Reduction of custodian fee
  $ 4,783     $ 936     $ 1,878      
 
 
Total expense reductions
  $ 4,783     $ 936     $ 1,878      
 
 
                             
Net expenses
  $ 755,448     $ 343,453     $ 379,669      
 
 
                             
Net investment income
  $ 2,599,469     $ 1,363,198     $ 1,285,575      
 
 
                             
                             
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                           
Investment transactions
  $ (1,967,612 )   $ (118,817 )   $ 340,490      
Financial futures contracts
    484,648       (51,366 )     257,377      
Swap contracts
    (2,676,715 )     (673,793 )     (260,162 )    
 
 
Net realized gain (loss)
  $ (4,159,679 )   $ (843,976 )   $ 337,705      
 
 
Change in unrealized appreciation (depreciation) —
                           
Investments
  $ 13,523,757     $ 5,514,106     $ 5,067,330      
Financial futures contracts
    343,865       75,059       156,062      
Swap contracts
    3,785,482       966,746       476,789      
 
 
Net change in unrealized appreciation (depreciation)
  $ 17,653,104     $ 6,555,911     $ 5,700,181      
 
 
                             
Net realized and unrealized gain
  $ 13,493,425     $ 5,711,935     $ 6,037,886      
 
 
Distributions to preferred shareholders
                           
From net investment income
  $ (147,469 )   $ (100,751 )   $ (92,522 )    
 
 
                             
Net increase in net assets from operations
  $ 15,945,425     $ 6,974,382     $ 7,230,939      
 
 

 
See notes to financial statements

36


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Changes in Net Assets
 
                                     
For the Six Months Ended May 31, 2009                            
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
From operations —
                                   
Net investment income
  $ 3,366,226     $ 1,320,007     $ 999,933     $ 2,240,000      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (3,575,565 )     (933,937 )     (94,457 )     (3,240,980 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    16,449,640       7,372,656       3,056,674       17,104,728      
Distributions to preferred shareholders —
                                   
From net investment income
    (219,188 )     (85,802 )     (77,148 )     (143,964 )    
 
 
Net increase in net assets from operations
  $ 16,021,113     $ 7,672,924     $ 3,885,002     $ 15,959,784      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (2,608,483 )   $ (1,040,231 )   $ (752,346 )   $ (1,795,746 )    
 
 
Total distributions to common shareholders
  $ (2,608,483 )   $ (1,040,231 )   $ (752,346 )   $ (1,795,746 )    
 
 
Capital share transactions
                                   
Reinvestment of distributions to common shareholders
  $     $ 46,856     $     $      
 
 
Net increase in net assets from capital share transactions
  $     $ 46,856     $     $      
 
 
                                     
Net increase in net assets
  $ 13,412,630     $ 6,679,549     $ 3,132,656     $ 14,164,038      
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 43,459,358      
 
 
At end of period
  $ 84,477,433     $ 34,255,509     $ 26,109,837     $ 57,623,396      
 
 
                                     
                                     
 
Accumulated undistributed net investment
income included in net assets applicable
to common shares
 
At end of period
  $ 887,845     $ 500,584     $ 322,628     $ 864,761      
 
 

 
See notes to financial statements

37


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Changes in Net Assets
 
                             
For the Six Months Ended May 31, 2009                      
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust      
 
From operations —
                           
Net investment income
  $ 2,599,469     $ 1,363,198     $ 1,285,575      
Net realized gain (loss) from investment transactions, financial futures contracts
and swap contracts
    (4,159,679 )     (843,976 )     337,705      
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and swap contracts
    17,653,104       6,555,911       5,700,181      
Distributions to preferred shareholders —
                           
From net investment income
    (147,469 )     (100,751 )     (92,522 )    
 
 
Net increase in net assets from operations
  $ 15,945,425     $ 6,974,382     $ 7,230,939      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (2,181,186 )   $ (1,034,145 )   $ (995,354 )    
 
 
Total distributions to common shareholders
  $ (2,181,186 )   $ (1,034,145 )   $ (995,354 )    
 
 
Capital share transactions
                           
Reinvestment of distributions to common shareholders
  $ 92,719     $     $      
 
 
Net increase in net assets from capital share transactions
  $ 92,719     $     $      
 
 
                             
Net increase in net assets
  $ 13,856,958     $ 5,940,237     $ 6,235,585      
 
 
                             
                             
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 50,325,028     $ 29,562,955     $ 27,943,703      
 
 
At end of period
  $ 64,181,986     $ 35,503,192     $ 34,179,288      
 
 
                             
                             
 
Accumulated undistributed net investment
income included in net assets applicable
to common shares
 
At end of period
  $ 635,998     $ 490,713     $ 426,554      
 
 

 
See notes to financial statements

38


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
                                     
For the Year Ended November 30, 2008                            
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
From operations —
                                   
Net investment income
  $ 6,768,884     $ 2,569,040     $ 1,969,595     $ 4,475,055      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (6,124,422 )     (612,600 )     (495,940 )     (54,943 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (31,366,590 )     (12,219,153 )     (7,276,840 )     (25,737,490 )    
Distributions to preferred shareholders —
                                   
From net investment income
    (1,988,268 )     (754,703 )     (636,924 )     (1,337,294 )    
 
 
Net decrease in net assets from operations
  $ (32,710,396 )   $ (11,017,416 )   $ (6,440,109 )   $ (22,654,672 )    
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (4,831,246 )   $ (1,761,505 )   $ (1,293,055 )   $ (2,911,723 )    
 
 
Total distributions to common shareholders
  $ (4,831,246 )   $ (1,761,505 )   $ (1,293,055 )   $ (2,911,723 )    
 
 
Capital share transactions
                                   
Reinvestment of distributions to common shareholders
  $ 39,205     $ 13,438     $     $ 24,930      
 
 
Net increase in net assets from capital share transactions
  $ 39,205     $ 13,438     $     $ 24,930      
 
 
                                     
Net decrease in net assets
  $ (37,502,437 )   $ (12,765,483 )   $ (7,733,164 )   $ (25,541,465 )    
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 108,567,240     $ 40,341,443     $ 30,710,345     $ 69,000,823      
 
 
At end of year
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 43,459,358      
 
 
                                     
                                     
 
Accumulated undistributed net investment
income included in net assets applicable to
common shares
 
At end of year
  $ 349,290     $ 306,610     $ 152,189     $ 564,471      
 
 

 
See notes to financial statements

39


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
                             
For the Year Ended November 30, 2008                      
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust      
 
From operations —
                           
Net investment income
  $ 5,305,250     $ 2,719,400     $ 2,671,240      
Net realized loss from investment transactions, financial futures contracts
and swap contracts
    (2,198,429 )     (705,775 )     (568,083 )    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and swap contracts
    (29,443,679 )     (11,769,463 )     (11,766,420 )    
Distributions to preferred shareholders —
                           
From net investment income
    (1,443,622 )     (858,575 )     (809,974 )    
 
 
Net decrease in net assets from operations
  $ (27,780,480 )   $ (10,614,413 )   $ (10,473,237 )    
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (3,874,132 )   $ (1,775,906 )   $ (1,764,997 )    
 
 
Total distributions to common shareholders
  $ (3,874,132 )   $ (1,775,906 )   $ (1,764,997 )    
 
 
Capital share transactions
                           
Reinvestment of distributions to common shareholders
  $ 48,143     $     $      
 
 
Net increase in net assets from capital share transactions
  $ 48,143     $     $      
 
 
                             
Net decrease in net assets
  $ (31,606,469 )   $ (12,390,319 )   $ (12,238,234 )    
 
 
                             
                             
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 81,931,497     $ 41,953,274     $ 40,181,937      
 
 
At end of year
  $ 50,325,028     $ 29,562,955     $ 27,943,703      
 
 
                             
                             
 
Accumulated undistributed net investment
income included in net assets applicable to
common shares
 
At end of year
  $ 365,184     $ 262,411     $ 228,855      
 
 

 
See notes to financial statements

40


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Cash Flows
 
                     
For the Six Months Ended May 31, 2009                
Cash flows from operating activities   California Trust     New York Trust      
 
Net increase in net assets from operations
  $ 16,021,113     $ 15,945,425      
Distributions to preferred shareholders
    219,188       147,469      
 
 
Net increase in net assets from operations excluding distributions to preferred shareholders
  $ 16,240,301     $ 16,092,894      
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
                   
Investments purchased
    (25,572,571 )     (19,015,261 )    
Investments sold
    20,085,362       20,871,091      
Net accretion/amortization of premium (discount)
    (716,303 )     (240,972 )    
Amortization of deferred debt issuance costs
    6,247       13,025      
Decrease in interest receivable
    8,758       71,253      
Decrease (increase) in receivable for investments sold
    (1,000 )     30,000      
Increase in receivable for open swap contracts
    (401,481 )     (1,196,829 )    
Increase in payable for investments purchased
    2,505,441            
Increase in payable for variation margin on open financial futures contracts
    89,578       63,609      
Decrease in payable for open swap contracts
    (3,417,958 )     (2,588,653 )    
Increase in payable to affiliate for investment adviser fee
    6,095       6,112      
Increase (decrease) in payable to affiliate for administration fee
    1,142       (1,910 )    
Increase in payable to affiliate for Trustees’ fees
    187       115      
Decrease in interest expense and fees payable
    (64,907 )     (76,676 )    
Decrease in accrued expenses
    (68,280 )     (59,508 )    
Net change in unrealized (appreciation) depreciation from investments
    (12,347,016 )     (13,523,757 )    
Net realized loss from investments
    480,446       1,967,612      
 
 
Net cash provided by (used in) operating activities
  $ (3,165,959 )   $ 2,412,145      
 
 
                     
                     
 
Cash flows from financing activities
 
Cash distributions paid to common shareholders, net of reinvestments
  $ (2,608,483 )   $ (2,088,467 )    
Distributions to preferred shareholders
    (221,209 )     (150,467 )    
Proceeds from secured borrowings
    4,705,000            
Repayment of secured borrowings
    (1,330,000 )          
 
 
Net cash provided by (used in) financing activities
  $ 545,308     $ (2,238,934 )    
 
 
                     
Net increase (decrease) in cash
  $ (2,620,651 )   $ 173,211      
 
 
Cash at beginning of period
  $ 6,465,485     $ 678,025      
 
 
Cash at end of period
  $ 3,844,834     $ 851,236      
 
 
                     
                     
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of:
  $     $ 92,719      
 
 

 
See notes to financial statements

41


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    California Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 9.890     $ 15.120     $ 16.430     $ 15.420     $ 15.070     $ 15.320      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.468     $ 0.943     $ 0.936     $ 0.962     $ 1.013     $ 1.079      
Net realized and unrealized gain (loss)
    1.796       (5.223 )     (1.294 )     1.028       0.383       (0.227 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.031 )     (0.277 )     (0.280 )     (0.239 )     (0.154 )     (0.079 )    
 
 
Total income (loss) from operations
  $ 2.233     $ (4.557 )   $ (0.638 )   $ 1.751     $ 1.242     $ 0.773      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.363 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )   $ (1.023 )    
 
 
Total distributions to common shareholders
  $ (0.363 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )   $ (1.023 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 11.760     $ 9.890     $ 15.120     $ 16.430     $ 15.420     $ 15.070      
 
 
                                                     
Market value — End of period (Common shares)
  $ 11.030     $ 9.150     $ 13.160     $ 15.050     $ 13.650     $ 15.160      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    23.52 %(9)     (30.70 )%     (3.65 )%     12.10 %     8.72 %     5.35 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    25.27 %(9)     (26.34 )%     (8.44 )%     15.99 %     (4.34 )%     8.60 %    
 
 

 
See notes to financial statements

42


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    California Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 84,477     $ 71,065     $ 108,567     $ 117,966     $ 110,760     $ 108,193      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
                                                   
Expenses excluding interest and fees
    1.97 %(4)     1.87 %     1.78 %(5)     1.79 %     1.78 %     1.78 %    
Interest and fee expense(6)
    0.27 %(4)     0.37 %     0.34 %     0.49 %     0.33 %     0.20 %    
Total expenses before custodian fee reduction
    2.24 %(4)     2.24 %     2.12 %(5)     2.28 %     2.11 %     1.98 %    
Expenses after custodian fee reduction excluding interest and fees
    1.96 %(4)     1.85 %     1.76 %(5)     1.77 %     1.76 %     1.77 %    
Net investment income
    8.88 %(4)     6.91 %     5.94 %     6.12 %     6.52 %     7.10 %    
Portfolio Turnover
    14 %(9)     31 %     40 %     26 %     31 %     17 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.19 %(4)     1.18 %     1.17 %(5)     1.18 %     1.16 %     1.15 %    
Interest and fee expense(6)
    0.16 %(4)     0.24 %     0.22 %     0.32 %     0.22 %     0.13 %    
Total expenses before custodian fee reduction
    1.35 %(4)     1.42 %     1.39 %(5)     1.50 %     1.38 %     1.28 %    
Expenses after custodian fee reduction excluding interest and fees
    1.18 %(4)     1.17 %     1.16 %(5)     1.16 %     1.15 %     1.15 %    
Net investment income
    5.36 %(4)     4.39 %     3.90 %     4.03 %     4.26 %     4.61 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,999       1,999       2,360       2,360       2,360       2,360      
Asset coverage per preferred share(7)
  $ 67,261     $ 60,552     $ 71,003     $ 74,997     $ 71,942     $ 70,849      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

43


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Massachusetts Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value – Beginning of period (Common shares)
  $ 10.160     $ 14.860     $ 16.170     $ 15.270     $ 15.090     $ 15.380      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.486     $ 0.947     $ 0.914     $ 0.931     $ 0.973     $ 1.054      
Net realized and unrealized gain (loss)
    2.369       (4.720 )     (1.314 )     0.926       0.234       (0.251 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.032 )     (0.278 )     (0.271 )     (0.243 )     (0.145 )     (0.070 )    
 
 
Total income (loss) from operations
  $ 2.823     $ (4.051 )   $ (0.671 )   $ 1.614     $ 1.062     $ 0.733      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.383 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )   $ (1.023 )    
 
 
Total distributions to common shareholders
  $ (0.383 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )   $ (1.023 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.600     $ 10.160     $ 14.860     $ 16.170     $ 15.270     $ 15.090      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.600     $ 8.930     $ 13.050     $ 14.920     $ 14.800     $ 16.810      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    28.43 %(9)     (28.02 )%     (3.94 )%     11.05 %     7.02 %     4.90 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    45.98 %(9)     (27.89 )%     (8.57 )%     5.72 %     (6.89 )%     16.71 %    
 
 

 
See notes to financial statements

44


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Massachusetts Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 34,256     $ 27,576     $ 40,341     $ 43,875     $ 41,395     $ 40,662      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
Expenses excluding interest and fees
    2.04 %(4)     2.06 %     1.91 %(5)     1.88 %     1.88 %     1.87 %    
Interest and fee expense(6)
    0.20 %(4)     0.26 %     0.61 %     0.77 %     0.52 %     0.30 %    
Total expenses before custodian fee reduction
    2.24 %(4)     2.32 %     2.52 %(5)     2.65 %     2.40 %     2.17 %    
Expenses after custodian fee reduction excluding interest and fees
    2.04 %(4)     2.04 %     1.89 %(5)     1.87 %     1.87 %     1.86 %    
Net investment income
    8.70 %(4)     7.03 %     5.90 %     6.01 %     6.29 %     6.97 %    
Portfolio Turnover
    12 %(9)     40 %     42 %     22 %     13 %     39 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.23 %(4)     1.31 %     1.26 %(5)     1.24 %     1.24 %     1.22 %    
Interest and fee expense(6)
    0.12 %(4)     0.16 %     0.40 %     0.51 %     0.34 %     0.19 %    
Total expenses before custodian fee reduction
    1.35 %(4)     1.47 %     1.66 %(5)     1.75 %     1.58 %     1.41 %    
Expenses after custodian fee reduction excluding interest and fees
    1.23 %(4)     1.30 %     1.25 %(5)     1.24 %     1.24 %     1.22 %    
Net investment income
    5.24 %(4)     4.47 %     3.91 %     3.98 %     4.15 %     4.55 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    802       802       860       860       860       860      
Asset coverage per preferred share(7)
  $ 67,715     $ 59,391     $ 71,920     $ 76,024     $ 73,138     $ 72,281      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

45


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Michigan Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 10.860     $ 14.510     $ 15.420     $ 14.820     $ 14.860     $ 15.240      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.472     $ 0.931     $ 0.913     $ 0.950     $ 0.995     $ 1.072      
Net realized and unrealized gain (loss)
    1.400       (3.669 )     (0.881 )     0.608       0.010       (0.334 )    
Distributions to preferred shareholders
From net investment income
    (0.036 )     (0.301 )     (0.296 )     (0.256 )     (0.172 )     (0.086 )    
 
 
Total income (loss) from operations
  $ 1.836     $ (3.039 )   $ (0.264 )   $ 1.302     $ 0.833     $ 0.652      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.356 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )   $ (1.032 )    
 
 
Total distributions to common shareholders
  $ (0.356 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )   $ (1.032 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.340     $ 10.860     $ 14.510     $ 15.420     $ 14.820     $ 14.860      
 
 
                                                     
Market value — End of period (Common shares)
  $ 10.960     $ 7.920     $ 12.430     $ 14.110     $ 13.500     $ 16.600      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    17.84 %(9)     (21.02 )%     (1.37 )%     9.38 %     5.62 %     4.36 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    43.51 %(9)     (32.76 )%     (7.66 )%     9.88 %     (13.87 )%     13.63 %    
 
 

 
See notes to financial statements

46


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Michigan Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 26,110     $ 22,977     $ 30,710     $ 32,643     $ 31,357     $ 31,363      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
Expenses excluding interest and fees
    2.21 %(4)     2.15 %     2.03 %(5)     1.97 %     2.00 %     1.96 %    
Interest and fee expense(6)
    0.13 %(4)     0.16 %     0.32 %     0.46 %     0.40 %     0.42 %    
Total expenses before custodian fee reduction
    2.34 %(4)     2.31 %     2.35 %(5)     2.43 %     2.40 %     2.38 %    
Expenses after custodian fee reduction excluding interest and fees
    2.20 %(4)     2.13 %     2.01 %(5)     1.96 %     1.99 %     1.96 %    
Net investment income
    8.33 %(4)     6.96 %     6.12 %     6.35 %     6.60 %     7.16 %    
Portfolio Turnover
    17 %(9)     24 %     22 %     22 %     14 %     5 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.28 %(4)     1.33 %     1.31 %(5)     1.27 %     1.29 %     1.26 %    
Interest and fee expense(6)
    0.07 %(4)     0.10 %     0.21 %     0.29 %     0.26 %     0.27 %    
Total expenses before custodian fee reduction
    1.35 %(4)     1.43 %     1.52 %(5)     1.56 %     1.55 %     1.53 %    
Expenses after custodian fee reduction excluding interest and fees
    1.27 %(4)     1.31 %     1.29 %(5)     1.26 %     1.28 %     1.26 %    
Net investment income
    4.82 %(4)     4.30 %     3.94 %     4.09 %     4.26 %     4.60 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    700       700       700       700       700       700      
Asset coverage per preferred share(7)
  $ 62,301     $ 57,828     $ 68,878     $ 71,635     $ 69,796     $ 69,810      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

47


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    New Jersey Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 9.400     $ 14.930     $ 16.200     $ 15.020     $ 14.810     $ 15.190      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.484     $ 0.968     $ 0.926     $ 0.953     $ 1.014     $ 1.082      
Net realized and unrealized gain (loss)
    2.995       (5.579 )     (1.275 )     1.205       0.238       (0.313 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.031 )     (0.289 )     (0.273 )     (0.253 )     (0.169 )     (0.081 )    
 
 
Total income (loss) from operations
  $ 3.448     $ (4.900 )   $ (0.622 )   $ 1.905     $ 1.083     $ 0.688      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.388 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )   $ (1.068 )    
 
 
Total distributions to common shareholders
  $ (0.388 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )   $ (1.068 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.460     $ 9.400     $ 14.930     $ 16.200     $ 15.020     $ 14.810      
 
 
                                                     
Market value — End of period (Common shares)
  $ 11.980     $ 8.500     $ 12.790     $ 15.080     $ 14.030     $ 15.540      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    37.74 %(9)     (33.57 )%     (3.59 )%     13.28 %     7.59 %     4.76 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    46.46 %(9)     (29.88 )%     (11.28 )%     12.89 %     (4.22 )%     8.31 %    
 
 

 
See notes to financial statements

48


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    New Jersey Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 57,623     $ 43,459     $ 69,001     $ 74,846     $ 69,375     $ 68,298      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
                                                   
Expenses excluding interest and fees
    2.08 %(4)     1.96 %     1.84 %(5)     1.85 %     1.86 %     1.85 %    
Interest and fee expense(6)
    0.21 %(4)     0.45 %     0.89 %     0.93 %     0.58 %     0.50 %    
Total expenses before custodian fee reduction
    2.29 %(4)     2.41 %     2.73 %(5)     2.78 %     2.44 %     2.35 %    
Expenses after custodian fee reduction excluding interest and fees
    2.07 %(4)     1.94 %     1.81 %(5)     1.83 %     1.84 %     1.84 %    
Net investment income
    9.08 %(4)     7.22 %     5.94 %     6.20 %     6.66 %     7.28 %    
Portfolio Turnover
    30 %(9)     54 %     42 %     23 %     46 %     52 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.24 %(4)     1.23 %     1.21 %(5)     1.20 %     1.21 %     1.19 %    
Interest and fee expense(6)
    0.12 %(4)     0.28 %     0.58 %     0.61 %     0.38 %     0.32 %    
Total expenses before custodian fee reduction
    1.36 %(4)     1.51 %     1.79 %(5)     1.81 %     1.59 %     1.51 %    
Expenses after custodian fee reduction excluding interest and fees
    1.24 %(4)     1.21 %     1.19 %(5)     1.19 %     1.19 %     1.18 %    
Net investment income
    5.41 %(4)     4.51 %     3.89 %     4.04 %     4.33 %     4.68 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,337       1,366       1,520       1,520       1,520       1,520      
Asset coverage per preferred share(7)
  $ 68,100     $ 56,817     $ 70,395     $ 74,250     $ 70,651     $ 69,935      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

49


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    New York Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 9.350     $ 15.240     $ 16.550     $ 15.660     $ 15.490     $ 15.810      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.483     $ 0.987     $ 0.991     $ 0.987     $ 1.070     $ 1.126      
Net realized and unrealized gain (loss)
    2.509       (5.887 )     (1.293 )     0.932       0.243       (0.332 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.027 )     (0.269 )     (0.287 )     (0.247 )     (0.163 )     (0.074 )    
 
 
Total income (loss) from operations
  $ 2.965     $ (5.169 )   $ (0.589 )   $ 1.672     $ 1.150     $ 0.720      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.405 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )   $ (1.040 )    
 
 
Total distributions to common shareholders
  $ (0.405 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )   $ (1.040 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 11.910     $ 9.350     $ 15.240     $ 16.550     $ 15.660     $ 15.490      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.540     $ 7.900     $ 14.100     $ 15.700     $ 14.990     $ 15.370      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    32.65 %(9)     (35.07 )%     (3.42 )%     11.28 %     7.61 %     4.91 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    65.31 %(9)     (40.71 )%     (5.81 )%     10.28 %     3.81 %     6.46 %    
 
 

 
See notes to financial statements

50


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    New York Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 64,182     $ 50,325     $ 81,931     $ 88,970     $ 84,194     $ 83,044      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
                                                   
Expenses excluding interest and fees
    2.08 %(4)     1.92 %     1.80 %(5)     1.82 %     1.81 %     1.78 %    
Interest and fee expense(6)
    0.68 %(4)     0.55 %     0.98 %     1.03 %     0.57 %     0.32 %    
Total expenses before custodian fee reduction
    2.76 %(4)     2.47 %     2.78 %(5)     2.85 %     2.38 %     2.10 %    
Expenses after custodian fee reduction excluding interest and fees
    2.07 %(4)     1.89 %     1.78 %(5)     1.80 %     1.80 %     1.78 %    
Net investment income
    9.44 %(4)     7.21 %     6.23 %     6.22 %     6.72 %     7.23 %    
Portfolio Turnover
    18 %(9)     48 %     29 %     27 %     40 %     31 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.29 %(4)     1.23 %     1.18 %(5)     1.19 %     1.19 %     1.16 %    
Interest and fee expense(6)
    0.42 %(4)     0.35 %     0.65 %     0.68 %     0.37 %     0.21 %    
Total expenses before custodian fee reduction
    1.71 %(4)     1.58 %     1.83 %(5)     1.87 %     1.56 %     1.37 %    
Expenses after custodian fee reduction excluding interest and fees
    1.28 %(4)     1.21 %     1.17 %(5)     1.19 %     1.19 %     1.16 %    
Net investment income
    5.86 %(4)     4.63 %     4.10 %     4.09 %     4.42 %     4.71 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,349       1,349       1,780       1,780       1,780       1,780      
Asset coverage per preferred share(7)
  $ 72,579     $ 62,309     $ 71,032     $ 74,983     $ 72,311     $ 71,659      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

51


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Ohio Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 10.450     $ 14.830     $ 15.690     $ 14.910     $ 15.040     $ 15.070      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.482     $ 0.961     $ 0.938     $ 0.958     $ 1.003     $ 1.081      
Net realized and unrealized gain (loss)
    2.020       (4.410 )     (0.845 )     0.800       (0.055 )     (0.011 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.036 )     (0.303 )     (0.297 )     (0.264 )     (0.175 )     (0.091 )    
 
 
Total income (loss) from operations
  $ 2.466     $ (3.752 )   $ (0.204 )   $ 1.494     $ 0.773     $ 0.979      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.366 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )   $ (1.009 )    
 
 
Total distributions to common shareholders
  $ (0.366 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )   $ (1.009 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.550     $ 10.450     $ 14.830     $ 15.690     $ 14.910     $ 15.040      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.350     $ 8.550     $ 12.850     $ 14.610     $ 14.170     $ 16.750      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    24.41 %(9)     (25.69 )%     (1.06 )%     10.50 %     5.10 %     6.71 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    49.63 %(9)     (29.83 )%     (7.93 )%     8.27 %     (10.31 )%     13.96 %    
 
 

 
See notes to financial statements

52


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Ohio Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 35,503     $ 29,563     $ 41,953     $ 44,385     $ 42,193     $ 42,444      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
Expenses excluding interest and fees
    2.12 %(4)     2.08 %     1.93 %(5)     1.92 %     1.91 %     1.91 %    
Interest and fee expense(6)
    0.04 %(4)     0.26 %     0.72 %     0.74 %     0.54 %     0.29 %    
Total expenses before custodian fee reduction
    2.16 %(4)     2.34 %     2.65 %(5)     2.66 %     2.45 %     2.20 %    
Expenses after custodian fee reduction excluding interest and fees
    2.12 %(4)     2.06 %     1.91 %(5)     1.92 %     1.90 %     1.90 %    
Net investment income
    8.56 %(4)     7.12 %     6.17 %     6.31 %     6.57 %     7.23 %    
Portfolio Turnover
    10 %(9)     27 %     24 %     16 %     13 %     12 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.24 %(4)     1.29 %     1.25 %(5)     1.25 %     1.24 %     1.23 %    
Interest and fee expense(6)
    0.02 %(4)     0.16 %     0.46 %     0.48 %     0.35 %     0.19 %    
Total expenses before custodian fee reduction
    1.26 %(4)     1.45 %     1.71 %(5)     1.73 %     1.59 %     1.42 %    
Expenses after custodian fee reduction excluding interest and fees
    1.24 %(4)     1.28 %     1.23 %(5)     1.24 %     1.23 %     1.22 %    
Net investment income
    5.00 %(4)     4.41 %     3.99 %     4.08 %     4.25 %     4.64 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    909       918       940       940       940       940      
Asset coverage per preferred share(7)
  $ 64,059     $ 57,209     $ 69,640     $ 72,223     $ 69,888     $ 70,153      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

53


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Pennsylvania Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
Net asset value — Beginning of period (Common shares)
  $ 10.320     $ 14.840     $ 15.510     $ 14.870     $ 14.890     $ 15.210      
 
 
                                                     
                                                     
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.475     $ 0.986     $ 0.953     $ 0.983     $ 1.008     $ 1.076      
Net realized and unrealized gain (loss)
    2.226       (4.555 )     (0.661 )     0.664       0.103       (0.301 )    
Distributions to preferred shareholders
                                                   
From net investment income
    (0.034 )     (0.299 )     (0.300 )     (0.274 )     (0.181 )     (0.092 )    
 
 
Total income (loss) from operations
  $ 2.667     $ (3.868 )   $ (0.008 )   $ 1.373     $ 0.930     $ 0.683      
 
 
                                                     
                                                     
 
Less distributions to common shareholders
 
From net investment income
  $ (0.367 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )   $ (1.003 )    
 
 
Total distributions to common shareholders
  $ (0.367 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )   $ (1.003 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.620     $ 10.320     $ 14.840     $ 15.510     $ 14.870     $ 14.890      
 
 
                                                     
Market value — End of period (Common shares)
  $ 11.950     $ 9.600     $ 12.790     $ 14.560     $ 14.660     $ 15.540      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    26.90 %(9)     (26.57 )%     0.27 %     9.68 %     6.27 %     4.77 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    29.18 %(9)     (20.75 )%     (7.95 )%     4.44 %     0.39 %     4.07 %    
 
 

 
See notes to financial statements

54


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Pennsylvania Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2009
   
    (Unaudited)     2008     2007     2006     2005     2004      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 34,179     $ 27,944     $ 40,182     $ 41,998     $ 40,233     $ 40,023      
Ratios (As a percentage of average daily net assets applicable to common shares):(3)
Expenses excluding interest and fees
    2.17 %(4)     2.06 %     1.95 %(5)     1.94 %     1.97 %     1.91 %    
Interest and fee expense(6)
    0.33 %(4)     0.37 %     0.70 %     0.93 %     0.44 %     0.24 %    
Total expenses before custodian fee reduction
    2.50 %(4)     2.43 %     2.65 %(5)     2.87 %     2.41 %     2.15 %    
Expenses after custodian fee reduction excluding interest and fees
    2.16 %(4)     2.04 %     1.94 %(5)     1.93 %     1.95 %     1.91 %    
Net investment income
    8.43 %(4)     7.23 %     6.28 %     6.53 %     6.69 %     7.18 %    
Portfolio Turnover
    15 %(9)     25 %     23 %     18 %     28 %     8 %    
 
 
The ratios reported above are based on net assets applicable solely 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
    1.27 %(4)     1.28 %     1.27 %(5)     1.25 %     1.27 %     1.23 %    
Interest and fee expense(6)
    0.20 %(4)     0.23 %     0.45 %     0.60 %     0.28 %     0.15 %    
Total expenses before custodian fee reduction
    1.47 %(4)     1.51 %     1.72 %(5)     1.85 %     1.55 %     1.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.27 %(4)     1.27 %     1.26 %(5)     1.24 %     1.26 %     1.22 %    
Net investment income
    4.97 %(4)     4.50 %     4.06 %     4.21 %     4.30 %     4.61 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    847       889       900       900       900       900      
Asset coverage per preferred share(7)
  $ 65,355     $ 56,439     $ 69,658     $ 71,672     $ 69,708     $ 69,471      
Involuntary liquidation preference per preferred share(8)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(8)
  $ 25,000     $ 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) Annualized.
 
(5) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(6) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(7) 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.
 
(8) Plus accumulated and unpaid dividends.
 
(9) Not annualized.

 
See notes to financial statements

55


 

Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited)
 
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 — Municipal bonds and taxable obligations, if any, are generally valued on the basis of valuations furnished by a pricing vendor, as derived from such vendor’s pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer. The pricing vendor may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Financial futures contracts and options on financial futures contracts listed on one or more exchanges are valued based on the last sale price on any exchange on which such contract is listed. Interest rate swaps are normally valued using valuations provided by a pricing vendor. Such vendor 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 curves provided by electronic data services or by broker/dealers. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates market value. 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 the Trust in a manner that most 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 all 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 companies, 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 company’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, 2008, the following Trusts, for federal income tax purposes, had capital loss carryforwards 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 amounts and expiration dates of the capital loss carryforwards are as follows:
 
                     
Trust   Amount     Expiration Date      
 
California
  $ 995,999       November 30, 2012      
      6,689,345       November 30, 2016      
                     
Massachusetts
  $ 39,627       November 30, 2009      
      343,176       November 30, 2010      
      692,532       November 30, 2016      

56


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                     
Trust   Amount     Expiration Date      
 
                     
Michigan
  $ 165,469       November 30, 2009      
      475,985       November 30, 2010      
      443,883       November 30, 2011      
      697,198       November 30, 2012      
      224,050       November 30, 2013      
      517,712       November 30, 2016      
                     
New Jersey
  $ 262,308       November 30, 2009      
      177,350       November 30, 2011      
                     
New York
  $ 70,059       November 30, 2009      
      2,354,581       November 30, 2016      
                     
Ohio
  $ 850,745       November 30, 2009      
      764,355       November 30, 2012      
      588,403       November 30, 2013      
      736,482       November 30, 2016      
                     
Pennsylvania
  $ 844,973       November 30, 2009      
      41,331       November 30, 2010      
      502,868       November 30, 2012      
      389,289       November 30, 2013      
      800,874       November 30, 2016      
 
As of May 31, 2009, the Trusts had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Trusts’ federal tax returns filed in the 3-year period ended November 30, 2008 remains subject to examination by the Internal Revenue Service.
 
D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Trusts. Pursuant to the respective custodian agreements, 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, and shareholders are indemnified against personal liability for the obligations of each Trust. 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 inverse floating rate securities, also referred to as tender option bonds (TOBs), whereby a Trust may sell a 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, often referred to as an inverse floating rate obligation (Inverse Floater). The broker deposits a fixed rate bond into the SPV with the same CUSIP number as the fixed rate bond sold to the broker by the Trust, and which may have been, but is not required to be, the fixed rate bond purchased from the Trust (the Fixed Rate Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The Inverse Floater held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed Rate Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would pay the broker the par amount due on the Floating Rate Notes and exchange the Inverse Floater for the underlying Fixed Rate Bond. Pursuant to Financial Accounting Standards Board (FASB) Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities” (FAS 140), the Trusts account for the transaction described above as a secured borrowing by including the Fixed Rate 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. 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

57


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
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 date of the related trust. At May 31, 2009, the amounts of the Trusts’ Floating Rate Notes and related interest rates and collateral were as follows:
 
                         
              Collateral
     
    Floating
    Interest Rate
  for Floating
     
    Rate
    or Range of
  Rate
     
    Notes
    Interest
  Notes
     
Trust   Outstanding     Rates (%)   Outstanding      
 
California
  $ 18,945,000     0.27 – 1.04   $ 24,782,794      
Massachusetts
    3,880,000     0.29 – 0.38     5,009,599      
Michigan
    1,125,000     0.37     1,517,445      
New Jersey
    12,172,000     0.30 – 0.47     16,148,493      
New York
    15,150,000     0.29 – 0.45     17,859,515      
Ohio
    830,000     0.59 – 0.64     1,263,758      
Pennsylvania
    4,035,000     0.32 – 1.54     6,846,638      
 
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 Fixed Rate 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 exposure under shortfalls and forbearance agreements as of May 31, 2009.
 
The Trusts may also purchase Inverse Floaters from brokers in a secondary market transaction without first owning the underlying fixed rate bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to Inverse Floaters purchased in a secondary market transaction are disclosed in the Portfolio of Investments. The Trusts’ investment policies and restrictions expressly permit investments in Inverse Floaters. Inverse floating rate securities 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 inverse floating rate securities are generally more volatile than that of a fixed rate bond. The Trusts’ investment policies do not allow the Trusts to borrow money for purposes of making investments. 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’ Statements 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. Inverse Floaters held by the Trusts are securities exempt from registration under Rule 144A of the Securities Act of 1933.
 
I  Financial Futures Contracts — The Trusts may enter into financial futures contracts. The Trusts’ investment in financial futures contracts is designed for hedging against changes in interest rates or as a substitute for the purchase of securities. 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. In entering such contracts, the Trust bears the risk if the counterparties do not perform under the contracts’ terms.
 
J  Interest Rate Swaps — The Trusts may enter into interest rate swap agreements to enhance return, to hedge against fluctuations in securities prices or interest rates, or as substitution for the purchase or sale of securities. Pursuant to these agreements, 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. 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.

58


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
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.
 
M  Interim Financial Statements — The interim financial statements relating to May 31, 2009 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trusts’ management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the financial statements.
 
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.
 
During the six months ended May 31, 2009, certain Trusts made a partial redemption of their APS at a liquidation price of $25,000 per share. The number of APS redeemed and redemption amount (excluding the final dividend payment) during the six months ended May 31, 2009 and the number of APS issued and outstanding as of May 31, 2009 are as follows:
 
                             
    APS
                 
    Redeemed
    Redemption
    APS Issued and
     
Trust   During the Period     Amount     Outstanding      
 
California
        $       1,999      
Massachusetts
                802      
Michigan
                700      
New Jersey
    29       725,000       1,337      
New York
                1,349      
Ohio
    9       225,000       909      
Pennsylvania
    42       1,050,000       847      
 
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 equivalent to 0.15% (0.25% prior to March 2009) 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, 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 the APS at May 31, 2009, and the amount of dividends paid (including capital gains, if any) to APS shareholders, average APS dividend rates (annualized), and dividend rate ranges for the six months then ended were as follows:
 
                                 
    APS
    Dividends
    Average APS
    Dividend
   
    Dividend Rates at
    Paid to APS
    Dividend
    Rate
   
Trust   May 31, 2009     Shareholders     Rates     Ranges (%)    
 
California
    0.58 %   $ 219,188       0.88 %   0.58–1.72    
Massachusetts
    0.58       85,802       0.86     0.58–1.68    
Michigan
    0.52       77,148       0.88     0.52–1.72    
New Jersey
    0.58       143,964       0.86     0.47–1.72    
New York
    0.52       147,469       0.88     0.52–1.72    
Ohio
    0.56       100,751       0.89     0.56–1.76    
Pennsylvania
    0.58       92,522       0.87     0.58–1.68    
 
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 May 31, 2009.
 
The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles

59


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
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.
 
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 0.70% of each Trust’s average weekly gross assets and is payable monthly. 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 six months ended May 31, 2009, the investment adviser fee and administration fee were as follows:
 
                     
    Investment
    Administration
     
Trust   Adviser Fee     Fee      
 
California
  $ 470,520     $ 133,701      
Massachusetts
    180,925       51,693      
Michigan
    144,944       41,412      
New Jersey
    298,959       85,417      
New York
    347,496       95,565      
Ohio
    192,189       54,911      
Pennsylvania
    183,373       52,392      
 
Except for Trustees of the Trusts who are not members of EVM’s organization, officers and Trustees 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 six months ended May 31, 2009, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
 
5   Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the six months ended May 31, 2009 were as follows:
 
                     
Trust   Purchases     Sales      
 
California
  $ 25,572,571     $ 20,085,362      
Massachusetts
    7,144,868       6,260,025      
Michigan
    7,060,378       7,892,168      
New Jersey
    30,211,207       28,344,010      
New York
    19,015,261       20,871,091      
Ohio
    5,767,291       7,254,211      
Pennsylvania
    8,244,415       9,437,172      
 
6   Common Shares of Beneficial Interest
 
Common shares issued pursuant to the Trusts’ dividend reinvestment plan for the six months ended May 31, 2009 and the year ended November 30, 2008 were as follows:
 
                     
    Six Months Ended
    Year Ended
     
Trust   May 31, 2009     November 30, 2008      
 
California
          4,021      
Massachusetts
    4,038       1,394      
Michigan
               
New Jersey
          2,698      
New York
    8,132       5,073      
Ohio
               
Pennsylvania
               
 
7   Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Trust at May 31, 2009, as determined on a federal income tax basis, were as follows:
 
             
California Trust
           
 
 
Aggregate cost
  $ 141,193,912      
 
 
Gross unrealized appreciation
  $ 2,898,989      
Gross unrealized depreciation
    (12,777,749 )    
 
 
Net unrealized depreciation
  $ (9,878,760 )    
 
 
             
             
Massachusetts Trust
           
 
 
Aggregate cost
  $ 56,752,243      
 
 
Gross unrealized appreciation
  $ 921,731      
Gross unrealized depreciation
    (4,895,330 )    
 
 
Net unrealized depreciation
  $ (3,973,599 )    
 
 
             
             

60


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
             
Michigan Trust
           
 
 
Aggregate cost
  $ 45,269,543      
 
 
Gross unrealized appreciation
  $ 1,266,931      
Gross unrealized depreciation
    (4,081,233 )    
 
 
Net unrealized depreciation
  $ (2,814,302 )    
 
 
             
             
New Jersey Trust
           
 
 
Aggregate cost
  $ 96,850,783      
 
 
Gross unrealized appreciation
  $ 1,599,248      
Gross unrealized depreciation
    (8,092,164 )    
 
 
Net unrealized depreciation
  $ (6,492,916 )    
 
 
             
             
New York Trust
           
 
 
Aggregate cost
  $ 104,414,992      
 
 
Gross unrealized appreciation
  $ 940,283      
Gross unrealized depreciation
    (10,656,029 )    
 
 
Net unrealized depreciation
  $ (9,715,746 )    
 
 
             
             
Ohio Trust
           
 
 
Aggregate cost
  $ 59,806,736      
 
 
Gross unrealized appreciation
  $ 1,760,215      
Gross unrealized depreciation
    (4,501,660 )    
 
 
Net unrealized depreciation
  $ (2,741,445 )    
 
 
             
             
Pennsylvania Trust
           
 
 
Aggregate cost
  $ 57,951,137      
 
 
Gross unrealized appreciation
  $ 1,183,321      
Gross unrealized depreciation
    (4,239,968 )    
 
 
Net unrealized depreciation
  $ (3,056,647 )    
 
 
 
8   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 interest rate swaps and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
 
A summary of obligations under these financial instruments at May 31, 2009 is as follows:
 
                                         
Futures Contracts
 
                            Net
     
                            Unrealized
     
    Expiration
          Aggregate
          Appreciation
     
Trust   Date   Contracts   Position   Cost     Value     (Depreciation)      
 
California   9/09   72
U.S. Treasury Bond
  Short   $ (8,405,186 )   $ (8,471,250 )   $ (66,064 )    
 
 
Michigan   9/09   3
U.S. Treasury Note
  Short   $ (352,939 )   $ (351,000 )   $ 1,939      
    9/09   5
U.S. Treasury Bond
  Short   $ (586,349 )   $ (588,281 )   $ (1,932 )    
 
 
New York   9/09   60
U.S. Treasury Bond
  Short   $ (7,036,673 )   $ (7,059,375 )   $ (22,702 )    
 
 
Ohio   9/09   6
U.S. Treasury Note
  Short   $ (705,877 )   $ (702,000 )   $ 3,877      
    9/09   10
U.S. Treasury Bond
  Short   $ (1,172,699 )   $ (1,176,562 )   $ (3,863 )    
 
 
Pennsylvania   9/09   50
U.S. Treasury Bond
  Short   $ (5,764,671 )   $ (5,882,813 )   $ (118,142 )    
 
 
 
                                 
Interest Rate Swaps
California Trust
 
          Annual
  Floating
  Effective Date/
  Net Unrealized
     
    Notional
    Fixed Rate
  Rate
  Termination
  Appreciation
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   (Depreciation)      
 
JPMorgan
Chase Co. 
  $ 2,125,000     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (250,019 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  $ 3,412,500     3.394%   3-month
USD-LIBOR-BBA
  September 24, 2009/
September 24, 2039
  $ 401,481      
 
 
                        $ 151,462      
 
 
                                 
                                 
Massachusetts Trust
 
          Annual
  Floating
  Effective Date/
  Net Unrealized
     
    Notional
    Fixed Rate
  Rate
  Termination
  Appreciation
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   (Depreciation)      
 
JPMorgan
Chase Co. 
  $ 787,500     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (92,654 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  $ 1,250,000     3.394%   3-month
USD-LIBOR-BBA
  September 24, 2009/
September 24, 2039
  $ 147,063      
 
 
                        $ 54,409      
 
 
                                 
                                 

61


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                                 
Michigan Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Appreciation      
 
Merrill Lynch
Capital
Services, Inc. 
  $ 400,000     3.394%   3-month
USD-LIBOR-BBA
  September 24, 2009/
September 24, 2039
  $ 47,060      
 
 
                        $ 47,060      
 
 
                                 
                                 
New Jersey Trust
 
          Annual
  Floating
  Effective Date/
  Net Unrealized
     
    Notional
    Fixed Rate
  Rate
  Termination
  Appreciation
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   (Depreciation)      
 
JPMorgan
Chase Co. 
  $ 1,362,500     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (160,307 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  $ 2,187,500     3.394%   3-month
USD-LIBOR-BBA
  September 24, 2009/
September 24, 2039
  $ 257,360      
 
 
                        $ 97,053      
 
 
                                 
                                 
New York Trust
 
          Annual
  Floating
  Effective Date/
  Net Unrealized
     
    Notional
    Fixed Rate
  Rate
  Termination
  Appreciation
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   (Depreciation)      
 
JPMorgan
Chase Co. 
  $ 1,600,000     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (188,250 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  $ 5,200,000     2.721%   3-month
USD-LIBOR-BBA
  July 15, 2009/
July 15, 2039
  $ 1,196,829      
 
 
                        $ 1,008,579      
 
 
                                 
                                 
Ohio Trust
 
          Annual
  Floating
  Effective Date/
  Net Unrealized
     
    Notional
    Fixed Rate
  Rate
  Termination
  Appreciation
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   (Depreciation)      
 
JPMorgan
Chase Co. 
  $ 812,500     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (95,596 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  $ 750,000     3.394%   3-month
USD-LIBOR-BBA
  September 24, 2009/
September 24, 2039
  $ 88,238      
 
 
                        $ (7,358 )    
 
 
                                 
                                 
Pennsylvania Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 912,500     4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (107,361 )    
 
 
                        $ (107,361 )    
 
 
 
The effective date represents the date on which a Trust and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At May 31, 2009, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.
 
The Trusts adopted FASB Statement of Financial Accounting Standards No. 161 (FAS 161), “Disclosures about Derivative Instruments and Hedging Activities”, effective December 1, 2008. FAS 161 requires enhanced disclosures about an entity’s derivative and hedging activities, including qualitative disclosures about the objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative instruments. The disclosure below includes additional information as a result of implementing FAS 161.
 
Each Trust is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Trusts hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Trusts may enter into interest rate swap contracts. The Trusts may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
The fair values of derivative instruments (not accounted for as hedging instruments under FASB Statement of Financial Accounting Standards No. 133 (FAS 133)) and whose primary underlying risk exposure is interest rate risk at May 31, 2009 were as follows:
 
                     
Trust   Asset Derivatives(1)      Liability Derivatives(2)       
 
California
  $ 401,481     $ (316,083 )    
Massachusetts
    147,063       (92,654 )    
Michigan
    48,999       (1,932 )    
New Jersey
    257,360       (160,307 )    
New York
    1,196,829       (210,952 )    
Ohio
    92,115       (99,459 )    
Pennsylvania
          (225,503 )    
 
(1) Statement of Assets and Liabilities location: Receivable for open swap contracts; Net unrealized depreciation. Amount includes cumulative unrealized appreciation 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.
 
(2) Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized depreciation. Amount includes 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.
 
The effect of derivative instruments (not accounted for as hedging instruments under FAS 133) on the Statement of

62


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
Operations and whose primary underlying risk exposure is interest rate risk for the six months ended May 31, 2009 was as follows:
 
                     
          Change in Unrealized
     
    Realized Gain (Loss)
    Appreciation (Depreciation)
     
    on Derivatives
    on Derivatives Recognized
     
Trust   Recognized in Income(1)      in Income(2)       
 
California
  $ (3,095,119 )   $ 4,102,624      
Massachusetts
    (1,080,073 )     1,395,159      
Michigan
    (207,530 )     304,084      
New Jersey
    (1,898,918 )     2,448,221      
New York
    (2,192,067 )     4,129,347      
Ohio
    (725,159 )     1,041,805      
Pennsylvania
    (2,785 )     632,851      
 
(1) Statement of Operations location: Net realized gain (loss) - financial futures contracts and swap contracts.
 
(2) Statement of Operations location: Change in unrealized appreciation (depreciation) - financial futures contracts and swap contracts.
 
The average notional amounts of futures contracts and interest rate swaps outstanding during the six months ended May 31, 2009 were approximately as follows:
 
                     
    Futures Contracts –
    Interest Rate Swaps –
     
Trust   Average Notional Amount     Average Notional Amount      
 
California
  $ 8,286,000     $ 7,129,000      
Massachusetts
          2,613,000      
Michigan
    871,000       518,000      
New Jersey
          4,570,000      
New York
    11,743,000       7,625,000      
Ohio
    2,171,000       2,063,000      
Pennsylvania
    8,214,000       1,309,000      
 
9   Fair Value Measurements
 
FASB Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
  •  Level 1 – quoted prices in active markets for identical investments
 
  •  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •  Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
                         
California Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (66,064 )    
Level 2
  Other Significant Observable Inputs     150,260,152       151,462      
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 150,260,152     $ 85,398      
 
 
 
                         
Massachusetts Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $      
Level 2
  Other Significant Observable Inputs     56,658,644       54,409      
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 56,658,644     $ 54,409      
 
 
 
                         
Michigan Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ 7      
Level 2
  Other Significant Observable Inputs     43,580,241       47,060      
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 43,580,241     $ 47,067      
 
 
 
                         
New Jersey Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $      
Level 2
  Other Significant Observable Inputs     102,529,867       97,053      
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 102,529,867     $ 97,053      
 
 
 
                         
New York Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (22,702 )    
Level 2
  Other Significant Observable Inputs     109,849,247       1,008,579      
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 109,849,247     $ 985,877      
 
 
 

63


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2009
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                         
Ohio Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ 14      
Level 2
  Other Significant Observable Inputs     57,895,291       (7,358 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 57,895,291     $ (7,344 )    
 
 
 
                         
Pennsylvania Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (118,142 )    
Level 2
  Other Significant Observable Inputs     58,929,490       (107,361 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 58,929,490     $ (225,503 )    
 
 
 
* Other financial instruments are futures and swap contracts not reflected in the Portfolio of Investments, which are valued at the unrealized appreciation (depreciation) on the instrument.
 
The Trusts held no investments or other financial instruments as of November 30, 2008 whose fair value was determined using Level 3 inputs.

64


 

Eaton Vance Municipal Income Trusts 
 
ANNUAL MEETING OF SHAREHOLDERS (Unaudited)
 
 
Each Trust held its Annual Meeting of Shareholders on March 27, 2009. The following action was taken by the shareholders of each Trust:
 
Item 1: The election of Benjamin C. Esty, Ronald A. Pearlman and Lynn A. Stout as Class I Trustees of each Trust for a three-year term expiring in 2012 and Helen Frame Peters as Class III Trustee of each Trust for a term expiring in 2011. Mr. Esty was elected solely by APS shareholders.
 
                                 
    Nominee for Class I
    Nominee for Class I
    Nominee for Class I
    Nominee for Class III
 
    Trustee Elected by
    Trustee Elected by
    Trustee Elected by
    Trustee Elected by
 
    APS Shareholders:
    All Shareholders:
    All Shareholders:
    All Shareholders:
 
Trust   Benjamin C. Esty     Ronald A. Pearlman     Lynn A. Stout     Helen Frame Peters  
   
 
California
                               
For
    1,140       6,644,191       6,665,936       6,659,062  
Withheld
    53       262,806       241,061       247,935  
Massachusetts
                               
For
    499       2,513,602       2,517,716       2,506,072  
Withheld
    0       106,218       102,104       113,748  
Michigan
                               
For
    496       1,943,076       1,948,153       1,948,153  
Withheld
    0       107,136       102,059       102,059  
New Jersey
                               
For
    748       4,198,722       4,201,788       4,197,963  
Withheld
    0       236,213       233,147       236,972  
New York
                               
For
    826       4,919,619       4,834,788       4,881,350  
Withheld
    0       211,977       296,808       250,246  
Ohio
                               
For
    801       2,506,820       2,508,581       2,497,788  
Withheld
    0       209,668       207,907       218,700  
Pennsylvania
                               
For
    535       2,537,691       2,539,323       2,534,925  
Withheld
    0       77,995       76,363       80,761  

65


 

Eaton Vance Municipal Income Trusts 
 
DIVIDEND REINVESTMENT PLAN
 
 
Each Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the same Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value 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 net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan 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 your shares be re-registered in your name with each Trust’s transfer agent, American Stock Transfer & Trust Company, or you will not be able to participate.
 
The Plan Agent’s service fee for handling distributions will be paid by each Trust. Each participant 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 Plan 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 Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan 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 Plan Agent.
 
Any inquiries regarding the Plan can be directed to the Plan Agent, American Stock Transfer & Trust Company, at 1-866-439-6787.

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Eaton Vance Municipal Income Trusts 
 
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, nondiversified, management investment company and has no employees.
 
Number of Shareholders
As of May 31, 2009, our records indicate that there are 97, 82, 56, 110, 93, 83 and 101 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 2,739, 1,163, 1,105, 1,960, 2,333, 1,413 and 1,376 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 Amex 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

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Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS
 
Overview of the Contract Review Process
 
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.
 
At a meeting of the Boards of Trustees (each a “Board”) of the Eaton Vance group of mutual funds (the “Eaton Vance Funds”) held on April 27, 2009, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board (formerly the Special Committee), which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished for a series of meetings of the Contract Review Committee held in February, March and April 2009. Such information included, among other things, the following:
 
Information about Fees, Performance and Expenses
 
  •  An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;
  •  An independent report comparing each fund’s total expense ratio and its components to comparable funds;
  •  An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;
  •  Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;
  •  Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;
  •  Profitability analyses for each adviser with respect to each fund;
 
Information about Portfolio Management
 
  •  Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed, and any changes in portfolio management processes and personnel;
  •  Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through “soft dollar” benefits received in connection with the funds’ brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;
  •  Data relating to portfolio turnover rates of each fund;
  •  The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;
 
Information about each Adviser
 
  •  Reports detailing the financial results and condition of each adviser;
  •  Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;
  •  Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;
  •  Copies of or descriptions of each adviser’s proxy voting policies and procedures;
  •  Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;
  •  Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;
 
Other Relevant Information
 
  •  Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;
  •  Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and
  •  The terms of each advisory agreement.

68


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
 
In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2009, the Board met eighteen times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, five, six, six and six times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund’s investment objective.
 
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund’s investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
 
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.
 
Results of the Process
 
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuance of the investment advisory agreements of the following funds:
 
  •  Eaton Vance California Municipal Income Trust
  •  Eaton Vance Massachusetts Municipal Income Trust
  •  Eaton Vance Michigan Municipal Income Trust
  •  Eaton Vance National Municipal Income Trust (formerly, Eaton Vance Florida Plus Municipal Income Trust)
  •  Eaton Vance New Jersey Municipal Income Trust
  •  Eaton Vance New York Municipal Income Trust
  •  Eaton Vance Ohio Municipal Income Trust
  •  Eaton Vance Pennsylvania Municipal Income Trust
 
(the “Funds”), each with Eaton Vance Management (the “Adviser”), including their fee structures, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for each Fund.
 
Nature, Extent and Quality of Services
 
In considering whether to approve the investment advisory agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.
 
The Board considered the Adviser’s management capabilities and investment process with respect to the types of investments held by each Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Funds, and recent changes in the identity of such personnel with respect to certain Funds. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. The Board considered the Adviser’s large municipal bond team, which includes portfolio managers and credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personnel, and the time and attention devoted to each Fund by senior management.
 
The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio

69


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
 
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.
 
The Board considered the Adviser’s recommendations for Board action and other steps taken in response to the unprecedented dislocations experienced in the capital markets over recent periods, including sustained periods of high volatility, credit disruption and government intervention. In particular, the Board considered the Adviser’s efforts and expertise with respect to each of the following matters as they relate to the Funds and/or other funds within the Eaton Vance family of funds: (i) negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs; (ii) establishing the fair value of securities and other instruments held in investment portfolios during periods of market volatility and issuer-specific disruptions; and (iii) the ongoing monitoring of investment management processes and risk controls. In addition, the Board considered the Adviser’s actions with respect to the Auction Preferred Shares (“APS”) issued by the Funds, including the Adviser’s efforts to seek alternative forms of debt and other leverage that may over time reduce financing costs associated with APS and enable the Funds to restore liquidity for APS holders.
 
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the respective investment advisory agreements.
 
Fund Performance
 
The Board compared each Fund’s investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-, three-, and five-year periods ended September 30, 2008 for each Fund in operation over such periods. The Board considered the impact of extraordinary market conditions during 2008 on each Fund’s performance relative to its peer universe in light of, among other things, the Adviser’s strategy of generating current income through investments in higher quality (including insured) municipal bonds with longer maturities. On the basis of the foregoing and other relevant information, the Board concluded that, under the circumstances, the performance of each Fund was satisfactory.
 
Management Fees and Expenses
 
The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by each Fund (referred to collectively as “management fees”). The Board considered the financial resources committed by the Adviser in structuring each Fund at the time of its initial public offering. As part of its review, the Board considered each Fund’s management fees and total expense ratio for the year ended September 30, 2008, as compared to a group of similarly managed funds selected by an independent data provider.
 
After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to each Fund that the management fees charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable.
 
Profitability
 
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized with and without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser in connection with its relationship with the Funds.
 
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
 
Economies of Scale
 
In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board also considered the fact that the Funds are not continuously offered and concluded that, in light of the level of the Adviser’s profits with respect to each Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate at this time. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and each Fund.

70


 

Eaton Vance Municipal Income Trusts 
 
OFFICERS AND TRUSTEES
 
 
     
Officers
Cynthia J. Clemson
President of CEV, EMI,
EVY, EVO and EVP;
Vice President of
MMV and EVJ

Robert B. MacIntosh
President of MMV and EVJ;
Vice President of CEV, EMI,
EVY, EVO and EVP

William H. Ahern, Jr.
Vice President of EMI and EVO

Craig R. Brandon
Vice President of EVY

Thomas M. Metzold
Vice President of EVP

Adam A. Weigold
Vice President of EVP

Barbara E. Campbell
Treasurer

Maureen A. Gemma
Secretary and Chief Legal Officer

Paul M. O’Neil
Chief Compliance Officer
 
Trustees
Ralph F. Verni
Chairman

Benjamin C. Esty

Thomas E. Faust Jr.

Allen R. Freedman

William H. Park

Ronald A. Pearlman

Helen Frame Peters

Heidi L. Steiger

Lynn A. Stout
 
     
NYSE Amex 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

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Investment Adviser and Administrator of
Eaton Vance Municipal Income Trusts
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
 
 
 
 
 
 
 
 
Eaton Vance Municipal Income Trusts
Two International Place
Boston, MA 02110


 

 
147-7/09 CE-MUNISRC


 

Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms).
Item 4. Principal Accountant Fees and Services
Not required in this filing
Item 5. Audit Committee of Listed registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
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 then 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 personal 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
Not required in this filing.
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/ Robert B. MacIntosh    
    Robert B. MacIntosh   
    President   
 
Date:   July 13, 2009
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:   July 13, 2009
         
     
  By:   /s/ Robert B. MacIntosh    
    Robert B. MacIntosh   
    President   
 
Date:   July 13, 2009