Eaton Vance California 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: 811-09153
Eaton Vance California Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number)
November 30
Date of Fiscal Year End
May 31, 2010
Date of Reporting Period
 
 

 


 

Item 1. Reports to Stockholders

 


 

(GRAPHIC)

 


 

 
IMPORTANT NOTICES
 
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy Policy) with respect to nonpublic personal information about its customers:
 
  •  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 Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.
 
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc. Our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial 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(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
 
 
 
 
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC’s website at www.sec.gov.
 
 
 
 
Additional Notice to Shareholders. A Fund may redeem or purchase its outstanding auction preferred shares (“APS”) in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary. A Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that a Fund will take such action or that such purchases would reduce the discount.


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
         
    2  
 
       
Performance Information and Portfolio Composition
       
 
       
    4  
    5  
    6  
    7  
    8  
    9  
    10  
 
       
Financial Statements
    11  
 
       
Annual Meeting of Shareholders
    67  
 
       
Board of Trustees’ Annual Approval of the Investment Advisory Agreements
    68  
 
       
Officers and Trustees
    71  

1


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
INVESTMENT UPDATE
Eaton Vance Municipal Income Trusts (the Trusts) are closed-end funds, traded on the NYSE Amex, which are designed to provide current income exempt from regular federal income tax and state personal income taxes. This income is earned by investing primarily in investment-grade municipal securities.
Economic and Market Conditions
During the six months ending May 31, 2010, the U.S. economy remained relatively stable, despite continued high unemployment and concerns over the U.S. budget. U.S. equity and bond markets became more skittish during the period, partially in reaction to the Euro Zone credit problems that began in Greece. The U.S. economy grew at an annualized rate of 5.7% in the fourth quarter of 2009 and 2.7% in the first quarter of 2010, according to the U.S. Department of Commerce.
The municipal bond market’s performance was relatively flat during the period, with slightly negative returns in the final month of 2009 being offset by positive performance in the first part of 2010. For the period, the Trusts’ primary benchmark, the Barclays Capital Municipal Bond Index (the Index)—a broad-based, unmanaged index of municipal bonds—gained 3.60%.1 Economic fundamentals continued to improve and demand for municipals remained strong.
The significant performance disparities among the municipal market’s segments, which became historically wide during 2008 and the first three quarters of 2009, began to dissipate during the six months ending May 31, 2010. After nearly two years of irrational market behavior, we witnessed a period in which there was more typical—and less volatile—performance across credit quality, maturities and sectors. In the face of limited tax-exempt supply due to the success of the Build America Bond program, demand from municipal investors remained positive during the period, though the gusto with which they purchased municipal funds waned from 2009 levels. We believe lighter inflows were likely driven by lower yields, a continuation of credit-related headline “noise” and investor preparation for tax bills in March and April 2010.
 
1   It is not possible to invest directly in an Index or a Lipper Classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
 
    Past performance is no guarantee of future results.
Management Discussion
During the six months ending May 31, 2010, the Trusts outperformed the Index and their respective Lipper peer group averages at net asset value.1 Given the combination of the Trusts’ objective of providing tax-exempt income and the municipal yield curve’s historically upward slope, the Trusts generally hold longer-maturity bonds relative to the broad market than many of our competitors. The Trusts invest across the credit spectrum; as a result, narrowing credit yield spreads during the period contributed to their outperformance of the Index. However, management’s bias toward long maturities, which was the basis for much of the Trusts’ significant relative outperformance in the first three quarters of 2009, detracted slightly during the six-month period.
Management employed leverage in the Trusts, through which additional exposure to the municipal market was achieved. Leverage has the impact of magnifying a Trust’s exposure to its underlying investments in both up and down markets. During the period, the Trusts’ leverage also contributed to their outperformance of the Index.
As we move ahead, we recognize that many state and local governments face significant budget deficits that are driven primarily by a steep decline in tax revenues. We will continue to closely monitor the economy and its impact on current and future budget deficits, and we will stay abreast of any new solutions provided by state and local officials to address their fiscal problems. As in all environments, we maintain our long-term perspective on the markets against the backdrop of relatively short periods of market volatility. We will continue to actively manage the Trusts with the same income-focused, relative value approach we have always employed. We believe that this approach, which is based on credit research and decades of experience in the municipal market, has served municipal investors well over the long term.

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

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

2


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
INVESTMENT UPDATE
Effective February 19, 2010, Craig R. Brandon became the portfolio manager of Eaton Vance Massachusetts Municipal Income Trust and Adam A. Weigold became the portfolio manager of Eaton Vance New Jersey Municipal Income Trust. Mr. Brandon is a Vice President of Eaton Vance Management (EVM) and has been a portfolio manager of Eaton Vance municipal funds since 2004. Mr. Weigold is a Vice President of EVM and has been a portfolio manager of Eaton Vance municipal funds since 2007. In addition, Mr. Weigold has been a municipal credit analyst of Eaton Vance for more than five years.
A Note Regarding The Use Of Leverage
The Trusts employ leverage through the issuance of Auction Preferred Shares (APS) and, for certain Trusts, the use of residual interest bond (RIB) financing.1 Each Trust’s APS and RIB leverage percentage as of May 31, 2010, as applicable, is reflected on the Trust-specific pages following this letter. The leverage created by APS and RIB 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 market price of the common shares).
 
1   See Note 1H to the Financial Statements for more information on RIB investments.

3


 

Eaton Vance California Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   CEV
 
Average Annual Total Returns (by market price)
       
Six Months
    9.82 %
One Year
    25.50  
Five Years
    3.34  
Ten Years
    8.08  
Life of Trust (1/29/99)
    4.78  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    8.88 %
One Year
    18.31  
Five Years
    1.97  
Ten Years
    7.80  
Life of Trust (1/29/99)
    4.82  
 
       
Premium/(Discount) to NAV (5/31/10)
    -0.46 %
 
       
         
Market Yields        
 
Market Yield2
    6.87 %
Taxable-Equivalent Market Yield3
    11.82  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper California Municipal Debt Funds Classification (by net asset value)
 
Six Months
    7.29 %
One Year
    16.18  
Five Years
    3.02  
Ten Years
    6.39  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    25.1 %
AA
    25.9 %
A
    31.3 %
BBB
    11.3 %
Not Rated
    6.4 %
Trust Statistics7
       
Number of Issues:
  105  
Average Maturity:
  21.3  years
Average Effective Maturity:
  12.8  years
Average Call Protection:
  7.1  years
Average Dollar Price:
  $91.04  
APS Leverage**:
  30.5 %
RIB Leverage**:
  12.5 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 41.86% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification (closed-end) contained 25, 25, 24 and 14 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

4


 

Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   MMV
 
Average Annual Total Returns (by market price)
       
Six Months
    15.05 %
One Year
    25.24  
Five Years
    3.88  
Ten Years
    8.96  
Life of Trust (1/29/99)
    5.80  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    8.91 %
One Year
    21.51  
Five Years
    3.72  
Ten Years
    8.99  
Life of Trust (1/29/99)
    5.52  
 
       
Premium/(Discount) to NAV (5/31/10)
    3.07 %
         
Market Yields        
 
Market Yield2
    6.13 %
Taxable-Equivalent Market Yield3
    9.96  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)
 
Six Months
    5.22 %
One Year
    14.35  
Five Years
    4.04  
Ten Years
    6.78  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    7.4 %
AA
    40.4 %
A
    37.7 %
BBB
    8.6 %
BB
    1.3 %
Not Rated
    4.6 %
Trust Statistics7
       
Number of Issues:
  66  
Average Maturity:
  26.2  years
Average Effective Maturity:
  18.2  years
Average Call Protection:
  9.7  years
Average Dollar Price:
  $98.28  
APS Leverage**:
  31.3 %
RIB Leverage**:
  7.6 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 46, 46, 46 and 20 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

5


 

Eaton Vance Michigan Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EMI
 
Average Annual Total Returns (by market price)
       
Six Months
    13.34 %
One Year
    23.62  
Five Years
    1.02  
Ten Years
    8.42  
Life of Trust (1/29/99)
    4.53  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    7.70 %
One Year
    17.09  
Five Years
    3.31  
Ten Years
    8.05  
Life of Trust (1/29/99)
    5.12  
 
       
Premium/(Discount) to NAV (5/31/10)
    -6.23 %
 
       
         
Market Yields        
 
Market Yield2
    6.81 %
Taxable-Equivalent Market Yield3
    10.95  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Michigan Municipal Debt Funds Classification (by net asset value)
 
Six Months
    5.66 %
One Year
    12.99  
Five Years
    3.65  
Ten Years
    7.07  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution6

By total investments
(PIE CHART)
Trust Statistics7
       
Number of Issues:
  71  
Average Maturity:
  21.2  years
Average Effective Maturity:
  11.4  years
Average Call Protection:
  5.6  years
Average Dollar Price:
  $96.89  
APS Leverage*:
  38.1 %
 
*   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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, which is a form 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification (closed-end) contained 5, 5, 5 and 3 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only.6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

6


 

Eaton Vance New Jersey Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVJ
 
Average Annual Total Returns (by market price)
       
Six Months
    6.84 %
One Year
    29.73  
Five Years
    5.42  
Ten Years
    9.33  
Life of Trust (1/29/99)
    5.90  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    7.12 %
One Year
    20.86  
Five Years
    3.98  
Ten Years
    8.86  
Life of Trust (1/29/99)
    5.61  
 
       
Premium/(Discount) to NAV (5/31/10)
    3.20 %
         
Market Yields        
 
Market Yield2
    6.54 %
Taxable-Equivalent Market Yield3
    11.05  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New Jersey Municipal Debt Funds Classification (by net asset value)
 
Six Months
    6.62 %
One Year
    16.69  
Five Years
    4.03  
Ten Years
    6.84  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    22.6 %
AA
    27.6 %
A
    25.2 %
BBB
    22.2 %
BB
    0.2 %
B
    1.0 %
Not Rated
    1.2 %
Trust Statistics7
       
Number of Issues:
  80  
Average Maturity:
  24.9  years
Average Effective Maturity:
  12.7  years
Average Call Protection:
  8.2  years
Average Dollar Price:
  $94.95  
APS Leverage**:
  29.5 %
RIB Leverage**:
  12.9 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) out- standing as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification (closed-end) contained 12, 12, 11 and 6 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

7


 

Eaton Vance New York Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVY
 
Average Annual Total Returns (by market price)
       
Six Months
    9.69 %
One Year
    19.50  
Five Years
    3.29  
Ten Years
    9.55  
Life of Trust (1/29/99)
    5.65  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    9.55 %
One Year
    23.03  
Five Years
    2.74  
Ten Years
    8.33  
Life of Trust (1/29/99)
    5.44  
 
       
Premium/(Discount) to NAV (5/31/10)
    2.26 %
         
Market Yields        
 
Market Yield2
    6.50 %
Taxable-Equivalent Market Yield3
    10.99  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New York Municipal Debt Funds Classification (by net asset value)
 
Six Months
    6.69 %
One Year
    16.04  
Five Years
    3.48  
Ten Years
    6.71  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    18.6 %
AA
    33.4 %
A
    19.7 %
BBB
    12.2 %
BB
    4.7 %
B
    1.9 %
CCC
    0.9 %
Not Rated
    8.6 %
Trust Statistics7
       
Number of Issues:
  94  
Average Maturity:
  24.0  years
Average Effective Maturity:
  14.3  years
Average Call Protection:
  9.2  years
Average Dollar Price:
  $96.70  
APS Leverage**:
  26.2 %
RIB Leverage**:
  15.9 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Municipal Debt Funds Classification (closed-end) contained 20, 20, 19 and 8 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

8


 

Eaton Vance Ohio Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVO
 
Average Annual Total Returns (by market price)
       
Six Months
    5.08 %
One Year
    18.16  
Five Years
    3.58  
Ten Years
    8.09  
Life of Trust (1/29/99)
    5.15  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    5.53 %
One Year
    17.55  
Five Years
    3.41  
Ten Years
    8.38  
Life of Trust (1/29/99)
    5.25  
 
       
Premium/(Discount) to NAV (5/31/10)
    -1.09 %
         
Market Yields        
 
Market Yield2
    6.52 %
Taxable-Equivalent Market Yield3
    10.70  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)
 
Six Months
    5.22 %
One Year
    14.35  
Five Years
    4.04  
Ten Years
    6.78  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    30.2 %
AA
    34.2 %
A
    18.4 %
BBB
    9.2 %
B
    1.4 %
Not Rated
    6.6 %
Trust Statistics7
       
Number of Issues:
  80  
Average Maturity:
  22.5  years
Average Effective Maturity:
  10.9  years
Average Call Protection:
  7.6  years
Average Dollar Price:
  $96.16  
APS Leverage**:
  35.4 %
RIB Leverage**:
  3.6 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 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 RIBs purchased in secondary market transactions.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 39.06% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 46, 46, 46 and 20 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

9


 

Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVP
 
Average Annual Total Returns (by market price)
       
Six Months
    8.78 %
One Year
    22.82  
Five Years
    3.23  
Ten Years
    8.79  
Life of Trust (1/29/99)
    5.28  
 
       
Average Annual Total Returns (by net asset value)
       
Six Months
    7.40 %
One Year
    17.74  
Five Years
    4.12  
Ten Years
    8.33  
Life of Trust (1/29/99)
    5.39  
 
       
Premium/(Discount) to NAV (5/31/10)
    -1.22 %
         
Market Yields        
 
Market Yield2
    6.31 %
Taxable-Equivalent Market Yield3
    10.02  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
Six Months
    3.60 %     6.08 %
One Year
    8.52       13.53  
Five Years
    4.52       3.86  
Ten Years
    5.90       6.51  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value)
 
Six Months
    6.12 %
One Year
    16.67  
Five Years
    3.76  
Ten Years
    6.68  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market 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. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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 as of 5/31/10 is as follows:
         
AAA
    16.9 %
AA
    43.7 %
A
    22.7 %
BBB
    5.8 %
BB
    0.8 %
CCC
    1.8 %
CC
    0.8 %
Not Rated
    7.5 %
Trust Statistics7
       
Number of Issues:
  84  
Average Maturity:
  22.1  years
Average Effective Maturity:
  12.1  years
Average Call Protection:
  7.8  years
Average Dollar Price:
  $99.01  
APS Leverage**:
  34.5 %
RIB Leverage**:
  3.9 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 5/31/10 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes.
1 Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 RIB 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 regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification (closed-end) contained 9, 9, 8 and 5 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

10


 

Eaton Vance California Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 172.7%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 15.7%
 
$ 2,000     California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39   $ 2,086,460      
  745     California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30     763,394      
  2,770     California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29     2,692,855      
  1,105     California Educational Facilities Authority, (Pomona College), 5.00%, 7/1/45     1,138,205      
  1,350     California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23     1,495,868      
  4,000     California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(1)     4,008,600      
  2,500     San Diego County, Certificates of Participation, (University of San Diego), 5.375%, 10/1/41     2,502,525      
 
 
            $ 14,687,907      
 
 
 
 
Electric Utilities — 7.1%
 
$ 270     Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34   $ 299,779      
  2,275     Chula Vista, (San Diego Gas and Electric), (AMT), 5.00%, 12/1/27     2,248,860      
  1,020     Los Angeles Department of Water and Power, 5.25%, 7/1/38     1,079,517      
  1,500     Northern California Power Agency, 5.25%, 8/1/24     1,599,480      
  1,300     Vernon, Electric System Revenue, 5.125%, 8/1/21     1,367,730      
 
 
            $ 6,595,366      
 
 
 
 
General Obligations — 11.3%
 
$ 750     California, 6.00%, 4/1/38   $ 818,685      
  1,590     California, (AMT), 5.05%, 12/1/36     1,451,575      
  4,770     San Francisco Bay Area Rapid Transit District, (Election of 2004), 4.75%, 8/1/37(2)     4,884,766      
  3,180     Santa Clara County, (Election of 2008),
5.00%, 8/1/39(2)(3)
    3,368,145      
 
 
            $ 10,523,171      
 
 
 
 
Hospital — 29.1%
 
$ 1,000     California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32   $ 1,029,550      
  2,310     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39     2,250,956      
  1,500     California Health Facilities Financing Authority, (Providence Health System), 6.50%, 10/1/38     1,701,045      
  3,480     California Health Facilities Financing Authority, (Sutter Health), 5.25%, 11/15/46(2)     3,461,753      
  750     California Infrastructure and Economic Development Bank, (Kaiser Hospital), 5.50%, 8/1/31     755,138      
  2,900     California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35     2,775,996      
  1,150     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34     1,119,985      
  1,650     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36     1,602,925      
  1,565     California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32     1,587,583      
  1,750     California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29     1,753,325      
  1,500     California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28     1,538,190      
  1,200     Duarte, (Hope National Medical Center), 5.25%, 4/1/24     1,202,064      
  1,900     Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31     1,918,658      
  1,250     Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34     1,105,413      
  700     Washington Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29     700,623      
  2,780     Washington Township Health Care District, 5.00%, 7/1/32     2,679,058      
 
 
            $ 27,182,262      
 
 
 
 
Housing — 2.6%
 
$ 1,750     California Housing Finance Agency, (AMT), 4.75%, 8/1/42   $ 1,363,985      
  707     Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29     660,965      
  414     Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29     382,163      
 
 
            $ 2,407,113      
 
 
 
 
Industrial Development Revenue — 4.1%
 
$ 800     California Pollution Control Financing Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27   $ 801,288      
  1,235     California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23     1,239,940      
  2,000     California Statewide Communities Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46     1,799,600      
 
 
            $ 3,840,828      
 
 
 
 
Insured-Education — 5.3%
 
$ 495     California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35   $ 498,074      

 
See notes to financial statements

11


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Education (continued)
 
                     
$ 1,250     California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23   $ 1,385,062      
  3,000     California State University, (AMBAC), 5.00%, 11/1/33     3,027,810      
 
 
            $ 4,910,946      
 
 
 
 
Insured-Electric Utilities — 6.3%
 
$ 2,500     California Pollution Control Financing Authority, (Pacific Gas and Electric), (NPFG), (AMT), 5.35%, 12/1/16   $ 2,599,000      
  3,250     California Pollution Control Financing Authority, (Southern California Edison Co.), (NPFG), (AMT), 5.55%, 9/1/31     3,253,218      
 
 
            $ 5,852,218      
 
 
 
 
Insured-Escrowed / Prerefunded — 2.9%
 
$ 5,130     Foothill/Eastern Transportation Corridor Agency, Toll Road Bonds, (AGM), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26   $ 2,703,818      
 
 
            $ 2,703,818      
 
 
 
 
Insured-General Obligations — 6.4%
 
$ 7,000     Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34   $ 1,560,440      
  4,825     Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35     1,001,766      
  7,995     Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25     3,420,421      
 
 
            $ 5,982,627      
 
 
 
 
Insured-Hospital — 14.5%
 
$ 2,900     California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37   $ 2,940,861      
  990     California Statewide Communities Development Authority, (Children’s Hospital Los Angeles), (NPFG), 5.25%, 8/15/29     980,466      
  750     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(2)     756,660      
  3,750     California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.75%, 8/15/27(2)     3,783,182      
  5,000     California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(2)     5,064,400      
 
 
            $ 13,525,569      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 10.9%
 
$ 5,510     Anaheim Public Financing Authority, (Public Improvements), (AGM), 0.00%, 9/1/17   $ 4,120,764      
  2,000     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     2,418,820      
  3,500     San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(2)     3,622,535      
 
 
            $ 10,162,119      
 
 
 
 
Insured-Other Revenue — 1.8%
 
$ 1,740     Golden State Tobacco Securitization Corp., (AGC), (FGIC), 5.00%, 6/1/38   $ 1,701,511      
 
 
            $ 1,701,511      
 
 
 
 
Insured-Special Tax Revenue — 4.3%
 
$ 21,285     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 1,343,509      
  4,220     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     542,059      
  8,355     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     998,673      
  5,270     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     585,761      
  480     Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28     534,936      
 
 
            $ 4,004,938      
 
 
 
 
Insured-Transportation — 9.5%
 
$ 5,000     Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29   $ 1,440,150      
  8,000     Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31     2,030,160      
  740     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     788,503      
  10,000     San Joaquin Hills Transportation Corridor Agency, Toll Road Bonds, (NPFG), 0.00%, 1/15/32     1,817,600      
  1,320     San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 5.00%, 3/1/37     1,325,914      
  1,350     San Jose Airport, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47     1,436,602      
 
 
            $ 8,838,929      
 
 
 
 
Insured-Water and Sewer — 5.6%
 
$ 1,600     East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32   $ 1,693,440      
  4,400     Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30     3,490,608      
 
 
            $ 5,184,048      
 
 
 

 
See notes to financial statements

12


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Other Revenue — 2.2%
 
$ 385     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32   $ 380,896      
  580     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37     559,016      
  980     Golden State Tobacco Securitization Corp., 0.00%, 6/1/37     628,611      
  640     Golden State Tobacco Securitization Corp., 5.75%, 6/1/47     469,293      
 
 
            $ 2,037,816      
 
 
 
 
Senior Living / Life Care — 1.5%
 
$ 175     California Statewide Communities Development Authority, (Senior Living -Presbyterian Homes), 4.75%, 11/15/26   $ 156,067      
  700     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 4.875%, 11/15/36     595,371      
  600     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 7.25%, 11/15/41     654,900      
 
 
            $ 1,406,338      
 
 
 
 
Special Tax Revenue — 19.2%
 
$ 1,000     Bonita Canyon Public Financing Authority, 5.375%, 9/1/28   $ 935,340      
  285     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26     234,472      
  460     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34     353,280      
  2,000     California, Economic Recovery Bonds, 5.00%, 7/1/20     2,235,140      
  970     Corona Public Financing Authority, 5.80%, 9/1/20     950,115      
  200     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27     174,766      
  500     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36     412,590      
  1,590     Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27     1,592,099      
  895     Lincoln Public Financing Authority, Improvement Bond Act of 1915, (Twelve Bridges), 6.20%, 9/2/25     899,949      
  420     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24     401,852      
  750     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29     706,365      
  2,250     Oakland Joint Powers Financing Authority, 5.40%, 9/2/18     2,294,032      
  930     Oakland Joint Powers Financing Authority, 5.50%, 9/2/24     946,442      
  1,325     San Pablo Redevelopment Agency, 5.65%, 12/1/23     1,336,051      
  1,095     Santa Margarita Water District, 6.20%, 9/1/20     1,109,848      
  250     Santaluz Community Facilities District No. 2, 6.10%, 9/1/21     250,240      
  500     Santaluz Community Facilities District No. 2, 6.20%, 9/1/30     500,115      
  250     Temecula Unified School District, 5.00%, 9/1/27     219,663      
  400     Temecula Unified School District, 5.00%, 9/1/37     331,292      
  500     Turlock Public Financing Authority, 5.45%, 9/1/24     502,490      
  500     Tustin Community Facilities District, 6.00%, 9/1/37     491,385      
  1,000     Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23     990,600      
 
 
            $ 17,868,126      
 
 
 
 
Transportation — 7.4%
 
$ 2,000     Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.00%, 4/1/31   $ 2,065,280      
  2,120     Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(2)     2,190,554      
  5     Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35     5,166      
  1,500     Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30     1,551,480      
  1,170     Port of Redwood City, (AMT), 5.125%, 6/1/30     1,142,107      
 
 
            $ 6,954,587      
 
 
 
 
Water and Sewer — 5.0%
 
$ 1,840     California Department of Water Resources, 5.00%, 12/1/29   $ 1,985,286      
  2,500     Metropolitan Water District of Southern California, (Waterworks Revenue Authorization), 5.00%, 1/1/34     2,660,525      
 
 
            $ 4,645,811      
 
 
     
Total Tax-Exempt Investments — 172.7%
   
(identified cost $162,031,524)
  $ 161,016,048      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (53.6)%
  $ (49,979,998 )    
 
 
             
Other Assets, Less Liabilities — (19.1)%
  $ (17,784,038 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 93,252,012      
 
 

 
See notes to financial statements

13


 

 
Eaton Vance California Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
RADIAN - Radian Group, Inc.
 
The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 39.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 14.3% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(3) Security (or a portion thereof) has been pledged as collateral for inverse floating-rate security transactions. The aggregate value of such collateral is $983,145.

 
See notes to financial statements

14


 

Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 163.4%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 34.9%
 
$ 2,290     Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59   $ 2,428,957      
  600     Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33     607,866      
  1,240     Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35     1,310,258      
  1,000     Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38     968,560      
  1,500     Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29     1,507,185      
  1,500     Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32     1,527,570      
  1,840     Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35     2,176,279      
  1,500     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     1,594,050      
  415     Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.00%, 7/1/38     440,257      
  1,000     Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38     1,087,000      
 
 
            $ 13,647,982      
 
 
 
 
Electric Utilities — 7.1%
 
$ 1,000     Massachusetts Development Finance Agency, (Devens Electric System), 6.00%, 12/1/30   $ 1,025,780      
  1,870     Massachusetts Development Finance Agency, (Dominion Energy Brayton Point), (AMT), 5.00%, 2/1/36     1,742,073      
 
 
            $ 2,767,853      
 
 
 
 
Escrowed / Prerefunded — 4.3%
 
$ 400     Massachusetts Development Finance Agency, (Western New England College), Prefunded to 12/1/12, 6.125%, 12/1/32   $ 456,440      
  235     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), Prerefunded to 1/1/12, 6.00%, 7/1/31     257,299      
  940     Massachusetts Health and Educational Facilities Authority, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30     954,852      
 
 
            $ 1,668,591      
 
 
 
 
General Obligations — 2.1%
 
$ 750     Newton, 5.00%, 4/1/36   $ 807,383      
 
 
            $ 807,383      
 
 
 
Hospital — 25.2%
 
$ 1,000     Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20   $ 1,013,180      
  1,000     Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center, Inc.), 5.75%, 7/1/36     1,054,950      
  400     Massachusetts Health and Educational Facilities Authority, (Berkshire Health System), 6.25%, 10/1/31     405,600      
  105     Massachusetts Health and Educational Facilities Authority, (Central New England Health Systems), 6.30%, 8/1/18     105,067      
  500     Massachusetts Health and Educational Facilities Authority, (Children’s Hospital), 5.25%, 12/1/39     521,280      
  1,135     Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37     1,157,053      
  885     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), 6.00%, 7/1/31     902,567      
  755     Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 6.75%, 10/1/33     750,961      
  2,000     Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/32(1)     2,021,330      
  675     Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29     676,303      
  1,255     Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/39     1,237,894      
 
 
            $ 9,846,185      
 
 
 
 
Housing — 14.2%
 
$ 2,100     Massachusetts Housing Finance Agency, (AMT), 4.75%, 12/1/48   $ 1,937,544      
  1,000     Massachusetts Housing Finance Agency, (AMT), 4.85%, 6/1/40     953,530      
  650     Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28     653,139      
  2,000     Massachusetts Housing Finance Agency, (AMT), 5.10%, 12/1/37     1,999,980      
 
 
            $ 5,544,193      
 
 
 
 
Industrial Development Revenue — 1.8%
 
$ 695     Massachusetts Industrial Finance Agency, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15   $ 695,834      
 
 
            $ 695,834      
 
 
 
 
Insured-Education — 11.0%
 
$ 1,000     Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39   $ 1,137,870      
  1,365     Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)     1,551,632      

 
See notes to financial statements

15


 

 
Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Education (continued)
 
                     
$ 1,600     Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33   $ 1,624,512      
 
 
            $ 4,314,014      
 
 
 
 
Insured-Electric Utilities — 1.5%
 
$ 570     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29   $ 602,541      
 
 
            $ 602,541      
 
 
 
 
Insured-General Obligations — 8.4%
 
$ 1,000     Massachusetts, (AMBAC), 5.50%, 8/1/30   $ 1,200,070      
  2,185     Milford, (AGM), 4.25%, 12/15/46     2,105,641      
 
 
            $ 3,305,711      
 
 
 
 
Insured-Hospital — 2.1%
 
$ 400     Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.00%, 11/15/25   $ 406,324      
  220     Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.00%, 11/15/31     221,314      
  190     Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.125%, 11/15/35     191,341      
 
 
            $ 818,979      
 
 
 
 
Insured-Other Revenue — 3.5%
 
$ 1,225     Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42   $ 1,370,077      
 
 
            $ 1,370,077      
 
 
 
 
Insured-Special Tax Revenue — 13.8%
 
$ 1,450     Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32   $ 1,475,578      
  1,000     Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29     1,149,710      
  1,340     Massachusetts School Building Authority, (AMBAC), 5.00%, 8/15/37(1)     1,400,528      
  7,595     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     479,396      
  2,525     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     324,336      
  3,005     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     359,188      
  1,905     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     211,741      
 
 
            $ 5,400,477      
 
 
 
Insured-Student Loan — 5.8%
 
$ 485     Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30   $ 515,836      
  1,985     Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33     1,756,566      
 
 
            $ 2,272,402      
 
 
 
 
Insured-Transportation — 3.6%
 
$ 385     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/32   $ 381,932      
  1,070     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/38     1,041,602      
 
 
            $ 1,423,534      
 
 
 
 
Nursing Home — 1.4%
 
$ 550     Massachusetts Health and Educational Facilities Authority, (Christopher House), 6.875%, 1/1/29   $ 543,428      
 
 
            $ 543,428      
 
 
 
 
Other Revenue — 1.4%
 
$ 500     Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/22   $ 543,070      
 
 
            $ 543,070      
 
 
 
 
Senior Living / Life Care — 5.5%
 
$ 250     Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31   $ 210,525      
  1,500     Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.625%, 7/1/29     1,366,665      
  125     Massachusetts Development Finance Agency, (Carleton-Willard Village), 5.625%, 12/1/30     125,859      
  140     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.125%, 11/1/27     110,471      
  475     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.20%, 11/1/41     342,394      
 
 
            $ 2,155,914      
 
 
 
 
Special Tax Revenue — 6.7%
 
$ 1,665     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/31   $ 600,516      
  5,195     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/34     1,572,994      
  75     Virgin Islands Public Finance Authority, 5.00%, 10/1/39     75,050      
  335     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     374,587      
 
 
            $ 2,623,147      
 
 
 

 
See notes to financial statements

16


 

 
Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Transportation — 3.9%
 
$ 1,500     Massachusetts Department of Transportation, 5.00%, 1/1/37   $ 1,527,405      
 
 
            $ 1,527,405      
 
 
 
 
Water and Sewer — 5.2%
 
$ 215     Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27   $ 215,688      
  2,000     Massachusetts Water Resources Authority, 4.00%, 8/1/46     1,829,100      
 
 
            $ 2,044,788      
 
 
     
Total Tax-Exempt Investments — 163.4%
   
(identified cost $63,061,869)
  $ 63,923,508      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (51.3)%
  $ (20,051,756 )    
 
 
             
Other Assets, Less Liabilities — (12.1)%
  $ (4,746,387 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 39,125,365      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 30.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.1% to 14.4% of total investments.
 
(1) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

17


 

Eaton Vance Michigan Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 158.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 7.6%
 
$ 525     Grand Valley State University, 5.625%, 12/1/29   $ 556,484      
  525     Grand Valley State University, 5.75%, 12/1/34     551,397      
  540     Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35     522,823      
  500     Michigan State University, 5.00%, 2/15/40     521,865      
 
 
            $ 2,152,569      
 
 
 
 
Electric Utilities — 0.2%
 
$ 60     Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29   $ 60,313      
 
 
            $ 60,313      
 
 
 
 
Escrowed / Prerefunded — 17.9%
 
$ 500     Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31   $ 532,930      
  560     Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), Prerefunded to 11/15/13, 5.875%, 11/15/34     649,393      
  1,250     Michigan Higher Education Facilities Authority, (Creative Studies), Prerefunded to 6/1/12, 5.90%, 12/1/27     1,375,225      
  750     Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36     811,125      
  15     Michigan Hospital Finance Authority, (Trinity Health), Prerefunded to 12/1/10, 6.00%, 12/1/27     15,581      
  600     Puerto Rico Electric Power Authority, Prerefunded to 7/1/12, 5.25%, 7/1/31     663,360      
  1,000     White Cloud Public Schools, Prerefunded to 5/1/11, 5.125%, 5/1/31     1,044,240      
 
 
            $ 5,091,854      
 
 
 
 
General Obligations — 13.1%
 
$ 500     East Grand Rapids Public School District, 5.00%, 5/1/25   $ 514,625      
  1,500     Kent County, 5.00%, 1/1/25     1,629,690      
  750     Manistee Area Public Schools, 5.00%, 5/1/24     771,098      
  270     Michigan, 5.50%, 11/1/25     299,284      
  500     Wayne Charter County, 6.75%, 11/1/39     531,335      
 
 
            $ 3,746,032      
 
 
 
 
Hospital — 27.5%
 
$ 500     Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21   $ 501,010      
  185     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25     168,911      
  125     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37     108,498      
  275     Kent Hospital Finance Authority, (Spectrum Health), 5.50% to 1/15/15 (Put Date), 1/15/47     306,317      
  455     Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18     442,665      
  1,000     Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27     1,000,010      
  750     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38     679,402      
  1,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46     930,620      
  1,080     Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35     1,020,838      
  750     Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21     753,675      
  500     Michigan Hospital Finance Authority, (Mid Michigan Obligation Group), 6.125%, 6/1/39     534,040      
  985     Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27     1,002,513      
  425     Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), 5.375%, 6/1/26     384,918      
 
 
            $ 7,833,417      
 
 
 
 
Housing — 3.4%
 
$ 1,000     Michigan Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48   $ 977,210      
 
 
            $ 977,210      
 
 
 
 
Industrial Development Revenue — 6.0%
 
$ 750     Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21   $ 460,755      
  800     Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16     823,176      
  550     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     435,529      
 
 
            $ 1,719,460      
 
 
 
 
Insured-Education — 5.8%
 
$ 570     Ferris State University, (AGC), 5.125%, 10/1/33   $ 598,563      
  500     Ferris State University, (AGC), 5.25%, 10/1/38     528,660      
  500     Wayne State University, (AGM), 5.00%, 11/15/35     520,640      
 
 
            $ 1,647,863      
 
 
 

 
See notes to financial statements

18


 

 
Eaton Vance Michigan Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Electric Utilities — 9.2%
 
$ 1,000     Michigan Strategic Fund, (Detroit Edison Co.), (NPFG), (AMT), 5.55%, 9/1/29   $ 1,002,190      
  400     Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32     401,596      
  220     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30     231,497      
  500     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     514,530      
  435     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29     459,834      
 
 
            $ 2,609,647      
 
 
 
 
Insured-Escrowed / Prerefunded — 10.9%
 
$ 1,000     Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31   $ 1,051,580      
  2,000     Novi Building Authority, (AGM), Prerefunded to 10/1/10, 5.50%, 10/1/25     2,055,640      
 
 
            $ 3,107,220      
 
 
 
 
Insured-General Obligations — 8.5%
 
$ 300     Detroit City School District, (AGM), 5.25%, 5/1/32   $ 308,694      
  650     Detroit City School District, (FGIC), 4.75%, 5/1/28     637,676      
  200     Eaton Rapids Public Schools, (NPFG), 4.75%, 5/1/25     200,304      
  1,250     Van Dyke Public Schools, (AGM), 5.00%, 5/1/38     1,283,687      
 
 
            $ 2,430,361      
 
 
 
 
Insured-Hospital — 6.9%
 
$ 985     Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35   $ 956,701      
  1,000     Saginaw Hospital Finance Authority, (Covenant Medical Center), (NPFG), 5.50%, 7/1/24     1,000,440      
 
 
            $ 1,957,141      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 5.9%
 
$ 1,000     Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29   $ 353,380      
  4,300     Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30     1,323,239      
 
 
            $ 1,676,619      
 
 
 
 
Insured-Special Tax Revenue — 3.6%
 
$ 5,160     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 325,699      
  2,030     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     260,753      
  2,430     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     290,458      
  1,470     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     163,391      
 
 
            $ 1,040,301      
 
 
 
 
Insured-Student Loan — 6.9%
 
$ 1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31   $ 953,950      
  1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25     1,001,980      
 
 
            $ 1,955,930      
 
 
 
 
Insured-Transportation — 4.4%
 
$ 1,000     Wayne Charter County Airport, (AGC), (AMT), 5.375%, 12/1/32   $ 959,070      
  300     Wayne Charter County Airport, (NPFG), (AMT), 5.00%, 12/1/28     284,718      
 
 
            $ 1,243,788      
 
 
 
 
Insured-Water and Sewer — 9.4%
 
$ 1,650     Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30   $ 1,633,417      
  1,000     Grand Rapids Water Supply System, (AGC), 5.10%, 1/1/39     1,050,320      
 
 
            $ 2,683,737      
 
 
 
 
Lease Revenue / Certificates of Participation — 0.9%
 
$ 250     Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22   $ 250,228      
 
 
            $ 250,228      
 
 
 
 
Other Revenue — 1.3%
 
$ 500     Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48   $ 373,975      
 
 
            $ 373,975      
 
 
 
 
Special Tax Revenue — 1.3%
 
$ 115     Guam, Limited Obligation Bonds, 5.625%, 12/1/29   $ 118,717      
  125     Guam, Limited Obligation Bonds, 5.75%, 12/1/34     129,159      
  110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     122,998      
 
 
            $ 370,874      
 
 
 

 
See notes to financial statements

19


 

 
Eaton Vance Michigan Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Water and Sewer — 8.2%
 
$ 790     Grand Rapids, (Sanitary Sewer System), 5.00%, 1/1/28   $ 871,133      
  600     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.00%, 10/1/29     650,982      
  500     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.00%, 10/1/30     543,530      
  250     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.25%, 10/1/11(1)     265,910      
 
 
            $ 2,331,555      
 
 
     
Total Tax-Exempt Investments — 158.9%
   
(identified cost $45,249,062)
  $ 45,260,094      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (61.4)%
  $ (17,501,026 )    
 
 
             
Other Assets, Less Liabilities — 2.5%
  $ 730,031      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 28,489,099      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 45.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.9% to 18.4% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 
See notes to financial statements

20


 

Eaton Vance New Jersey Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 169.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 25.9%
 
$ 250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/27   $ 251,175      
  250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/33     242,330      
  220     New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37     216,861      
  2,780     New Jersey Educational Facilities Authority, (Kean University), 5.50%, 9/1/36     2,984,052      
  3,500     New Jersey Educational Facilities Authority, (Princeton University), 4.25%, 7/1/40(1)     3,479,280      
  3,500     New Jersey Educational Facilities Authority, (Princeton University), 4.50%, 7/1/38(2)     3,579,730      
  1,650     New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.00%, 7/1/27     1,679,485      
  965     New Jersey Educational Facilities Authority, (University of Medicine and Dentistry), 7.50%, 12/1/32     1,114,758      
  3,150     Rutgers State University, 5.00%, 5/1/39(2)     3,345,510      
 
 
            $ 16,893,181      
 
 
 
 
Electric Utilities — 2.3%
 
$ 1,500     Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31   $ 1,509,615      
 
 
            $ 1,509,615      
 
 
 
 
Hospital — 23.6%
 
$ 90     Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35   $ 81,365      
  2,300     Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34     2,304,876      
  2,515     New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27     2,538,213      
  2,535     New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37     2,546,915      
  915     New Jersey Health Care Facilities Financing Authority, (Chilton Memorial Hospital), 5.75%, 7/1/39     913,664      
  1,525     New Jersey Health Care Facilities Financing Authority, (Kennedy Health System), 5.625%, 7/1/31     1,533,967      
  1,750     New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31     1,751,050      
  2,650     New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46     2,567,293      
  1,075     New Jersey Health Care Facilities Financing Authority, (Virtua Health), 5.75%, 7/1/33     1,136,490      
 
 
            $ 15,373,833      
 
 
 
Housing — 4.7%
 
$ 715     New Jersey Housing & Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37   $ 682,353      
  2,340     New Jersey Housing & Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37     2,347,909      
 
 
            $ 3,030,262      
 
 
 
 
Industrial Development Revenue — 12.6%
 
$ 500     Middlesex County Pollution Control Authority, (Amerada Hess), 5.75%, 9/15/32   $ 503,375      
  540     Middlesex County Pollution Control Authority, (Amerada Hess), 6.05%, 9/15/34     551,572      
  3,220     New Jersey Economic Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.95%, 3/1/47     3,009,154      
  215     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29     196,349      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 9.00%, 6/1/33     789,488      
  1,235     New Jersey Economic Development Authority, (New Jersey American Water Co., Inc.), (AMT), 5.70%, 10/1/39     1,273,865      
  2,080     Virgin Islands Public Finance Authority, (HOVENSA LLC), (AMT), 4.70%, 7/1/22     1,915,160      
 
 
            $ 8,238,963      
 
 
 
 
Insured-Education — 6.4%
 
$ 3,365     New Jersey Educational Facilities Authority, (College of New Jersey), (AGM), 5.00%, 7/1/35(2)   $ 3,508,066      
  825     New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/28     673,811      
 
 
            $ 4,181,877      
 
 
 
 
Insured-Electric Utilities — 1.9%
 
$ 1,250     Vineland, (Electric Utility), (NPFG), (AMT), 5.25%, 5/15/26   $ 1,253,113      
 
 
            $ 1,253,113      
 
 
 
 
Insured-Gas Utilities — 7.8%
 
$ 4,975     New Jersey Economic Development Authority, (New Jersey Natural Gas Co.), (FGIC), (NPFG), (AMT), 4.90% to 10/1/25 (Put Date), 10/1/40   $ 5,112,957      
 
 
            $ 5,112,957      
 
 
 

 
See notes to financial statements

21


 

 
Eaton Vance New Jersey Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-General Obligations — 2.8%
 
$ 460     Egg Harbor Township School District, (AGM), 3.50%, 4/1/28   $ 433,095      
  1,240     Lakewood Township, (AGC), 5.75%, 11/1/31     1,410,971      
 
 
            $ 1,844,066      
 
 
 
 
Insured-Hospital — 6.5%
 
$ 750     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(2)   $ 776,535      
  1,460     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38     1,485,199      
  500     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC),
5.00%, 7/1/38(2)
    508,630      
  1,380     New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38     1,474,544      
 
 
            $ 4,244,908      
 
 
 
 
Insured-Housing — 5.2%
 
$ 3,390     New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (AGM), (AMT), 5.05%, 5/1/34   $ 3,391,390      
 
 
            $ 3,391,390      
 
 
 
 
Insured-Industrial Development Revenue — 0.3%
 
$ 165     New Jersey Economic Development Authority, (New Jersey American Water Co, Inc.), (FGIC), (NPFG), (AMT), 5.25%, 7/1/38   $ 164,751      
 
 
            $ 164,751      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 4.3%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34   $ 1,651,695      
  1,000     New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 9/1/28     1,127,550      
 
 
            $ 2,779,245      
 
 
 
 
Insured-Other Revenue — 1.7%
 
$ 1,015     Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39   $ 1,085,116      
 
 
            $ 1,085,116      
 
 
 
Insured-Special Tax Revenue — 11.7%
 
$ 6,000     Garden State Preservation Trust, (AGM), 0.00%, 11/1/25   $ 3,068,940      
  4,315     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26     1,897,866      
  2,020     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27     835,149      
  7,185     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     453,517      
  2,745     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     352,595      
  5,445     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     650,841      
  3,425     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     380,689      
 
 
            $ 7,639,597      
 
 
 
 
Insured-Student Loan — 4.3%
 
$ 2,580     New Jersey Higher Education Assistance Authority, (AGC), (AMT), 6.125%, 6/1/30   $ 2,774,893      
 
 
            $ 2,774,893      
 
 
 
 
Insured-Transportation — 5.2%
 
$ 1,960     New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), (BHAC), 0.00%, 12/15/26   $ 873,964      
  5,570     New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31     1,778,167      
  400     Port Authority of New York and New Jersey, (FGIC), (NPFG), (AMT), 5.00%, 8/1/36     400,028      
  315     South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33     345,819      
 
 
            $ 3,397,978      
 
 
 
 
Insured-Water and Sewer — 4.5%
 
$ 3,000     New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT), 4.875%, 11/1/25   $ 2,956,740      
 
 
            $ 2,956,740      
 
 
 
 
Lease Revenue / Certificates of Participation — 6.0%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), 5.25%, 12/15/33   $ 1,614,000      
  2,250     New Jersey Health Care Facilities Financing Authority, (Contract Hospital Asset Transportation Program), 5.25%, 10/1/38     2,281,703      
 
 
            $ 3,895,703      
 
 
 

 
See notes to financial statements

22


 

 
Eaton Vance New Jersey Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Other Revenue — 7.4%
 
$ 7,200     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/50   $ 272,808      
  13,280     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/55     258,031      
  600     New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(2)     632,050      
  2,700     New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(2)     2,844,221      
  4,270     Tobacco Settlement Financing Corp., 0.00%, 6/1/41     219,136      
  900     Tobacco Settlement Financing Corp., 5.00%, 6/1/41     610,092      
 
 
            $ 4,836,338      
 
 
 
 
Senior Living / Life Care — 2.8%
 
$ 465     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28   $ 445,261      
  770     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38     729,059      
  815     New Jersey Economic Development Authority, (Seabrook Village), 5.25%, 11/15/36     671,161      
 
 
            $ 1,845,481      
 
 
 
 
Special Tax Revenue — 1.2%
 
$ 100     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27   $ 92,241      
  175     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37     151,701      
  500     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     559,085      
 
 
            $ 803,027      
 
 
 
 
Student Loan — 4.2%
 
$ 230     New Jersey Higher Education Assistance Authority, 5.625%, 6/1/30   $ 244,437      
  2,500     New Jersey Higher Education Assistance Authority, (AMT), Variable Rate, 1.337%, 6/1/36(2)     2,496,300      
 
 
            $ 2,740,737      
 
 
 
 
Transportation — 15.1%
 
$ 250     New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38   $ 276,778      
  815     New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38     913,207      
  3,600     New Jersey Turnpike Authority, 5.25%, 1/1/40     3,803,616      
  480     Port Authority of New York and New Jersey, 4.50%, 11/1/33     489,893      
  1,000     Port Authority of New York and New Jersey, 5.00%, 9/1/34     1,034,560      
  1,995     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2)     2,136,319      
  1,175     South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33     1,186,867      
 
 
            $ 9,841,240      
 
 
 
 
Water and Sewer — 1.5%
 
$ 985     Cumberland County Improvement Authority, (Solid Waste System), 5.00%, 1/1/30   $ 987,679      
 
 
            $ 987,679      
 
 
     
Total Tax-Exempt Investments — 169.9%
   
(identified cost $109,197,640)
  $ 110,822,690      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (51.2)%
  $ (33,429,180 )    
 
 
             
Other Assets, Less Liabilities — (18.7)%
  $ (12,175,282 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 65,218,228      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 36.8% 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 2.5% to 10.4% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

23


 

Eaton Vance New York Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 170.3%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.4%
 
$ 1,150     Suffolk County Industrial Development Agency, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23   $ 1,007,021      
 
 
            $ 1,007,021      
 
 
 
 
Education — 18.2%
 
$ 315     Geneva Industrial Development Agency, (Hobart & William Smith Project), 5.375%, 2/1/33   $ 319,158      
  1,210     New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/34     1,298,112      
  325     New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39     347,692      
  510     New York Dormitory Authority, (Brooklyn Law School), 5.75%, 7/1/33     554,339      
  1,000     New York Dormitory Authority, (Columbia University), 5.00%, 7/1/38(1)     1,065,310      
  510     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/34     544,726      
  2,000     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/39     2,122,140      
  2,000     New York Dormitory Authority, (New York University), 5.25%, 7/1/48     2,126,500      
  2,250     New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33     2,499,233      
  2,500     New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40     2,662,400      
 
 
            $ 13,539,610      
 
 
 
 
Electric Utilities — 5.0%
 
$ 1,420     Long Island Power Authority, Electric System Revenue, 6.00%, 5/1/33   $ 1,618,772      
  2,100     Suffolk County Industrial Development Agency, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27     2,095,317      
 
 
            $ 3,714,089      
 
 
 
 
General Obligations — 10.0%
 
$ 6,000     New York City, 5.25%, 9/15/33(2)   $ 6,219,240      
  1,000     New York City, 6.25%, 10/15/28     1,179,890      
 
 
            $ 7,399,130      
 
 
 
Health Care-Miscellaneous — 5.9%
 
$ 1,115     New York City Industrial Development Agency, (A Very Special Place, Inc.), 5.75%, 1/1/29   $ 917,935      
  1,200     New York City Industrial Development Agency, (Ohel Children’s Home), 6.25%, 8/15/22     946,524      
  50     Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class H, 7.50%, 9/1/15     50,696      
  100     Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class I, 7.50%, 9/1/15     101,392      
  2,600     Westchester County Industrial Development Agency, (Children’s Village), 5.375%, 3/15/19     2,353,104      
 
 
            $ 4,369,651      
 
 
 
 
Hospital — 29.0%
 
$ 175     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.35%, 11/15/17   $ 172,197      
  485     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.40%, 11/15/29     436,107      
  1,250     Fulton County Industrial Development Agency, (Nathan Littauer Hospital), 6.00%, 11/1/18     1,179,700      
  2,490     Monroe County Industrial Development Agency, (Highland Hospital), 5.00%, 8/1/25     2,478,820      
  400     Nassau County Industrial Development Agency, (North Shore Health System), 6.25%, 11/1/21     409,708      
  1,500     New York Dormitory Authority, (Lenox Hill Hospital), 5.50%, 7/1/30     1,459,050      
  4,000     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 5.00%, 7/1/36(2)     4,142,480      
  2,000     New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33     1,945,140      
  1,000     New York Dormitory Authority, (Mount Sinai Hospital), 5.00%, 7/1/26(3)     1,023,790      
  900     New York Dormitory Authority, (Mount Sinai Hospital), 5.50%, 7/1/26     900,567      
  845     New York Dormitory Authority, (North Shore Hospital), 5.00%, 11/1/34     833,238      
  1,250     New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37     1,292,337      
  415     New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29     416,498      
  835     New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37     815,720      
  1,250     Oneida County Industrial Development Agency, (St. Elizabeth’s Medical Center), 5.75%, 12/1/19     1,245,475      
  650     Saratoga County Industrial Development Agency, (Saratoga Hospital), 5.25%, 12/1/32     634,901      
  2,105     Suffolk County Industrial Development Agency, (Huntington Hospital), 6.00%, 11/1/22     2,158,214      
 
 
            $ 21,543,942      
 
 
 

 
See notes to financial statements

24


 

 
Eaton Vance New York Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Housing — 16.5%
 
$ 1,500     New York City Housing Development Corp., MFMR, (AMT), 5.05%, 11/1/39   $ 1,502,625      
  2,620     New York City Housing Development Corp., MFMR, (AMT), 5.20%, 11/1/40     2,650,261      
  1,000     New York Housing Finance Agency, 5.25%, 11/1/41     1,022,120      
  2,625     New York Housing Finance Agency, (FNMA), (AMT), 5.40%, 11/15/42     2,697,922      
  1,500     New York Mortgage Agency, (AMT), 4.875%, 10/1/30     1,489,380      
  1,955     New York Mortgage Agency, (AMT), 4.90%, 10/1/37     1,897,543      
  1,000     New York Mortgage Agency, (AMT), 5.125%, 10/1/37     1,007,100      
 
 
            $ 12,266,951      
 
 
 
 
Industrial Development Revenue — 11.4%
 
$ 340     Chautauqua County Industrial Development Agency, (NRG Dunkirk Power), 5.875%, 4/1/42   $ 348,745      
  1,000     Essex County Industrial Development Agency, (International Paper Company), (AMT), 6.625%, 9/1/32     1,047,400      
  2,525     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(2)     2,552,512      
  1,500     New York Industrial Development Agency, (American Airlines, Inc. - JFK International Airport), (AMT), 8.00%, 8/1/12     1,538,025      
  2,500     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), (AMT), 6.25%, 12/1/34     2,502,025      
  465     Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15     465,744      
 
 
            $ 8,454,451      
 
 
 
 
Insured-Education — 6.0%
 
$ 1,250     New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35   $ 1,258,425      
  1,500     New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38(2)     1,580,499      
  5,365     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/33     1,653,708      
 
 
            $ 4,492,632      
 
 
 
 
Insured-Electric Utilities — 3.4%
 
$ 1,365     Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33   $ 1,548,961      
  960     New York Power Authority, (NPFG), 5.00%, 11/15/47     1,004,438      
 
 
            $ 2,553,399      
 
 
 
Insured-Escrowed / Prerefunded — 1.8%
 
$ 1,265     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/26   $ 683,758      
  1,280     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/27     658,150      
 
 
            $ 1,341,908      
 
 
 
 
Insured-General Obligations — 1.3%
 
$ 910     New Rochelle City School District, (AGC), 4.00%, 11/15/21   $ 955,436      
 
 
            $ 955,436      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 4.5%
 
$ 3,600     Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47(4)   $ 3,339,432      
 
 
            $ 3,339,432      
 
 
 
 
Insured-Other Revenue — 2.6%
 
$ 2,645     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/31   $ 854,150      
  3,625     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/32     1,108,561      
 
 
            $ 1,962,711      
 
 
 
 
Insured-Special Tax Revenue — 7.8%
 
$ 1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45   $ 973,230      
  1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     1,004,250      
  4,440     Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/34     896,391      
  19,745     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     1,246,304      
  3,380     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     434,161      
  6,705     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     801,449      
  4,225     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     469,609      
 
 
            $ 5,825,394      
 
 
 

 
See notes to financial statements

25


 

 
Eaton Vance New York Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Transportation — 8.0%
 
$ 3,025     Metropolitan Transportation Authority, (AGC), 4.50%, 11/15/38   $ 3,005,731      
  2,920     Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (NPFG), (AMT), 5.625%, 4/1/29     2,928,672      
 
 
            $ 5,934,403      
 
 
 
 
Insured-Water and Sewer — 1.3%
 
$ 1,000     Nassau County Industrial Development Agency, (Water Services Corp.), (AMBAC), (AMT), 5.00%, 12/1/35   $ 943,630      
 
 
            $ 943,630      
 
 
 
 
Lease Revenue / Certificates of Participation — 4.6%
 
$ 2,345     New York City Transitional Finance Authority, (Building Aid), 4.50%, 1/15/38   $ 2,315,641      
  1,000     New York City Transitional Finance Authority, (Building Aid), 5.50%, 7/15/31     1,097,370      
 
 
            $ 3,413,011      
 
 
 
 
Other Revenue — 4.1%
 
$ 1,285     Albany Industrial Development Agency, Civic Facility, (Charitable Leadership), 5.75%, 7/1/26   $ 1,013,056      
  3,120     Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31     817,471      
  380     Brooklyn Arena Local Development Corp., (Barclays Center), 6.25%, 7/15/40     391,886      
  790     New York City Cultural Resource Trust, (Museum of Modern Art), 5.00%, 4/1/31     845,521      
 
 
            $ 3,067,934      
 
 
 
 
Senior Living / Life Care — 3.0%
 
$ 1,450     Mount Vernon Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29   $ 1,355,010      
  900     Suffolk County Industrial Development Agency, (Jefferson’s Ferry Project), 5.00%, 11/1/28     838,386      
 
 
            $ 2,193,396      
 
 
 
 
Special Tax Revenue — 3.6%
 
$ 1,000     New York Dormitory Authority, Personal Income Tax Revenue, (University & College Improvements), 5.25%, 3/15/38   $ 1,085,690      
  900     New York State Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/32     949,212      
  545     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     609,403      
 
 
            $ 2,644,305      
 
 
 
Transportation — 10.8%
 
$ 1,000     Metropolitan Transportation Authority, 4.50%, 11/15/37   $ 981,420      
  1,900     Port Authority of New York and New Jersey, 5.00%, 11/15/37(2)     2,005,222      
  1,030     Port Authority of New York and New Jersey, (AMT), 4.75%, 6/15/33     1,022,842      
  990     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2)     1,060,128      
  2,740     Triborough Bridge and Tunnel Authority,
5.25%, 11/15/34(2)
    2,963,392      
  10     Triborough Bridge and Tunnel Authority, 5.25%, 11/15/34     10,815      
 
 
            $ 8,043,819      
 
 
 
 
Water and Sewer — 10.1%
 
$ 585     Dutchess County Water and Wastewater Authority, 0.00%, 10/1/34   $ 170,481      
  325     Dutchess County Water and Wastewater Authority, 0.00%, 10/1/35     89,368      
  3,105     New York City Municipal Water Finance Authority, (Water and Sewer System), 5.75%, 6/15/40(2)     3,528,273      
  2,535     New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance Authority), 5.00%, 6/15/37(2)     2,697,139      
  1,000     Saratoga County Water Authority, 5.00%, 9/1/48     1,040,610      
 
 
            $ 7,525,871      
 
 
     
Total Tax-Exempt Investments — 170.3%
   
(identified cost $124,821,660)
  $ 126,532,126      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (45.4)%
  $ (33,726,581 )    
 
 
             
Other Assets, Less Liabilities — (24.9)%
  $ (18,499,974 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 74,305,571      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FNMA - Federal National Mortgage Association

 
See notes to financial statements

26


 

 
Eaton Vance New York Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
 
MFMR - Multi-Family Mortgage Revenue
NPFG - National Public Finance Guaranty Corp.
 
The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 21.6% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.5% to 9.5% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(3) When-issued security.
 
(4) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 
See notes to financial statements

27


 

Eaton Vance Ohio Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 156.3%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 3.3%
 
$ 1,250     Ohio Higher Educational Facility Commission, (Kenyon College), 5.25%, 7/1/44   $ 1,302,650      
 
 
            $ 1,302,650      
 
 
 
 
Electric Utilities — 0.8%
 
$ 310     Clyde, Electric System Revenue, (AMT), 6.00%, 11/15/14   $ 310,924      
 
 
            $ 310,924      
 
 
 
 
Escrowed / Prerefunded — 13.8%
 
$ 1,000     Delaware County, Prerefunded to 12/1/10, 6.00%, 12/1/25   $ 1,038,890      
  1,000     Mahoning County, (Career and Technical Center), Prerefunded to 12/1/11, 6.25%, 12/1/36     1,079,990      
  2,530     Puerto Rico Infrastructure Financing Authority, Prerefunded to 10/1/10, 5.50%, 10/1/32     2,600,106      
  670     Richland County Hospital Facilities, (MedCentral Health Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22     694,757      
 
 
            $ 5,413,743      
 
 
 
 
General Obligations — 17.0%
 
$ 1,000     Barberton City School District, 4.50%, 12/1/33   $ 1,004,000      
  1,750     Beavercreek City School District, 5.00%, 12/1/30     1,863,557      
  1,090     Central Ohio Solid Waste Authority, 5.125%, 9/1/27     1,178,639      
  500     Columbus, 5.00%, 7/1/23(1)     533,555      
  1,000     Columbus City School District, 5.00%, 12/1/29     1,071,900      
  1,000     Maple Heights City School District, 5.00%, 1/15/37     1,010,700      
 
 
            $ 6,662,351      
 
 
 
 
Hospital — 12.1%
 
$ 800     Franklin County, (Nationwide Children’s Hospital), 5.00%, 11/1/34   $ 814,416      
  500     Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26     503,370      
  500     Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34     537,540      
  1,000     Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.50%, 1/1/39     1,049,480      
  600     Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40     596,568      
  980     Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 4.75%, 1/15/46     902,815      
  330     Richland County Hospital Facilities, (MedCentral Health Systems), 6.375%, 11/15/22     335,630      
 
 
            $ 4,739,819      
 
 
 
 
Housing — 11.9%
 
$ 1,000     Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 4.625%, 9/1/27   $ 992,300      
  570     Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 4.75%, 3/1/37     545,011      
  600     Ohio Housing Finance Agency, (Residential Mortgage-Backed Securities), (AMT), 5.00%, 9/1/31     601,602      
  2,500     Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48     2,516,725      
 
 
            $ 4,655,638      
 
 
 
 
Industrial Development Revenue — 8.5%
 
$ 1,015     Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27   $ 851,747      
  2,250     Ohio Water Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 6.00%, 8/1/38     2,251,238      
  225     Ohio Water Development Authority, Solid Waste Disposal, (Allied Waste North America, Inc.), (AMT), 5.15%, 7/15/15     229,532      
 
 
            $ 3,332,517      
 
 
 
 
Insured-Education — 10.9%
 
$ 1,000     Kent State University, (AGC), 5.00%, 5/1/26   $ 1,067,440      
  465     Kent State University, (AGC), 5.00%, 5/1/29     486,441      
  730     Miami University, (AMBAC), 3.25%, 9/1/26     632,428      
  1,500     University of Akron, Series A, (AGM), 5.00%, 1/1/38     1,554,555      
  500     University of Akron, Series B, (AGM), 5.00%, 1/1/38     518,185      
 
 
            $ 4,259,049      
 
 
 
 
Insured-Electric Utilities — 12.6%
 
$ 1,000     American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39   $ 1,080,970      
  710     Cleveland Public Power System, (NPFG), 0.00%, 11/15/27     286,045      
  2,000     Cleveland Public Power System, (NPFG), 0.00%, 11/15/38     410,200      
  830     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25     395,038      
  3,000     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26     1,339,020      
  425     Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34     424,269      

 
See notes to financial statements

28


 

 
Eaton Vance Ohio Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
$ 210     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30   $ 220,975      
  250     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     257,265      
  500     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26     535,465      
 
 
            $ 4,949,247      
 
 
 
 
Insured-Escrowed / Prerefunded — 4.6%
 
$ 245     Cuyahoga County Hospital, (Cleveland Clinic Health System), (NPFG), Escrowed to Maturity, 5.125%, 1/1/29   $ 245,740      
  1,000     Ohio Higher Educational Facility Commission, (University of Dayton), (AMBAC), Prerefunded to 12/1/10, 5.50%, 12/1/30     1,034,570      
  500     University of Cincinnati, (FGIC), Prerefunded to 6/1/11, 5.25%, 6/1/24     529,260      
 
 
            $ 1,809,570      
 
 
 
 
Insured-General Obligations — 16.4%
 
$ 280     Bowling Green City School District, (AGM), 5.00%, 12/1/34   $ 289,526      
  200     Brookfield Local School District, (AGM), 5.00%, 1/15/30     210,878      
  500     Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36     516,440      
  2,455     Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30     863,914      
  1,500     Madeira City School District, (AGM), 3.50%, 12/1/27     1,379,505      
  1,750     Milford Exempt Village School District, (AGC), 5.25%, 12/1/36     1,858,447      
  750     St. Mary’s School District, (AGM), 5.00%, 12/1/35     772,943      
  500     Wadsworth City School District, (AGC), 5.00%, 12/1/37     517,710      
 
 
            $ 6,409,363      
 
 
 
 
Insured-Hospital — 6.6%
 
$ 545     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32   $ 540,683      
  1,500     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28     1,510,920      
  485     Lorain County, (Catholic Healthcare Partners), (AGM), Variable Rate, 14.686%, 2/1/29(2)(3)(4)     529,630      
 
 
            $ 2,581,233      
 
 
 
Insured-Lease Revenue / Certificates of Participation — 1.0%
 
$ 500     Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33   $ 410,260      
 
 
            $ 410,260      
 
 
 
 
Insured-Special Tax Revenue — 3.8%
 
$ 9,905     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 625,204      
  1,685     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     216,438      
  3,340     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     399,230      
  2,100     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     233,415      
 
 
            $ 1,474,287      
 
 
 
 
Insured-Transportation — 6.9%
 
$ 385     Cleveland Airport System, (AGM), 5.00%, 1/1/31   $ 385,339      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24     1,162,850      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26     1,171,120      
 
 
            $ 2,719,309      
 
 
 
 
Insured-Water and Sewer — 2.1%
 
$ 215     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46   $ 212,900      
  625     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47     618,081      
 
 
            $ 830,981      
 
 
 
 
Lease Revenue / Certificates of Participation — 1.4%
 
$ 500     Franklin County Convention Facilities Authority, 5.00%, 12/1/27   $ 542,785      
 
 
            $ 542,785      
 
 
 
 
Other Revenue — 4.3%
 
$ 7,345     Buckeye Tobacco Settlement Financing Authority, 0.00%, 6/1/47   $ 248,775      
  710     Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47     510,952      
  1,000     Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27     936,130      
 
 
            $ 1,695,857      
 
 
 

 
See notes to financial statements

29


 

 
Eaton Vance Ohio Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Pooled Loans — 10.8%
 
$ 550     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25   $ 562,006      
  1,020     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22     1,066,543      
  1,245     Rickenbacher Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5)     1,321,505      
  310     Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25     269,728      
  1,100     Toledo-Lucas County Port Authority, 5.40%, 5/15/19     997,172      
 
 
            $ 4,216,954      
 
 
 
 
Special Tax Revenue — 6.1%
 
$ 520     Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18   $ 526,578      
  1,375     Cuyahoga County Economic Development, (Shaker Square), 6.75%, 12/1/30     1,415,700      
  155     Guam, Limited Obligation Bonds, 5.625%, 12/1/29     160,009      
  170     Guam, Limited Obligation Bonds, 5.75%, 12/1/34     175,656      
  110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     122,999      
 
 
            $ 2,400,942      
 
 
 
 
Water and Sewer — 1.4%
 
$ 250     Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 12/1/28   $ 274,485      
  250     Ohio Water Development Authority, Water Pollution Control, (Water Quality), 5.00%, 6/1/30     271,570      
 
 
            $ 546,055      
 
 
     
Total Tax-Exempt Investments — 156.3%
   
(identified cost $60,259,466)
  $ 61,263,534      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (58.0)%
  $ (22,726,652 )    
 
 
             
Other Assets, Less Liabilities — 1.7%
  $ 652,440      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 39,189,322      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 41.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.4% to 16.0% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At May 31, 2010, the aggregate value of these securities is $529,630 or 1.4% of the Trust’s net assets applicable to common shares.
 
(3) 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.
 
(4) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2010.
 
(5) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

30


 

Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
                     
Tax-Exempt Investments — 161.1%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Bond Bank — 3.1%
 
$ 1,000     Delaware Valley Regional Finance Authority, 5.75%, 7/1/32   $ 1,161,470      
 
 
            $ 1,161,470      
 
 
 
 
Cogeneration — 2.7%
 
$ 300     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.50%, 1/1/13   $ 182,922      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.60%, 1/1/19     280,440      
  575     Pennsylvania Economic Development Financing Authority, (Resource Recovery-Colver), (AMT), 5.125%, 12/1/15     555,605      
 
 
            $ 1,018,967      
 
 
 
 
Education — 10.4%
 
$ 500     Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/39   $ 514,195      
  1,200     Cumberland County Municipal Authority, (Dickinson College), 5.00%, 11/1/39     1,188,996      
  500     Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39     522,395      
  625     Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40     645,925      
  500     Pennsylvania State University, 5.00%, 3/1/40     531,105      
  500     Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30     525,240      
 
 
            $ 3,927,856      
 
 
 
 
Electric Utilities — 2.8%
 
$ 435     Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36   $ 449,668      
  600     York County Industrial Development Authority, Pollution Control Revenue, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20     612,780      
 
 
            $ 1,062,448      
 
 
 
 
Escrowed / Prerefunded — 1.8%
 
$ 600     Bucks County Industrial Development Authority, (Pennswood), Prerefunded to 10/1/12, 6.00%, 10/1/27   $ 675,642      
 
 
            $ 675,642      
 
 
 
General Obligations — 7.1%
 
$ 500     Chester County, 5.00%, 7/15/27(1)   $ 559,615      
  1,000     Daniel Boone Area School District, 5.00%, 8/15/32     1,047,240      
  1,000     Philadelphia School District, 6.00%, 9/1/38     1,081,650      
 
 
            $ 2,688,505      
 
 
 
 
Hospital — 22.4%
 
$ 500     Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34   $ 512,670      
  750     Dauphin County General Authority, (Pinnacle Health System), 6.00%, 6/1/29     797,152      
  1,215     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32     1,219,775      
  750     Lycoming County Authority, (Susquehanna Health System), 5.75%, 7/1/39     764,303      
  1,500     Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43     1,443,375      
  250     Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33     250,170      
  1,000     Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(2)     1,124,625      
  675     Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31     690,950      
  850     Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31     888,802      
  250     South Fork Municipal Authority, (Conemaugh Health System), 5.50%, 7/1/29     245,068      
  500     Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17     516,795      
 
 
            $ 8,453,685      
 
 
 
 
Housing — 15.7%
 
$ 495     Allegheny County Residential Finance Authority, SFMR, (AMT), 4.95%, 11/1/37   $ 494,980      
  1,160     Allegheny County Residential Finance Authority, SFMR, (AMT), 5.00%, 5/1/35     1,171,205      
  920     Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.70%, 10/1/37     868,839      
  950     Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 4/1/26     955,434      
  500     Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.875%, 10/1/31     495,710      
  1,000     Pennsylvania Housing Finance Agency, SFMR, (AMT), 4.90%, 10/1/37     992,490      
  960     Pennsylvania Housing Finance Agency, SFMR, (AMT), 5.15%, 10/1/37     964,378      
 
 
            $ 5,943,036      
 
 
 

 
See notes to financial statements

31


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Industrial Development Revenue — 11.6%
 
$ 200     Luzerne County Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39   $ 207,034      
  750     Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42     761,820      
  500     New Morgan Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.50%, 4/1/19     500,355      
  250     Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39     272,140      
  1,000     Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31     1,056,000      
  500     Pennsylvania Economic Development Financing Authority, Solid Waste Disposal, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27     497,120      
  1,365     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     1,080,903      
 
 
            $ 4,375,372      
 
 
 
 
Insured-Education — 16.3%
 
$ 500     Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37   $ 525,950      
  1,675     Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32     1,626,107      
  1,115     Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37     1,146,276      
  1,000     Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 5.00%, 4/1/33     1,025,890      
  500     State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/27     534,385      
  375     State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29     396,645      
  875     State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32     915,355      
 
 
            $ 6,170,608      
 
 
 
 
Insured-Escrowed / Prerefunded — 8.1%
 
$ 1,600     Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27   $ 1,604,064      
  2,000     Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19     1,463,840      
 
 
            $ 3,067,904      
 
 
 
 
Insured-General Obligations — 4.4%
 
$ 500     Beaver County, (AGM), 5.55%, 11/15/31   $ 541,125      
  750     Bethlehem Area School District, (AGM), 5.25%, 1/15/25     807,503      
  300     West Mifflin Area School District, (AGM), 5.125%, 4/1/31     317,178      
 
 
            $ 1,665,806      
 
 
 
 
Insured-Hospital — 10.7%
 
$ 250     Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24   $ 290,805      
  355     Delaware County General Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26     347,325      
  1,440     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35(2)     1,453,565      
  35     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (NPFG), 5.25%, 7/1/29     34,997      
  1,900     Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28     1,899,905      
 
 
            $ 4,026,597      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 7.1%
 
$ 500     Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31   $ 525,910      
  1,195     Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27     1,235,463      
  750     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     907,057      
 
 
            $ 2,668,430      
 
 
 
 
Insured-Special Tax Revenue — 6.5%
 
$ 1,000     Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24   $ 982,450      
  9,870     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     622,994      
  1,690     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     217,081      
  3,350     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     400,425      
  2,100     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     233,415      
 
 
            $ 2,456,365      
 
 
 
 
Insured-Transportation — 14.6%
 
$ 1,000     Pennsylvania Turnpike Commission, (AGC), 5.00%, 6/1/38   $ 1,037,390      
  1,000     Pennsylvania Turnpike Commission, (AGC), 5.00%, 6/1/39     1,039,700      

 
See notes to financial statements

32


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited) CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Transportation (continued)
 
                     
$ 500     Philadelphia, Airport Revenue, (AGM), (AMT), 5.00%, 6/15/27   $ 496,025      
  1,005     Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29     1,005,382      
  1,800     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     1,917,981      
 
 
            $ 5,496,478      
 
 
 
 
Insured-Water and Sewer — 6.9%
 
$ 275     Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22   $ 295,246      
  550     Chester County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 2/1/40     550,269      
  875     Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 11/1/36     877,441      
  500     Delaware County Industrial Development Authority, (Water Facilities), (FGIC), (NPFG), (AMT), 6.00%, 6/1/29     500,465      
  360     Philadelphia, Water and Wastewater Revenue, (FGIC), (NPFG), 5.00%, 11/1/31     363,996      
 
 
            $ 2,587,417      
 
 
 
 
Senior Living / Life Care — 3.8%
 
$ 1,000     Cliff House Trust, (AMT), 6.625%, 6/1/27   $ 524,180      
  500     Lancaster County Hospital Authority, (Willow Valley Retirement Communities), 5.875%, 6/1/31     505,990      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24     198,574      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30     191,586      
 
 
            $ 1,420,330      
 
 
 
 
Special Tax Revenue — 0.3%
 
$ 110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37   $ 122,999      
 
 
            $ 122,999      
 
 
 
 
Transportation — 2.8%
 
$ 270     Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 6.25%, 11/1/31   $ 273,834      
  750     Pennsylvania Turnpike Commission, 5.625%, 6/1/29     801,525      
 
 
            $ 1,075,359      
 
 
 
Water and Sewer — 2.0%
 
$ 750     Harrisburg Water Authority, 5.25%, 7/15/31   $ 751,425      
 
 
            $ 751,425      
 
 
     
Total Tax-Exempt Investments — 161.1%
   
(identified cost $60,163,157)
  $ 60,816,699      
 
 
             
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.1)%
  $ (21,176,854 )    
 
 
             
Other Assets, Less Liabilities — (5.0)%
  $ (1,896,793 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 37,743,052      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
SFMR - Single Family Mortgage Revenue
 
The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2010, 46.3% 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 14.8% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

33


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited)
 
Statements of Assets and Liabilities
 
                                     
As of May 31, 2010   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Assets
 
Investments —
                                   
Identified cost
  $ 162,031,524     $ 63,061,869     $ 45,249,062     $ 109,197,640      
Unrealized appreciation (depreciation)
    (1,015,476 )     861,639       11,032       1,625,050      
 
 
Investments, at value
  $ 161,016,048     $ 63,923,508     $ 45,260,094     $ 110,822,690      
 
 
Cash
  $ 1,158,646     $     $ 205,258     $ 1,085,993      
Interest receivable
    2,033,065       1,073,972       619,330       1,635,632      
Receivable for investments sold
    12,000                   57,082      
Deferred debt issuance costs
    33,322       4,321             4,172      
 
 
Total assets
  $ 164,253,081     $ 65,001,801     $ 46,084,682     $ 113,605,569      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 20,535,000     $ 4,885,000     $     $ 14,572,000      
Payable for variation margin on open financial futures contracts
    15,751             1,563       27,344      
Payable for open swap contracts
    259,861       96,120       4,956       166,611      
Due to custodian
          734,848                  
Payable to affiliates:
                                   
Investment adviser fee
    88,343       35,922       27,254       61,221      
Administration fee
    25,793       10,264       7,787       17,489      
Trustees’ fees
    913       411       333       646      
Interest expense and fees payable
    28,193       8,946             34,672      
Accrued expenses
    67,217       53,169       52,664       78,178      
 
 
Total liabilities
  $ 21,021,071     $ 5,824,680     $ 94,557     $ 14,958,161      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 49,979,998     $ 20,051,756     $ 17,501,026     $ 33,429,180      
 
 
Net assets applicable to common shares
  $ 93,252,012     $ 39,125,365     $ 28,489,099     $ 65,218,228      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 71,958     $ 27,306     $ 21,163     $ 46,416      
Additional paid-in capital
    104,374,378       39,772,187       30,947,836       66,703,405      
Accumulated net realized loss
    (11,363,052 )     (1,940,772 )     (2,806,325 )     (4,024,726 )    
Accumulated undistributed net investment income
    1,273,058       501,125       316,104       862,491      
Net unrealized appreciation (depreciation)
    (1,104,330 )     765,519       10,321       1,630,642      
 
 
Net assets applicable to common shares
  $ 93,252,012     $ 39,125,365     $ 28,489,099     $ 65,218,228      
 
 
 
Auction Preferred Shares Issued and
Outstanding (Liquidation preference
of $25,000 per share)
 
      1,999       802       700       1,337      
 
 
 
Common Shares Outstanding
 
      7,195,830       2,730,559       2,116,294       4,641,565      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 12.96     $ 14.33     $ 13.46     $ 14.05      
 
 

 
See notes to financial statements

34


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
Statements of Assets and Liabilities
 
                             
As of May 31, 2010   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Assets
 
Investments —
                           
Identified cost
  $ 124,821,660     $ 60,259,466     $ 60,163,157      
Unrealized appreciation
    1,710,466       1,004,068       653,542      
 
 
Investments, at value
  $ 126,532,126     $ 61,263,534     $ 60,816,699      
 
 
Cash
  $ 2,197,605     $ 670,638     $      
Interest receivable
    1,709,380       1,011,484       917,807      
Receivable for investments sold
          5,000            
Deferred debt issuance costs
    23,525                  
 
 
Total assets
  $ 130,462,636     $ 62,950,656     $ 61,734,506      
 
 
 
Liabilities
 
Payable for floating rate notes issued
  $ 20,475,000     $ 830,000     $ 2,370,000      
Payable for investments purchased
    482,858                  
Payable for when-issued securities
    1,023,790                  
Payable for variation margin on open financial futures contracts
    13,125       4,219       10,938      
Payable for open swap contracts
    228,254       92,485       93,431      
Due to custodian
                226,139      
Payable to affiliates:
                           
Investment adviser fee
    70,490       37,236       35,686      
Administration fee
    20,138       10,638       10,196      
Trustees’ fees
    728       428       413      
Interest expense and fees payable
    39,261       2,890       8,645      
Accrued expenses
    76,840       56,786       59,152      
 
 
Total liabilities
  $ 22,430,484     $ 1,034,682     $ 2,814,600      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 33,726,581     $ 22,726,652     $ 21,176,854      
 
 
Net assets applicable to common shares
  $ 74,305,571     $ 39,189,322     $ 37,743,052      
 
 
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 54,265     $ 28,377     $ 27,118      
Additional paid-in capital
    78,723,838       40,670,202       38,508,701      
Accumulated net realized loss
    (6,901,456 )     (2,916,702 )     (1,834,994 )    
Accumulated undistributed net investment income
    804,206       480,484       413,235      
Net unrealized appreciation
    1,624,718       926,961       628,992      
 
 
Net assets applicable to common shares
  $ 74,305,571     $ 39,189,322     $ 37,743,052      
 
 
 
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      1,349       909       847      
 
 
 
Common Shares Outstanding
 
      5,426,491       2,837,697       2,711,788      
 
 
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 13.69     $ 13.81     $ 13.92      
 
 

 
See notes to financial statements

35


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Operations
 
                                     
For the Six Months Ended May 31, 2010   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Investment Income
 
Interest
  $ 4,326,554     $ 1,643,095     $ 1,205,098     $ 2,872,013      
 
 
Total investment income
  $ 4,326,554     $ 1,643,095     $ 1,205,098     $ 2,872,013      
 
 
                                     
                                     
 
Expenses
 
Investment adviser fee
  $ 523,152     $ 207,417     $ 157,784     $ 355,965      
Administration fee
    150,025       59,481       45,248       102,079      
Trustees’ fees and expenses
    2,627       1,195       962       1,872      
Custodian fee
    36,618       20,014       14,257       27,806      
Transfer and dividend disbursing agent fees
    6,068       5,510       7,739       8,350      
Legal and accounting services
    23,309       19,923       18,912       24,829      
Printing and postage
    9,450       5,645       5,309       7,337      
Interest expense and fees
    74,285       15,285             50,666      
Preferred shares service fee
    34,826       14,551       11,744       24,417      
Miscellaneous
    18,597       18,607       21,107       21,632      
 
 
Total expenses
  $ 878,957     $ 367,628     $ 283,062     $ 624,953      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 155     $ 9     $ 151     $ 206      
 
 
Total expense reductions
  $ 155     $ 9     $ 151     $ 206      
 
 
                                     
Net expenses
  $ 878,802     $ 367,619     $ 282,911     $ 624,747      
 
 
                                     
Net investment income
  $ 3,447,752     $ 1,275,476     $ 922,187     $ 2,247,266      
 
 
                                     
                                     
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ (34,117 )   $ (53,047 )   $ (121,058 )   $ 157,810      
Financial futures contracts
    (493,758 )           (20,286 )     (793,844 )    
Swap contracts
    (6,422 )     (1,683 )     (19,059 )     (4,093 )    
 
 
Net realized loss
  $ (534,297 )   $ (54,730 )   $ (160,403 )   $ (640,127 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ 4,649,170     $ 2,132,812     $ 1,245,504     $ 2,800,350      
Financial futures contracts
    367,008             24,359       172,203      
Swap contracts
    (136,251 )     (50,812 )     8,719       (87,373 )    
 
 
Net change in unrealized appreciation (depreciation)
  $ 4,879,927     $ 2,082,000     $ 1,278,582     $ 2,885,180      
 
 
                                     
Net realized and unrealized gain
  $ 4,345,630     $ 2,027,270     $ 1,118,179     $ 2,245,053      
 
 
Distributions to preferred shareholders —
                                   
From net investment income
  $ (97,733 )   $ (39,466 )   $ (33,978 )   $ (66,205 )    
 
 
                                     
Net increase in net assets from operations
  $ 7,695,649     $ 3,263,280     $ 2,006,388     $ 4,426,114      
 
 

 
See notes to financial statements

36


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Operations
 
                             
For the Six Months Ended May 31, 2010   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Investment Income
 
Interest
  $ 3,277,482     $ 1,649,800     $ 1,578,799      
 
 
Total investment income
  $ 3,277,482     $ 1,649,800     $ 1,578,799      
 
 
                             
                             
 
Expenses
 
Investment adviser fee
  $ 408,096     $ 217,079     $ 207,561      
Administration fee
    117,031       62,251       59,522      
Trustees’ fees and expenses
    2,103       1,243       1,193      
Custodian fee
    31,582       19,259       17,946      
Transfer and dividend disbursing agent fees
    6,786       6,521       9,356      
Legal and accounting services
    18,855       17,906       20,683      
Printing and postage
    8,677       6,037       6,164      
Interest expense and fees
    69,680       3,271       11,238      
Preferred shares service fee
    24,392       16,267       15,057      
Miscellaneous
    22,698       18,747       20,462      
 
 
Total expenses
  $ 709,900     $ 368,581     $ 369,182      
 
 
Deduct —
                           
Reduction of custodian fee
  $ 289     $ 176     $ 115      
 
 
Total expense reductions
  $ 289     $ 176     $ 115      
 
 
                             
Net expenses
  $ 709,611     $ 368,405     $ 369,067      
 
 
                             
Net investment income
  $ 2,567,871     $ 1,281,395     $ 1,209,732      
 
 
                             
                             
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                           
Investment transactions
  $ (25,672 )   $ 90,250     $ (26,985 )    
Financial futures contracts
    (411,465 )     (73,872 )     (279,997 )    
Swap contracts
    (130,174 )     23,978       67,062      
 
 
Net realized gain (loss)
  $ (567,311 )   $ 40,356     $ (239,920 )    
 
 
Change in unrealized appreciation (depreciation) —
                           
Investments
  $ 4,445,044     $ 820,369     $ 1,603,538      
Financial futures contracts
    305,841       59,175       192,493      
Swap contracts
    (45,252 )     (64,188 )     (90,447 )    
 
 
Net change in unrealized appreciation (depreciation)
  $ 4,705,633     $ 815,356     $ 1,705,584      
 
 
                             
Net realized and unrealized gain
  $ 4,138,322     $ 855,712     $ 1,465,664      
 
 
Distributions to preferred shareholders —
                           
From net investment income
  $ (65,171 )   $ (44,596 )   $ (41,680 )    
 
 
                             
Net increase in net assets from operations
  $ 6,641,022     $ 2,092,511     $ 2,633,716      
 
 

 
See notes to financial statements

37


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Changes in Net Assets
 
For the Six Months Ended May 31, 2010
 
 
                                     
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
From operations —
                                   
Net investment income
  $ 3,447,752     $ 1,275,476     $ 922,187     $ 2,247,266      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (534,297 )     (54,730 )     (160,403 )     (640,127 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    4,879,927       2,082,000       1,278,582       2,885,180      
Distributions to preferred shareholders —
                                   
From net investment income
    (97,733 )     (39,466 )     (33,978 )     (66,205 )    
 
 
Net increase in net assets from operations
  $ 7,695,649     $ 3,263,280     $ 2,006,388     $ 4,426,114      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (3,163,920 )   $ (1,235,377 )   $ (908,956 )   $ (2,196,240 )    
 
 
Total distributions to common shareholders
  $ (3,163,920 )   $ (1,235,377 )   $ (908,956 )   $ (2,196,240 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $     $ 86,755     $     $ 195,862      
 
 
Net increase in net assets from capital share transactions
  $     $ 86,755     $     $ 195,862      
 
 
                                     
Net increase in net assets
  $ 4,531,729     $ 2,114,658     $ 1,097,432     $ 2,425,736      
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 88,720,283     $ 37,010,707     $ 27,391,667     $ 62,792,492      
 
 
At end of period
  $ 93,252,012     $ 39,125,365     $ 28,489,099     $ 65,218,228      
 
 
                                     
                                     
 
Accumulated undistributed net investment
income included in net assets applicable
to common shares
 
At end of period
  $ 1,273,058     $ 501,125     $ 316,104     $ 862,491      
 
 

 
See notes to financial statements

38


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
 
Statements of Changes in Net Assets
 
For the Six Months Ended May 31, 2010
 
 
                             
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust      
 
From operations —
                           
Net investment income
  $ 2,567,871     $ 1,281,395     $ 1,209,732      
Net realized gain (loss) from investment transactions, financial futures contracts and swap contracts
    (567,311 )     40,356       (239,920 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    4,705,633       815,356       1,705,584      
Distributions to preferred shareholders —
                           
From net investment income
    (65,171 )     (44,596 )     (41,680 )    
 
 
Net increase in net assets from operations
  $ 6,641,022     $ 2,092,511     $ 2,633,716      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (2,437,031 )   $ (1,262,842 )   $ (1,175,000 )    
 
 
Total distributions to common shareholders
  $ (2,437,031 )   $ (1,262,842 )   $ (1,175,000 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 244,881     $ 64,196     $ 29,136      
 
 
Net increase in net assets from capital share transactions
  $ 244,881     $ 64,196     $ 29,136      
 
 
                             
Net increase in net assets
  $ 4,448,872     $ 893,865     $ 1,487,852      
 
 
                             
                             
 
Net Assets Applicable to Common Shares
 
At beginning of period
  $ 69,856,699     $ 38,295,457     $ 36,255,200      
 
 
At end of period
  $ 74,305,571     $ 39,189,322     $ 37,743,052      
 
 
                             
                             
 
Accumulated undistributed net investment income
included in net assets applicable to common shares
 
At end of period
  $ 804,206     $ 480,484     $ 413,235      
 
 

 
See notes to financial statements

39


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Statements of Changes in Net Assets
 
For the Year Ended November 30, 2009
 
 
                                     
Increase (Decrease) in Net Assets   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
From operations —
                                   
Net investment income
  $ 6,809,366     $ 2,579,336     $ 1,943,559     $ 4,492,418      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (4,256,586 )     (996,068 )     (360,637 )     (3,311,658 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    20,927,304       10,118,722       4,583,016       22,233,230      
Distributions to preferred shareholders —
                                   
From net investment income
    (335,254 )     (133,574 )     (117,661 )     (221,791 )    
 
 
Net increase in net assets from operations
  $ 23,144,830     $ 11,568,416     $ 6,048,277     $ 23,192,199      
 
 
Distributions to common shareholders —
                                   
From net investment income
  $ (5,613,275 )   $ (2,243,084 )   $ (1,633,791 )   $ (3,904,585 )    
 
 
Total distributions to common shareholders
  $ (5,613,275 )   $ (2,243,084 )   $ (1,633,791 )   $ (3,904,585 )    
 
 
Capital share transactions —
                                   
Reinvestment of distributions to common shareholders
  $ 123,925     $ 109,415     $     $ 45,520      
 
 
Net increase in net assets from capital share transactions
  $ 123,925     $ 109,415     $     $ 45,520      
 
 
                                     
Net increase in net assets
  $ 17,655,480     $ 9,434,747     $ 4,414,486     $ 19,333,134      
 
 
                                     
                                     
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 71,064,803     $ 27,575,960     $ 22,977,181     $ 43,459,358      
 
 
At end of year
  $ 88,720,283     $ 37,010,707     $ 27,391,667     $ 62,792,492      
 
 
                                     
                                     
 
Accumulated undistributed net investment
income included in net assets applicable to
common shares
 
At end of year
  $ 1,086,959     $ 500,492     $ 336,851     $ 877,670      
 
 

 
See notes to financial statements

40


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Changes in Net Assets
 
For the Year Ended November 30, 2009
 
 
                             
Increase (Decrease) in Net Assets   New York Trust     Ohio Trust     Pennsylvania Trust      
 
From operations —
                           
Net investment income
  $ 5,174,285     $ 2,673,784     $ 2,513,425      
Net realized gain (loss) from investment transactions, financial futures contracts and swap contracts
    (3,485,812 )     (868,027 )     155,287      
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    22,262,042       9,281,116       7,906,232      
Distributions to preferred shareholders —
                           
From net investment income
    (225,861 )     (154,413 )     (143,754 )    
 
 
Net increase in net assets from operations
  $ 23,724,654     $ 10,932,460     $ 10,431,190      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (4,532,706 )   $ (2,247,968 )   $ (2,134,974 )    
 
 
Total distributions to common shareholders
  $ (4,532,706 )   $ (2,247,968 )   $ (2,134,974 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 339,723     $ 48,010     $ 15,281      
 
 
Net increase in net assets from capital share transactions
  $ 339,723     $ 48,010     $ 15,281      
 
 
                             
Net increase in net assets
  $ 19,531,671     $ 8,732,502     $ 8,311,497      
 
 
                             
                             
 
Net Assets Applicable to Common Shares
 
At beginning of year
  $ 50,325,028     $ 29,562,955     $ 27,943,703      
 
 
At end of year
  $ 69,856,699     $ 38,295,457     $ 36,255,200      
 
 
                             
                             
 
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of year
  $ 738,537     $ 506,527     $ 420,183      
 
 

 
See notes to financial statements

41


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS (Unaudited) CONT’D
 
Statements of Cash Flows
 
For the Six Months Ended May 31, 2010
 
 
                             
Cash Flows From Operating Activities   California Trust     New Jersey Trust     New York Trust      
 
Net increase in net assets from operations
  $ 7,695,649     $ 4,426,114     $ 6,641,022      
Distributions to preferred shareholders
    97,733       66,205       65,171      
 
 
Net increase in net assets from operations excluding distributions to preferred shareholders
  $ 7,793,382     $ 4,492,319     $ 6,706,193      
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
                           
Investments purchased
    (10,776,707 )     (6,904,449 )     (14,248,917 )    
Investments sold
    11,142,439       5,225,252       7,433,907      
Net accretion/amortization of premium (discount)
    (729,407 )     (348,041 )     (272,583 )    
Amortization of deferred debt issuance costs
    752       196       4,041      
Decrease (increase) in interest receivable
    (10,623 )     68,727       (43,196 )    
Decrease (increase) in receivable for investments sold
    (2,500 )     974,596       34,945      
Increase in payable for investments purchased
                482,858      
Increase in payable for when-issued securities
                1,023,790      
Increase in payable for variation margin on open financial futures contracts
    9,001       27,344       7,500      
Increase in payable for open swap contracts
    136,251       87,373       45,252      
Increase in payable to affiliate for investment adviser fee
    2,848       3,271       4,586      
Increase in payable to affiliate for administration fee
    2,834       3,840       1,308      
Decrease in payable to affiliate for Trustees’ fees
    (110 )     (67 )     (80 )    
Increase (decrease) in interest expense and fees payable
    (5,470 )     (4,172 )     4,564      
Decrease in accrued expenses
    (25,061 )     (3,482 )     (13,488 )    
Net change in unrealized (appreciation) depreciation from investments
    (4,649,170 )     (2,800,350 )     (4,445,044 )    
Net realized (gain) loss from investments
    34,117       (157,810 )     25,672      
 
 
Net cash provided by (used in) operating activities
  $ 2,922,576     $ 664,547     $ (3,248,692 )    
 
 
                             
                             
 
Cash Flows From Financing Activities
 
Distributions paid to common shareholders, net of reinvestments
  $ (3,163,920 )   $ (2,000,378 )   $ (2,192,150 )    
Cash distributions paid to preferred shareholders
    (94,552 )     (63,240 )     (65,225 )    
Proceeds from secured borrowings
    1,590,000       2,000,000       3,255,000      
Decrease in due to custodian
    (95,458 )                
 
 
Net cash provided by (used in) financing activities
  $ (1,763,930 )   $ (63,618 )   $ 997,625      
 
 
                             
Net increase (decrease) in cash
  $ 1,158,646     $ 600,929     $ (2,251,067 )    
 
 
                             
Cash at beginning of period
  $     $ 485,064     $ 4,448,672      
 
 
                             
Cash at end of period
  $ 1,158,646     $ 1,085,993     $ 2,197,605      
 
 
                             
                             
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of:
                           
Reinvestment of dividends and distributions
  $     $ 195,862     $ 244,881      
Cash paid for interest and fees
    79,003       54,642       61,075      
 
 

 
See notes to financial statements

42


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
 
Selected data for a common share outstanding during the periods stated
                                                     
    California Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 12.330     $ 9.890     $ 15.120     $ 16.430     $ 15.420     $ 15.070      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.479     $ 0.947     $ 0.943     $ 0.936     $ 0.962     $ 1.013      
Net realized and unrealized gain (loss)
    0.605       2.321       (5.223 )     (1.294 )     1.028       0.383      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.014 )     (0.047 )     (0.277 )     (0.280 )     (0.239 )     (0.154 )    
 
 
Total income (loss) from operations
  $ 1.070     $ 3.221     $ (4.557 )   $ (0.638 )   $ 1.751     $ 1.242      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.440 )   $ (0.781 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )    
 
 
Total distributions to common shareholders
  $ (0.440 )   $ (0.781 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 12.960     $ 12.330     $ 9.890     $ 15.120     $ 16.430     $ 15.420      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.900     $ 12.170     $ 9.150     $ 13.160     $ 15.050     $ 13.650      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    8.88 %(3)     34.24 %     (30.70 )%     (3.65 )%     12.10 %     8.72 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    9.82 %(3)     43.19 %     (26.34 )%     (8.44 )%     15.99 %     (4.34 )%    
 
 

 
See notes to financial statements

43


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    California Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 93,252     $ 88,720     $ 71,065     $ 108,567     $ 117,966     $ 110,760      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.77 %(5)     1.93 %     1.87 %     1.78 %(6)     1.79 %     1.78 %    
Interest and fee expense(7)
    0.16 %(5)     0.23 %     0.37 %     0.34 %     0.49 %     0.33 %    
Total expenses before custodian fee reduction
    1.93 %(5)     2.16 %     2.24 %     2.12 %(6)     2.28 %     2.11 %    
Expenses after custodian fee reduction excluding interest and fees
    1.77 %(5)     1.93 %     1.85 %     1.76 %(6)     1.77 %     1.76 %    
Net investment income
    7.56 %(5)     8.35 %     6.91 %     5.94 %     6.12 %     6.52 %    
Portfolio Turnover
    7 %(3)     18 %     31 %     40 %     26 %     31 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.14 %(5)     1.19 %     1.18 %     1.17 %(6)     1.18 %     1.16 %    
Interest and fee expense(7)
    0.11 %(5)     0.15 %     0.24 %     0.22 %     0.32 %     0.22 %    
Total expenses before custodian fee reduction
    1.25 %(5)     1.34 %     1.42 %     1.39 %(6)     1.50 %     1.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.14 %(5)     1.19 %     1.17 %     1.16 %(6)     1.16 %     1.15 %    
Net investment income
    4.89 %(5)     5.18 %     4.39 %     3.90 %     4.03 %     4.26 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,999       1,999       1,999       2,360       2,360       2,360      
Asset coverage per preferred share(8)
  $ 71,652     $ 69,383     $ 60,552     $ 71,003     $ 74,997     $ 71,942      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

44


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                                     
    Massachusetts Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 13.590     $ 10.160     $ 14.860     $ 16.170     $ 15.270     $ 15.090      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.468     $ 0.948     $ 0.947     $ 0.914     $ 0.931     $ 0.973      
Net realized and unrealized gain (loss)
    0.739       3.356       (4.720 )     (1.314 )     0.926       0.234      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.014 )     (0.049 )     (0.278 )     (0.271 )     (0.243 )     (0.145 )    
 
 
Total income (loss) from operations
  $ 1.193     $ 4.255     $ (4.051 )   $ (0.671 )   $ 1.614     $ 1.062      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.453 )   $ (0.825 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )    
 
 
Total distributions to common shareholders
  $ (0.453 )   $ (0.825 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 14.330     $ 13.590     $ 10.160     $ 14.860     $ 16.170     $ 15.270      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.770     $ 13.260     $ 8.930     $ 13.050     $ 14.920     $ 14.800      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    8.91 %(3)     43.29 %     (28.02 )%     (3.94 )%     11.05 %     7.02 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    15.05 %(3)     58.91 %     (27.89 )%     (8.57 )%     5.72 %     (6.89 )%    
 
 

 
See notes to financial statements

45


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Massachusetts Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 39,125     $ 37,011     $ 27,576     $ 40,341     $ 43,875     $ 41,395      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.85 %(5)     2.02 %     2.06 %     1.91 %(6)     1.88 %     1.88 %    
Interest and fee expense(7)
    0.08 %(5)     0.14 %     0.26 %     0.61 %     0.77 %     0.52 %    
Total expenses before custodian fee reduction
    1.93 %(5)     2.16 %     2.32 %     2.52 %(6)     2.65 %     2.40 %    
Expenses after custodian fee reduction excluding interest and fees
    1.85 %(5)     2.02 %     2.04 %     1.89 %(6)     1.87 %     1.87 %    
Net investment income
    6.70 %(5)     7.77 %     7.03 %     5.90 %     6.01 %     6.29 %    
Portfolio Turnover
    6 %(3)     24 %     40 %     42 %     22 %     13 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.22 %(5)     1.26 %     1.31 %     1.26 %(6)     1.24 %     1.24 %    
Interest and fee expense(7)
    0.05 %(5)     0.09 %     0.16 %     0.40 %     0.51 %     0.34 %    
Total expenses before custodian fee reduction
    1.27 %(5)     1.35 %     1.47 %     1.66 %(6)     1.75 %     1.58 %    
Expenses after custodian fee reduction excluding interest and fees
    1.22 %(5)     1.26 %     1.30 %     1.25 %(6)     1.24 %     1.24 %    
Net investment income
    4.39 %(5)     4.85 %     4.47 %     3.91 %     3.98 %     4.15 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    802       802       802       860       860       860      
Asset coverage per preferred share(8)
  $ 73,787     $ 71,150     $ 59,391     $ 71,920     $ 76,024     $ 73,138      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

46


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Michigan Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 12.940     $ 10.860     $ 14.510     $ 15.420     $ 14.820     $ 14.860      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.436     $ 0.918     $ 0.931     $ 0.913     $ 0.950     $ 0.995      
Net realized and unrealized gain (loss)
    0.530       1.990       (3.669 )     (0.881 )     0.608       0.010      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.016 )     (0.056 )     (0.301 )     (0.296 )     (0.256 )     (0.172 )    
 
 
Total income (loss) from operations
  $ 0.950     $ 2.852     $ (3.039 )   $ (0.264 )   $ 1.302     $ 0.833      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.430 )   $ (0.772 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )    
 
 
Total distributions to common shareholders
  $ (0.430 )   $ (0.772 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.460     $ 12.940     $ 10.860     $ 14.510     $ 15.420     $ 14.820      
 
 
                                                     
Market value — End of period (Common shares)
  $ 12.620     $ 11.530     $ 7.920     $ 12.430     $ 14.110     $ 13.500      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    7.70 %(3)     28.08 %     (21.02 )%     (1.37 )%     9.38 %     5.62 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    13.34 %(3)     56.49 %     (32.76 )%     (7.66 )%     9.88 %     (13.87 )%    
 
 

 
See notes to financial statements

47


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Michigan Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 28,489     $ 27,392     $ 22,977     $ 30,710     $ 32,643     $ 31,357      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    2.04 %(5)     2.18 %     2.15 %     2.03 %(6)     1.97 %     2.00 %    
Interest and fee expense(7)
          0.06 %     0.16 %     0.32 %     0.46 %     0.40 %    
Total expenses before custodian fee reduction
    2.04 %(5)     2.24 %     2.31 %     2.35 %(6)     2.43 %     2.40 %    
Expenses after custodian fee reduction excluding interest and fees
    2.04 %(5)     2.18 %     2.13 %     2.01 %(6)     1.96 %     1.99 %    
Net investment income
    6.63 %(5)     7.61 %     6.96 %     6.12 %     6.35 %     6.60 %    
Portfolio Turnover
    2 %(3)     23 %     24 %     22 %     22 %     14 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.25 %(5)     1.29 %     1.33 %     1.31 %(6)     1.27 %     1.29 %    
Interest and fee expense(7)
          0.04 %     0.10 %     0.21 %     0.29 %     0.26 %    
Total expenses before custodian fee reduction
    1.25 %(5)     1.33 %     1.43 %     1.52 %(6)     1.56 %     1.55 %    
Expenses after custodian fee reduction excluding interest and fees
    1.25 %(5)     1.29 %     1.31 %     1.29 %(6)     1.26 %     1.28 %    
Net investment income
    4.07 %(5)     4.52 %     4.30 %     3.94 %     4.09 %     4.26 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    700       700       700       700       700       700      
Asset coverage per preferred share(8)
  $ 65,700     $ 64,132     $ 57,828     $ 68,878     $ 71,635     $ 69,796      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

48


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    New Jersey Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 13.570     $ 9.400     $ 14.930     $ 16.200     $ 15.020     $ 14.810      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.485     $ 0.971     $ 0.968     $ 0.926     $ 0.953     $ 1.014      
Net realized and unrealized gain (loss)
    0.483       4.091       (5.579 )     (1.275 )     1.205       0.238      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.014 )     (0.048 )     (0.289 )     (0.273 )     (0.253 )     (0.169 )    
 
 
Total income (loss) from operations
  $ 0.954     $ 5.014     $ (4.900 )   $ (0.622 )   $ 1.905     $ 1.083      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.474 )   $ (0.844 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )    
 
 
Total distributions to common shareholders
  $ (0.474 )   $ (0.844 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 14.050     $ 13.570     $ 9.400     $ 14.930     $ 16.200     $ 15.020      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.500     $ 14.040     $ 8.500     $ 12.790     $ 15.080     $ 14.030      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    7.12 %(3)     55.43 %     (33.57 )%     (3.59 )%     13.28 %     7.59 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    6.84 %(3)     77.84 %     (29.88 )%     (11.28 )%     12.89 %     (4.22 )%    
 
 

 
See notes to financial statements

49


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    New Jersey Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 65,218     $ 62,792     $ 43,459     $ 69,001     $ 74,846     $ 69,375      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.79 %(5)     1.99 %     1.96 %     1.84 %(6)     1.85 %     1.86 %    
Interest and fee expense(7)
    0.16 %(5)     0.24 %     0.45 %     0.89 %     0.93 %     0.58 %    
Total expenses before custodian fee reduction
    1.95 %(5)     2.23 %     2.41 %     2.73 %(6)     2.78 %     2.44 %    
Expenses after custodian fee reduction excluding interest and fees
    1.79 %(5)     1.99 %     1.94 %     1.81 %(6)     1.83 %     1.84 %    
Net investment income
    7.00 %(5)     8.16 %     7.22 %     5.94 %     6.20 %     6.66 %    
Portfolio Turnover
    5 %(3)     48 %     54 %     42 %     23 %     46 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.18 %(5)     1.24 %     1.23 %     1.21 %(6)     1.20 %     1.21 %    
Interest and fee expense(7)
    0.10 %(5)     0.15 %     0.28 %     0.58 %     0.61 %     0.38 %    
Total expenses before custodian fee reduction
    1.28 %(5)     1.39 %     1.51 %     1.79 %(6)     1.81 %     1.59 %    
Expenses after custodian fee reduction excluding interest and fees
    1.18 %(5)     1.24 %     1.21 %     1.19 %(6)     1.19 %     1.19 %    
Net investment income
    4.61 %(5)     5.08 %     4.51 %     3.89 %     4.04 %     4.33 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,337       1,337       1,366       1,520       1,520       1,520      
Asset coverage per preferred share(8)
  $ 73,783     $ 71,966     $ 56,817     $ 70,395     $ 74,250     $ 70,651      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

50


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    New York Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 12.920     $ 9.350     $ 15.240     $ 16.550     $ 15.660     $ 15.490      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.474     $ 0.960     $ 0.987     $ 0.991     $ 0.987     $ 1.070      
Net realized and unrealized gain (loss)
    0.758       3.493       (5.887 )     (1.293 )     0.932       0.243      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.012 )     (0.042 )     (0.269 )     (0.287 )     (0.247 )     (0.163 )    
 
 
Total income (loss) from operations
  $ 1.220     $ 4.411     $ (5.169 )   $ (0.589 )   $ 1.672     $ 1.150      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.450 )   $ (0.841 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )    
 
 
Total distributions to common shareholders
  $ (0.450 )   $ (0.841 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.690     $ 12.920     $ 9.350     $ 15.240     $ 16.550     $ 15.660      
 
 
                                                     
Market value — End of period (Common shares)
  $ 14.000     $ 13.200     $ 7.900     $ 14.100     $ 15.700     $ 14.990      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    9.55 %(3)     49.00 %     (35.07 )%     (3.42 )%     11.28 %     7.61 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    9.69 %(3)     80.12 %     (40.71 )%     (5.81 )%     10.28 %     3.81 %    
 
 

 
See notes to financial statements

51


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    New York Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 74,306     $ 69,857     $ 50,325     $ 81,931     $ 88,970     $ 84,194      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.76 %(5)     1.98 %     1.92 %     1.80 %(6)     1.82 %     1.81 %    
Interest and fee expense(7)
    0.19 %(5)     0.24 %     0.55 %     0.98 %     1.03 %     0.57 %    
Total expenses before custodian fee reduction
    1.95 %(5)     2.22 %     2.47 %     2.78 %(6)     2.85 %     2.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.76 %(5)     1.98 %     1.89 %     1.78 %(6)     1.80 %     1.80 %    
Net investment income
    7.06 %(5)     8.40 %     7.21 %     6.23 %     6.22 %     6.72 %    
Portfolio Turnover
    6 %(3)     20 %     48 %     29 %     27 %     40 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.20 %(5)     1.28 %     1.23 %     1.18 %(6)     1.19 %     1.19 %    
Interest and fee expense(7)
    0.13 %(5)     0.15 %     0.35 %     0.65 %     0.68 %     0.37 %    
Total expenses before custodian fee reduction
    1.33 %(5)     1.43 %     1.58 %     1.83 %(6)     1.87 %     1.56 %    
Expenses after custodian fee reduction excluding interest and fees
    1.20 %(5)     1.28 %     1.21 %     1.17 %(6)     1.19 %     1.19 %    
Net investment income
    4.83 %(5)     5.43 %     4.63 %     4.10 %     4.09 %     4.42 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    1,349       1,349       1,349       1,780       1,780       1,780      
Asset coverage per preferred share(8)
  $ 80,083     $ 76,785     $ 62,309     $ 71,032     $ 74,983     $ 72,311      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

52


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Ohio Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 13.520     $ 10.450     $ 14.830     $ 15.690     $ 14.910     $ 15.040      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.452     $ 0.945     $ 0.961     $ 0.938     $ 0.958     $ 1.003      
Net realized and unrealized gain (loss)
    0.300       2.974       (4.410 )     (0.845 )     0.800       (0.055 )    
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.016 )     (0.055 )     (0.303 )     (0.297 )     (0.264 )     (0.175 )    
 
 
Total income (loss) from operations
  $ 0.736     $ 3.864     $ (3.752 )   $ (0.204 )   $ 1.494     $ 0.773      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.446 )   $ (0.794 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )    
 
 
Total distributions to common shareholders
  $ (0.446 )   $ (0.794 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.810     $ 13.520     $ 10.450     $ 14.830     $ 15.690     $ 14.910      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.660     $ 13.430     $ 8.550     $ 12.850     $ 14.610     $ 14.170      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    5.53 %(3)     38.58 %     (25.69 )%     (1.06 )%     10.50 %     5.10 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    5.08 %(3)     68.25 %     (29.83 )%     (7.93 )%     8.27 %     (10.31 )%    
 
 

 
See notes to financial statements

53


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Ohio Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 39,189     $ 38,295     $ 29,563     $ 41,953     $ 44,385     $ 42,193      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.88 %(5)     2.08 %     2.08 %     1.93 %(6)     1.92 %     1.91 %    
Interest and fee expense(7)
    0.02 %(5)     0.02 %     0.26 %     0.72 %     0.74 %     0.54 %    
Total expenses before custodian fee reduction
    1.90 %(5)     2.10 %     2.34 %     2.65 %(6)     2.66 %     2.45 %    
Expenses after custodian fee reduction excluding interest and fees
    1.88 %(5)     2.08 %     2.06 %     1.91 %(6)     1.92 %     1.90 %    
Net investment income
    6.60 %(5)     7.77 %     7.12 %     6.17 %     6.31 %     6.57 %    
Portfolio Turnover
    7 %(3)     20 %     27 %     24 %     16 %     13 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.19 %(5)     1.26 %     1.29 %     1.25 %(6)     1.25 %     1.24 %    
Interest and fee expense(7)
    0.01 %(5)     0.01 %     0.16 %     0.46 %     0.48 %     0.35 %    
Total expenses before custodian fee reduction
    1.20 %(5)     1.27 %     1.45 %     1.71 %(6)     1.73 %     1.59 %    
Expenses after custodian fee reduction excluding interest and fees
    1.19 %(5)     1.26 %     1.28 %     1.23 %(6)     1.24 %     1.23 %    
Net investment income
    4.17 %(5)     4.68 %     4.41 %     3.99 %     4.08 %     4.25 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    909       909       918       940       940       940      
Asset coverage per preferred share(8)
  $ 68,114     $ 67,131     $ 57,209     $ 69,640     $ 72,223     $ 69,888      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

54


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Pennsylvania Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
Net asset value — Beginning of period (Common shares)
  $ 13.380     $ 10.320     $ 14.840     $ 15.510     $ 14.870     $ 14.890      
 
 
                                                     
                                                     
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.446     $ 0.928     $ 0.986     $ 0.953     $ 0.983     $ 1.008      
Net realized and unrealized gain (loss)
    0.543       2.973       (4.555 )     (0.661 )     0.664       0.103      
Distributions to preferred shareholders
                                                   
From net investment income(1)
    (0.015 )     (0.053 )     (0.299 )     (0.300 )     (0.274 )     (0.181 )    
 
 
Total income (loss) from operations
  $ 0.974     $ 3.848     $ (3.868 )   $ (0.008 )   $ 1.373     $ 0.930      
 
 
                                                     
                                                     
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.434 )   $ (0.788 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )    
 
 
Total distributions to common shareholders
  $ (0.434 )   $ (0.788 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )    
 
 
                                                     
Net asset value — End of period (Common shares)
  $ 13.920     $ 13.380     $ 10.320     $ 14.840     $ 15.510     $ 14.870      
 
 
                                                     
Market value — End of period (Common shares)
  $ 13.750     $ 13.050     $ 9.600     $ 12.790     $ 14.560     $ 14.660      
 
 
                                                     
Total Investment Return on Net Asset Value(2)
    7.40 %(3)     39.16 %     (26.57 )%     0.27 %     9.68 %     6.27 %    
 
 
                                                     
Total Investment Return on Market Value(2)
    8.78 %(3)     45.88 %     (20.75 )%     (7.95 )%     4.44 %     0.39 %    
 
 

 
See notes to financial statements

55


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
 
                                                     
    Pennsylvania Trust
    Six Months Ended
    Year Ended November 30,
    May 31, 2010
   
    (Unaudited)     2009     2008     2007     2006     2005      
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of period (000’s omitted)
  $ 37,743     $ 36,255     $ 27,944     $ 40,182     $ 41,998     $ 40,233      
Ratios (as a percentage of average daily net assets applicable to common shares):(4)
                                                   
Expenses excluding interest and fees
    1.93 %(5)     2.11 %     2.06 %     1.95 %(6)     1.94 %     1.97 %    
Interest and fee expense(7)
    0.06 %(5)     0.21 %     0.37 %     0.70 %     0.93 %     0.44 %    
Total expenses before custodian fee reduction
    1.99 %(5)     2.32 %     2.43 %     2.65 %(6)     2.87 %     2.41 %    
Expenses after custodian fee reduction excluding interest and fees
    1.93 %(5)     2.11 %     2.04 %     1.94 %(6)     1.93 %     1.95 %    
Net investment income
    6.52 %(5)     7.61 %     7.23 %     6.28 %     6.53 %     6.69 %    
Portfolio Turnover
    5 %(3)     23 %     25 %     23 %     18 %     28 %    
 
 
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)
                                                   
Expenses excluding interest and fees
    1.23 %(5)     1.28 %     1.28 %     1.27 %(6)     1.25 %     1.27 %    
Interest and fee expense(7)
    0.04 %(5)     0.13 %     0.23 %     0.45 %     0.60 %     0.28 %    
Total expenses before custodian fee reduction
    1.27 %(5)     1.41 %     1.51 %     1.72 %(6)     1.85 %     1.55 %    
Expenses after custodian fee reduction excluding interest and fees
    1.23 %(5)     1.28 %     1.27 %     1.26 %(6)     1.24 %     1.26 %    
Net investment income
    4.15 %(5)     4.63 %     4.50 %     4.06 %     4.21 %     4.30 %    
 
 
Senior Securities:
                                                   
Total preferred shares outstanding
    847       847       889       900       900       900      
Asset coverage per preferred share(8)
  $ 69,563     $ 67,806     $ 56,439     $ 69,658     $ 71,672     $ 69,708      
Involuntary liquidation preference per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Not annualized.
 
(4) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(5) Annualized.
 
(6) 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.
 
(7) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(8) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(9) Plus accumulated and unpaid dividends.

 
See notes to financial statements

56


 

Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited)
 
1   Significant Accounting Policies
 
Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust) and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (each individually referred to as the Trust, and collectively, the Trusts), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. Each Trust seeks to provide current income exempt from regular federal income tax and taxes in its specified state.
 
The following is a summary of significant accounting policies of the Trusts. The policies are in conformity with accounting principles generally accepted in the United States of America.
 
A  Investment Valuation — Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations furnished by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap quotations provided by electronic data services or by broker/dealers. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Trust in a manner that most fairly reflects the security’s value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
 
B  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
 
C  Federal Taxes — Each Trust’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
 
At November 30, 2009, the following Trusts, for federal income tax purposes, had capital loss carryforwards which will reduce the respective Trust’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryforwards are as follows:
 
                     
Trust   Amount     Expiration Date      
 
California
  $ 995,999       November 30, 2012      
      6,689,345       November 30, 2016      
      4,084,290       November 30, 2017      
                     
Massachusetts
  $ 343,176       November 30, 2010      
      692,532       November 30, 2016      
      991,790       November 30, 2017      

57


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                     
Trust   Amount     Expiration Date      
 
                     
Michigan
  $ 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      
      337,540       November 30, 2017      
                     
New Jersey
  $ 177,350       November 30, 2011      
      3,185,143       November 30, 2017      
                     
New York
  $ 2,354,581       November 30, 2016      
      3,171,310       November 30, 2017      
                     
Ohio
  $ 764,355       November 30, 2012      
      588,403       November 30, 2013      
      736,482       November 30, 2016      
      842,953       November 30, 2017      
                     
Pennsylvania
  $ 41,331       November 30, 2010      
      502,868       November 30, 2012      
      389,289       November 30, 2013      
      800,874       November 30, 2016      
 
As of May 31, 2010, 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, 2009 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. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Trust) could be deemed to have personal liability for the obligations of the Trust. However, each Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Trust enters into agreements with service providers that may contain indemnification clauses. Each Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred.
 
H  Floating Rate Notes Issued in Conjunction with Securities Held — The Trusts may invest in inverse floating rate securities, also referred to as residual interest bonds, whereby a Trust may sell a fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker, often referred to as an inverse floating rate obligation (Inverse Floater). The broker deposits a fixed rate bond into the SPV with the same CUSIP number as the fixed rate bond sold to the broker by the Trust, and which may have been, but is not required to be, the fixed rate bond purchased from the Trust (the Fixed Rate Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The Inverse Floater held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed Rate Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would pay the broker the par amount due on the Floating Rate Notes and exchange the Inverse Floater for the underlying Fixed Rate Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trusts account for the transaction described above as a secured borrowing by including the 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

58


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying bond, bankruptcy of or payment failure by the issuer of the underlying bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. At May 31, 2010, the amounts of the Trusts’ Floating Rate Notes and related interest rates and collateral were as follows:
 
                         
              Collateral
     
    Floating
    Interest Rate
  for Floating
     
    Rate
    or Range of
  Rate
     
    Notes
    Interest
  Notes
     
Trust   Outstanding     Rates (%)   Outstanding      
 
California
  $ 20,535,000     0.29 – 0.39   $ 27,920,498      
Massachusetts
    4,885,000     0.29 – 0.32     6,567,540      
New Jersey
    14,572,000     0.29 – 0.38     19,827,361      
New York
    20,475,000     0.29 – 0.38     26,748,885      
Ohio
    830,000     0.44     1,321,505      
Pennsylvania
    2,370,000     0.30 – 0.49     4,496,171      
 
For the six months ended May 31, 2010, the Trusts’ average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:
 
                     
    Average
           
    Floating Rate
           
    Notes
    Average
     
Trust   Outstanding     Interest Rate      
 
California
  $ 19,172,143       0.78 %    
Massachusetts
    4,023,571       0.76      
New Jersey
    12,780,791       0.80      
New York
    17,935,385       0.78      
Ohio
    830,000       0.79      
Pennsylvania
    2,370,000       0.95      
 
The Trusts may enter into shortfall and forbearance agreements with the broker by which a Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trusts had no shortfalls as of May 31, 2010.
 
The Trusts may also purchase Inverse Floaters from brokers in a secondary market transaction without first owning the underlying fixed rate bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to Inverse Floaters purchased in a secondary market transaction are disclosed in the Portfolio of Investments. The Trusts’ investment policies and restrictions expressly permit investments in Inverse Floaters. Inverse floating rate securities typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of inverse floating rate securities are generally more volatile than that of a fixed rate bond. The Trusts’ investment policies do not allow the Trusts to borrow money except as permitted by the 1940 Act. Management believes that the Trusts’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts’ restrictions apply. 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. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
 
J  Interest Rate Swaps — 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

59


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
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 the Trust’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
 
M  Interim Financial Statements — The interim financial statements relating to May 31, 2010 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trusts’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
 
2   Auction Preferred Shares
 
Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction.
 
The APS are redeemable at the option of each Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years’ dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in the Trusts’ By-Laws and the 1940 Act. Each Trust pays an annual fee up to 0.15% of the liquidation value of the APS to broker-dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
 
3   Distributions to Shareholders
 
Each Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Trust intends to distribute all or substantially all of its net realized capital gains, (reduced by available capital loss carryforwards from prior years, if any). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for the APS at May 31, 2010, and the amount of dividends paid (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the six months then ended were as follows:
 
                                 
    APS
    Dividends
    Average APS
    Dividend
   
    Dividend Rates at
    Paid to APS
    Dividend
    Rate
   
Trust   May 31, 2010     Shareholders     Rates     Ranges (%)    
 
California
    0.46 %   $ 97,733       0.39 %   0.24–0.56    
Massachusetts
    0.46       39,466       0.39     0.26–0.62    
Michigan
    0.43       33,978       0.39     0.24–0.56    
New Jersey
    0.46       66,205       0.40     0.24–0.56    
New York
    0.43       65,171       0.39     0.24–0.56    
Ohio
    0.44       44,596       0.39     0.26–0.58    
Pennsylvania
    0.46       41,680       0.39     0.26–0.62    

60


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of May 31, 2010.
 
The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
 
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. Pursuant to a fee reduction agreement between each Trust and EVM, commencing May 1, 2010, the annual adviser fee rate will be reduced by 0.015% and an additional 0.015% every May 1 thereafter for the next nineteen years. The fee reduction cannot be terminated without the consent of the Trustees and shareholders. The administration fee is earned by EVM for administering the business affairs of each Trust and is computed at an annual rate of 0.20% of each Trust’s average weekly gross assets. For the six months ended May 31, 2010, the investment adviser fee and administration fee were as follows:
 
                     
    Investment
           
Trust   Adviser Fee     Administration Fee      
 
California
  $ 523,152     $ 150,025      
Massachusetts
    207,417       59,481      
Michigan
    157,784       45,248      
New Jersey
    355,965       102,079      
New York
    408,096       117,031      
Ohio
    217,079       62,251      
Pennsylvania
    207,561       59,522      
 
During the six months ended May 31, 2010, EVM reimbursed the Massachusetts Trust $989 for a trading error. The effect of the loss incurred and the reimbursement by EVM of such amount had no impact on total return.
 
Except for Trustees of the Trusts who are not members of EVM’s organization, officers and Trustees receive remuneration for their services to the Trusts out of the investment adviser fee. Trustees of the Trusts who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended May 31, 2010, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
 
5   Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the six months ended May 31, 2010 were as follows:
 
                     
Trust   Purchases     Sales      
 
California
  $ 10,776,707     $ 11,142,439      
Massachusetts
    4,900,603       3,635,253      
Michigan
    1,917,988       782,989      
New Jersey
    6,904,449       5,225,252      
New York
    14,248,917       7,433,907      
Ohio
    5,518,600       4,353,372      
Pennsylvania
    3,619,739       2,755,766      
 
6   Common Shares of Beneficial Interest
 
Common shares issued pursuant to the Trusts’ dividend reinvestment plan for the six months ended May 31, 2010 and the year ended November 30, 2009 were as follows:
 
                     
    Six Months Ended
    Year End
     
    May 31, 2010
    November 30,
     
Trust   (Unaudited)     2009      
 
California
          10,321      
Massachusetts
    6,198       8,904      
Michigan
               
New Jersey
    14,079       3,303      

61


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                     
    Six Months Ended
    Year End
     
    May 31, 2010
    November 30,
     
Trust   (Unaudited)     2009      
 
New York
    18,168       27,904      
Ohio
    4,671       3,722      
Pennsylvania
    2,118       1,208      
 
7   Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Trust at May 31, 2010, as determined on a federal income tax basis, were as follows:
 
             
California Trust
           
 
 
Aggregate cost
  $ 140,785,790      
 
 
Gross unrealized appreciation
  $ 6,573,739      
Gross unrealized depreciation
    (6,878,481 )    
 
 
Net unrealized depreciation
  $ (304,742 )    
 
 
             
             
Massachusetts Trust
           
 
 
Aggregate cost
  $ 58,127,040      
 
 
Gross unrealized appreciation
  $ 2,337,829      
Gross unrealized depreciation
    (1,426,361 )    
 
 
Net unrealized appreciation
  $ 911,468      
 
 
             
             
Michigan Trust
           
 
 
Aggregate cost
  $ 45,216,483      
 
 
Gross unrealized appreciation
  $ 1,711,680      
Gross unrealized depreciation
    (1,668,069 )    
 
 
Net unrealized appreciation
  $ 43,611      
 
 
             
             
New Jersey Trust
           
 
 
Aggregate cost
  $ 94,622,652      
 
 
Gross unrealized appreciation
  $ 4,342,605      
Gross unrealized depreciation
    (2,714,567 )    
 
 
Net unrealized appreciation
  $ 1,628,038      
 
 
             
             
New York Trust
           
 
 
Aggregate cost
  $ 105,560,847      
 
 
Gross unrealized appreciation
  $ 4,222,568      
Gross unrealized depreciation
    (3,726,289 )    
 
 
Net unrealized appreciation
  $ 496,279      
 
 
             
             
Ohio Trust
           
 
 
Aggregate cost
  $ 59,499,340      
 
 
Gross unrealized appreciation
  $ 2,710,992      
Gross unrealized depreciation
    (1,776,798 )    
 
 
Net unrealized appreciation
  $ 934,194      
 
 
             
             
Pennsylvania Trust
           
 
 
Aggregate cost
  $ 57,770,188      
 
 
Gross unrealized appreciation
  $ 2,179,192      
Gross unrealized depreciation
    (1,502,681 )    
 
 
Net unrealized appreciation
  $ 676,511      
 
 
 
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 obligated 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 May 31, 2010, the Massachusetts Trust and Pennsylvania Trust had payments due to SSBT pursuant to the foregoing arrangement of $734,848 and $226,139, 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 do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
 
A summary of obligations under these financial instruments at May 31, 2010 is as follows:
 

62


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                                         
Futures Contracts
 
                            Net
     
    Expiration
          Aggregate
          Unrealized
     
Trust   Date   Contracts   Position   Cost     Value     Appreciation      
 
California   9/10   72
U.S. 30-Year
Treasury Bond
  Short   $ (9,002,257 )   $ (8,831,250 )   $ 171,007      
 
 
Michigan   9/10   3
U.S. 10-Year
Treasury Note
  Short   $ (361,115 )   $ (359,625 )   $ 1,490      
    9/10   2
U.S. 30-Year
Treasury Bond
  Short   $ (248,068 )   $ (245,313 )   $ 2,755      
 
 
New Jersey   9/10   125
U.S. 30-Year
Treasury Bond
  Short   $ (15,504,234 )   $ (15,332,031 )   $ 172,203      
 
 
New York   9/10   60
U.S. 30-Year
Treasury Bond
  Short   $ (7,501,881 )   $ (7,359,375 )   $ 142,506      
 
 
Ohio   9/10   6
U.S. 10-Year
Treasury Note
  Short   $ (722,229 )   $ (719,250 )   $ 2,979      
    9/10   9
U.S. 30-Year
Treasury Bond
  Short   $ (1,116,305 )   $ (1,103,906 )   $ 12,399      
 
 
Pennsylvania   9/10   50
U.S. 30-Year
Treasury Bond
  Short   $ (6,201,694 )   $ (6,132,813 )   $ 68,881      
 
 
 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (217,580 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    3,412,500     4.140   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
    (42,281 )    
 
 
                        $ (259,861 )    
 
 
                                 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (80,632 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    1,250,000     4.140   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
    (15,488 )    
 
 
                        $ (96,120 )    
 
 
                                 
                                 
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     4.140%   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
  $ (4,956 )    
 
 
                                 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (139,507 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    2,187,500     4.140   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
    (27,104 )    
 
 
                        $ (166,611 )    
 
 
                                 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (163,825 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    5,200,000     4.140   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
    (64,429 )    
 
 
                        $ (228,254 )    
 
 
                                 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (83,192 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    750,000     4.140   3-month
USD-LIBOR-BBA
  August 24, 2010/
August 24, 2040
    (9,293 )    
 
 
                        $ (92,485 )    
 
 
                                 
                                 
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     4.609%   3-month
USD-LIBOR-BBA
  June 15, 2010/
June 15, 2040
  $ (93,431 )    
 
 
 
The effective date represents the date on which a Trust and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At May 31, 2010, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.

63


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
Each Trust is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Trusts hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, each Trust may enter into interest rate swap contracts. The Trusts may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
The Trusts enter into interest rate swap contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in a Trust’s net assets below a certain level over a certain period of time, which would trigger a payment by the Trust for those swaps in a liability position. At May 31, 2010, the fair value of interest rate swaps with credit-related contingent features in a net liability position was equal to the fair value of the liability derivative related to interest rate swaps included in the table below for each respective Trust. The value of securities pledged as collateral, if any, for open interest rate swap contracts at May 31, 2010 is disclosed in a note to each Trust’s Portfolio of Investments.
 
The non-exchange traded derivatives in which a Trust invests, including swap contracts, are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. At May 31, 2010, the maximum amount of loss the Trusts would incur due to counterparty risk was equal to the fair value of the asset derivative related to interest rate swaps included in the table below for each respective Trust. Counterparties may be required to pledge collateral in the form of cash, U.S. Government securities or highly-rated bonds for the benefit of a Trust if the net amount due from the counterparty with respect to a derivative contract exceeds a certain threshold. The amount of collateral posted by the counterparties with respect to such contracts would also reduce the amount of any loss incurred.
 
The fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at May 31, 2010 was as follows:
 
                     
    Fair Value
     
Derivative   Asset Derivatives     Liability Derivatives      
 
California Trust
                   
Futures Contracts
  $ 171,007 (1)   $      
Interest Rate Swaps
          (259,861 )(2)    
 
 
Total
  $ 171,007     $ (259,861 )    
 
 
Massachusetts Trust
                   
Futures Contracts
  $     $      
Interest Rate Swaps
          (96,120 )(2)    
 
 
Total
  $     $ (96,120 )    
 
 
Michigan Trust
                   
Futures Contracts
  $ 4,245 (1)   $      
Interest Rate Swaps
          (4,956 )(2)    
 
 
Total
  $ 4,245     $ (4,956 )    
 
 
New Jersey Trust
                   
Futures Contracts
  $ 172,203 (1)   $      
Interest Rate Swaps
          (166,611 )(2)    
 
 
Total
  $ 172,203     $ (166,611 )    
 
 
New York Trust
                   
Futures Contracts
  $ 142,506 (1)   $      
Interest Rate Swaps
          (228,254 )(2)    
 
 
Total
  $ 142,506     $ (228,254 )    
 
 
Ohio Trust
                   
Futures Contracts
  $ 15,378 (1)   $      
Interest Rate Swaps
          (92,485 )(2)    
 
 
Total
  $ 15,378     $ (92,485 )    
 
 
Pennsylvania Trust
                   
Futures Contracts
  $ 68,881 (1)   $      
Interest Rate Swaps
          (93,431 )(2)    
 
 
Total
  $ 68,881     $ (93,431 )    
 
 
 
(1) Amount represents cumulative unrealized appreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.
 
(2) Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized appreciation (depreciation).
 
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended May 31, 2010 was as follows:
 
                     
          Change in
     
          Unrealized
     
    Realized Gain
    Appreciation
     
    (Loss) on
    (Depreciation)
     
    Derivatives
    on Derivatives
     
    Recognized in
    Recognized in
     
Trust   Income(1)      Income(2)       
 
California
  $ (500,180 )   $ 230,757      
Massachusetts
    (1,683 )     (50,812 )    
Michigan
    (39,345 )     33,078      
New Jersey
    (797,937 )     84,830      

64


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                     
          Change in
     
          Unrealized
     
    Realized Gain
    Appreciation
     
    (Loss) on
    (Depreciation)
     
    Derivatives
    on Derivatives
     
    Recognized in
    Recognized in
     
Trust   Income(1)      Income(2)       
 
New York
  $ (541,639 )   $ 260,589      
Ohio
    (49,894 )     (5,013 )    
Pennsylvania
    (212,935 )     102,046      
 
(1) Statement of Operations location: Net realized gain (loss) – Financial futures contracts and swap contracts.
 
(2) Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and swap contracts.
 
The average notional amounts of futures contracts and interest rate swaps outstanding during the six months ended May 31, 2010, which are indicative of the volume of these derivative types, were approximately as follows:
 
                     
    Average Notional Amount
     
    Futures
    Interest
     
Trust   Contacts     Rate Swaps      
 
California
  $ 7,200,000     $ 5,538,000      
Massachusetts
          2,038,000      
Michigan
    543,000       400,000      
New Jersey
    5,357,000       3,550,000      
New York
    6,000,000       6,800,000      
Ohio
    1,543,000       1,563,000      
Pennsylvania
    5,000,000       913,000      
 
10   Fair Value Measurements
 
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
  •  Level 1 – quoted prices in active markets for identical investments
 
  •  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •  Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
                                     
California Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 161,016,048     $      —     $ 161,016,048      
 
 
Total Investments
  $     $ 161,016,048     $     $ 161,016,048      
 
 
Futures Contracts
  $ 171,007     $     $     $ 171,007      
 
 
Total
  $ 171,007     $ 161,016,048     $     $ 161,187,055      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (259,861 )   $     $ (259,861 )    
 
 
Total
  $     $ (259,861 )   $     $ (259,861 )    
 
 
 
                                     
Massachusetts Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $      —     $ 63,923,508     $      —     $ 63,923,508      
 
 
Total Investments
  $     $ 63,923,508     $     $ 63,923,508      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (96,120 )   $     $ (96,120 )    
 
 
Total
  $     $ (96,120 )   $     $ (96,120 )    
 
 
 
                                     
Michigan Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 45,260,094     $      —     $ 45,260,094      
 
 
Total Investments
  $     $ 45,260,094     $     $ 45,260,094      
 
 
Futures Contracts
  $ 4,245     $     $     $ 4,245      
 
 
Total
  $ 4,245     $ 45,260,094     $     $ 45,264,339      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (4,956 )   $     $ (4,956 )    
 
 
Total
  $     $ (4,956 )   $     $ (4,956 )    
 
 
 

65


 

 
Eaton Vance Municipal Income Trusts as of May 31, 2010
 
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT’D
 
                                     
New Jersey Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 110,822,690     $      —     $ 110,822,690      
 
 
Total Investments
  $     $ 110,822,690     $     $ 110,822,690      
 
 
Futures Contracts
  $ 172,203     $     $     $ 172,203      
 
 
Total
  $ 172,203     $ 110,822,690     $     $ 110,994,893      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (166,611 )   $     $ (166,611 )    
 
 
Total
  $     $ (166,611 )   $     $ (166,611 )    
 
 
 
                                     
New York Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 126,532,126     $      —     $ 126,532,126      
 
 
Total Investments
  $     $ 126,532,126     $     $ 126,532,126      
 
 
Futures Contracts
  $ 142,506     $     $     $ 142,506      
 
 
Total
  $ 142,506     $ 126,532,126     $     $ 126,674,632      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (228,254 )   $     $ (228,254 )    
 
 
Total
  $     $ (228,254 )   $     $ (228,254 )    
 
 
 
                                     
Ohio Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 61,263,534     $      —     $ 61,263,534      
 
 
Total Investments
  $     $ 61,263,534     $     $ 61,263,534      
 
 
Futures Contracts
  $ 15,378     $     $     $ 15,378      
 
 
Total
  $ 15,378     $ 61,263,534     $     $ 61,278,912      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (92,485 )   $     $ (92,485 )    
 
 
Total
  $     $ (92,485 )   $     $ (92,485 )    
 
 
 
                                     
Pennsylvania Trust      
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 60,816,699     $      —     $ 60,816,699      
 
 
Total Investments
  $     $ 60,816,699     $     $ 60,816,699      
 
 
Futures Contracts
  $ 68,881     $     $     $ 68,881      
 
 
Total
  $ 68,881     $ 60,816,699     $     $ 60,885,580      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (93,431 )   $     $ (93,431 )    
 
 
Total
  $     $ (93,431 )   $     $ (93,431 )    
 
 
 
The Trusts held no investments or other financial instruments as of November 30, 2009 whose fair value was determined using Level 3 inputs.

66


 

Eaton Vance Municipal Income Trusts 
 
ANNUAL MEETING OF SHAREHOLDERS (Unaudited)
 
 
Each Trust held its Annual Meeting of Shareholders on March 26, 2010. The following action was taken by the shareholders of each Trust:
 
Item 1: The election of Thomas E. Faust Jr., Allen R. Freedman and Ralph F. Verni as Class II Trustees of each Trust for a term expiring in 2013. Mr. Verni was elected solely by APS shareholders.
 
                             
          Nominee for
    Nominee for
     
    Nominee for Class II
    Class II Trustee
    Class II Trustee
     
    Trustee Elected by
    Elected by All
    Elected by All
     
    APS Shareholders:
    Shareholders:
    Shareholders:
     
Trust   Ralph F. Verni     Thomas E. Faust Jr.     Allen R. Freedman      
 
 
California Trust
                           
For
    1,128       6,733,854       6,728,260      
Withheld
    46       92,571       98,165      
Massachusetts Trust
                           
For
    489       2,558,689       2,552,833      
Withheld
    0       36,239       42,095      
Michigan Trust
                           
For
    472       1,955,222       1,961,465      
Withheld
    0       86,825       80,582      
New Jersey Trust
                           
For
    810       4,263,043       4,261,995      
Withheld
    6       101,802       102,850      
Broker Non-Vote*
    21       n/a       n/a      
New York Trust
                           
For
    822       4,804,350       4,799,492      
Withheld
    5       258,731       263,589      
Ohio Trust
                           
For
    658       2,581,251       2,581,526      
Withheld
    1       121,962       121,687      
Pennsylvania Trust
                           
For
    483       2,527,388       2,524,527      
Withheld
    4       51,812       54,673      
Broker Non-Vote*
    20       n/a       n/a      
 
* Broker non-votes (i.e., proxies from brokers or nominees indicating that such persons have not received instructions from the beneficial owner or other person entitled to vote shares on a particular matter with respect to which the brokers or nominees do not have discretionary power) are treated as shares that are present at the meeting, but which have not been voted.

67


 

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 26, 2010, 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, 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 between February and April 2010. 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 (including yield where relevant) to the investment performance of comparable funds over various time periods;
  •  Data regarding investment performance in comparison to relevant peer groups of similarly managed funds and appropriate indices;
  •  For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing such 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 policies and procedures relating to proxy voting, the handling of corporate actions and class actions;
  •  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;
  •  A description of Eaton Vance Management’s procedures for overseeing third party advisers and sub-advisers;
 
Other Relevant Information
 
  •  Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;
  •  Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and
  •  The terms of each advisory agreement.

68


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
 
In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2010, with respect to one or more Funds, the Board met ten times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met nine, thirteen, three, eight and fifteen 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 including, where relevant, the use of derivative instruments, as well as trading policies and procedures and risk management techniques.
 
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 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, including recent changes to such personnel. 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 methods of the Adviser to recruit and retain investment personnel, and the time and attention devoted to each Fund by senior management.
 
The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio

69


 

 
Eaton Vance Municipal Income Trusts 
 
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT’D
 
holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
 
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.
 
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 and, where relevant, a peer group of similarly managed funds. The Board reviewed comparative performance data for the one-, three-, and five-, and for certain Funds, ten-year periods ended September 30, 2009 for each Fund in operation over such periods. The Board considered the impact of extraordinary market conditions during 2008 and 2009 on each Fund’s performance relative to its peer universe in light of, among other things, the Adviser’s long-standing strategy of generating current income through investments in higher quality (including insured) municipal bonds with longer maturities. The Board noted that the Adviser had restructured management of the municipal bond team and had implemented additional processes and tools designed to manage credit and interest rate risk. The Board concluded that appropriate actions are being taken by the Adviser to improve Fund performance and that additional time is required to evaluate the effectiveness of such actions.
 
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, 2009, as compared to a group of similarly managed funds selected by an independent data provider. The Board considered that, in response to inquiries by the Contract Review Committee, the Adviser had agreed to implement a series of permanent reductions in management fees and that the first such reduction would be effective as of May 1, 2010. The Board also considered factors that had an impact on the Funds’ expense ratios, as identified by management in response to inquiries from the Contract Review Committee, as well as actions being taken to reduce expenses at the Eaton Vance fund complex level.
 
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 are reasonable.
 
Profitability
 
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized with and without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser in connection with its relationship with the Funds, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for a Fund and other investment advisory clients.
 
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.

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

Thomas M. Metzold
President of MMV and EVJ;
Vice President of CEV and EVP

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

Craig R. Brandon
Vice President of CEV and EVY

Adam A. Weigold
Vice President of EVP

Barbara E. Campbell
Treasurer

Maureen A. Gemma
Secretary and Chief Legal Officer

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

Benjamin C. Esty

Thomas E. Faust Jr.

Allen R. Freedman

William H. Park

Ronald A. Pearlman

Helen Frame Peters

Heidi L. Steiger

Lynn A. Stout
 
 
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, non-diversified, management investment company and has no employees.
 
Number of Shareholders
As of May 31, 2010, our records indicate that there are 99, 84, 56, 112, 98, 83 and 103 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively, and approximately 2,643, 1,196, 1,121, 1,981, 2,326, 1,443 and 1,463 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively.
 
If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call:
 
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
 
NYSE Amex symbols
 
         
California Municipal Income Trust
  CEV    
Massachusetts Municipal Income Trust
  MMV    
Michigan Municipal Income Trust
  EMI    
New Jersey Municipal Income Trust
  EVJ    
New York Municipal Income Trust
  EVY    
Ohio Municipal Income Trust
  EVO    
Pennsylvania Municipal Income Trust
  EVP    

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Investment Adviser and Administrator of
Eaton Vance Municipal Income Trusts
Eaton Vance Management
Two International Place
Boston, MA 02110
 
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
 
Transfer Agent
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
 
Eaton Vance Municipal Income Trusts
Two International Place
Boston, MA 02110


 

147-7/10 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), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed Registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer then back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that

 


 

list to the personal of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
     
(a)(1)
  Registrant’s Code of Ethics — Not applicable (please see Item 2).
 
   
(a)(2)(i)
  Treasurer’s Section 302 certification.
 
   
(a)(2)(ii)
  President’s Section 302 certification.
 
   
(b)
  Combined Section 906 certification.

 


 

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance California Municipal Income Trust
         
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson
   
 
  President    
 
       
Date: July 08, 2010    
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Barbara E. Campbell
 
Barbara E. Campbell
   
 
  Treasurer    
 
       
Date: July 08, 2010    
 
       
By:
  /s/ Cynthia J. Clemson    
 
       
 
  Cynthia J. Clemson    
 
  President    
 
       
Date: July 08, 2010