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)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
 
(Address of Principal Executive Offices)
Maureen A. Gemma
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
 
(Name and Address of Agent for Services)
(617) 482-8260
 
(registrant’s Telephone Number)
November 30
 
Date of Fiscal Year End
November 30, 2008
 
Date of Reporting Period
 
 

 


 

Item 1. Reports to Stockholders

 


 

(IMAGE)
Annual Report November 30 , 2008 EATON VANCE CLOSED-END FUNDS: MUNICIPAL California INCOME Massachusetts TRUSTS Michigan National New Jersey New York Ohio Pennsylvania

 


 

 
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 November 30, 2008
TABLE OF CONTENTS
         
    2  
 
       
       
 
       
California Municipal Income Trust
    4  
Massachusetts Municipal Income Trust
    5  
Michigan Municipal Income Trust
    6  
National Municipal Income Trust
    7  
New Jersey Municipal Income Trust
    8  
New York Municipal Income Trust
    9  
Ohio Municipal Income Trust
    10  
Pennsylvania Municipal Income Trust
    11  
 
       
Financial Statements
    12  
 
       
Federal Tax Information
    74  
 
       
Notice to Shareholders
    75  
 
       
Dividend Reinvestment Plan
    76  
 
       
Board of Trustees’ Annual Approval of the Investment Advisory Agreements
    78  
 
       
Management and Organization
    81  

1


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
Eaton Vance Municipal Income Trusts (the “Trusts”) are closed-end Trusts, traded on the NYSE Alternext U.S., which are designed to provide current income exempt from regular federal income tax and state personal income taxes, as applicable. This income is earned by investing primarily in investment-grade municipal securities.
Economic and Market Conditions
Economic growth in the third quarter of 2008 retracted 0.3%, down from a positive second quarter growth rate of 2.8%, according to data released by the U.S. Department of Commerce. Most of the major Gross Domestic Product (GDP) components led to the decline; however, most influential was a sharp downturn in personal consumption expenditures by consumers, a factor which has continued to weigh on the economy during the first two months of the fourth quarter of 2008. While high commodity prices have mitigated since their summertime peaks, management believes consumers continued to pare costs as they remained cautious of what increasingly has become a weaker economic environment. Rising unemployment levels, now at a five-year high, have led to constrained personal consumption and overall economic contraction. The housing market continues to weigh on the economy, with new home sales continuing to fall and existing home sales beginning to stabilize only as cautious buyers begin to see value in distressed pricing. Low home prices continue to pressure consumers and banks, causing increased bank foreclosures and more mark-to-market write downs of mortgage-backed securities at commercial banks and financial institutions.
During the year ended November 30, 2008, the capital markets have experienced historic events resulting in unprecedented volatility. During September 2008, for example, the federal government took control of federally-chartered mortgage giants Fannie Mae and Freddie Mac. During the same month, Lehman Brothers filed for bankruptcy protection and Merrill Lynch was acquired by Bank of America. Also in September 2008, Goldman Sachs and Morgan Stanley petitioned the Federal Reserve (the “Fed”) to become bank holding companies, a step which brings greater regulation but also easier access to credit. These actions, in conjunction with Bear Stearns’ acquisition by JP Morgan in March 2008, drastically redefined the Wall Street landscape. In addition to the independent Wall Street brokerages, the banking sector was shaken by the failure of Washington Mutual and the sale of Wachovia. In the insurance sector, the federal government provided more than $85 billion in loans to help stabilize American International Group, Inc. (AIG). Finally, the U.S. Congress approved a $700 billion program authorizing the federal government to purchase troubled assets from financial institutions, a program which has continued to evolve since its passing.
During the year ended November 30, 2008, the Fed lowered the Federal Funds rate to 1.00% from as high as 5.25% in the summer of 2007. In addition to its interest rate policy, the Fed has also taken extraordinary action through a variety of innovative lending techniques in an attempt to facilitate an easing of the credit crisis.
Management Discussion
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.
Relative to their primary benchmark, the Barclays Capital Municipal Bond Index1 (the “Index”) — a broad-based, unmanaged index of municipal bonds — the Trusts underperformed for the year ended November 30, 2008. As a result of an active management style that focuses on income and longer call protection, each Trust generally holds longer-maturity bonds. Management believes that much of the Trusts’ underperformance can be attributed to the shift of investors’ capital into shorter-maturity bonds, a result of the broader-based credit crisis that has rattled the fixed-income markets since the summer of 2007. This underperformance was magnified by the Trusts’

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.
 
1   Formerly called Lehman Brothers Municipal Bond Index. It is not possible to invest directly in an Index. 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.
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.

2


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
use of leverage and leveraged investments. The move to shorter-term investments was originally driven by uncertainty surrounding financial companies’ exposure to subprime mortgage-backed debt but later spread to the municipal market when major municipal bond insurers suffered rating downgrades due to their exposure to mortgage-related structured products.
The ratio of yields on current coupon AAA-rated insured municipal bonds to the yield on 30-year Treasury bonds was 157% as of November 30, 2008, with many individual municipal bonds trading at higher ratios.1 Management believes that this was the result of continued dislocation in the fixed-income marketplace caused by a flight to Treasury securities, municipal bond insurance companies’ mark-to-market risks and the decentralized nature of the municipal marketplace. Historically, this is a rare occurrence in the municipal bond market and is generally considered a signal that municipal bonds are significantly under-valued relative to taxable Treasury bonds.
Against this backdrop, management continues to manage all of its municipal funds with the same relative value approach that it has traditionally employed — maintaining a long-term perspective when markets exhibit extreme short-term volatility. We believe this approach has provided excellent long-term benefits to our investors over time.
A Note Regarding Auction Preferred Shares (APS)
As has been widely reported since mid-February 2008, the normal functioning of the auction market in the United States for certain types of “auction rate securities” has been disrupted by an imbalance between buy and sell orders. Consistent with patterns in the broader market for auction rate securities, the Trusts have, since mid-February, experienced unsuccessful APS auctions. In the event of an unsuccessful auction, the affected APS remain outstanding, and the dividend rate reverts to the specified maximum payable rate.
During the year ended November 30, 2008, certain Trusts redeemed a portion of their outstanding APS. Information relating to these redemptions is contained in Note 2 to the Financial Statements. Replacement financing for the redeemed APS may have been provided through the creation of tender option bonds (TOBs).2 The cost to the Trusts of the new TOB financing is expected, over time, to be lower than the total cost of APS based on the maximum applicable dividend rates. Each Trust’s APS percentage (i.e., APS at liquidation value as a percentage of the Trust’s net assets applicable to common shares plus APS) as of November 30, 2008 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).
From December 22, 2008 through December 24, 2008, after the end of the reporting period, certain Trusts voluntarily 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 14 to the Financial Statements.
 
1   Source: Bloomberg L.P. Yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Trust’s yield.
 
2   Source: See Note 1H to Financial Statements for more information on TOB investments.

3


 

Eaton Vance California Municipal Income Trust as of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   CEV  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -26.34 %
Five Years
    -4.06  
Life of Trust (1/29/99)
    0.82  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -30.70 %
Five Years
    -3.03  
Life of Trust (1/29/99)
    1.62  
 
       
Premium/(Discount) to NAV
    -7.48 %
 
       
Market Yields
       
 
Market Yield2
    7.50 %
Taxable-Equivalent Market Yield3
    12.72  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper California Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -19.29 %
Five Years
    -0.03  
Life of Trust (1/31/99)
    2.69  

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 November 30, 2008, is as follows, and the average rating is AA-:
                     
AAA
    27.5 %   BBB     8.3 %
AA
    32.0 %   BB     0.5 %
A
    24.1 %   Not Rated     7.6 %
Trust Statistics7
         
Number of Issues:
    93  
Average Maturity:
  21.6  years
Average Effective Maturity:
  20.3  years
Average Call Protection:
  7.6  years
Average Dollar Price:
  $ 80.66  
APS Leverage:**
    34.7 %
TOB Leverage:**
    16.1 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 13 funds for the 1-year, 5-year and Life-of-Trust 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. 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 November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   MMV  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -27.89 %
Five Years
    -5.40  
Life of Trust (1/29/99)
    0.37  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -28.02 %
Five Years
    -2.92  
Life of Trust (1/29/99)
    1.68  
 
       
Premium/(Discount) to NAV
    -12.20 %
 
       
Market Yields
       
 
Market Yield2
    7.49 %
Taxable-Equivalent Market Yield3
    12.17  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -14.38 %
Five Years
    0.64  
Life of Trust (1/31/99)
    2.99  

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 November 30, 2008, is as follows, and the average rating is A+:
                     
AAA
    12.2 %   BBB     11.9 %
AA
    30.5 %   BB     1.1 %
A
    38.0 %   Not Rated     6.3 %
Trust Statistics7
         
Number of Issues:
    61  
Average Maturity:
  26.4  years
Average Effective Maturity:
  23.9  years
Average Call Protection:
  8.2  years
Average Dollar Price:
  $ 81.88  
APS Leverage:**
    39.1 %
TOB Leverage:**
    11.1 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 20 funds for the 1-year, 5-year and Life-of-Trust 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. 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 November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   EMI  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -32.76 %
Five Years
    -7.75  
Life of Trust (1/29/99)
    -0.72  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -21.02 %
Five Years
    -1.24  
Life of Trust (1/29/99)
    2.52  
 
       
Premium/(Discount) to NAV
    -27.07 %
 
       
Market Yields
       
 
Market Yield2
    7.84 %
Taxable-Equivalent Market Yield3
    12.61  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper Michigan Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -13.98 %
Five Years
    0.62  
Life of Trust (1/31/99)
    3.31  

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 November 30, 2008, is as follows, and the average rating is AA-:
                     
AAA
    21.4 %   BB     1.4 %
AA
    44.3 %   CCC     0.6 %
A
    16.5 %   Not Rated     3.0 %
BBB
    12.8 %            
Trust Statistics7
         
Number of Issues:
    64  
Average Maturity:
  21.8  years
Average Effective Maturity:
  16.4  years
Average Call Protection:
  4.9  years
Average Dollar Price:
  $ 87.93  
APS Leverage:**
    40.7 %
TOB Leverage:**
    5.9 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 3 funds for the 1-year, 5-year and Life-of-Trust 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. 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 National Municipal Income Trustas of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
 
  Effective June 19, 2008, the Fund’s name was changed from Eaton Vance Florida Plus Municipal Income Trust.
         
Trust Performance1      
NYSE Alternext U.S. Symbol   FEV  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -36.32 %
Five Years
    -8.02  
Life of Trust (1/29/99)
    -0.95  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -36.71 %
Five Years
    -5.47  
Life of Trust (1/29/99)
    0.48  
 
       
Premium/(Discount) to NAV
    -13.18 %
 
       
Market Yields
       
 
Market Yield2
    9.11 %
Taxable-Equivalent Market Yield3
    14.02  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper General Municipal Debt Funds (Leveraged) Classification (by net asset value)  
 
One Year
    -20.85 %
Five Years
    -0.68  
Life of Trust (1/31/99)
    2.46  

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: Thomas M. Metzold, CFA
Rating Distribution*6
By total investments
(PIE GRAPH)
 
*   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 November 30, 2008, is as follows, and the average rating is A:
                     
AAA
    24.6 %   BB     3.5 %
AA
    21.9 %   B     4.5 %
A
    18.4 %   CCC     0.7 %
BBB
    14.2 %   Not Rated     12.2 %
Trust Statistics7
         
Number of Issues:
    105  
Average Maturity:
  25.7  years
Average Effective Maturity:
  24.4  years
Average Call Protection:
  8.1  years
Average Dollar Price:
  $ 84.80  
APS Leverage:**
    24.6 %
TOB Leverage:**
    29.7 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 General Municipal Debt Funds (Leveraged) Classification (closed-end) contained 60, 59 and 42 funds for the 1-year, 5-year and Life-of-Trust 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. 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 Jersey Municipal Income Trust as of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   EVJ  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -29.88 %
Five Years
    -6.13  
Life of Trust (1/29/99)
    0.08  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -33.57 %
Five Years
    -3.94  
Life of Trust (1/29/99)
    1.11  
 
       
Premium/(Discount) to NAV
    -9.57 %
 
       
Market Yields
       
 
Market Yield2
    7.88 %
Taxable-Equivalent Market Yield3
    13.32  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper New Jersey Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -18.56 %
Five Years
    -0.08  
Life of Trust (1/31/99)
    2.61  

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 November 30, 2008, is as follows, and the average rating is AA-:
                     
AAA
    30.8 %   BBB     24.0 %
AA
    21.5 %   B     1.2 %
A
    21.4 %   Not Rated     1.1 %
Trust Statistics7
         
Number of Issues:
    75  
Average Maturity:
  24.4  years
Average Effective Maturity:
  23.1  years
Average Call Protection:
  9.4  years
Average Dollar Price:
  $ 73.51  
APS Leverage:**
    39.9 %
TOB Leverage:**
    9.4 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 6 funds for the 1-year, 5-year and Life-of-Trust 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. 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 New York Municipal Income Trust as of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   EVY  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -40.71 %
Five Years
    -7.40  
Life of Trust (1/29/99)
    -0.59  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -35.07 %
Five Years
    -4.65  
Life of Trust (1/29/99)
    1.12  
 
       
Premium/(Discount) to NAV
    -15.51 %
 
       
Market Yields
       
 
Market Yield2
    9.42 %
Taxable-Equivalent Market Yield3
    15.56  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper New York Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -19.18 %
Five Years
    -0.29  
Life of Trust (1/31/99)
    2.78  

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 November 30, 2008, is as follows, and the average rating is A+:
                     
AAA
    21.8 %   BB     3.5 %
AA
    36.1 %       2.2 %
A
    12.6 %   Not Rated     6.4 %
BBB
    17.4 %            
Trust Statistics7
         
Number of Issues:
    80  
Average Maturity:
  24.5  years
Average Effective Maturity:
  22.7  years
Average Call Protection:
  9.3  years
Average Dollar Price:
  $ 85.23  
APS Leverage:**
    32.8 %
TOB Leverage:**
    18.2 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 16, 16 and 6 funds for the 1-year, 5-year and Life-of-Trust 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. 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 Ohio Municipal Income Trust as of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   EVO  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -29.83 %
Five Years
    -6.48  
Life of Trust (1/29/99)
    -0.01  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -25.69 %
Five Years
    -1.84  
Life of Trust (1/29/99)
    2.05  
 
       
Premium/(Discount) to NAV
    -18.18 %
 
       
Market Yields
       
 
Market Yield2
    7.73 %
Taxable-Equivalent Market Yield3
    12.73  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -14.38 %
Five Years
    0.64  
Life of Trust (1/31/99)
    2.99  

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 November 30, 2008, is as follows, and the average rating is AA-:
                     
AAA
    32.3 %   BBB     7.5 %
AA
    36.7 %   B     1.7 %
A
    14.4 %   Not Rated     7.4 %
Trust Statistics7
         
Number of Issues:
    76  
Average Maturity:
  22.2  years
Average Effective Maturity:
  19.6  years
Average Call Protection:
  7.1  years
Average Dollar Price:
  $ 84.60  
APS Leverage:**
    40.4 %
TOB Leverage:**
    7.5 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 20 funds for the 1-year, 5-year and Life-of-Trust 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. 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 Pennsylvania Municipal Income Trust as of November 30, 2008
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Trust Performance1      
NYSE Alternext U.S. Symbol   EVP  
 
Average Annual Total Returns (by share price)
       
 
One Year
    -20.75 %
Five Years
    -4.45  
Life of Trust (1/29/99)
    1.24  
 
       
Average Annual Total Returns (by net asset value)
       
 
One Year
    -26.57 %
Five Years
    -2.10  
Life of Trust (1/29/99)
    1.99  
 
       
Premium/(Discount) to NAV
    -6.98 %
 
       
Market Yields
       
 
Market Yield2
    7.14 %
Taxable-Equivalent Market Yield3
    11.33  
Index Performance4 Average Annual Total Returns
                 
Barclays Capital Municipal Bond Index     Barclays Capital Municipal Bond Long 22+ Index  
 
One Year
    -3.61 %     -15.21 %
Five Years
    2.58       0.94  
Life of Trust (1/31/99)
    4.05       3.26  
Lipper Averages5 Average Annual Total Returns
         
Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value)  
 
One Year
    -18.22 %
Five Years
    -0.73  
Life of Trust (1/31/99)
    2.39  

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 November 30, 2008, is as follows, and the average rating is A+:
                     
AAA
    25.9 %   BB     2.3 %
AA
    30.3 %   CCC     1.3 %
A
    24.8 %   Not Rated     8.0 %
BBB
    7.4 %            
Trust Statistics7
         
Number of Issues:
    75  
Average Maturity:
  21.5  years
Average Effective Maturity:
  18.9  years
Average Call Protection:
  6.4  years
Average Dollar Price:
  $ 86.16  
APS Leverage:**
    39.2 %
TOB Leverage:**
    11.4 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/08 as a percentage of the Trust’s net assets applicable to common shares plus APS and TOB Floating Rate Notes. TOB leverage represents the amount of Floating Rate Notes outstanding at 11/30/08 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   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 fiscal year by the share price at the end of the fiscal year 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 Formerly called Lehman Brothers Municipal Bond Index and Lehman Brothers Municipal Bond Long 22+ Index, respectively. 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 and 4 funds for the 1-year, 5-year and Life-of-Trust 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. 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.

11


 

Eaton Vance California Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 186.0%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 13.7%
 
$ 2,770     California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29   $ 1,980,495      
  500     California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29     470,310      
  1,350     California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23     1,273,009      
  4,000     California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(1)     3,873,920      
  2,500     San Diego County, Certificates of Participation, (University of San Diego), 5.375%, 10/1/41     2,151,475      
 
 
            $ 9,749,209      
 
 
 
Electric Utilities — 2.4%
 
$ 2,275     Chula Vista, (San Diego Gas), (AMT),
5.00%, 12/1/27
  $ 1,719,695      
 
 
            $ 1,719,695      
 
 
 
General Obligations — 7.6%
 
$ 1,610     California, (AMT), 5.05%, 12/1/36   $ 1,246,478      
  4,770     San Francisco Bay Area Rapid Transit District, (Election of 2004), 4.75%, 8/1/37(2)     4,157,604      
 
 
            $ 5,404,082      
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 221,175      
 
 
            $ 221,175      
 
 
 
Hospital — 30.6%
 
$ 1,000     California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32   $ 832,740      
  2,435     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34     1,895,380      
  1,500     California Health Facilities Financing Authority, (Providence Health System), 6.50%, 10/1/38     1,500,915      
  870     California Health Facilities Financing Authority, (Sutter Health), Variable Rate, 1.49%, 11/15/46(3)(4)(5)     205,111      
  750     California Infrastructure and Economic Development Bank, (Kaiser Hospital), 5.50%, 8/1/31     641,858      
  3,900     California Statewide Communities Development Authority, (Huntington Memorial Hospital),
5.00%, 7/1/35
    2,958,579      
  1,750     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36     1,349,390      
  1,650     California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32     1,437,529      
  1,750     California Statewide Communities Development Authority, (Sonoma County Indian Health),
6.40%, 9/1/29
    1,492,015      
  1,500     California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28     1,375,725      
  1,500     Duarte, (Hope National Medical Center),
5.25%, 4/1/24
    1,308,315      
  410     Tahoe Forest Hospital District, 5.85%, 7/1/22     357,823      
  2,000     Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31     1,695,400      
  1,250     Turlock, (Emanuel Medical Center, Inc.),
5.375%, 10/15/34
    919,813      
  2,000     Washington Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29     1,644,660      
  2,780     Washington Township Health Care District,
5.00%, 7/1/32
    2,127,812      
 
 
            $ 21,743,065      
 
 
 
Housing — 3.0%
 
$ 1,750     California Housing Finance Agency, (AMT),
4.75%, 8/1/42
  $ 1,188,408      
  729     Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29     597,201      
  423     Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29     341,949      
 
 
            $ 2,127,558      
 
 
 
Industrial Development Revenue — 2.6%
 
$ 800     California Pollution Control Financing Authority, (Browning-Ferris Industries, Inc.), (AMT),
6.875%, 11/1/27
  $ 630,968      
  2,000     California Statewide Communities Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46     1,237,540      
 
 
            $ 1,868,508      
 
 
 
Insured-Education — 8.8%
 
$ 400     California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35   $ 354,616      
  3,270     California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23     3,195,019      
  3,000     California State University, (AMBAC),
5.00%, 11/1/33
    2,692,860      
 
 
            $ 6,242,495      
 
 
 
 
See notes to financial statements

12


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Electric Utilities — 11.0%
 
$ 2,500     California Pollution Control Financing Authority, (Pacific Gas and Electric), (MBIA), (AMT),
5.35%, 12/1/16
  $ 2,373,025      
  3,250     California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31     2,600,097      
  3,510     Los Angeles Department of Water and Power, (FSA), 4.625%, 7/1/37     2,849,734      
 
 
            $ 7,822,856      
 
 
 
Insured-Escrowed/Prerefunded — 5.9%
 
$ 5,130     Foothill/Eastern Transportation Corridor Agency, (FSA), (RADIAN), Escrowed to Maturity,
0.00%, 1/1/26
  $ 2,060,054      
  1,995     Puerto Rico Electric Power Authority, (FSA), Prerefunded to 7/1/10, 5.25%, 7/1/29(2)     2,125,307      
 
 
            $ 4,185,361      
 
 
 
Insured-General Obligations — 11.0%
 
$ 7,000     Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/34   $ 1,339,660      
  4,825     Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/35(6)     861,986      
  2,500     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(3)(4)
    2,681,125      
  7,995     Sweetwater Union High School District, (Election 2000), (FSA), 0.00%, 8/1/25     2,925,930      
 
 
            $ 7,808,701      
 
 
 
Insured-Hospital — 20.2%
 
$ 3,100     California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37   $ 2,772,547      
  3,200     California Statewide Communities Development Authority, (Children’s Hospital Los Angeles), (MBIA), 5.25%, 8/15/29     2,738,144      
  750     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 3/1/41(2)
    653,085      
  5,000     California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(2)     4,473,750      
  3,735     California Statewide Communities Development Authority, (Sutter Health), (FSA),
5.75%, 8/15/27(2)
    3,743,092      
 
 
            $ 14,380,618      
 
 
 
Insured-Lease Revenue/Certificates of Participation — 10.1%
 
$ 6,500     Anaheim Public Financing Authority, Lease Revenue, (Public Improvements), (FSA), 0.00%, 9/1/17   $ 4,117,945      
  3,500     San Diego County Water Authority, (FSA),
5.00%, 5/1/38(2)
    3,044,983      
 
 
            $ 7,162,928      
 
 
 
Insured-Other Revenue — 2.2%
 
$ 1,855     Golden State Tobacco Securitization Corp., (AGC), (FGIC), 5.00%, 6/1/38   $ 1,566,177      
 
 
            $ 1,566,177      
 
 
 
Insured-Special Tax Revenue — 4.7%
 
$ 24,800     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
  $ 860,312      
  4,225     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    335,296      
  8,380     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    617,438      
  5,270     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    359,572      
  480     Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28     486,149      
  690     Sacramento Area Flood Control Agency, (BHAC), 5.625%, 10/1/37     691,235      
 
 
            $ 3,350,002      
 
 
 
Insured-Transportation — 8.2%
 
$ 5,000     Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29   $ 1,315,550      
  8,000     Alameda Corridor Transportation Authority, (MBIA), 0.00%, 10/1/31     1,827,360      
  740     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     646,719      
  10,000     San Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/32     2,014,100      
 
 
            $ 5,803,729      
 
 
 
Insured-Water and Sewer — 6.9%
 
$ 4,400     Los Angeles Department of Water and Power, (MBIA), 3.00%, 7/1/30   $ 2,813,712      
  2,710     San Francisco City and County Public Utilities Commission, (FSA), 4.25%, 11/1/33(6)     2,054,261      
 
 
            $ 4,867,973      
 
 
 
                     
 
 
See notes to financial statements

13


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Lease Revenue/Certificates of Participation — 5.9%
 
$ 4,000     Sacramento City Financing Authority,
5.40%, 11/1/20
  $ 4,168,920      
 
 
            $ 4,168,920      
 
 
 
Other Revenue — 2.4%
 
$ 385     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32   $ 340,359      
  580     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37     501,439      
  1,420     Golden State Tobacco Securitization Corp.,
5.75%, 6/1/47
    895,282      
 
 
            $ 1,737,080      
 
 
 
Senior Living/Life Care — 0.8%
 
$ 175     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 4.75%, 11/15/26   $ 126,487      
  700     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 4.875%, 11/15/36     462,931      
 
 
            $ 589,418      
 
 
 
Special Tax Revenue — 19.7%
 
$ 1,000     Bonita Canyon Public Financing Authority,
5.375%, 9/1/28
  $ 713,970      
  285     Brentwood Infrastructure Financing Authority,
5.00%, 9/2/26
    195,655      
  460     Brentwood Infrastructure Financing Authority,
5.00%, 9/2/34
    291,543      
  1,000     Corona Public Financing Authority, 5.80%, 9/1/20     844,660      
  200     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27     139,874      
  500     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36     313,195      
  1,590     Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27     1,487,191      
  900     Lincoln Public Financing Authority, Improvement Bond Act of 1915, (Twelve Bridges), 6.20%, 9/2/25     747,765      
  420     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24     333,430      
  750     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29     569,805      
  2,430     Oakland Joint Powers Financing Authority,
5.40%, 9/2/18
    2,482,342      
  995     Oakland Joint Powers Financing Authority,
5.50%, 9/2/24
    985,607      
  1,325     San Pablo Redevelopment Agency, 5.65%, 12/1/23     1,304,992      
  1,095     Santa Margarita Water District, 6.20%, 9/1/20     964,410      
  250     Santaluz Community Facilities District No.
2, 6.10%, 9/1/21
    214,648      
  500     Santaluz Community Facilities District No.
2, 6.20%, 9/1/30
    399,405      
  250     Temecula Unified School District, 5.00%, 9/1/27     174,843      
  400     Temecula Unified School District, 5.00%, 9/1/37     248,960      
  500     Turlock Public Financing Authority, 5.45%, 9/1/24     413,960      
  500     Tustin Community Facilities District, 6.00%, 9/1/37     365,250      
  1,000     Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23     818,630      
 
 
            $ 14,010,135      
 
 
 
Transportation — 5.5%
 
$ 2,000     Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.00%, 4/1/31   $ 1,852,760      
  1,500     Los Angeles Department of Airports, (Los Angeles International Airport), 5.375%, 5/15/30     1,205,130      
  1,170     Port of Redwood City, (AMT), 5.125%, 6/1/30     854,311      
 
 
            $ 3,912,201      
 
 
 
Water and Sewer — 2.5%
 
$ 1,840     California Department of Water Resources,
5.00%, 12/1/29
  $ 1,748,184      
 
 
            $ 1,748,184      
 
 
     
Total Tax-Exempt Investments — 186.0%
   
(identified cost $155,084,405)
  $ 132,190,070      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (70.3)%   $ (49,978,954 )    
 
 
             
Other Assets, Less Liabilities — (15.7)%
  $ (11,146,313 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 71,064,803      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
 
See notes to financial statements

14


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
RADIAN - Radian Group, Inc.
 
The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2008, 47.8% 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 21.0% of total investments.
 
(1) Security (or a portion thereof) has been segregated 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 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 November 30, 2008, the aggregate value of these securities is $2,886,236 or 4.1% of the Trust’s net assets applicable to common shares.
 
(4) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
(5) 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 $2,610,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
 
(6) Security (or a portion thereof) has been pledged as collateral for open swap contracts.
 
 
See notes to financial statements

15


 

Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 179.6%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 33.4%
 
$ 2,440     Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59   $ 2,149,591      
  600     Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33     528,696      
  1,000     Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38     732,040      
  1,500     Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29     1,330,320      
  1,000     Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29     799,890      
  1,500     Massachusetts Health and Educational Facilities Authority, (Berklee College of Music),
5.00%, 10/1/32
    1,275,615      
  1,500     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     1,435,013      
  1,000     Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38(5)     976,000      
 
 
            $ 9,227,165      
 
 
 
Electric Utilities — 9.8%
 
$ 1,000     Massachusetts Development Finance Agency, (Devens Electric System), 6.00%, 12/1/30   $ 959,370      
  1,870     Massachusetts Development Finance Agency, (Dominion Energy Brayton Point), (AMT),
5.00%, 2/1/36
    1,273,881      
  570     Puerto Rico Electric Power Authority, 5.00%, 7/1/25     463,450      
 
 
            $ 2,696,701      
 
 
 
Escrowed/Prerefunded — 8.2%
 
$ 400     Massachusetts Development Finance Agency, (Western New England College), Prerefunded to 12/1/12, 6.125%, 12/1/32   $ 457,460      
  235     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), Prerefunded to 1/1/12, 6.00%, 7/1/31     262,652      
  960     Massachusetts Health and Educational Facilities Authority, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30     1,033,325      
  1,000     Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20     498,820      
 
 
            $ 2,252,257      
 
 
 
General Obligations — 4.8%
 
$ 1,250     City of Boston, 5.00%, 1/1/11(5)   $ 1,320,613      
 
 
            $ 1,320,613      
 
 
Health Care-Miscellaneous — 3.5%
 
$ 510     Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29   $ 373,198      
  700     Massachusetts Health and Educational Facilities Authority, (Learning Center for Deaf Children), 6.125%, 7/1/29     524,069      
  100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     73,725      
 
 
            $ 970,992      
 
 
 
Hospital — 27.4%
 
$ 1,000     Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20   $ 1,009,510      
  1,000     Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center),
5.75%, 7/1/33
    868,390      
  400     Massachusetts Health and Educational Facilities Authority, (Berkshire Health System),
6.25%, 10/1/31
    348,228      
  1,370     Massachusetts Health and Educational Facilities Authority, (Beth Israel Deaconess Medical Center, Inc.), 5.125%, 7/1/38     927,572      
  105     Massachusetts Health and Educational Facilities Authority, (Central New England Health Systems), 6.30%, 8/1/18     104,741      
  1,575     Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute),
5.00%, 12/1/37
    1,259,748      
  865     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), 6.00%, 7/1/31     790,740      
  2,000     Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System),
5.00%, 7/1/32(1)
    1,696,920      
  675     Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29     540,371      
 
 
            $ 7,546,220      
 
 
 
Housing — 15.0%
 
$ 2,100     Massachusetts Housing Finance Agency, (AMT), 4.75%, 12/1/48   $ 1,394,694      
  1,000     Massachusetts Housing Finance Agency, (AMT), 4.85%, 6/1/40     698,880      
  650     Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28     523,685      
  2,000     Massachusetts Housing Finance Agency, (AMT), 5.10%, 12/1/37     1,526,900      
 
 
            $ 4,144,159      
 
 
 
 
See notes to financial statements

16


 

 
Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Industrial Development Revenue — 2.5%
 
$ 695     Massachusetts Industrial Finance Agency, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15   $ 695,619      
 
 
            $ 695,619      
 
 
 
Insured-Education — 13.5%
 
$ 1,000     Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39   $ 954,570      
  1,365     Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)     1,330,556      
  1,600     Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33     1,440,960      
 
 
            $ 3,726,086      
 
 
 
Insured-General Obligations — 13.5%
 
$ 1,000     Massachusetts, (AMBAC), 5.50%, 8/1/30   $ 1,025,510      
  2,255     Milford, (FSA), 4.25%, 12/15/46     1,729,111      
  900     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(2)(3)
    965,205      
 
 
            $ 3,719,826      
 
 
 
Insured-Other Revenue — 4.2%
 
$ 1,225     Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42   $ 1,157,625      
 
 
            $ 1,157,625      
 
 
 
Insured-Special Tax Revenue — 7.9%
 
$ 1,450     Martha’s Vineyard Land Bank, (AMBAC),
5.00%, 5/1/32
  $ 1,399,511      
  8,945     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    310,302      
  1,520     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    120,627      
  3,015     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    222,146      
  1,905     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    129,978      
 
 
            $ 2,182,564      
 
 
 
Insured-Student Loan — 7.1%
 
$ 600     Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30(5)   $ 573,486      
  1,985     Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33     1,385,887      
 
 
            $ 1,959,373      
 
 
 
Insured-Transportation — 6.6%
 
$ 800     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (MBIA), (AMT), 5.00%, 7/1/32   $ 575,744      
  1,820     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (MBIA), (AMT), 5.00%, 7/1/38     1,246,008      
 
 
            $ 1,821,752      
 
 
 
Nursing Home — 3.4%
 
$ 500     Boston Industrial Development Authority, (Alzheimer’s Center), (FHA), 6.00%, 2/1/37   $ 462,325      
  580     Massachusetts Health and Educational Facilities Authority, (Christopher House), 6.875%, 1/1/29     475,780      
 
 
            $ 938,105      
 
 
 
Senior Living/Life Care — 8.0%
 
$ 250     Massachusetts Development Finance Agency, (Berkshire Retirement), 5.15%, 7/1/31   $ 168,198      
  1,500     Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29     1,120,650      
  140     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.125%, 11/1/27     93,990      
  425     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.20%, 11/1/41     255,327      
  910     Massachusetts Development Finance Agency, (Linden Ponds, Inc.), 5.75%, 11/15/42     561,006      
 
 
            $ 2,199,171      
 
 
 
Special Tax Revenue — 5.0%
 
$ 1,665     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/31   $ 389,227      
  5,195     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/34     986,998      
 
 
            $ 1,376,225      
 
 
 
 
Water and Sewer — 5.8%
 
$ 215     Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27   $ 215,888      
  2,000     Massachusetts Water Resources Authority, 4.00%, 8/1/46     1,384,000      
 
 
            $ 1,599,888      
 
 
     
Total Tax-Exempt Investments — 179.6%
   
(identified cost $59,628,794)
  $ 49,534,341      
 
 
 
 
See notes to financial statements

17


 

 
Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Short-Term Investments — 6.4%
Principal Amount
               
(000’s omitted)       Description   Value      
 
 
$ 1,750     Massachusetts Health and Educational Facilities Authority, (Capital Assets Program), (MBIA), (SPA: State Street Bank and Trust Co.), Variable Rate, 12.00%, 1/1/35(4)   $ 1,750,000      
 
 
     
Total Short-Term Investments — 6.4%
   
(identified cost $1,750,000)
  $ 1,750,000      
 
 
             
Total Investments — 186.0%
           
(identified cost $61,378,794)
  $ 51,284,341      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (72.7)%
  $ (20,055,300 )    
 
 
             
Other Assets, Less Liabilities — (13.3)%
  $ (3,653,081 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 27,575,960      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
SPA - Standby Bond Purchase Agreement
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2008, 31.8% 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 1.1% to 12.9% of total investments.
 
(1) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(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 November 30, 2008, the aggregate value of these securities is $965,205 or 3.5% 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 November 30, 2008.
 
(4) Variable rate demand obligation. The stated interest rate represents the rate in effect at November 30, 2008.
(5) Security (or a portion thereof) has been pledged as collateral for open swap contracts.
 
 
See notes to financial statements

18


 

Eaton Vance Michigan Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 180.5%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 7.9%
 
$ 1,250     Michigan Higher Education Facilities Authority, (Creative Studies), 5.90%, 12/1/27   $ 1,383,525      
  540     Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35     437,697      
 
 
            $ 1,821,222      
 
 
 
Electric Utilities — 3.9%
 
$ 580     Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29   $ 533,333      
  435     Puerto Rico Electric Power Authority, 5.00%, 7/1/25     353,686      
 
 
            $ 887,019      
 
 
 
Escrowed/Prerefunded — 21.1%
 
$ 500     Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31   $ 545,040      
  560     Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), Prerefunded to 11/15/13, 5.875%, 11/15/34     637,056      
  750     Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09,
6.125%, 11/15/26
    792,892      
  750     Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36     830,220      
  875     Puerto Rico Electric Power Authority, Prerefunded to 7/1/12, 5.25%, 7/1/31     973,945      
  1,000     White Cloud Public Schools, Prerefunded to
5/1/11, 5.125%, 5/1/31
    1,071,020      
 
 
            $ 4,850,173      
 
 
 
General Obligations — 8.6%
 
$ 500     East Grand Rapids Public School District,
5.00%, 5/1/25
  $ 496,660      
  750     Manistee Area Public Schools, 5.00%, 5/1/24     739,665      
  345     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     276,135      
  500     Wayne Charter County, 5.70%, 8/1/38     455,540      
 
 
            $ 1,968,000      
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 73,725      
 
 
            $ 73,725      
 
 
 
 
Hospital — 30.6%
 
$ 500     Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21   $ 468,290      
  185     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25     140,961      
  125     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37     92,845      
  275     Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/47     278,129      
  500     Mecosta County, (Michigan General Hospital),
6.00%, 5/15/18
    420,815      
  1,000     Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27     859,130      
  750     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38     506,355      
  1,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46     689,540      
  1,080     Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35     832,270      
  750     Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21     686,302      
  1,000     Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27     978,390      
  425     Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), 5.375%, 6/1/26     284,746      
  800     Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30     798,560      
 
 
            $ 7,036,333      
 
 
 
Housing — 6.6%
 
$ 1,065     Michigan Housing Development Authority, (AMT), 5.20%, 6/1/39   $ 821,445      
  1,000     Michigan Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48     687,110      
 
 
            $ 1,508,555      
 
 
 
Industrial Development Revenue — 6.6%
 
$ 1,000     Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21   $ 572,660      
  800     Dickinson County Electronic Development Corp., (International Paper Co.), 5.75%, 6/1/16     689,480      
  625     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     251,562      
 
 
            $ 1,513,702      
 
 
 
Insured-Electric Utilities — 8.7%
 
$ 1,000     Michigan Strategic Fund, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29   $ 824,890      
  500     Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32     404,060      
 
 
See notes to financial statements

19


 

 
Eaton Vance Michigan Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
  220     Puerto Rico Electric Power Authority, (FGIC), (MBIA), 5.25%, 7/1/30     179,113      
  750     Puerto Rico Electric Power Authority, (FGIC), (MBIA), 5.25%, 7/1/34     590,235      
 
 
            $ 1,998,298      
 
 
 
Insured-Escrowed/Prerefunded — 18.5%
 
$ 1,000     Central Montcalm Public Schools, (MBIA), Prerefunded to 5/1/09, 6.00%, 5/1/29   $ 1,021,050      
  1,000     Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31     1,075,240      
  2,000     Novi Building Authority, (FSA), Prerefunded to 10/1/10, 5.50%, 10/1/25     2,153,320      
 
 
            $ 4,249,610      
 
 
 
Insured-General Obligations — 15.1%
 
$ 650     Detroit City School District, (FGIC), 4.75%, 5/1/28   $ 567,626      
  750     Detroit City School District, (FSA), 5.25%, 5/1/32     735,112      
  200     Eaton Rapids Public Schools, (MBIA),
4.75%, 5/1/25
    188,236      
  100     Lincoln Consolidated School District, (FSA),
5.00%, 5/1/10
    104,093      
  700     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(1)(2)
    750,715      
  1,250     Van Dyke Public Schools, (FSA), 5.00%, 5/1/38     1,132,387      
 
 
            $ 3,478,169      
 
 
 
Insured-Hospital — 7.2%
 
$ 1,000     Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35   $ 766,940      
  1,000     Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24     885,370      
 
 
            $ 1,652,310      
 
 
 
Insured-Lease Revenue/Certificates of Participation — 5.1%
 
$ 4,300     Michigan Building Authority, (FGIC),
0.00%, 10/15/30
  $ 920,587      
  1,000     Michigan Building Authority, (FGIC), (FSA),
0.00%, 10/15/29
    248,020      
 
 
            $ 1,168,607      
 
 
 
Insured-Special Tax Revenue — 11.4%
 
$ 5,160     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
  $ 179,000      
  1,225     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    97,216      
  2,430     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    179,043      
  1,470     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    100,298      
  2,250     Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30     2,056,500      
 
 
            $ 2,612,057      
 
 
 
Insured-Student Loan — 6.0%
 
$ 1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31   $ 639,520      
  1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25     735,290      
 
 
            $ 1,374,810      
 
 
 
Insured-Transportation — 6.7%
 
$ 1,000     Wayne Charter County Airport, (AGC), (AMT), 5.375%, 12/1/32   $ 797,220      
  1,000     Wayne Charter County Airport, (MBIA), (AMT), 5.00%, 12/1/28     749,340      
 
 
            $ 1,546,560      
 
 
 
Insured-Water and Sewer — 6.2%
 
$ 1,650     Detroit Water Supply System, (FGIC),
5.00%, 7/1/30
  $ 1,437,233      
 
 
            $ 1,437,233      
 
 
 
Lease Revenue/Certificates of Participation — 1.0%
 
$ 250     Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22   $ 239,565      
 
 
            $ 239,565      
 
 
 
Other Revenue — 1.4%
 
$ 500     Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48   $ 317,110      
 
 
            $ 317,110      
 
 
 
Transportation — 6.4%
 
$ 1,500     Kent County Airport Facility, 5.00%, 1/1/25(3)   $ 1,464,315      
 
 
            $ 1,464,315      
 
 
 
 
See notes to financial statements

20


 

 
Eaton Vance Michigan Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
 
Water and Sewer — 1.2%
 
$ 250     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.25%, 10/1/11(4)   $ 268,665      
 
 
            $ 268,665      
 
 
     
Total Tax-Exempt Investments — 180.5%
   
(identified cost $47,060,298)
  $ 41,466,038      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (76.2)%
  $ (17,502,294 )    
 
 
             
Other Assets, Less Liabilities — (4.3)%
  $ (986,563 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 22,977,181      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Michigan municipalities. In addition, 10.2% of the Trust’s total investments at November 30, 2008 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 November 30, 2008, 47.1% 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 1.0% to 18.4% of total investments.
 
(1) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
(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 November 30, 2008, the aggregate value of these securities is $750,715 or 3.3% of the Trust’s net assets applicable to common shares.
 
(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 margin requirements on open financial futures contracts.
 
 
See notes to financial statements

21


 

Eaton Vance National Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 215.3%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 12.3%
 
$ 1,000     Massachusetts Development Finance Agency, (Boston University), 6.00%, 5/15/59   $ 960,290      
  500     Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38     366,020      
  10     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38     9,567      
  2,490     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     2,382,117      
  740     New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33     727,812      
  190     Rhode Island Health and Educational Building Corp., (University of Rhode Island), 6.25%, 9/15/34     182,468      
 
 
            $ 4,628,274      
 
 
 
Electric Utilities — 3.0%
 
$ 1,565     Brazos River Authority, TX, (Texas Energy Co.), (AMT), 8.25%, 5/1/33   $ 1,124,906      
 
 
            $ 1,124,906      
 
 
 
Escrowed/Prerefunded — 1.4%
 
$ 500     Stoneybrook West, FL, Community Development District, Prerefunded to 5/1/10, 7.00%, 5/1/32   $ 536,505      
 
 
            $ 536,505      
 
 
 
Health Care-Miscellaneous — 0.7%
 
$ 140     Osceola County, FL, Industrial Development Authority, Community Provider Pooled Loan, 7.75%, 7/1/17   $ 131,625      
  200     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     147,450      
 
 
            $ 279,075      
 
 
 
Hospital — 21.0%
 
$ 350     Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35   $ 232,855      
  695     Idaho Health Facilities Authority, (Trinity Health Credit Group), 6.25%, 12/1/33     679,960      
  375     Massachusetts Health and Educational Facilities Authority, (Caregroup, Inc.), 5.00%, 7/1/28     269,389      
  560     Massachusetts Health and Educational Facilities Authority, (Caregroup, Inc.), 5.125%, 7/1/33     389,989      
  2,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/32     1,468,520      
  2,500     New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), 5.00%, 7/1/36(1)     2,261,225      
  315     New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29     243,177      
  635     New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37     472,599      
  1,000     Virginia Small Business Financing Authority, (Wellmort Health), 5.25%, 9/1/37     703,550      
  1,400     West Orange, FL, Health Care District,
5.80%, 2/1/31
    1,134,602      
 
 
            $ 7,855,866      
 
 
 
Housing — 14.4%
 
$ 330     California Housing Finance Agency, (AMT),
4.75%, 8/1/42
  $ 224,100      
  2,000     Delaware Housing Authority, (Senior Single Family Mortgage Revenue), (AMT), 5.30%, 1/1/49     1,525,840      
  505     Escambia County, FL, Housing Finance Authority, Single Family Mortgage Revenue, (Multi-County Program), (AMT), 5.50%, 10/1/31     425,260      
  1,000     Georgia Housing and Finance Authority, (AMT), 5.25%, 12/1/37     781,930      
  710     Massachusetts Housing Finance Agency, (AMT), 5.30%, 12/1/37     559,544      
  1,030     New Mexico Mortgage Finance Authority, (Santa Fe Senior Housing LLC), (FNMA), (AMT),
4.70%, 8/1/45
    713,759      
  1,500     Virginia Housing Development Authority, (AMT), 5.10%, 10/1/35     1,161,405      
 
 
            $ 5,391,838      
 
 
 
Industrial Development Revenue — 25.9%
 
$ 1,000     Brazos River, TX, Harbor Navigation District, (Dow Chemical Co.), (AMT), 5.95%, 5/15/33   $ 735,480      
  702     Broward County, FL, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19     588,787      
  1,000     Butler County, AL, Industrial Development Authority, (International Paper Co.), (AMT), 7.00%, 9/1/32     760,010      
  750     California Pollution Control Financing Authority, (Browning-Ferris Industries, Inc.), (AMT),
6.875%, 11/1/27
    591,532      
  1,060     Capital Trust Agency, FL, (Fort Lauderdale Project), (AMT), 5.75%, 1/1/32     764,228      
  1,055     Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.25%, 10/1/32     549,159      
  875     Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.75%, 10/1/32     453,688      
  1,000     Gulf Coast Waste Disposal Authority, TX, (Valero Energy Corp.), 5.60%, 4/1/32     626,040      
  1,000     Houston, TX, Airport System, (Continental Airlines), (AMT), 6.75%, 7/1/29     623,030      
  705     Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35     512,239      
 
 
See notes to financial statements

22


 

 
Eaton Vance National Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Industrial Development Revenue (continued)
 
                     
  1,350     Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1)     980,948      
  1,000     New Morgan, PA, Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT),
6.50%, 4/1/19
    812,070      
  280     Phoenix, AZ, Industrial Development Authority, (America West Airlines, Inc.), (AMT),
6.25%, 6/1/19
    191,190      
  650     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.30%, 6/1/23     258,648      
  1,970     St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37     1,259,795      
 
 
            $ 9,706,844      
 
 
 
Insured-Education — 1.2%
 
$ 530     University of Vermont and State Agricultural College, (MBIA), 5.00%, 10/1/40   $ 460,851      
 
 
            $ 460,851      
 
 
 
Insured-Electric Utilities — 3.5%
 
$ 1,600     Burke County, GA, Development Authority, (Georgia Power Co.), (MBIA), (AMT), 5.45%, 5/1/34   $ 1,316,192      
 
 
            $ 1,316,192      
 
 
 
Insured-General Obligations — 4.3%
 
$ 1,500     Puerto Rico, (FSA), Variable Rate, 12.711%, 7/1/27(2)(3)   $ 1,608,675      
 
 
            $ 1,608,675      
 
 
 
Insured-Hospital — 25.4%
 
$ 2,500     Illinois Finance Authority, (Rush University Medical Center), (MBIA), 5.25%, 11/1/35   $ 1,917,550      
  3,250     Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (FSA), 5.25%, 5/15/41(1)     2,874,008      
  2,000     Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32     1,861,880      
  1,000     Maricopa County, AZ, Industrial Development Authority, (Mayo Clinic Hospital), (AMBAC),
5.25%, 11/15/37
    839,520      
  2,500     Maryland Health and Higher Educational Facilities Authority, (Lifebridge Health), (AGC),
4.75%, 7/1/47(1)
    2,025,675      
 
 
            $ 9,518,633      
 
 
 
Insured-Housing — 2.5%
 
$ 1,100     Broward County, FL, Housing Finance Authority, Multi-Family Housing, (Venice Homes Apartments), (FSA), (AMT), 5.70%, 1/1/32(6)   $ 923,054      
 
 
            $ 923,054      
 
 
 
 
Insured-Lease Revenue/Certificates of Participation — 9.7%
 
$ 1,155     Newberry, SC, (Newberry County School District), (AGC), 5.00%, 12/1/30   $ 1,013,616      
  3,000     San Diego County, CA, Water Authority, (FSA), 5.00%, 5/1/38(1)     2,609,985      
 
 
            $ 3,623,601      
 
 
 
Insured-Other Revenue — 1.1%
 
$ 425     Kentucky Economic Development Finance Authority, (Louisville Arena Project), (AGC), 6.00%, 12/1/33   $ 410,083      
 
 
            $ 410,083      
 
 
 
Insured-Special Tax Revenue — 8.4%
 
$ 170     Baton Rouge, LA, Public Improvement, (FSA),
4.25%, 8/1/32
  $ 133,338      
  3,040     Miami-Dade County, FL, Special Obligation, (MBIA),
0.00%, 10/1/35
    473,358      
  5,000     Miami-Dade County, FL, Special Obligation, (MBIA),
0.00%, 10/1/38
    628,800      
  5,610     Miami-Dade County, FL, Special Obligation, (MBIA),
0.00%, 10/1/40
    614,575      
  14,850     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    515,147      
  2,535     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    201,178      
  5,030     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    370,610      
  3,165     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    215,948      
 
 
            $ 3,152,954      
 
 
 
Insured-Student Loan — 2.5%
 
$ 1,000     Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30   $ 955,810      
 
 
            $ 955,810      
 
 
 
Insured-Transportation — 16.2%
 
$ 670     Chicago, IL, (O’Hare International Airport), (FSA), 4.50%, 1/1/38(6)   $ 527,940      
  240     Dallas-Fort Worth, TX, International Airport, (MBIA), (AMT), 6.10%, 11/1/24     218,863      
 
 
See notes to financial statements

23


 

 
Eaton Vance National Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Transportation (continued)
 
                     
  95     Dallas-Fort Worth, TX, International Airport, (MBIA), (AMT), 6.25%, 11/1/28     85,800      
  2,100     Maryland Transportation Authority, (FSA),
5.00%, 7/1/41(1)
    1,950,585      
  3,770     Miami-Dade County, FL, Aviation Revenue, (Miami International Airport), (AGC), (CIFG), (AMT),
5.00%, 10/1/38(4)
    2,762,656      
  560     New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38     533,159      
 
 
            $ 6,079,003      
 
 
 
Insured-Water and Sewer — 24.2%
 
$ 3,750     Austin, TX, Water and Wastewater System, (FSA), 5.00%, 11/15/33(1)   $ 3,511,557      
  1,000     Emerald Coast, FL, Utility Authority Revenue, (FGIC), 4.75%, 1/1/31     802,620      
  3,250     Fernley, NV, Water and Sewer, (AGC),
5.00%, 2/1/38(1)
    2,928,136      
  640     Miami Beach, FL, Storm Water, (FGIC),
5.375%, 9/1/30
    570,336      
  280     Pearland, TX, Waterworks and Sewer Systems, (FSA), 4.50%, 9/1/34     226,937      
  1,150     Tampa Bay, FL, Water Utility System, (FGIC),
4.75%, 10/1/27
    1,032,079      
 
 
            $ 9,071,665      
 
 
 
Lease Revenue/Certificates of Participation — 1.7%
 
$ 650     Mohave County, AZ, Industrial Development Authority, (Mohave Prison LLC), 8.00%, 5/1/25   $ 627,101      
 
 
            $ 627,101      
 
 
 
Nursing Home — 2.2%
 
$ 265     Orange County, FL, Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24   $ 221,233      
  735     Orange County, FL, Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34     588,867      
 
 
            $ 810,100      
 
 
 
Other Revenue — 10.5%
 
$ 16,500     Buckeye Tobacco Settlement Financing Authority, OH, 0.00%, 6/1/47   $ 364,485      
  1,000     Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48     634,220      
  1,000     Salt Verde, AZ, Financial Corporation, Senior Gas Revenue, 5.00%, 12/1/37     637,700      
  1,230     Tobacco Settlement Financing Corp., VA,
5.00%, 6/1/47
    660,104      
  1,500     Tobacco Settlement Management Authority, SC, Escrowed to Maturity, 6.375%, 5/15/30     1,623,060      
 
 
            $ 3,919,569      
 
 
 
Special Tax Revenue — 17.7%
 
$ 85     Covington Park, FL, Community Development District, (Capital Improvements), 5.00%, 5/1/21   $ 78,290      
  500     Covington Park, FL, Community Development District, (Capital Improvements), 5.00%, 5/1/31     416,450      
  230     Dupree Lakes, FL, Community Development District, 5.00%, 11/1/10     214,907      
  205     Dupree Lakes, FL, Community Development District, 5.00%, 5/1/12     181,132      
  355     Dupree Lakes, FL, Community Development District, 5.375%, 5/1/37     217,043      
  310     Heritage Harbor South, FL, Community Development District, (Capital Improvements), 6.20%, 5/1/35     240,014      
  230     Heritage Springs, FL, Community Development District, 5.25%, 5/1/26     171,513      
  340     New River, FL, Community Development District, (Capital Improvements), 5.00%, 5/1/13     212,568      
  140     New River, FL, Community Development District, (Capital Improvements), 5.35%, 5/1/38     75,261      
  340     North Springs, FL, Improvement District, (Heron Bay), 5.20%, 5/1/27     213,387      
  595     North Springs, FL, Improvement District, (Heron Bay), 7.00%, 5/1/19     572,658      
  985     River Hall, FL, Community Development District, (Capital Improvements), 5.45%, 5/1/36     587,011      
  475     Southern Hills Plantation, FL, Community Development District, 5.80%, 5/1/35     321,699      
  600     Sterling Hill, FL, Community Development District, 6.20%, 5/1/35     446,916      
  840     Tisons Landing, FL, Community Development District, 5.625%, 5/1/37     401,100      
  740     University Square, FL, Community Development District, 6.75%, 5/1/20     691,138      
  685     Waterlefe, FL, Community Development District, 6.95%, 5/1/31     596,176      
  175     West Palm Beach, FL, Community Redevelopment Agency, (Northwood Pleasant Community),
5.00%, 3/1/29
    124,590      
  1,270     West Palm Beach, FL, Community Redevelopment Agency, (Northwood Pleasant Community),
5.00%, 3/1/35
    856,869      
 
 
            $ 6,618,722      
 
 
 
 
See notes to financial statements

24


 

 
Eaton Vance National Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
 
Transportation — 5.5%
 
$ 1,000     Los Angeles Department of Airports, CA, (Los Angeles International Airport), (AMT), 5.375%, 5/15/33   $ 788,070      
  1,515     North Texas Tollway Authority Revenue,
5.75%, 1/1/38
    1,264,661      
 
 
            $ 2,052,731      
 
 
     
Total Tax-Exempt Investments — 215.3%
   
(identified cost $100,159,732)
  $ 80,672,052      
 
 
Short-Term Investments — 3.2%
Principal Amount
               
(000’s omitted)       Description   Value      
 
 
$ 1,200     Massachusetts Health and Educational Facilities Authority, (Capital Assets Program), (MBIA), (SPA: State Street Bank and Trust Co.), Variable Rate, 12.00%, 1/1/35(5)   $ 1,200,000      
 
 
     
Total Short-Term Investments — 3.2%
   
(identified cost $1,200,000)
  $ 1,200,000      
 
 
     
Total Investments — 218.5%
   
(identified cost $101,359,732)
  $ 81,872,052      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (53.8)%
  $ (20,152,642 )    
 
 
             
Other Assets, Less Liabilities — (64.7)%
  $ (24,247,254 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 37,472,156      
 
 
 
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
 
FNMA - Federal National Mortgage Association
 
FSA - Financial Security Assurance, Inc.
 
SPA - Standby Bond Purchase Agreement
 
MBIA - Municipal Bond Insurance Association
 
At November 30, 2008, the concentration of the Trust’s investments in the various states, determined as a percentage of total investments, is as follows:
 
         
Florida
    23.0 %
Texas
    10.3 %
Others, representing less than 10% individually
    66.7 %
 
The Trust invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2008, 46.8% 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 1.7% to 17.5% of total investments.
 
(1) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(2) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
(3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2008, the aggregate value of these securities is $1,608,675 or 4.3% of the Trust’s net assets applicable to common shares.
 
(4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
 
(5) Variable rate demand obligation. The stated interest rate represents the rate in effect at November 30, 2008.
 
(6) Security (or a portion thereof) has been pledged as collateral for open swap contracts.
 
 
See notes to financial statements

25


 

Eaton Vance New Jersey Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 200.0%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 8.3%
 
$ 250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/27   $ 210,930      
  250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/33     198,970      
  220     New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37     176,900      
  3,500     New Jersey Educational Facilities Authority, (Princeton University), 4.50%, 7/1/38(1)     3,014,116      
 
 
            $ 3,600,916      
 
 
 
Electric Utilities — 5.1%
 
$ 1,500     Puerto Rico Electric Power Authority, 5.00%, 7/1/37   $ 1,099,380      
  1,500     Salem County Pollution Control Financing, (Public Service Enterprise Group, Inc.), (AMT),
5.75%, 4/1/31
    1,110,855      
 
 
            $ 2,210,235      
 
 
 
General Obligations — 5.5%
 
$ 1,295     Gloucester County Improvement Authority, (Landfill Project), 4.50%, 3/1/30   $ 1,119,152      
  1,595     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     1,276,622      
 
 
            $ 2,395,774      
 
 
 
Health Care-Miscellaneous — 0.5%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 221,175      
 
 
            $ 221,175      
 
 
 
Hospital — 37.1%
 
$ 100     Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/25   $ 74,659      
  90     Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35     59,877      
  100     Camden County Improvement Authority, (Cooper Health System), 5.25%, 2/15/27     75,527      
  2,750     Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34     2,196,507      
  2,060     New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27     1,700,221      
  235     New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25     218,714      
  3,515     New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center),
5.00%, 7/1/37
    2,631,926      
  2,140     New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27     1,667,424      
  1,765     New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.375%, 7/1/33     1,322,056      
  2,000     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center),
6.00%, 1/1/34
    1,844,520      
  1,750     New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital),
5.75%, 7/1/31
    1,587,880      
  710     New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/26     582,186      
  2,930     New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46     2,153,902      
 
 
            $ 16,115,399      
 
 
 
Housing — 9.0%
 
$ 715     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37   $ 494,408      
  4,490     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37     3,396,461      
 
 
            $ 3,890,869      
 
 
 
Industrial Development Revenue — 14.9%
 
$ 1,000     Gloucester County Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29   $ 1,003,010      
  1,500     Middlesex County Pollution Control Authority, (Amerada Hess), 6.05%, 9/15/34     1,178,445      
  3,220     New Jersey Economic Development Authority, (Anheuser-Busch Cos., Inc.), (AMT),
4.95%, 3/1/47
    2,060,832      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29     384,803      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 9.00%, 6/1/33     552,217      
  2,080     Virgin Islands Public Financing Authority, (HOVENSA LLC), (AMT), 4.70%, 7/1/22     1,313,957      
 
 
            $ 6,493,264      
 
 
 
Insured-Education — 7.1%
 
$ 3,365     New Jersey Educational Facilities Authority, (College of New Jersey), (FSA), 5.00%, 7/1/35(1)   $ 3,100,444      
 
 
            $ 3,100,444      
 
 
 
Insured-Electric Utilities — 4.8%
 
$ 1,250     Puerto Rico Electric Power Authority, (FGIC), (MBIA), 5.25%, 7/1/35   $ 977,612      
 
 
See notes to financial statements

26


 

 
Eaton Vance New Jersey Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
  1,250     Vineland, (Electric Utility), (MBIA), (AMT),
5.25%, 5/15/26
  $  1,102,500      
 
 
            $ 2,080,112      
 
 
 
Insured-Gas Utilities — 9.7%
 
$ 5,000     New Jersey Economic Development Authority, (New Jersey Natural Gas Co.), (FGIC), (MBIA), (AMT), 4.90%, 10/1/40   $ 4,227,850      
 
 
            $ 4,227,850      
 
 
 
Insured-General Obligations — 7.0%
 
$ 1,500     Egg Harbor Township School District, (FSA),
3.50%, 4/1/28
  $ 1,076,865      
  1,240     Lakewood Township, (AGC), 5.75%, 11/1/31(2)     1,280,647      
  325     Nutley School District, (MBIA), 4.75%, 7/15/30     298,603      
  410     Nutley School District, (MBIA), 4.75%, 7/15/32     371,739      
 
 
            $ 3,027,854      
 
 
 
Insured-Hospital — 5.3%
 
$ 750     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)   $ 695,899      
  1,305     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC),
5.00%, 7/1/38
    1,175,048      
  500     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC),
5.00%, 7/1/38(1)
    450,220      
 
 
            $ 2,321,167      
 
 
 
Insured-Housing — 6.5%
 
$ 3,390     New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (FSA), (AMT),
5.05%, 5/1/34
  $ 2,626,199      
  205     New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (FSA), 5.75%, 5/1/25(2)     204,990      
 
 
            $ 2,831,189      
 
 
 
Insured-Lease Revenue/Certificates of Participation — 2.0%
 
$ 945     Newark Housing Authority, (Newark Marine Terminal), (MBIA), 5.00%, 1/1/32   $ 848,308      
 
 
            $ 848,308      
 
 
 
Insured-Special Tax Revenue — 24.3%
 
$ 12,030     Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/24   $ 4,892,601      
  6,000     Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/25     2,279,760      
  4,315     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26     1,377,305      
  2,020     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27     593,254      
  16,115     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    559,029      
  2,745     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    217,843      
  5,445     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    401,187      
  3,425     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    233,688      
 
 
            $ 10,554,667      
 
 
 
Insured-Student Loan — 4.3%
 
$ 2,000     New Jersey Higher Education Assistance Authority, (AGC), 6.125%, 6/1/30   $ 1,851,760      
 
 
            $ 1,851,760      
 
 
 
Insured-Transportation — 6.7%
 
$ 5,570     New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC),
0.00%, 12/15/31
  $ 1,419,682      
  1,500     New Jersey Turnpike Authority, (BHAC), (FSA), 5.25%, 1/1/29     1,483,410      
 
 
            $ 2,903,092      
 
 
 
Insured-Water and Sewer — 5.6%
 
$ 3,195     New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT),
4.875%, 11/1/25
  $ 2,427,146      
 
 
            $ 2,427,146      
 
 
 
Lease Revenue/Certificates of Participation — 7.8%
 
$ 895     New Jersey Economic Development Authority, (School Facilities Construction), 5.00%, 9/1/33   $ 829,101      
  3,000     New Jersey Health Care Facilities Financing Authority, (Contract Hospital Asset Transportation Program), 5.25%, 10/1/38     2,544,690      
 
 
            $ 3,373,791      
 
 
 
 
See notes to financial statements

27


 

 
Eaton Vance New Jersey Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Nursing Home — 2.0%
 
$ 1,000     New Jersey Economic Development Authority, (Masonic Charity Foundation), 5.50%, 6/1/31   $ 890,700      
 
 
            $ 890,700      
 
 
 
Other Revenue — 4.7%
 
$ 7,200     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/50   $ 139,032      
  13,280     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/55     137,581      
  4,270     Tobacco Settlement Financing Corp., 0.00%, 6/1/41     170,842      
  2,925     Tobacco Settlement Financing Corp., 5.00%, 6/1/41     1,598,542      
 
 
            $ 2,045,997      
 
 
 
Senior Living/Life Care — 6.8%
 
$ 465     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28   $ 372,870      
  770     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38     591,075      
  1,700     New Jersey Economic Development Authority, (Fellowship Village), 5.50%, 1/1/25     1,278,247      
  1,175     New Jersey Economic Development Authority, (Seabrook Village), 5.25%, 11/15/36     730,368      
 
 
            $ 2,972,560      
 
 
 
Special Tax Revenue — 1.6%
 
$ 750     New Jersey Economic Development Authority, (Cigarette Tax), 5.50%, 6/15/31   $ 517,313      
  100     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27     75,798      
  175     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37     121,210      
 
 
            $ 714,321      
 
 
 
Transportation — 10.9%
 
$ 2,000     New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38   $ 1,967,120      
  1,995     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(1)     1,696,887      
  5     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35     4,253      
  1,175     South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33     1,052,095      
 
 
            $ 4,720,355      
 
 
Water and Sewer — 2.5%
 
$ 1,000     New Jersey Environmental Infrastructure Trust,
5.00%, 9/1/16
  $ 1,093,270      
 
 
            $ 1,093,270      
 
 
     
Total Tax-Exempt Investments — 200.0%
   
(identified cost $108,048,815)
  $ 86,912,215      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (78.6)%
  $ (34,152,936 )    
 
 
             
Other Assets, Less Liabilities — (21.4)%
  $ (9,299,921 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 43,459,358      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2008, 42.9% 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 2.3% to 18.0% 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 as collateral for open swap contracts.
 
 
See notes to financial statements

28


 

Eaton Vance New York Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 198.5%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.7%
 
$ 1,150     Suffolk County Industrial Development Agency, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23   $ 840,616      
 
 
            $ 840,616      
 
 
 
Education — 6.3%
 
$ 1,000     New York Dormitory Authority, (Columbia University), 5.00%, 7/1/38(1)   $ 953,950      
  2,250     New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33     2,212,942      
 
 
            $ 3,166,892      
 
 
 
Electric Utilities — 6.1%
 
$ 1,420     Long Island Power Authority, Electric System Revenue, 6.00%, 5/1/33   $ 1,423,195      
  2,100     Suffolk County Industrial Development Agency, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27     1,632,120      
 
 
            $ 3,055,315      
 
 
 
Escrowed/Prerefunded — 0.4%
 
$ 200     New York City Industrial Development Agency, (Ohel Children’s Home), Escrowed to Maturity,
6.25%, 8/15/22
  $ 209,400      
 
 
            $ 209,400      
 
 
 
General Obligations — 14.1%
 
$ 6,000     New York City, 5.25%, 9/15/33(2)   $ 5,521,200      
  1,000     New York City, 6.25%, 10/15/28     1,045,650      
  680     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     544,265      
 
 
            $ 7,111,115      
 
 
 
Health Care-Miscellaneous — 8.0%
 
$ 1,115     New York City Industrial Development Agency, (A Very Special Place, Inc.), 5.75%, 1/1/29   $ 776,609      
  1,200     New York City Industrial Development Agency, (Ohel Children’s Home), 6.25%, 8/15/22     852,336      
  200     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     147,450      
  50     Suffolk County Industrial Development Agency, (Alliance of LI), Series A, Class H, 7.50%, 9/1/15     47,375      
  100     Suffolk County Industrial Development Agency, (Alliance of LI), Series A, Class I, 7.50%, 9/1/15     94,750      
  2,600     Westchester County Industrial Development Agency, (Children’s Village), 5.375%, 3/15/19     2,113,644      
 
 
            $ 4,032,164      
 
 
 
Hospital — 31.3%
 
$ 190     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.35%, 11/15/17   $ 164,411      
  485     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.40%, 11/15/29     365,496      
  1,250     Fulton County Industrial Development Agency, (Nathan Littauer Hospital), 6.00%, 11/1/18     1,020,287      
  2,500     Monroe County Industrial Development Agency, (Highland Hospital), 5.00%, 8/1/25     1,863,225      
  400     Nassau County Industrial Development Agency, (North Shore Health System), 6.25%, 11/1/21     400,132      
  1,500     New York Dormitory Authority, (Lenox Hill Hospital), 5.50%, 7/1/30     1,061,040      
  4,000     New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), 5.00%, 7/1/36(2)     3,617,960      
  2,000     New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33     1,401,640      
  845     New York Dormitory Authority, (North Shore Hospital), 5.00%, 11/1/34     608,408      
  1,250     New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37     896,912      
  415     New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29     320,376      
  835     New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37     621,449      
  1,250     Oneida County Industrial Development Agency, (St. Elizabeth’s Medical Center), 5.75%, 12/1/19     987,612      
  650     Saratoga County Industrial Development Agency, (Saratoga Hospital), 5.25%, 12/1/32     481,683      
  2,105     Suffolk County Industrial Development Agency, (Huntington Hospital), 6.00%, 11/1/22     1,950,346      
 
 
            $ 15,760,977      
 
 
 
Housing — 23.2%
 
$ 1,500     New York City Housing Development Corp., (Multi-Family Housing), (AMT), 5.05%, 11/1/39   $ 1,127,310      
  2,620     New York City Housing Development Corp., (Multi-Family Housing), (AMT), 5.20%, 11/1/40     2,010,274      
  3,555     New York City Housing Development Corp., (Multi-Family Housing), (FNMA), (AMT), 4.60%, 1/15/26     2,734,506      
  3,125     New York Housing Finance Agency, (FNMA), (AMT), 5.40%, 11/15/42     2,463,031      
  1,500     New York Mortgage Agency, (AMT),
4.875%, 10/1/30
    1,140,345      
 
 
See notes to financial statements

29


 

 
Eaton Vance New York Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Housing (continued)
 
                     
  2,000     New York Mortgage Agency, (AMT),
4.90%, 10/1/37
    1,441,560      
  1,000     New York Mortgage Agency, (AMT),
5.125%, 10/1/37
    766,860      
 
 
            $ 11,683,886      
 
 
 
Industrial Development Revenue — 16.7%
 
$ 1,000     Essex County Industrial Development Agency, (International Paper Company), (AMT),
6.625%, 9/1/32
  $ 724,530      
  625     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35     454,112      
  2,525     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(2)     1,834,736      
  1,500     New York Industrial Development Agency, (American Airlines, Inc. — JFK International Airport), (AMT), 8.00%, 8/1/12     1,364,655      
  1,000     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), 4.875%, 7/1/41     813,080      
  2,500     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), (AMT),
6.25%, 12/1/34
    2,123,425      
  775     Onondaga County Industrial Development Agency, (Senior Air Cargo), (AMT), 6.125%, 1/1/32     598,354      
  495     Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15     495,703      
 
 
            $ 8,408,595      
 
 
 
Insured-Education — 7.3%
 
$ 1,500     New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38   $ 1,386,825      
  1,250     New York Dormitory Authority, (Yeshiva University), (AMBAC), 5.50%, 7/1/35     1,054,675      
  5,460     Oneida County Industrial Development Agency, (Hamilton College), (MBIA), 0.00%, 7/1/33     1,239,584      
 
 
            $ 3,681,084      
 
 
 
Insured-Electric Utilities — 7.5%
 
$ 1,365     Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33   $ 1,396,941      
  3,000     Puerto Rico Electric Power Authority, (FGIC), (MBIA), 5.25%, 7/1/34     2,360,940      
 
 
            $ 3,757,881      
 
 
Insured-General Obligations — 3.7%
 
$ 1,750     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(3)(4)
  $ 1,876,788      
 
 
            $ 1,876,788      
 
 
 
 
Insured-Lease Revenue/Certificates of Participation — 4.7%
 
$ 3,300     Hudson Yards Infrastructure Corp., (MBIA),
4.50%, 2/15/47
  $ 2,348,247      
 
 
            $ 2,348,247      
 
 
 
Insured-Special Tax Revenue — 8.0%
 
$ 1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45   $ 779,250      
  1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     818,450      
  4,500     Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/34     677,340      
  19,745     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    684,954      
  3,380     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    268,237      
  6,705     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    494,024      
  4,225     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    288,272      
 
 
            $ 4,010,527      
 
 
 
Insured-Transportation — 13.8%
 
$ 6,235     Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT),
5.625%, 4/1/29
  $ 5,127,914      
  2,030     Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/34     1,812,607      
 
 
            $ 6,940,521      
 
 
 
Insured-Water and Sewer — 1.4%
 
$ 1,000     Nassau County Industrial Development Agency, (Water Services Corp.), (AMBAC), (AMT), 5.00%, 12/1/35   $ 701,350      
 
 
            $ 701,350      
 
 
 
Lease Revenue/Certificates of Participation — 5.7%
 
$ 2,500     New York City Transitional Finance Authority, (Building Aid), 4.50%, 1/15/38   $ 1,928,725      
  1,000     New York City Transitional Finance Authority, (Building Aid), 5.50%, 7/15/31     956,320      
 
 
            $ 2,885,045      
 
 
 
Other Revenue — 1.9%
 
$ 1,285     Albany Industrial Development Agency Civic Facility, (Charitable Leadership), 5.75%, 7/1/26   $ 960,075      
 
 
            $ 960,075      
 
 
 
 
See notes to financial statements

30


 

 
Eaton Vance New York Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
 
Senior Living/Life Care — 2.5%
 
$ 1,450     Mount Vernon Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29   $ 1,094,170      
  250     Suffolk County Industrial Development Agency, (Jefferson’s Ferry Project), 5.00%, 11/1/28     178,105      
 
 
            $ 1,272,275      
 
 
 
Special Tax Revenue — 1.9%
 
$ 1,000     New York Dormitory Authority, Personal Income Tax Revenue, (University & College Improvements), 5.25%, 3/15/38   $ 949,800      
 
 
            $ 949,800      
 
 
 
Transportation — 19.7%
 
$ 1,700     Metropolitan Transportation Authority,
4.50%, 11/15/37
  $ 1,291,694      
  3,200     Metropolitan Transportation Authority,
4.50%, 11/15/38
    2,417,088      
  1,900     Port Authority of New York and New Jersey,
5.00%, 11/15/37(2)
    1,752,845      
  1,190     Port Authority of New York and New Jersey, (AMT), 4.75%, 6/15/33     892,928      
  990     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2)     842,064      
  10     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35     8,506      
  2,000     Triborough Bridge and Tunnel Authority,
5.00%, 11/15/37
    1,802,560      
  1,000     Triborough Bridge and Tunnel Authority,
5.00%, 11/15/38
    899,960      
 
 
            $ 9,907,645      
 
 
 
Water and Sewer — 12.6%
 
$ 3,105     New York City Municipal Water Finance Authority, 5.75%, 6/15/40   $ 3,123,692      
  2,535     New York Environmental Facilities Corp., Clean Water, (Municipal Water Finance), 5.00%, 6/15/37(2)     2,356,941      
  5     New York Environmental Facilities Corp., Clean Water, (Municipal Water Finance), 5.00%, 6/15/37     4,649      
  1,000     Saratoga County Water Authority, 5.00%, 9/1/48     862,480      
 
 
            $ 6,347,762      
 
 
     
Total Tax-Exempt Investments — 198.5%
   
(identified cost $122,107,447)
  $ 99,907,960      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (67.0)%
  $ (33,729,429 )    
 
 
             
Other Assets, Less Liabilities — (31.5)%
  $ (15,853,503 )    
 
 
             
Net Assets — 100.0%
  $ 50,325,028      
 
 
 
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
 
FNMA - Federal National Mortgage Association
 
FSA - Financial Security Assurance, Inc.
 
MBIA - Municipal Bond Insurance Association
 
The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2008, 23.3% 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 1.8% to 12.1% of total investments.
 
(1) Security (or a portion thereof) has been segregated 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 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 November 30, 2008, the aggregate value of these securities is $1,876,788 or 3.7% of the Trust’s net assets applicable to common shares.
 
(4) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
 
See notes to financial statements

31


 

Eaton Vance Ohio Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS 
 
                     
Tax-Exempt Investments — 182.1%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.6%
 
$ 385     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT),
5.875%, 9/1/20
  $ 304,054      
  200     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT),
6.625%, 9/1/20
    168,994      
 
 
            $ 473,048      
 
 
 
Electric Utilities — 1.2%
 
$ 360     Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14
  $ 349,049      
 
 
            $ 349,049      
 
 
 
Escrowed/Prerefunded — 13.7%
 
$ 1,000     Delaware County, Prerefunded to
12/1/10, 6.00%, 12/1/25
  $ 1,091,040      
  1,530     Hamilton City School District, Prerefunded to 12/1/09, 5.625%, 12/1/24     1,614,165      
  565     Highland County, (Joint Township Hospital District), Prerefunded to 12/1/09, 6.75%, 12/1/29     600,471      
  670     Richland County Hospital Facilities, (Medcentral Health Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22     732,283      
 
 
            $ 4,037,959      
 
 
 
General Obligations — 8.0%
 
$ 1,000     Barberton City School District, 4.50%, 12/1/33   $ 818,590      
  1,090     Central Ohio Solid Waste Authority,
5.125%, 9/1/27(1)
    1,053,583      
  500     Columbus, 5.00%, 7/1/23(2)     504,955      
 
 
            $ 2,377,128      
 
 
 
Health Care-Miscellaneous — 0.2%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 73,725      
 
 
            $ 73,725      
 
 
 
Hospital — 13.4%
 
$ 550     Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29   $ 502,254      
  600     Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.25%, 8/15/46     427,032      
  1,500     Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32     1,213,470      
  500     Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26     377,345      
  750     Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.),
4.75%, 1/15/36
    497,430      
  1,000     Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.),
4.75%, 1/15/46
    632,030      
  330     Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22     324,608      
 
 
            $ 3,974,169      
 
 
 
Housing — 12.9%
 
$ 1,000     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.625%, 9/1/27   $ 758,240      
  1,000     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.75%, 3/1/37     696,640      
  600     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 5.00%, 9/1/31     468,288      
  2,500     Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48     1,893,225      
 
 
            $ 3,816,393      
 
 
 
Industrial Development Revenue — 13.5%
 
$ 1,385     Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27   $ 731,072      
  1,300     Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18(3)     1,287,962      
  2,250     Ohio Water Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 6.00%, 8/1/38     1,793,768      
  225     Ohio Water Development Authority, Solid Waste Disposal, (Allied Waste North America, Inc.), (AMT), 5.15%, 7/15/15     175,986      
 
 
            $ 3,988,788      
 
 
 
Insured-Education — 7.7%
 
$ 730     Miami University, (AMBAC), 3.25%, 9/1/26   $ 509,087      
  1,500     University of Akron, Series A, (FSA),
5.00%, 1/1/38
    1,326,495      
  500     University of Akron, Series B, (FSA),
5.00%, 1/1/38
    442,165      
 
 
            $ 2,277,747      
 
 
 
Insured-Electric Utilities — 13.4%
 
$ 2,000     Cleveland Public Power System, (MBIA),
0.00%, 11/15/38
  $ 286,280      
  830     Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25     299,339      
 
 
See notes to financial statements

32


 

 
Eaton Vance Ohio Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
  3,000     Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26     1,005,870      
  2,225     Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34     1,797,288      
  330     Puerto Rico Electric Power Authority, (FGIC),
5.25%, 7/1/30
    268,670      
  375     Puerto Rico Electric Power Authority, (FGIC),
5.25%, 7/1/34
    295,118      
 
 
            $ 3,952,565      
 
 
 
Insured-Escrowed/Prerefunded — 6.3%
 
$ 245     Cuyahoga County Hospital, (Cleveland Clinic), (MBIA), Escrowed to Maturity, 5.125%, 1/1/29   $ 240,916      
  1,000     Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), Prerefunded to 12/1/10, 5.50%, 12/1/30     1,077,300      
  500     University of Cincinnati, (FGIC), Prerefunded to 6/1/11, 5.25%, 6/1/24     542,840      
 
 
            $ 1,861,056      
 
 
 
Insured-General Obligations — 24.0%
 
$ 350     Bowling Green City School District, (FSA),
5.00%, 12/1/34
  $ 319,186      
  200     Brookfield Local School District, (FSA),
5.00%, 1/15/30
    186,872      
  2,455     Canal Winchester Local School District, (MBIA), 0.00%, 12/1/30     584,290      
  1,500     Madeira City School District, (FSA),
3.50%, 12/1/27(8)
    1,065,480      
  1,750     Milford Exempt Village School District, (AGC),
5.25%, 12/1/36
    1,645,105      
  500     Olmsted Falls City School District, (XLCA),
5.00%, 12/1/35
    434,745      
  1,000     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(4)(5)
    1,072,450      
  1,200     Puerto Rico, (MBIA), 5.50%, 7/1/20     1,104,180      
  750     St. Mary’s School District, (FSA), 5.00%, 12/1/35     675,225      
 
 
            $ 7,087,533      
 
 
 
Insured-Hospital — 8.9%
 
$ 255     Cuyahoga County, (Cleveland Clinic), (MBIA), 5.125%, 1/1/29   $ 223,339      
  980     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (MBIA), 5.00%, 5/15/32     802,718      
  1,500     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (MBIA), 5.125%, 5/15/28     1,298,565      
  485     Lorain County, (Catholic Healthcare Partners), (FSA), Variable Rate, 16.545%, 2/1/29(4)(5)(6)   $    321,128      
 
 
            $ 2,645,750      
 
 
 
Insured-Lease Revenue/Certificates of Participation — 1.4%
 
$ 500     Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33   $ 416,505      
 
 
            $ 416,505      
 
 
 
Insured-Special Tax Revenue — 4.2%
 
$ 405     Hamilton County, Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32   $ 369,976      
  9,905     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    343,604      
  1,690     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    134,118      
  3,350     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    246,828      
  2,100     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    143,283      
 
 
            $ 1,237,809      
 
 
 
Insured-Transportation — 8.2%
 
$ 385     Cleveland Airport System, (FSA), 5.00%, 1/1/31   $ 348,671      
  1,000     Ohio Turnpike Commission, (FGIC), (MBIA),
5.50%, 2/15/24
    1,046,220      
  1,000     Ohio Turnpike Commission, (FGIC), (MBIA),
5.50%, 2/15/26
    1,036,070      
 
 
            $ 2,430,961      
 
 
 
Insured-Water and Sewer — 2.6%
 
$ 270     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46   $ 202,770      
  750     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47     561,398      
 
 
            $ 764,168      
 
 
 
Lease Revenue/Certificates of Participation — 6.8%
 
$ 1,000     Mahoning County, (Career and Technical Center), 6.25%, 12/1/36   $ 961,720      
  1,155     Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19     1,038,588      
 
 
            $ 2,000,308      
 
 
 
 
See notes to financial statements

33


 

 
Eaton Vance Ohio Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
 
Other Revenue — 13.2%
 
$ 7,345     Buckeye Tobacco Settlement Financing Authority, 0.00%, 6/1/47   $ 162,251      
  710     Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47     439,618      
  2,530     Puerto Rico Infrastructure Financing Authority,
5.50%, 10/1/32
    2,529,797      
  1,000     Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27     773,600      
 
 
            $ 3,905,266      
 
 
 
Pooled Loans — 14.3%
 
$ 550     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25   $ 517,798      
  1,020     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22     965,899      
  1,245     Rickenbacher Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(7)     1,141,125      
  310     Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25     223,371      
  750     Toledo-Lucas County Port Authority, 4.80%, 11/15/35     478,320      
  1,100     Toledo-Lucas County Port Authority, 5.40%, 5/15/19     886,688      
 
 
            $ 4,213,201      
 
 
 
Special Tax Revenue — 6.6%
 
$ 560     Cleveland-Cuyahoga County Port Authority,
7.00%, 12/1/18
  $ 539,577      
  1,390     Cuyahoga County Economic Development, (Shaker Square), 6.75%, 12/1/30     1,406,221      
 
 
            $ 1,945,798      
 
 
     
Total Tax-Exempt Investments — 182.1%
   
(identified cost $61,949,288)
  $ 53,828,926      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (77.6)%
    (22,954,918 )    
 
 
             
Other Assets, Less Liabilities — (4.5)%
  $ (1,311,053 )    
 
 
             
Net Assets Applicable to
Common Shares — 100.0%
  $ 29,562,955      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Ohio municipalities. In addition, 11.5% of the Trust’s total investments at November 30, 2008 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 November 30, 2008, 42.1% 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 2.2% to 15.7% of total investments.
 
(1) When-issued security.
 
(2) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
 
(3) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(4) 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 November 30, 2008, the aggregate value of these securities is $1,393,578 or 4.7% of the Trust’s net assets applicable to common shares.
 
(5) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
(6) 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.
 
(7) Security represents the underlying municipal bond of a tender option bond trust (see Note 1H).
 
(8) Security (or a portion thereof) has been pledged as collateral for open swap contracts.
 
 
See notes to financial statements

34


 

Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS 
 
                     
Tax-Exempt Investments — 195.4%
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Bond Bank — 3.5%
 
$ 1,000     Delaware Valley Regional Finance Authority,
5.75%, 7/1/32
  $ 969,830      
 
 
            $ 969,830      
 
 
 
Cogeneration — 5.9%
 
$ 315     Carbon County Industrial Development Authority, (Panther Creek Partners), (AMT), 6.65%, 5/1/10   $ 319,590      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT),
6.50%, 1/1/13
    446,620      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT),
6.60%, 1/1/19
    407,275      
  625     Pennsylvania Economic Development Financing Authority, (Resource Recovery-Colver), (AMT), 5.125%, 12/1/15     471,675      
 
 
            $ 1,645,160      
 
 
 
Electric Utilities — 3.1%
 
$ 600     Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT),
6.75%, 12/1/36
  $ 374,526      
  600     York County Industrial Development Authority, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20     480,852      
 
 
            $ 855,378      
 
 
 
Escrowed/Prerefunded — 14.2%
 
$ 600     Allegheny County Industrial Development Authority, (Residential Resources, Inc.), Prerefunded to 9/1/11, 6.50%, 9/1/21   $ 667,716      
  600     Bucks County Industrial Development Authority, (Pennswood), Prerefunded to 10/1/12,
6.00%, 10/1/27
    677,766      
  925     Montgomery County Higher Education and Health Authority, (Foulkeways at Gwynedd), Prerefunded to 11/15/09, 6.75%, 11/15/30     975,116      
  1,000     Pennsylvania Higher Educational Facilities Authority, (Drexel University), Prerefunded to 5/1/09,
6.00%, 5/1/29
    1,020,750      
  600     Philadelphia Higher Education Facilities Authority, (Chestnut Hill College), Prerefunded to 10/1/09, 6.00%, 10/1/29     635,256      
 
 
            $ 3,976,604      
 
 
 
 
General Obligations — 6.7%
 
$ 1,000     Daniel Boone Area School District, 5.00%, 8/15/32   $ 896,350      
  1,000     Philadelphia School District, 6.00%, 9/1/38     975,520      
 
 
            $ 1,871,870      
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 73,725      
 
 
            $ 73,725      
 
 
 
Hospital — 12.0%
 
$ 1,250     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32   $ 1,002,112      
  1,500     Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43     1,050,645      
  850     Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31     824,135      
  500     Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17     486,280      
 
 
            $ 3,363,172      
 
 
 
Housing — 15.8%
 
$ 515     Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT),
4.95%, 11/1/37
  $ 374,837      
  1,170     Allegheny County Residential Finance Authority, (Single Family Mortgages), (AMT), 5.00%, 5/1/35     889,914      
  990     Pennsylvania Housing Finance Agency, (AMT),
4.70%, 10/1/37
    681,892      
  1,200     Pennsylvania Housing Finance Agency, (AMT), 4.875%, 4/1/26     966,720      
  1,000     Pennsylvania Housing Finance Agency, (AMT),
4.90%, 10/1/37
    730,230      
  1,000     Pennsylvania Housing Finance Agency, (AMT),
5.15%, 10/1/37
    769,940      
 
 
            $ 4,413,533      
 
 
 
Industrial Development Revenue — 8.1%
 
$ 500     New Morgan Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT),
6.50%, 4/1/19
  $ 406,035      
  1,000     Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31     891,630      
 
 
See notes to financial statements

35


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Industrial Development Revenue (continued)
 
                     
  500     Pennsylvania Economic Development Financing Authority, Solid Waste Disposal, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27     333,425      
  1,550     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     623,875      
 
 
            $ 2,254,965      
 
 
 
Insured-Education — 28.9%
 
$ 500     Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37   $ 455,070      
  1,900     Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32     1,737,455      
  1,155     Pennsylvania Higher Educational Facilities Authority, (Drexel University), (MBIA), 5.00%, 5/1/37     1,012,496      
  2,000     Pennsylvania Higher Educational Facilities Authority, (State System Higher Education), (FSA),
5.00%, 6/15/24(1)
    1,928,720      
  1,000     Pennsylvania Higher Educational Facilities Authority, (Temple University), (MBIA), 5.00%, 4/1/33     882,080      
  500     Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37     446,770      
  500     State Public School Building Authority, (Delaware County Community College), (FSA),
5.00%, 10/1/27
    471,420      
  375     State Public School Building Authority, (Delaware County Community College), (FSA),
5.00%, 10/1/29
    346,200      
  875     State Public School Building Authority, (Delaware County Community College), (FSA),
5.00%, 10/1/32
    790,344      
 
 
            $ 8,070,555      
 
 
 
Insured-Electric Utilities — 1.9%
 
$ 630     Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), (MBIA),
4.75%, 2/15/27
  $ 535,954      
 
 
            $ 535,954      
 
 
 
Insured-Escrowed/Prerefunded — 28.6%
 
$ 650     Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09, 6.00%, 11/1/29   $ 688,552      
  1,600     Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27     1,510,032      
  1,801     Puerto Rico Electric Power Authority, (FSA)
Prerefunded to 7/1/10, 5.25%, 7/1/29(2)
    1,918,350      
  2,500     Puerto Rico Electric Power Authority, (FSA)
Prerefunded to 7/1/10, 5.25%, 7/1/29(2)
    2,663,618      
  2,000     Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19     1,205,300      
 
 
            $ 7,985,852      
 
 
 
Insured-General Obligations — 3.8%
 
$ 1,000     Puerto Rico, (FSA), Variable Rate,
12.711%, 7/1/27(3)(4)
  $ 1,072,450      
 
 
            $ 1,072,450      
 
 
 
Insured-Hospital — 15.7%
 
$ 500     Delaware County General Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26   $ 395,975      
  1,440     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (FSA), 5.00%, 7/1/35(2)     1,196,690      
  1,500     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29     1,219,335      
  2,000     Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28     1,580,540      
 
 
            $ 4,392,540      
 
 
 
Insured-Lease Revenue/Certificates of Participation — 3.8%
 
$ 1,195     Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (FSA), 4.75%, 2/15/27   $ 1,054,803      
 
 
            $ 1,054,803      
 
 
 
Insured-Special Tax Revenue — 6.5%
 
$ 1,000     Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24   $ 944,980      
  9,870     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    342,390      
  1,690     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    134,119      
  3,350     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    246,828      
  2,100     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    143,283      
 
 
            $ 1,811,600      
 
 
 
 
See notes to financial statements

36


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Transportation — 13.5%
 
$ 1,000     Pennsylvania Turnpike Commission, (AGC),
5.00%, 6/1/38
  $ 892,750      
  500     Philadelphia Airport Commission, (FSA), (AMT), 5.00%, 6/15/27     386,860      
  1,005     Philadelphia Parking Authority, (AMBAC),
5.25%, 2/15/29
    933,967      
  1,800     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     1,573,101      
 
 
            $ 3,786,678      
 
 
 
Insured-Water and Sewer — 7.2%
 
$ 275     Allegheny County Sanitation Authority, (BHAC), (MBIA), 5.00%, 12/1/22   $ 274,780      
  585     Chester County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (MBIA), (AMT), 5.00%, 2/1/40     394,512      
  875     Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (MBIA), (AMT), 5.00%, 11/1/36     604,958      
  500     Delaware County Industrial Development Authority, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29     427,885      
  360     Philadelphia Water and Wastewater Revenue, (FGIC), 5.00%, 11/1/31     311,436      
 
 
            $ 2,013,571      
 
 
 
Senior Living/Life Care — 6.5%
 
$ 1,000     Cliff House Trust, (AMT), 6.625%, 6/1/27(5)   $ 639,420      
  500     Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29     382,655      
  500     Lancaster County Hospital Authority, (Willow Valley Retirement Communities), 5.875%, 6/1/31     430,420      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24     153,768      
  300     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30     212,904      
 
 
            $ 1,819,167      
 
 
 
Transportation — 5.0%
 
$ 40     Erie Municipal Airport Authority, (AMT),
5.50%, 7/1/09
  $ 39,774      
  485     Erie Municipal Airport Authority, (AMT),
5.875%, 7/1/16
    427,780      
  270     Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 6.25%, 11/1/31     211,461      
  750     Pennsylvania Turnpike Commission, 5.625%, 6/1/29     729,990      
 
 
            $ 1,409,005      
 
 
 
 
Water and Sewer — 4.4%
 
$ 750     Harrisburg Water Authority, 5.25%, 7/15/31   $ 706,425      
  750     Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42     528,487      
 
 
            $ 1,234,912      
 
 
     
Total Tax-Exempt Investments — 195.4%
   
(identified cost $62,735,794)
  $ 54,611,324      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (79.6)%
  $ (22,230,422 )    
 
 
             
Other Assets, Less Liabilities — (15.8)%
  $ (4,437,199 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 27,943,703      
 
 
 
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.
 
MBIA - Municipal Bond Insurance Association
 
The Trust invests primarily in debt securities issued by Pennsylvania municipalities. In addition, 16.1% of the Trust’s total investments at November 30, 2008 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 November 30, 2008, 56.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 22.9% of total investments.
 
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust.
 
(3) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2008.
 
(4) 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 November 30, 2008, the aggregate value of these securities is $1,072,450 or 3.8% of the Trust’s net assets applicable to common shares.
 
(5) Security is in default with respect to scheduled principal payments.
 
 
See notes to financial statements

37


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS
 
Statements of Assets and Liabilities
 
                                     
As of November 30, 2008   California Trust     Massachusetts Trust     Michigan Trust     National Trust      
 
 
 
Assets
 
Investments —
                                   
Identified cost
  $ 155,084,405     $ 61,378,794     $ 47,060,298     $ 101,359,732      
Unrealized depreciation
    (22,894,335 )     (10,094,453 )     (5,594,260 )     (19,487,680 )    
 
 
Investments, at value
  $ 132,190,070     $ 51,284,341     $ 41,466,038     $ 81,872,052      
 
 
Cash
  $ 6,465,485     $ 616,787     $     $      
Interest receivable
    1,926,428       1,082,917       698,528       1,311,984      
Receivable for investments sold
    8,500                   28,832      
Deferred debt issuance costs
    41,077       7,071             70,610      
 
 
Total assets
  $ 140,631,560     $ 52,991,116     $ 42,164,566     $ 83,283,478      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 15,570,000     $ 3,880,000     $ 1,125,000     $ 21,295,000      
Payable for variation margin on open financial futures contracts
    51,047             3,797       25,313      
Payable for open swap contracts
    3,667,977       1,340,750       214,235       2,136,337      
Due to custodian
                228,922       1,894,094      
Payable to affiliates:
                                   
Investment adviser fee
    78,507       27,320       23,860       44,143      
Administration fee
    21,564       8,331       6,817       12,612      
Trustees’ fees
    836       360       300       4,864      
Interest expense and fees payable
    94,898       33,221       18,908       148,917      
Accrued expenses
    102,974       69,874       63,252       97,400      
 
 
Total liabilities
  $ 19,587,803     $ 5,359,856     $ 1,685,091     $ 25,658,680      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 49,978,954     $ 20,055,300     $ 17,502,294     $ 20,152,642      
 
 
Net assets applicable to common shares
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 37,472,156      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 71,855     $ 27,155     $ 21,163     $ 42,574      
Additional paid-in capital
    104,250,556       39,615,795       31,113,305       62,317,743      
Accumulated net realized loss
    (6,695,337 )     (938,397 )     (2,458,199 )     (3,321,916 )    
Accumulated undistributed net investment income
    349,290       306,610       152,189       230,953      
Net unrealized depreciation
    (26,911,561 )     (11,435,203 )     (5,851,277 )     (21,797,198 )    
 
 
Net assets applicable to common shares
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 37,472,156      
 
 
 
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      1,999       802       700       806      
 
 
 
Common Shares Outstanding
 
      7,185,509       2,715,457       2,116,294       4,257,408      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 9.89     $ 10.16     $ 10.86     $ 8.80      
 
 
 
 
See notes to financial statements

38


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Assets and Liabilities
 
                                     
As of November 30, 2008   New Jersey Trust     New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Assets
 
Investments —
                                   
Identified cost
  $ 108,048,815     $ 122,107,447     $ 61,949,288     $ 62,735,794      
Unrealized depreciation
    (21,136,600 )     (22,199,487 )     (8,120,362 )     (8,124,470 )    
 
 
Investments, at value
  $ 86,912,215     $ 99,907,960     $ 53,828,926     $ 54,611,324      
 
 
Cash
  $     $ 678,025     $ 529,885     $      
Interest receivable
    1,489,894       1,662,620       1,038,581       1,031,406      
Receivable for investments sold
          30,000       130,000       90,166      
Deferred debt issuance costs
    5,731       44,920                  
 
 
Total assets
  $ 88,407,840     $ 102,323,525     $ 55,527,392     $ 55,732,896      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 8,047,000     $ 15,150,000     $ 830,000     $ 4,485,780      
Payable for when-issued securities
                1,068,680            
Payable for variation margin on open financial futures contracts
          53,578       10,969       40,078      
Payable for open swap contracts
    2,351,168       2,776,903       974,104       584,150      
Due to custodian
    180,478                   295,927      
Payable to affiliates:
                                   
Investment adviser fee
    49,003       57,640       31,520       31,017      
Administration fee
    14,001       16,469       9,006       8,638      
Trustees’ fees
    566       646       373       367      
Interest expense and fees payable
    77,922       117,278       10,987       44,159      
Accrued expenses
    75,408       96,554       73,880       68,655      
 
 
Total liabilities
  $ 10,795,546     $ 18,269,068     $ 3,009,519     $ 5,558,771      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 34,152,936     $ 33,729,429     $ 22,954,918     $ 22,230,422      
 
 
Net assets applicable to common shares
  $ 43,459,358     $ 50,325,028     $ 29,562,955     $ 27,943,703      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 46,242     $ 53,804     $ 28,293     $ 27,085      
Additional paid-in capital
    66,724,505       78,209,754       41,408,825       38,995,386      
Accumulated net realized loss
    (388,092 )     (2,960,757 )     (2,967,063 )     (2,324,799 )    
Accumulated undistributed net investment income
    564,471       365,184       262,411       228,855      
Net unrealized depreciation
    (23,487,768 )     (25,342,957 )     (9,169,511 )     (8,982,824 )    
 
 
Net assets applicable to common shares
  $ 43,459,358     $ 50,325,028     $ 29,562,955     $ 27,943,703      
 
 
 
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      1,366       1,349       918       889      
 
 
 
Common Shares Outstanding
 
      4,624,183       5,380,419       2,829,304       2,708,462      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 9.40     $ 9.35     $ 10.45     $ 10.32      
 
 
 
 
See notes to financial statements

39


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Operations
 
                                     
For the Year Ended November 30, 2008   California Trust     Massachusetts Trust     Michigan Trust     National Trust      
 
 
 
Investment Income
 
Interest
  $ 8,939,731     $ 3,409,332     $ 2,616,827     $ 5,625,615      
 
 
Total investment income
  $ 8,939,731     $ 3,409,332     $ 2,616,827     $ 5,625,615      
 
 
 
Expenses
 
Investment adviser fee
  $ 1,101,164     $ 405,164     $ 321,079     $ 640,801      
Administration fee
    314,617       116,289       91,736       183,086      
Trustees’ fees and expenses
    6,151       1,991       1,749       4,234      
Custodian fee
    92,278       48,321       35,629       70,909      
Transfer and dividend disbursing agent fees
    31,125       31,296       31,929       31,860      
Legal and accounting services
    60,925       46,621       36,682       232,548      
Printing and postage
    19,909       8,514       4,614       18,686      
Interest expense and fees
    363,174       93,543       45,934       465,586      
Preferred shares service fee
    141,993       52,799       44,219       75,744      
Miscellaneous
    61,258       41,976       39,982       47,317      
 
 
Total expenses
  $ 2,192,594     $ 846,514     $ 653,553     $ 1,770,771      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 21,747     $ 6,222     $ 6,321     $ 22,106      
 
 
Total expense reductions
  $ 21,747     $ 6,222     $ 6,321     $ 22,106      
 
 
Net expenses
  $ 2,170,847     $ 840,292     $ 647,232     $ 1,748,665      
 
 
Net investment income
  $ 6,768,884     $ 2,569,040     $ 1,969,595     $ 3,876,950      
 
 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ (3,385,434 )   $ (13,072 )   $ (389,430 )   $ (110,188 )    
Financial futures contracts
    (1,276,291 )           (15,970 )     (602,012 )    
Swap contracts
    (1,462,697 )     (599,528 )     (90,540 )     (851,924 )    
 
 
Net realized loss
  $ (6,124,422 )   $ (612,600 )   $ (495,940 )   $ (1,564,124 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ (28,100,413 )   $ (11,209,792 )   $ (7,070,614 )   $ (21,866,933 )    
Financial futures contracts
    (334,024 )           (42,782 )     (167,820 )    
Swap contracts
    (2,932,153 )     (1,009,361 )     (163,444 )     (1,707,761 )    
 
 
Net change in unrealized appreciation (depreciation)
  $ (31,366,590 )   $ (12,219,153 )   $ (7,276,840 )   $ (23,742,514 )    
 
 
                                     
Net realized and unrealized loss
  $ (37,491,012 )   $ (12,831,753 )   $ (7,772,780 )   $ (25,306,638 )    
 
 
                                     
Distributions to preferred shareholders
                                   
From net investment income
  $ (1,988,268 )   $ (754,703 )   $ (636,924 )   $ (1,062,311 )    
 
 
                                     
Net decrease in net assets from operations
  $ (32,710,396 )   $ (11,017,416 )   $ (6,440,109 )   $ (22,491,999 )    
 
 
 
 
See notes to financial statements

40


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Operations
 
                                     
For the Year Ended November 30, 2008   New Jersey Trust     New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Investment Income
 
Interest
  $ 5,953,734     $ 7,097,853     $ 3,605,528     $ 3,561,317      
 
 
Total investment income
  $ 5,953,734     $ 7,097,853     $ 3,605,528     $ 3,561,317      
 
 
 
Expenses
 
Investment adviser fee
  $ 701,238     $ 828,520     $ 432,784     $ 416,805      
Administration fee
    200,354       236,721       123,652       119,087      
Trustees’ fees and expenses
    4,406       4,751       2,049       2,012      
Custodian fee
    72,473       94,000       50,574       44,336      
Transfer and dividend disbursing agent fees
    32,647       30,850       29,095       33,550      
Legal and accounting services
    49,128       58,737       45,453       42,528      
Printing and postage
    13,850       13,246       10,779       5,024      
Interest expense and fees
    279,195       403,051       98,659       136,093      
Preferred shares service fee
    94,350       104,525       60,915       56,641      
Miscellaneous
    46,222       39,827       40,423       42,035      
 
 
Total expenses
  $ 1,493,863     $ 1,814,228     $ 894,383     $ 898,111      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 15,184     $ 21,625     $ 8,255     $ 8,034      
 
 
Total expense reductions
  $ 15,184     $ 21,625     $ 8,255     $ 8,034      
 
 
Net expenses
  $ 1,478,679     $ 1,792,603     $ 886,128     $ 890,077      
 
 
Net investment income
  $ 4,475,055     $ 5,305,250     $ 2,719,400     $ 2,671,240      
 
 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ 998,610     $ 206,106     $ (120,145 )   $ 618,570      
Financial futures contracts
          (1,296,932 )     (205,412 )     (973,505 )    
Swap contracts
    (1,053,553 )     (1,107,603 )     (380,218 )     (213,148 )    
 
 
Net realized loss
  $ (54,943 )   $ (2,198,429 )   $ (705,775 )   $ (568,083 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ (23,970,130 )   $ (26,823,804 )   $ (10,895,731 )   $ (10,970,697 )    
Financial futures contracts
          (400,627 )     (78,830 )     (291,483 )    
Swap contracts
    (1,767,360 )     (2,219,248 )     (794,902 )     (504,240 )    
 
 
Net change in unrealized appreciation (depreciation)
  $ (25,737,490 )   $ (29,443,679 )   $ (11,769,463 )   $ (11,766,420 )    
 
 
                                     
Net realized and unrealized loss
  $ (25,792,433 )   $ (31,642,108 )   $ (12,475,238 )   $ (12,334,503 )    
 
 
                                     
Distributions to preferred shareholders
                                   
From net investment income
  $ (1,337,294 )   $ (1,443,622 )   $ (858,575 )   $ (809,974 )    
 
 
                                     
Net decrease in net assets from operations
  $ (22,654,672 )   $ (27,780,480 )   $ (10,614,413 )   $ (10,473,237 )    
 
 
 
 
See notes to financial statements

41


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
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     National Trust      
 
 
From operations —
                                   
Net investment income
  $ 6,768,884     $ 2,569,040     $ 1,969,595     $ 3,876,950      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (6,124,422 )     (612,600 )     (495,940 )     (1,564,124 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (31,366,590 )     (12,219,153 )     (7,276,840 )     (23,742,514 )    
Distributions to preferred shareholders —
From net investment income
    (1,988,268 )     (754,703 )     (636,924 )     (1,062,311 )    
 
 
Net decrease in net assets from operations
  $ (32,710,396 )   $ (11,017,416 )   $ (6,440,109 )   $ (22,491,999 )    
 
 
Distributions to common shareholders —
From net investment income
  $ (4,831,246 )   $ (1,761,505 )   $ (1,293,055 )   $ (2,792,860 )    
 
 
Total distributions to common shareholders
  $ (4,831,246 )   $ (1,761,505 )   $ (1,293,055 )   $ (2,792,860 )    
 
 
Capital share transactions
                                   
Reinvestment of distributions to common shareholders
  $ 39,205     $ 13,438     $     $      
 
 
Net increase in net assets from capital share transactions
  $ 39,205     $ 13,438     $     $      
 
 
                                     
Net decrease in net assets
  $ (37,502,437 )   $ (12,765,483 )   $ (7,733,164 )   $ (25,284,859 )    
 
 
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 108,567,240     $ 40,341,443     $ 30,710,345     $ 62,757,015      
 
 
At end of year
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 37,472,156      
 
 
 
Accumulated undistributed
net investment income included in
net assets applicable to common shares
 
At end of year
  $ 349,290     $ 306,610     $ 152,189     $ 230,953      
 
 
 
 
See notes to financial statements

42


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
                                     
For the Year Ended November 30, 2008                            
Increase (Decrease) in Net Assets   New Jersey Trust     New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
From operations —
                                   
Net investment income
  $ 4,475,055     $ 5,305,250     $ 2,719,400     $ 2,671,240      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (54,943 )     (2,198,429 )     (705,775 )     (568,083 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (25,737,490 )     (29,443,679 )     (11,769,463 )     (11,766,420 )    
Distributions to preferred shareholders —
From net investment income
    (1,337,294 )     (1,443,622 )     (858,575 )     (809,974 )    
 
 
Net decrease in net assets from operations
  $ (22,654,672 )   $ (27,780,480 )   $ (10,614,413 )   $ (10,473,237 )    
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (2,911,723 )   $ (3,874,132 )   $ (1,775,906 )   $ (1,764,997 )    
 
 
Total distributions to common shareholders
  $ (2,911,723 )   $ (3,874,132 )   $ (1,775,906 )   $ (1,764,997 )    
 
 
Capital share transactions
                                   
Reinvestment of distributions to common shareholders
  $ 24,930     $ 48,143     $     $      
 
 
Net increase in net assets from capital share transactions
  $ 24,930     $ 48,143     $     $      
 
 
                                     
Net decrease in net assets
  $ (25,541,465 )   $ (31,606,469 )   $ (12,390,319 )   $ (12,238,234 )    
 
 
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 69,000,823     $ 81,931,497     $ 41,953,274     $ 40,181,937      
 
 
At end of year
  $ 43,459,358     $ 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
  $ 564,471     $ 365,184     $ 262,411     $ 228,855      
 
 
 
 
See notes to financial statements

43


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
                                     
For the Year Ended November 30, 2007                            
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     National Trust      
 
 
From operations —
                                   
Net investment income
  $ 6,721,579     $ 2,481,917     $ 1,932,321     $ 4,018,334      
Net realized gain from investment transactions, financial futures contracts and swap contracts
    1,212,305       1,482,005       612,556       806,170      
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (10,493,249 )     (5,028,194 )     (2,484,463 )     (5,256,087 )    
Distributions to preferred shareholders —
From net investment income
    (2,014,092 )     (734,875 )     (625,544 )     (1,305,923 )    
 
 
Net decrease in net assets from operations
  $ (4,573,457 )   $ (1,799,147 )   $ (565,130 )   $ (1,737,506 )    
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (4,825,005 )   $ (1,734,298 )   $ (1,367,125 )   $ (2,757,391 )    
 
 
Total distributions to common shareholders
  $ (4,825,005 )   $ (1,734,298 )   $ (1,367,125 )   $ (2,757,391 )    
 
 
                                     
Net decrease in net assets
  $ (9,398,462 )   $ (3,533,445 )   $ (1,932,255 )   $ (4,494,897 )    
 
 
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 117,965,702     $ 43,874,888     $ 32,642,600     $ 67,251,912      
 
 
At end of year
  $ 108,567,240     $ 40,341,443     $ 30,710,345     $ 62,757,015      
 
 
 
 
Accumulated undistributed
net investment income included in
net assets applicable to common shares
 
At end of year
  $ 470,128     $ 258,921     $ 119,435     $ 221,395      
 
 
 
 
See notes to financial statements

44


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
                                     
For the Year Ended November 30, 2007                            
Increase (Decrease) in Net Assets   New Jersey Trust     New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
From operations —
                                   
Net investment income
  $ 4,281,160     $ 5,325,083     $ 2,652,615     $ 2,581,747      
Net realized gain (loss) from investment transactions, financial futures contracts and swap contracts
    2,245,358       985,195       1,008,079       (79,473 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    (8,114,677 )     (7,930,136 )     (3,397,293 )     (1,711,887 )    
Distributions to preferred shareholders —
From net investment income
    (1,262,219 )     (1,544,549 )     (839,516 )     (813,684 )    
 
 
Net decrease in net assets from operations
  $ (2,850,378 )   $ (3,164,407 )   $ (576,115 )   $ (23,297 )    
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (2,994,385 )   $ (3,873,823 )   $ (1,856,075 )   $ (1,793,216 )    
 
 
Total distributions to common shareholders
  $ (2,994,385 )   $ (3,873,823 )   $ (1,856,075 )   $ (1,793,216 )    
 
 
                                     
Net decrease in net assets
  $ (5,844,763 )   $ (7,038,230 )   $ (2,432,190 )   $ (1,816,513 )    
 
 
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 74,845,586     $ 88,969,727     $ 44,385,464     $ 41,998,450      
 
 
At end of year
  $ 69,000,823     $ 81,931,497     $ 41,953,274     $ 40,181,937      
 
 
 
Accumulated undistributed
net investment income included in
net assets applicable to common shares
 
At end of year
  $ 369,307     $ 391,474     $ 191,149     $ 154,809      
 
 
 
 
See notes to financial statements

45


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Cash Flows
 
                     
For the Year Ended November 30, 2008                
Cash Flows From Operating Activities   National Trust     New York Trust      
 
 
Net decrease in net assets from operations
  $ (22,491,999 )   $ (27,780,480 )    
Distributions to preferred shareholders
    1,062,311       1,443,622      
 
 
Net decrease in net assets from operations excluding distributions to preferred shareholders
  $ (21,429,688 )   $ (26,336,858 )    
Adjustments to reconcile net decrease in net assets from operations to net cash provided by (used in) operating activities:
                   
Investments purchased
    (104,784,642 )     (61,321,560 )    
Investments sold
    111,337,868       80,577,139      
Net accretion/amortization of premium (discount)
    (559,251 )     (433,237 )    
Amortization of deferred debt issuance costs
    3,584       4,212      
Decrease (increase) in interest receivable
    (291,191 )     219,921      
Increase in receivable for investments sold
    (28,832 )     (5,000 )    
Decrease in receivable for variation margin on open financial futures contracts
    15,625       45,000      
Decrease in prepaid expenses
    3,471       3,811      
Decrease in payable to affiliate for inverse floaters
    (506,570 )          
Decrease in payable for when-issued securities
          (1,214,013 )    
Increase in payable for variation margin on open financial futures contracts
    25,313       53,578      
Increase in payable for open swap contracts
    1,707,761       2,219,248      
Decrease in payable to affiliate for investment adviser fee
    (12,506 )     (15,087 )    
Decrease in payable to affiliate for administration fee
    (3,573 )     (4,310 )    
Increase (decrease) in payable to affiliate for Trustees’ fees
    3,594       (625 )    
Increase (decrease) in interest expense and fees payable
    65,557       (105,360 )    
Increase in accrued expenses
    11,894       1,869      
Net change in unrealized (appreciation) depreciation from investments
    21,866,933       26,823,804      
Net realized (gain) loss from investments
    110,188       (206,106 )    
 
 
Net cash provided by operating activities
  $ 7,535,535     $ 20,306,426      
 
 
 
Cash Flows From Financing Activities
 
Deferred debt issuance costs
  $ (74,194 )   $ (49,132 )    
Cash distributions paid to common shareholders, net of reinvestments
    (2,792,860 )     (3,825,989 )    
Distributions to preferred shareholders
    (1,067,941 )     (1,444,380 )    
Liquidation of auction preferred shares
    (15,350,000 )     (10,775,000 )    
Proceeds from secured borrowings
    32,265,000       20,210,000      
Repayment of secured borrowings
    (23,060,000 )     (24,210,000 )    
Increase in due to custodian
    1,894,094            
 
 
Net cash used in financing activities
  $ (8,185,901 )   $ (20,094,501 )    
 
 
                     
Net increase (decrease) in cash
  $ (650,366 )   $ 211,925      
 
 
                     
Cash at beginning of year
  $ 650,366     $ 466,100      
 
 
                     
Cash at end of year
  $     $ 678,025      
 
 
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of:
  $     $ 48,143      
 
 
 
 
See notes to financial statements

46


 

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

47


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    California Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    1.87 %     1.78 %(4)     1.79 %     1.78 %     1.78 %    
Interest and fee expense(5)
    0.37 %     0.34 %     0.49 %     0.33 %     0.20 %    
Total expenses before custodian fee reduction
    2.24 %     2.12 %(4)     2.28 %     2.11 %     1.98 %    
Expenses after custodian fee reduction excluding interest and fees
    1.85 %     1.76 %(4)     1.77 %     1.76 %     1.77 %    
Net investment income
    6.91 %     5.94 %     6.12 %     6.52 %     7.10 %    
Portfolio Turnover
    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
    1.18 %     1.17 %(4)     1.18 %     1.16 %     1.15 %    
Interest and fee expense(5)
    0.24 %     0.22 %     0.32 %     0.22 %     0.13 %    
Total expenses before custodian fee reduction
    1.42 %     1.39 %(4)     1.50 %     1.38 %     1.28 %    
Expenses after custodian fee reduction excluding interest and fees
    1.17 %     1.16 %(4)     1.16 %     1.15 %     1.15 %    
Net investment income
    4.39 %     3.90 %     4.03 %     4.26 %     4.61 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,999       2,360       2,360       2,360       2,360      
Asset coverage per preferred share(6)
  $ 60,552     $ 71,003     $ 74,997     $ 71,942     $ 70,849      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

48


 

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

49


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    Massachusetts Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    2.06 %     1.91 %(4)     1.88 %     1.88 %     1.87 %    
Interest and fee expense(5)
    0.26 %     0.61 %     0.77 %     0.52 %     0.30 %    
Total expenses before custodian fee reduction
    2.32 %     2.52 %(4)     2.65 %     2.40 %     2.17 %    
Expenses after custodian fee reduction excluding interest and fees
    2.04 %     1.89 %(4)     1.87 %     1.87 %     1.86 %    
Net investment income
    7.03 %     5.90 %     6.01 %     6.29 %     6.97 %    
Portfolio Turnover
    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
    1.31 %     1.26 %(4)     1.24 %     1.24 %     1.22 %    
Interest and fee expense(5)
    0.16 %     0.40 %     0.51 %     0.34 %     0.19 %    
Total expenses before custodian fee reduction
    1.47 %     1.66 %(4)     1.75 %     1.58 %     1.41 %    
Expenses after custodian fee reduction excluding interest and fees
    1.30 %     1.25 %(4)     1.24 %     1.24 %     1.22 %    
Net investment income
    4.47 %     3.91 %     3.98 %     4.15 %     4.55 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    802       860       860       860       860      
Asset coverage per preferred share(6)
  $ 59,391     $ 71,920     $ 76,024     $ 73,138     $ 72,281      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

50


 

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

51


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    Michigan Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    2.15 %     2.03 %(4)     1.97 %     2.00 %     1.96 %    
Interest and fee expense(5)
    0.16 %     0.32 %     0.46 %     0.40 %     0.42 %    
Total expenses before custodian fee reduction
    2.31 %     2.35 %(4)     2.43 %     2.40 %     2.38 %    
Expenses after custodian fee reduction excluding interest and fees
    2.13 %     2.01 %(4)     1.96 %     1.99 %     1.96 %    
Net investment income
    6.96 %     6.12 %     6.35 %     6.60 %     7.16 %    
Portfolio Turnover
    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
    1.33 %     1.31 %(4)     1.27 %     1.29 %     1.26 %    
Interest and fee expense(5)
    0.10 %     0.21 %     0.29 %     0.26 %     0.27 %    
Total expenses before custodian fee reduction
    1.43 %     1.52 %(4)     1.56 %     1.55 %     1.53 %    
Expenses after custodian fee reduction excluding interest and fees
    1.31 %     1.29 %(4)     1.26 %     1.28 %     1.26 %    
Net investment income
    4.30 %     3.94 %     4.09 %     4.26 %     4.60 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    700       700       700       700       700      
Asset coverage per preferred share(6)
  $ 57,828     $ 68,878     $ 71,635     $ 69,796     $ 69,810      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

52


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                             
    National Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
Net asset value — Beginning of year (Common shares)
  $ 14.740     $ 15.800     $ 15.150     $ 15.040     $ 15.530      
 
 
                                             
 
Income (loss) from operations
 
Net investment income(1)
  $ 0.911     $ 0.944     $ 0.970     $ 1.013     $ 1.082      
Net realized and unrealized gain (loss)
    (5.945 )     (1.049 )     0.678       0.179       (0.450 )    
Distributions to preferred shareholders
                                           
From net investment income
    (0.250 )     (0.307 )     (0.270 )     (0.177 )     (0.087 )    
 
 
Total income (loss) from operations
  $ (5.284 )   $ (0.412 )   $ 1.378     $ 1.015     $ 0.545      
 
 
                                             
 
Less distributions to common shareholders
 
From net investment income
  $ (0.656 )   $ (0.648 )   $ (0.728 )   $ (0.905 )   $ (1.035 )    
 
 
Total distributions to common shareholders
  $ (0.656 )   $ (0.648 )   $ (0.728 )   $ (0.905 )   $ (1.035 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 8.800     $ 14.740     $ 15.800     $ 15.150     $ 15.040      
 
 
                                             
Market value — End of year (Common shares)
  $ 7.640     $ 12.720     $ 14.180     $ 14.180     $ 15.250      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    (36.71 )%     (2.26 )%     9.84 %     6.98 %     3.80 %    
 
 
                                             
Total Investment Return on Market Value(2)
    (36.32 )%     (6.02 )%     5.32 %     (1.25 )%     5.76 %    
 
 
 
 
See notes to financial statements

53


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    National Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 37,472     $ 62,757     $ 67,252     $ 64,501     $ 63,911      
Ratios (as a percentage of average daily net assets applicable
to common shares):(3)
Expenses excluding interest and fees
    2.34 %     1.87 %(4)     1.87 %     1.86 %     1.84 %    
Interest and fee expense(5)
    0.83 %     0.75 %     0.54 %     0.42 %     0.50 %    
Total expenses before custodian fee reduction
    3.17 %     2.62 %(4)     2.41 %     2.28 %     2.34 %    
Expenses after custodian fee reduction excluding interest and fees
    2.30 %     1.86 %(4)     1.86 %     1.85 %     1.83 %    
Net investment income
    6.95 %     6.16 %     6.33 %     6.65 %     7.09 %    
Portfolio Turnover
    108 %     26 %     33 %     15 %     4 %    
 
 
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
    1.53 %     1.21 %(4)     1.21 %     1.20 %     1.18 %    
Interest and fee expense(5)
    0.54 %     0.48 %     0.35 %     0.27 %     0.32 %    
Total expenses before custodian fee reduction
    2.07 %     1.69 %(4)     1.56 %     1.47 %     1.50 %    
Expenses after custodian fee reduction excluding interest and fees
    1.50 %     1.20 %(4)     1.20 %     1.19 %     1.18 %    
Net investment income
    4.52 %     3.99 %     4.10 %     4.30 %     4.58 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    806       1,420       1,420       1,420       1,420      
Asset coverage per preferred share(6)
  $ 71,495     $ 69,201     $ 72,363     $ 70,423     $ 70,011      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

54


 

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

55


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    New Jersey Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    1.96 %     1.84 %(4)     1.85 %     1.86 %     1.85 %    
Interest and fee expense(5)
    0.45 %     0.89 %     0.93 %     0.58 %     0.50 %    
Total expenses before custodian fee reduction
    2.41 %     2.73 %(4)     2.78 %     2.44 %     2.35 %    
Expenses after custodian fee reduction excluding interest and fees
    1.94 %     1.81 %(4)     1.83 %     1.84 %     1.84 %    
Net investment income
    7.22 %     5.94 %     6.20 %     6.66 %     7.28 %    
Portfolio Turnover
    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
    1.23 %     1.21 %(4)     1.20 %     1.21 %     1.19 %    
Interest and fee expense(5)
    0.28 %     0.58 %     0.61 %     0.38 %     0.32 %    
Total expenses before custodian fee reduction
    1.51 %     1.79 %(4)     1.81 %     1.59 %     1.51 %    
Expenses after custodian fee reduction excluding interest and fees
    1.21 %     1.19 %(4)     1.19 %     1.19 %     1.18 %    
Net investment income
    4.51 %     3.89 %     4.04 %     4.33 %     4.68 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,366       1,520       1,520       1,520       1,520      
Asset coverage per preferred share(6)
  $ 56,817     $ 70,395     $ 74,250     $ 70,651     $ 69,935      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

56


 

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

57


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    New York Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    1.92 %     1.80 %(4)     1.82 %     1.81 %     1.78 %    
Interest and fee expense(5)
    0.55 %     0.98 %     1.03 %     0.57 %     0.32 %    
Total expenses before custodian fee reduction
    2.47 %     2.78 %(4)     2.85 %     2.38 %     2.10 %    
Expenses after custodian fee reduction excluding interest and fees
    1.89 %     1.78 %(4)     1.80 %     1.80 %     1.78 %    
Net investment income
    7.21 %     6.23 %     6.22 %     6.72 %     7.23 %    
Portfolio Turnover
    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
    1.23 %     1.18 %(4)     1.19 %     1.19 %     1.16 %    
Interest and fee expense(5)
    0.35 %     0.65 %     0.68 %     0.37 %     0.21 %    
Total expenses before custodian fee reduction
    1.58 %     1.83 %(4)     1.87 %     1.56 %     1.37 %    
Expenses after custodian fee reduction excluding interest and fees
    1.21 %     1.17 %(4)     1.19 %     1.19 %     1.16 %    
Net investment income
    4.63 %     4.10 %     4.09 %     4.42 %     4.71 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,349       1,780       1,780       1,780       1,780      
Asset coverage per preferred share(6)
  $ 62,309     $ 71,032     $ 74,983     $ 72,311     $ 71,659      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

58


 

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

59


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    Ohio Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    2.08 %     1.93 %(4)     1.92 %     1.91 %     1.91 %    
Interest and fee expense(5)
    0.26 %     0.72 %     0.74 %     0.54 %     0.29 %    
Total expenses before custodian fee reduction
    2.34 %     2.65 %(4)     2.66 %     2.45 %     2.20 %    
Expenses after custodian fee reduction excluding interest and fees
    2.06 %     1.91 %(4)     1.92 %     1.90 %     1.90 %    
Net investment income
    7.12 %     6.17 %     6.31 %     6.57 %     7.23 %    
Portfolio Turnover
    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
    1.29 %     1.25 %(4)     1.25 %     1.24 %     1.23 %    
Interest and fee expense(5)
    0.16 %     0.46 %     0.48 %     0.35 %     0.19 %    
Total expenses before custodian fee reduction
    1.45 %     1.71 %(4)     1.73 %     1.59 %     1.42 %    
Expenses after custodian fee reduction excluding interest and fees
    1.28 %     1.23 %(4)     1.24 %     1.23 %     1.22 %    
Net investment income
    4.41 %     3.99 %     4.08 %     4.25 %     4.64 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    918       940       940       940       940      
Asset coverage per preferred share(6)
  $ 57,209     $ 69,640     $ 72,223     $ 69,888     $ 70,153      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

60


 

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

61


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FINANCIAL STATEMENTS CONT’D
 
 
                                             
    Pennsylvania Trust
   
    Year Ended November 30,
   
    2008     2007     2006     2005     2004      
 
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 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
    2.06 %     1.95 %(4)     1.94 %     1.97 %     1.91 %    
Interest and fee expense(5)
    0.37 %     0.70 %     0.93 %     0.44 %     0.24 %    
Total expenses before custodian fee reduction
    2.43 %     2.65 %(4)     2.87 %     2.41 %     2.15 %    
Expenses after custodian fee reduction excluding interest and fees
    2.04 %     1.94 %(4)     1.93 %     1.95 %     1.91 %    
Net investment income
    7.23 %     6.28 %     6.53 %     6.69 %     7.18 %    
Portfolio Turnover
    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
    1.28 %     1.27 %(4)     1.25 %     1.27 %     1.23 %    
Interest and fee expense(5)
    0.23 %     0.45 %     0.60 %     0.28 %     0.15 %    
Total expenses before custodian fee reduction
    1.51 %     1.72 %(4)     1.85 %     1.55 %     1.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.27 %     1.26 %(4)     1.24 %     1.26 %     1.22 %    
Net investment income
    4.50 %     4.06 %     4.21 %     4.30 %     4.61 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    889       900       900       900       900      
Asset coverage per preferred share(6)
  $ 56,439     $ 69,658     $ 71,672     $ 69,708     $ 69,471      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 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) 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.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing this by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.
 
 
See notes to financial statements

62


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS
 
1   Significant Accounting Policies
 
Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance National Municipal Income Trust (National Trust) (formerly, Eaton Vance Florida Plus Municipal Income 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 in state specific funds, taxes in its specified state, as applicable.
 
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 commodity exchanges are valued based on the closing price on the primary exchange on which such contracts trade. 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, and investments for which the price of a security is not believed to represent its fair market value, are valued at fair value using methods determined in good faith by or at the direction of the Trustees.
 
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 each 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
             
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
             
National
    160,909     November 30, 2009
      1,495,013     November 30, 2012
      114,338     November 30, 2013
      1,728,781     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

63


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
             
Trust   Amount     Expiration Date
 
 
             
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
 
During the year ended November 30, 2008, a capital loss carryforward of $92,095 was utilized to offset net realized gains by the New Jersey Trust.
 
As of November 30, 2008, 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 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 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 collapsing the SPV. 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. 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 November 30, 2008, the amounts of the Trusts’ Floating Rate Notes and related interest rates and collateral were as follows:
 
                         
          Interest Rate or
    Collateral for
 
    Floating Rate
    Range of
    Floating Rate
 
Trust   Notes Outstanding     Interest Rates (%)     Notes Outstanding  
   
 
California
  $ 15,570,000       0.98 – 6.19     $ 18,844,540  
Massachusetts
    3,880,000       0.88 – 2.15       4,462,489  
Michigan
    1,125,000       1.07 – 6.00       1,464,315  
National
    21,295,000       1.00 – 1.90       21,524,236  

64


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                         
          Interest Rate or
    Collateral for
 
    Floating Rate
    Range of
    Floating Rate
 
Trust   Notes Outstanding     Interest Rates (%)     Notes Outstanding  
   
 
New Jersey
  $ 8,047,000       1.04 – 1.90     $ 8,957,566  
New York
    15,150,000       0.88 – 1.90       15,925,746  
Ohio
    830,000       0.93 – 1.07       1,141,125  
Pennsylvania
    4,485,780       1.00 – 4.00       7,351,759  
 
The Trusts’ exposure under shortfall and forbearance agreements that were entered into as of November 30, 2008 was approximately $823,000, $35,000, $1,190,000, $79,000 and $721,000 for California Trust, Massachusetts Trust, National Trust, New Jersey Trust and New York Trust, respectively, and none for Michigan Trust, Ohio Trust and Pennsylvania Trust.
 
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 on 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.
 
L  Statement of Cash Flows —
The cash amount shown in the Statement of Cash Flows of a Trust is the amount included in a Trust’s Statement of Assets and Liabilities and represents cash on hand at its custodian and does not include any short-term investments.
 
2   Auction Preferred Shares
 
Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite

65


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction.
 
During the year ended November 30, 2008, certain Trusts made a partial redemption of their APS at a liquidation price of $25,000 per share. Replacement financing may have been provided through the creation of TOB trusts, whereby a Trust transferred highly rated bonds held in its portfolio to an SPV (see Note 1H) and used the proceeds from the sale of the Floating Rate Notes to replace the APS. Such Floating Rate Notes have a liquidity backstop financing facility provided by a major financial institution. The number of APS redeemed and redemption amount (excluding the final dividend payment) during the year ended November 30, 2008 and the number of APS issued and outstanding as of November 30, 2008 were as follows:
 
                         
    APS Redeemed
             
    During the
    Redemption
    APS Issued and
 
Trust   Period     Amount     Outstanding  
   
 
California
    361     $ 9,025,000       1,999  
Massachusetts
    58       1,450,000       802  
Michigan
                700  
National
    614       15,350,000       806  
New Jersey
    154       3,850,000       1,366  
New York
    431       10,775,000       1,349  
Ohio
    22       550,000       918  
Pennsylvania
    11       275,000       889  
 
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 0.25% of the liquidation value of the APS to broker-dealers as a service fee.
 
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 APS at November 30, 2008, and the amount of dividends paid (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the year then ended were as follows:
 
                                 
    APS Dividend
    Dividends
             
    Rates at
    Paid to APS
    Average APS
    Dividend Rate
 
Trust   November 30, 2008     Shareholders     Dividend Rates     Ranges (%)  
   
 
California
    1.57 %   $ 1,988,268       3.98 %     1.57 – 10.21  
Massachusetts
    1.61       754,703       3.76       1.61 – 11.35  
Michigan
    1.60       636,924       3.64       1.58 – 12.26  
National
    1.60       1,062,311       3.56       1.58 – 12.26  
New Jersey
    1.57       1,337,294       3.59       1.57 – 10.21  
New York
    1.60       1,443,622       4.28       1.57 – 11.73  
Ohio
    1.56       858,575       3.66       1.56 – 12.57  
Pennsylvania
    1.61       809,974       3.60       1.61 – 11.35  
 
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of November 30, 2008.
 
The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.
 
The tax character of distributions declared for the years ended November 30, 2008 and November 30, 2007 was as follows:
 
                                 
Year Ended November 30, 2008  
   
    California
    Massachusetts
    Michigan
    National
 
    Trust     Trust     Trust     Trust  
   
 
Distributions declared from:
                               
Tax-exempt income
  $ 6,819,447     $ 2,516,208     $ 1,929,979     $ 3,855,168  
Ordinary income
  $ 67     $     $     $ 3  
 

66


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                                 
Year Ended November 30, 2008  
   
    New Jersey
    New York
    Ohio
    Pennsylvania
 
    Trust     Trust     Trust     Trust  
   
 
Distributions declared from:
                               
Tax-exempt income
  $ 4,248,329     $ 5,317,570     $ 2,634,481     $ 2,574,969  
Ordinary income
  $ 688     $ 184     $     $ 2  
 
                                 
Year Ended November 30, 2007  
   
    California
    Massachusetts
    Michigan
    National
 
    Trust     Trust     Trust     Trust  
   
 
Distributions declared from:
                               
Tax-exempt income
  $ 6,839,097     $ 2,460,878     $ 1,979,161     $ 4,063,314  
Ordinary income
  $     $ 8,295     $ 13,508     $  
 
                                 
Year Ended November 30, 2007  
   
    New Jersey
    New York
    Ohio
    Pennsylvania
 
    Trust     Trust     Trust     Trust  
   
 
Distributions declared from:
                               
Tax-exempt income
  $ 4,256,604     $ 5,417,963     $ 2,683,661     $ 2,606,900  
Ordinary income
  $     $ 409     $ 11,930     $  
 
During the year ended November 30, 2008, the following amounts were reclassified due to differences between book and tax accounting, primarily for accretion of market discount and expired capital loss carryforwards.
 
                                 
    California
    Massachusetts
    Michigan
    National
 
    Trust     Trust     Trust     Trust  
   
 
Increase (decrease):
                               
Paid-in capital
  $ (2,239,451 )   $ (594,169 )   $ (337,655 )   $ (936,796 )
Accumulated net realized loss
  $ 2,309,659     $ 599,312     $ 344,517     $ 949,017  
Accumulated undistributed net investment income
  $ (70,208 )   $ (5,143 )   $ (6,862 )   $ (12,221 )
 
                                 
    New Jersey
    New York
    Ohio
    Pennsylvania
 
    Trust     Trust     Trust     Trust  
   
 
Increase (decrease):
                               
Paid-in capital
  $ (1,898,620 )   $ (1,621,946 )   $ (625,516 )   $ (807,118 )
Accumulated net realized loss
  $ 1,929,494     $ 1,635,732     $ 639,173     $ 829,341  
Accumulated undistributed net investment income
  $ (30,874 )   $ (13,786 )   $ (13,657 )   $ (22,223 )
 
These reclassifications had no effect on the net assets or net value per share of the Trusts.
 
As of November 30, 2008, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:
 
                                 
    California
    Massachusetts
    Michigan
    National
 
    Trust     Trust     Trust     Trust  
   
 
Undistributed income
  $ 353,244     $ 311,910     $ 154,483     $ 233,595  
Capital loss carryforward
  $ (7,685,344 )   $ (1,075,335 )   $ (2,524,297 )   $ (3,499,041 )
Net unrealized depreciation
  $ (25,921,554 )   $ (11,298,265 )   $ (5,785,179 )   $ (21,620,073 )
Other temporary differences
  $ (3,954 )   $ (5,300 )   $ (2,294 )   $ (2,642 )
 
                                 
    New Jersey
  New York
  Ohio
  Pennsylvania
    Trust   Trust   Trust   Trust
 
 
Undistributed income
  $ 567,407     $ 369,613     $ 267,329     $ 234,277  
Capital loss carryforward
  $ (439,658 )   $ (2,424,640 )   $ (2,939,985 )   $ (2,579,335 )
Net unrealized depreciation
  $ (23,436,202 )   $ (25,879,074 )   $ (9,196,589 )   $ (8,728,288 )
Other temporary differences
  $ (2,936 )   $ (4,429 )   $ (4,918 )   $ (5,422 )
 
The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, futures contracts, the timing of recognizing distributions to shareholders, accretion of market discount and inverse floaters.
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 year ended November 30, 2008, the

67


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
investment adviser fee and administration fee were as follows:
 
                 
    Investment
    Administration
 
Trust   Adviser Fee     Fee  
   
 
California
  $ 1,101,164     $ 314,617  
Massachusetts
    405,164       116,289  
Michigan
    321,079       91,736  
National
    640,801       183,086  
New Jersey
    701,238       200,354  
New York
    828,520       236,721  
Ohio
    432,784       123,652  
Pennsylvania
    416,805       119,087  
 
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 year ended November 30, 2008, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
 
Pursuant to FAS 140, certain Inverse Floaters sold by the National Trust to an affiliated fund were deemed to be held by the National Trust. Interest income of $28,056 paid by the SPVs to the affiliated fund for the year ended November 30, 2008 was deemed paid by the National Trust and is included in interest expense. The fixed rate bond was withdrawn from each respective SPV and subsequently sold during the year ended November 30, 2008.
5   Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the year ended November 30, 2008 were as follows:
 
                 
Trust   Purchases     Sales  
   
 
California
  $ 49,883,117     $ 62,205,873  
Massachusetts
    23,373,987       24,740,083  
Michigan
    10,887,500       11,408,314  
National
    104,784,642       111,337,868  
New Jersey
    57,660,002       67,425,135  
New York
    61,321,560       80,577,139  
Ohio
    16,990,152       23,384,997  
Pennsylvania
    15,559,230       19,497,225  
 
6   Common Shares of Beneficial Interest
 
Common shares issued pursuant to the Trusts’ dividend reinvestment plan for the years ended November 30, 2008 and November 30, 2007 were as follows:
 
                         
    Year Ended November 30,  
Trust   2008     2007        
   
 
California
    4,021                
Massachusetts
    1,394                
Michigan
                   
National
                   
New Jersey
    2,698                
New York
    5,073                
Ohio
                   
Pennsylvania
                   
7   Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Trust at November 30, 2008, as determined on a federal income tax basis, were as follows:
 
                 
California Trust
               
 
 
Aggregate cost
  $ 138,873,647          
 
 
Gross unrealized appreciation
  $ 1,648,954          
Gross unrealized depreciation
    (23,902,531 )        
 
 
Net unrealized depreciation
  $ (22,253,577 )        
 
 
                 
Massachusetts Trust
               
 
 
Aggregate cost
  $ 57,361,856          
 
 
Gross unrealized appreciation
  $ 468,276          
Gross unrealized depreciation
    (10,425,791 )        
 
 
Net unrealized depreciation
  $ (9,957,515 )        
 
 
                 
Michigan Trust
               
 
 
Aggregate cost
  $ 45,911,982          
 
 
Gross unrealized appreciation
  $ 1,160,057          
Gross unrealized depreciation
    (6,731,001 )        
 
 
Net unrealized depreciation
  $ (5,570,944 )        
 
 
                 
National Trust
               
 
 
Aggregate cost
  $ 80,060,788          
 
 
Gross unrealized appreciation
  $ 2,275,429          
Gross unrealized depreciation
    (21,759,165 )        
 
 
Net unrealized depreciation
  $ (19,483,736 )        
 
 

68


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                 
                 
New Jersey Trust
               
 
 
Aggregate cost
  $ 99,950,249          
 
 
Gross unrealized appreciation
  $ 129,185          
Gross unrealized depreciation
    (21,214,219 )        
 
 
Net unrealized depreciation
  $ (21,085,034 )        
 
 
                 
New York Trust
               
 
 
Aggregate cost
  $ 107,860,131          
 
 
Gross unrealized appreciation
  $ 608,073          
Gross unrealized depreciation
    (23,710,244 )        
 
 
Net unrealized depreciation
  $ (23,102,171 )        
 
 
                 
Ohio Trust
               
 
 
Aggregate cost
  $ 61,221,411          
 
 
Gross unrealized appreciation
  $ 482,329          
Gross unrealized depreciation
    (8,704,814 )        
 
 
Net unrealized depreciation
  $ (8,222,485 )        
 
 
                 
Pennsylvania Trust
               
 
 
Aggregate cost
  $ 58,269,682          
 
 
Gross unrealized appreciation
  $ 784,049          
Gross unrealized depreciation
    (8,928,187 )        
 
 
Net unrealized depreciation
  $ (8,144,138 )        
 
 
 
8   Overdraft Advances
 
Pursuant to the respective custodian agreements, SSBT may, in its discretion, advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft, the Trusts are obliged to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to SSBT. SSBT has a lien on a Trust’s assets to the extent of any overdraft. At November 30, 2008, the Michigan Trust, National Trust, New Jersey Trust and Pennsylvania Trust had payments due to SSBT pursuant to the foregoing arrangement of $228,922, $1,894,094, $180,478 and $295,927, respectively.
 
9   Financial Instruments
 
The Trusts may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and 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 November 30, 2008 is as follows:
 
                                             
Futures Contracts
 
    Expiration
            Aggregate
          Net Unrealized
     
Trust   Date   Contracts   Position     Cost     Value     Depreciation      
 
California
  3/09   121                                    
        U.S. Treasury Bond     Short     $ (15,076,360 )   $ (15,425,609 )   $ (349,249 )    
 
 
Michigan
  3/09   9                                    
        U.S. Treasury Bond     Short     $ (1,104,577 )   $ (1,147,359 )   $ (42,782 )    
 
 
National
  3/09   60                                    
        U.S. Treasury Bond     Short     $ (7,475,881 )   $ (7,649,062 )   $ (173,181 )    
 
 
New York
  3/09   127                                    
        U.S. Treasury Bond     Short     $ (15,823,949 )   $ (16,190,516 )   $ (366,567 )    
 
 
Ohio
  3/09   26                                    
        U.S. Treasury Bond     Short     $ (3,239,549 )   $ (3,314,594 )   $ (75,045 )    
 
 
Pennsylvania
  3/09   95                                    
        U.S. Treasury Bond     Short     $ (11,836,812 )   $ (12,111,016 )   $ (274,204 )    
 
 
 
                             
Interest Rate Swaps
 
California 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. 
  $2,125,000   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (680,646 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  6,825,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (2,174,821 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  2,575,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (812,510 )    
 
 
                             
                    $ (3,667,977 )    
 
 
 
                             
Massachusetts 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. 
  $787,500   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (252,239 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  2,500,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (796,638 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  925,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (291,873 )    
 
 
                    $ (1,340,750 )    
 
 
 

69


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                             
Michigan Trust
 
        Annual
  Floating
  Effective Date/
         
    Notional
  Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount   Paid By Trust   Paid To Trust   Date   Depreciation      
 
Merrill Lynch
Capital
Services, Inc. 
  $400,000   4.682%   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
  $ (127,462 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  275,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (86,773 )    
 
 
                    $ (214,235 )    
 
 
 
                             
National 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. 
  $1,237,500   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (396,376 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  3,975,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (1,266,654 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  1,500,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (473,307 )    
 
 
                    $ (2,136,337 )    
 
 
 
                             
New Jersey 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. 
  $1,362,500   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (436,414 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  4,375,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (1,394,116 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  1,650,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (520,638 )    
 
 
                    $ (2,351,168 )    
 
 
 
                             
New York 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. 
  $1,600,000   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (512,487 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  5,200,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (1,657,006 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  1,925,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (607,410 )    
 
 
                    $ (2,776,903 )    
 
 
 
                             
Ohio 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. 
  $812,500   4.743%   3-month
USD-LIBOR-BBA
  September 14, 2009/
September 14, 2039
  $ (260,247 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
  1,250,000   4.682   3-month
USD-LIBOR-BBA
  April 1, 2009/
April 1, 2039
    (398,319 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  1,000,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (315,538 )    
 
 
                    $ (974,104 )    
 
 
 
                             
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
  $ (292,277 )    
 
 
Morgan Stanley
Capital
Services, Inc. 
  925,000   4.691   3-month
USD-LIBOR-BBA
  June 11, 2009/
June 11, 2039
    (291,873 )    
 
 
                    $ (584,150 )    
 
 
 
The effective date represents the date on which a Trust and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At November 30, 2008, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.
 
10   Fair Value Measurements
 
The Trusts adopted FASB Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective December 1, 2007. FAS 157 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.

70


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
At November 30, 2008, the inputs used in valuing the Trusts’ investments, which are carried at value, were as follows:
 
                         
California Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (349,249 )    
Level 2
  Other Significant Observable Inputs     132,190,070       (3,667,977 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 132,190,070     $ (4,017,226 )    
 
 
 
                         
Massachusetts Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $      
Level 2
  Other Significant Observable Inputs     51,284,341       (1,340,750 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 51,284,341     $ (1,340,750 )    
 
 
 
                         
Michigan Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (42,782 )    
Level 2
  Other Significant Observable Inputs     41,466,038       (214,235 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 41,466,038     $ (257,017 )    
 
 
 
                         
National Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (173,181 )    
Level 2
  Other Significant Observable Inputs     81,872,052       (2,136,337 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 81,872,052     $ (2,309,518 )    
 
 
 
                         
New Jersey Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $      
Level 2
  Other Significant Observable Inputs     86,912,215       (2,351,168 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 86,912,215     $ (2,351,168 )    
 
 
 
                         
New York Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (366,567 )    
Level 2
  Other Significant Observable Inputs     99,907,960       (2,776,903 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 99,907,960     $ (3,143,470 )    
 
 
 
                         
Ohio Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (75,045 )    
Level 2
  Other Significant Observable Inputs     53,828,926       (974,104 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 53,828,926     $ (1,049,149 )    
 
 
 
                         
Pennsylvania Trust
 
        Investments in
    Other Financial
     
    Valuation Inputs   Securities     Instruments*      
 
Level 1
  Quoted Prices   $     $ (274,204 )    
Level 2
  Other Significant Observable Inputs     54,611,324       (584,150 )    
Level 3
  Significant Unobservable Inputs                
 
 
Total
      $ 54,611,324     $ (858,354 )    
 
 
Other financial instruments include futures and interest rate swap contracts not reflected in the Portfolio of Investments, which are valued at the unrealized appreciation (depreciation) on the instrument.
 
The Trust held no investments or other financial instruments as of November 30, 2007 whose fair value was determined using Level 3 inputs.
 
11   Recently Issued Accounting Pronouncement
 
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161 (FAS 161), “Disclosures about Derivative Instruments and Hedging Activities”. 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. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is currently evaluating the impact the adoption of FAS 161 will have on the Trusts’ financial statement disclosures.

71


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
12   Name Change
 
Effective June 19, 2008, the name of the Eaton Vance National Municipal Income Trust was changed from Eaton Vance Florida Plus Municipal Income Trust.
 
13   Proposed Plan of Reorganization
 
In November 2008, the Trustees of National Trust approved an Agreement and Plan of Reorganization (the Agreement) whereby Eaton Vance Municipal Income Trust (Municipal Income Trust) would acquire substantially all the assets and assume substantially all the liabilities of National Trust in exchange for an equal aggregate value of common shares and APS of Municipal Income Trust. The proposed reorganization is subject to approval by the shareholders of National Trust and Municipal Income Trust.
 
14   Subsequent Event
 
The New Jersey Trust, Ohio Trust and Pennsylvania Trust redeemed 29, 9 and 42 outstanding APS, respectively, at various dividend payment dates from December 22, 2008 through December 24, 2008 at a liquidation price of $25,000 per share plus accumulated but unpaid dividends.

72


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
To the Trustees and Shareholders of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance National Municipal Income Trust (formerly known as Eaton Vance Florida Municipal Income Trust), Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust:
 
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of 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 known as Eaton Vance Florida Municipal Income Trust), Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (individually, the “Trust”, collectively, the “Trusts”), as of November 30, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the statements of cash flows of Eaton Vance National Municipal Income Trust and Eaton Vance New York Municipal Income Trust for the year then ended. These financial statements and financial highlights are the responsibility of each Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2008, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance National Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the cash flows of Eaton Vance National Municipal Income Trust and Eaton Vance New York Municipal Income Trust for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
 
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 20, 2009

73


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
FEDERAL TAX INFORMATION (Unaudited)
 
 
The Form 1099-DIV you receive in January 2009 will show the tax status of all distributions paid to your account in calendar 2008. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in a Trust. As required by the Internal Revenue Code regulations, shareholders must be notified within 60 days of a Trust’s fiscal year-end regarding exempt-interest dividends.
 
Exempt-Interest Dividends — The Trusts designate the following percentages of dividends from net investment income as an exempt-interest dividend.
 
         
Eaton Vance California Municipal Income Trust
    100.00 %
Eaton Vance Massachusetts Municipal Income Trust
    100.00 %
Eaton Vance Michigan Municipal Income Trust
    100.00 %
Eaton Vance National Municipal Income Trust
    100.00 %
Eaton Vance New Jersey Municipal Income Trust
    99.98 %
Eaton Vance New York Municipal Income Trust
    100.00 %
Eaton Vance Ohio Municipal Income Trust
    100.00 %
Eaton Vance Pennsylvania Municipal Income Trust
    100.00 %

74


 

Eaton Vance Municipal Income Trusts as of November 30, 2008
 
NOTICE TO SHAREHOLDERS
 
 
Effective November 17, 2008, Thomas M. Metzold, CFA, assumed portfolio management responsibilities for Eaton Vance National Municipal Income Trust. Mr. Metzold, a Vice President of Eaton Vance Management, joined Eaton Vance in 1987 and has been a portfolio manager of various Eaton Vance municipal bond funds since 1991.
 
On February 11, 2008, the Trusts revised their minimum ratings policies to clarify that when an obligation is rated in different rating categories by Moody’s, S&P or Fitch the highest rating applies.
 
Effective January 1, 2008, Eaton Vance Florida Plus Municipal Income Trust changed its name from Eaton Vance Florida Municipal Income Trust and announced a policy to increase its exposure to municipal obligations of issuers outside the State of Florida, transforming the Trust in an orderly manner over time into a diversified, national municipal bond fund. In connection with the foregoing change, its investment policy that at least 65% of its total assets normally will be invested in municipal obligations issued by the State of Florida or its political subdivisions, agencies, authorities and instrumentalities was eliminated. Effective June 19, 2008, Eaton Vance National Municipal Income Trust changed its name from Eaton Vance Florida Plus Municipal Income Trust. The Trust’s investment objective and policies remain unchanged.
 
Effective January 1, 2008, Eaton Vance Michigan Municipal Income Trust’s investment objective was revised to reflect the repeal of the Michigan single business tax and the effectiveness of the new Michigan business tax. The new objective is to provide current income exempt from regular federal income tax and Michigan state and city income taxes and the net income tax portion of the Michigan business tax.
 
Effective October 1, 2007, Adam A. Weigold, CFA, assumed portfolio management responsibilities for Eaton Vance Pennsylvania Municipal Income Trust. Mr. Weigold also serves as portfolio manager for other Eaton Vance funds. He was appointed a portfolio manager in 2007 and has been a Vice President of Eaton Vance Management since 2003 and a municipal credit analyst at Eaton Vance for more than five years.

75


 

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.

76


 

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 DIVIDENDS AND 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 November 30, 2008, our records indicate that there are 72, 83, 47, 56, 93, 70, 65 and 101 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, National 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 3,121, 1,315, 1,308, 2,268, 2,325, 2,581, 1,643 and 1,554 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, National 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.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
 
NYSE Alternext US symbols
 
     
California Municipal Income Trust
  CEV
Massachusetts Municipal Income Trust
  MMV
Michigan Municipal Income Trust
  EMI
National Municipal Income Trust
  FEV
New Jersey Municipal Income Trust
  EVJ
New York Municipal Income Trust
  EVY
Ohio Municipal Income Trust
  EVO
Pennsylvania Municipal Income Trust
  EVP

77


 

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 21, 2008, 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 2008. 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.
 
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

78


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
April 30, 2008, the Board met eleven times and the Contract Review Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met twelve, seven and five 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. The Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee are newly established and did not meet during the twelve-month period ended April 30, 2008.
 
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 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.

79


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
The Board also 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, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
 
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, 2007 for each Fund in operation over such periods. The Board concluded that 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, 2007, as compared to a group of similarly managed funds selected by an independent data provider. The Board considered the fact that the Adviser had waived fees and/or paid expenses for each Fund.
 
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 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.

80


 

Eaton Vance Municipal Income Trusts  
 
MANAGEMENT AND ORGANIZATION
 
 
Fund Management. The Trustees and officers of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance National Municipal Income Trust (FEV), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO) and Eaton Vance Pennsylvania Municipal Income Trust (EVP), (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts’ affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Trusts’ principal underwriter and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below.
 
                         
        Term of
      Number of Portfolios
     
    Position(s)
  Office and
      in Fund Complex
     
Name and
  with the
  Length of
  Principal Occupation(s)
  Overseen By
     
Date of Birth   Trusts   Service   During Past Five Years   Trustee(1)     Other Directorships Held
 
 
 
Interested Trustee
                         
Thomas E. Faust Jr.
5/31/58
  Class II
Trustee
  Until 2010.
3 years. Trustee
since 2007.
  Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or Officer of 173 registered investment companies and 4 private companies managed by EVM or BMR. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trusts.     173     Director of EVC
 
Noninterested Trustees
                         
Benjamin C. Esty(A)
1/2/63
  Class I
Trustee
  Until 2009.
3 years. Trustee
since 2006.
  Roy and Elizabeth Simmons Professor of Business Administration, Harvard University Graduate School of Business Administration.     173     None
                         
Allen R. Freedman
4/3/40
  Class II
Trustee
  Until 2010.
3 years. Trustee
since 2007.
  Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Formerly, Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007).     173     Director of Assurant, Inc. (insurance provider) and Stonemor Partners L.P. (owner and operator of cemeteries)
                         
William H. Park
9/19/47
  Class III
Trustee
  Until 2011.
3 years. Trustee
since 2003.
  Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (since 2006). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005).     173     None
                         
Ronald A. Pearlman
7/10/40
  Class I
Trustee
  Until 2009.
3 years. Trustee
since 2003.
  Professor of Law, Georgetown University Law Center.     173     None
                         
Helen Frame Peters
3/22/48
  Class III
Trustee
  Until 2011.
3 years. Trustee
since 2008.
  Professor of Finance, Carroll School of Management, Boston College (since 2003). Adjunct Professor of Finance, Peking University, Beijing, China (since 2005). Formerly, Dean, Carroll School of Management, Boston College (2000-2003).     173     Director of Federal Home Loan Bank of Boston (a bank for banks) and BJ’s Wholesale Clubs (wholesale club retailer); Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds)
                         
Heidi L. Steiger
7/8/53
  Class III
Trustee
  Until 2011.
3 years. Trustee
since 2007.
  Managing Partner, Topridge Associates LLC (global wealth management firm) (since 2008); Senior Advisor (since 2008), President (2005-2008), Lowenhaupt Global Advisors, LLC (global wealth management firm). Formerly, President and Contributing Editor, Worth Magazine (2004-2005). Formerly, Executive Vice President and Global Head of Private Asset Management (and various other positions), Neuberger Berman (investment firm) (1986-2004).     173     Director of Nuclear Electric Insurance Ltd. (nuclear insurance provider) and Aviva USA (insurance provider)

81


 

 
Eaton Vance Municipal Income Trusts 
 
MANAGEMENT AND ORGANIZATION CONT’D
 
                         
        Term of
      Number of Portfolios
     
    Position(s)
  Office and
      in Fund Complex
     
Name and
  with the
  Length of
  Principal Occupation(s)
  Overseen By
     
Date of Birth   Trusts   Service   During Past Five Years   Trustee(1)     Other Directorships Held
 
 
Noninterested Trustees (continued)
                         
Lynn A. Stout
9/14/57
  Class I Trustee   Until 2009.
3 years. Trustee
since 1998.
  Paul Hastings Professor of Corporate and Securities Law (since 2006) and Professor of Law (2001-2006), University of California at Los Angeles School of Law.     173     None
                         
Ralph F. Verni(A)
1/26/43
  Chairman of
the Board
and
Class II Trustee
  Until 2010.
3 years. Trustee
since 2006;
Chairman of the
Board since
2007.
  Consultant and private investor.     173     None
 
Principal Officers who are not Trustees
 
             
        Term of
   
    Position(s)
  Office and
   
Name and
  with the
  Length of
  Principal Occupation(s)
Date of Birth   Trusts   Service   During Past Five Years
 
 
             
Cynthia J. Clemson
3/2/63
  President of CEV, EMI, FEV, EVY, EVO and EVP; Vice President of MMV and EVJ   President since 2005 and Vice President since 2004   Vice President of EVM and BMR. Officer of 90 registered investment companies managed by EVM or BMR.
             
Robert B. MacIntosh
1/22/57
  President of MMV and EVJ; Vice President of CEV, EMI, FEV, EVY, EVO and EVP   President since 2005 and Vice President since 1998   Vice President of EVM and BMR. Officer of 90 registered investment companies managed by EVM or BMR.
             
William H. Ahern, Jr.
7/28/59
  Vice President of EMI and EVO   Vice President of EMI since 2000 and of EVO since 2005   Vice President of EVM and BMR. Officer of 75 registered investment companies managed by EVM or BMR.
             
Craig R. Brandon
12/21/66
  Vice President of EVY   Since 2005   Vice President of EVM and BMR. Officer of 44 registered investment companies managed by EVM or BMR.
             
Thomas M. Metzold
8/3/58
  Vice President of FEV   Vice President of FEV since 2008 and of EVP since 2005   Vice President of EVM and BMR. Officer of 44 registered investment companies managed by EVM or BMR.
             
Adam A. Weigold
3/22/75
  Vice President of EVP   Since 2007   Vice President of EVM and BMR. Officer of 71 registered investment companies managed by EVM or BMR.
             
Barbara E. Campbell
6/19/57
  Treasurer   Since 2005   Vice President of EVM and BMR. Officer of 173 registered investment companies managed by EVM or BMR.
             
Maureen A. Gemma
5/24/60
  Secretary and Chief legal Officer   Secretary since 2007 and Chief Legal Officer since 2008   Vice President of EVM and BMR. Officer of 173 registered investment companies managed by EVM or BMR.
             
Paul M. O’Neil
7/11/53
  Chief Compliance Officer   Since 2004   Vice President of EVM and BMR. Officer of 173 registered investment companies managed by EVM or BMR.
 
(1) Includes both master and feeder funds in a master-feeder structure.
 
(A) APS Trustee.

82


 

This Page Intentionally Left Blank


 

This Page Intentionally Left Blank


 

Investment Adviser and Administrator of Eaton Vance Municipal Income Trusts
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
 
 
 
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
 
 
 
Transfer Agent
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
 
 
 
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
 
 
 
 
 
Eaton Vance Municipal Income Trusts
The Eaton Vance Building
255 State Street
Boston, MA 02109


 

147-1/09 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
The following table presents the aggregate fees billed to the registrant for the fiscal years ended November 30, 2007 and November 30, 2008 by the registrant’s principal accountant for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by the principal accountant during those periods.
                 
Fiscal Years Ended   11/30/2007     11/30/2008  
 
Audit Fees
  $ 24,090     $ 23,695  
 
               
Audit-Related Fees(1)
  $ 3,785     $ 3,915  
 
               
Tax Fees(2)
  $ 6,883     $ 7,130  
 
               
All Other Fees(3)
  $ 0     $ 36  
       
 
               
Total
  $ 34,758     $ 34,776  
 
             
 
(1)   Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant’s auction preferred shares.
 
(2)   Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.
 
(3)   All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.
(e)(1)    The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.
 
    The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.
 
(e)(2)    No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

 


 

(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by the registrant’s principal accountant for the registrant’s fiscal years ended November 30, 2007 and November 30, 2008; and (ii) the aggregate non-audit fees (i.e., fees for audit related, tax, and other services) billed to the Eaton Vance organization by the registrant’s principal accountant for the same time periods, respectively.
                 
Fiscal Years Ended   11/30/2007   11/30/2008
 
Registrant
  $ 10,668     $ 11,045  
 
Eaton Vance(1)
  $ 286,446     $ 345,473  
 
(1)   Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant’s investment adviser and administrator.
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed registrants
The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Lynn A. Stout, Heidi L. Steiger and Ralph E. Verni are the members of the registrant’s audit committee.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a

 


 

conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer 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
California, Florida Plus, Massachusetts, Michigan, New York, New Jersey, Ohio and Pennsylvania Municipal Income
Trusts

 


 

Portfolio Management
Cynthia J. Clemson, portfolio manager of Eaton Vance California Municipal Income Trust, Robert B. MacIntosh, portfolio manager of Eaton Vance Massachusetts Municipal Income Trust and Eaton Vance New Jersey Municipal Income Trust, William H. Ahern, Jr., portfolio manager of Eaton Vance Michigan Municipal Income Trust and Eaton Vance Insured Ohio Municipal Income Trust, Craig R. Brandon, portfolio manager of Eaton Vance New York Municipal Income Trust, Thomas M. Metzold, portfolio manager of Eaton Vance Florida Plus Municipal Income Trust and Adam A. Weigold, portfolio manager of Eaton Vance Pennsylvania Municipal Income Trust are responsible for the overall and day-to-day management of each Fund’s investments.
Ms. Clemson and Mr. MacIntosh have been Eaton Vance portfolio managers since 1991 and are each co-Directors of Municipal Investments and Vice Presidents of EVM and Boston Management and Research, an Eaton Vance subsidiary (“BMR”). Mr. Ahern has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr. Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a Vice President of EVM and BMR. Mr. Metzold has been an Eaton Vance portfolio manager since 1991 and is a Vice President of EVM and BMR. Mr. Weigold has been a credit analyst with Eaton Vance since 1991 and a portfolio manager since 2007. He is a Vice President of EVM and BMR. This information is provided as of the date of filing of this report.
The following tables show, as of each Fund’s most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets in those accounts.
                                 
                    Number of    
    Number           Accounts   Total Assets of
    of All   Total Assets of   Paying a   Accounts Paying a
    Accounts   All Accounts*   Performance Fee   Performance Fee*
California Municipal Income Trust
                               
Cynthia J. Clemson
                               
Registered Investment Companies
    8     $ 2,262.6       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
Massachusetts Municipal Income Trust
                               
New Jersey Municipal Income Trust
                               
Robert B. MacIntosh
                               
Registered Investment Companies
    10     $ 1,953.0       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    328     $ 277.5       0     $ 0  
 
                               
Michigan Municipal Income Trust
                               
Ohio Municipal Income Trust
                               
William H. Ahern
                               
Registered Investment Companies
    14     $ 1,619.8       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  

 


 

                                 
                    Number of    
    Number           Accounts   Total Assets of
    of All   Total Assets of   Paying a   Accounts Paying a
    Accounts   All Accounts*   Performance Fee   Performance Fee*
New York Municipal Income Trust
                               
Craig R. Brandon
                               
Registered Investment Companies
    12     $ 1178.4       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
Florida Plus Municipal Income Trust
                               
Thomas M. Metzold
                               
Registered Investment Companies
    7     $ 5,911.4       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
Pennsylvania Municipal Income Trust
                               
Adam A. Weigold
                               
Registered Investment Companies
    12     $ 856.2       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
*   In millions of dollars.
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Fund’s most recent fiscal year end.
         
    Dollar Range of
    Equity Securities
    Owned in the
    Fund
California Municipal Income Trust
  None
Cynthia J. Clemson
       
 
       
Massachusetts Municipal Income Trust
  $ 10,001 - $50,000  
New Jersey Municipal Income Trust
  None
Robert B. MacIntosh
       
 
       
Michigan Municipal Income Trust
  None
Ohio Municipal Income Trust
  None
William H. Ahern, Jr.
       
 
       
New York Municipal Income Trust
  None
Craig R. Brandon
       
 
       
Florida Plus Municipal Income Trust
  None
Thomas M. Metzold
       
 
       
Pennsylvania Municipal Income Trust
  None
Adam A. Weigold
       

 


 

Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of the Fund’s investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser or sub-adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including: a code of ethics; and policies which govern the investment adviser’s trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVM’s portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVC’s nonvoting common stock and/or restricted shares of EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus appropriate peer groups or benchmarks. Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a fund’s peer group as determined by Lipper or Morningstar is deemed by EVM’s management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to risk-adjusted performance. For funds with an investment objective other than total return (such as current income), consideration will also be given to the fund’s success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers’ performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.

 


 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders.
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a)(1) Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i) Treasurer’s Section 302 certification.
(a)(2)(ii) President’s Section 302 certification.
(b) Combined Section 906 certification.

 


 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Massachusetts Municipal Income Trust
         
By:
  /s/ Robert B. MacIntosh    
 
       
 
       Robert B. MacIntosh    
 
       President    
Date: January 20, 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: January 20, 2009
         
 
       
By:
  /s/ Robert B. MacIntosh    
 
       
 
       Robert B. MacIntosh    
 
       President    
Date: January 20, 2009