Eaton Vance New York Municipal Bond Fund
Table of Contents

 
 
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: 811-21148
Eaton Vance New York Municipal Bond Fund
 
(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)
September 30
 
Date of Fiscal Year End
September 30, 2010
 
Date of Reporting Period
 
 

 


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Item 1. Reports to Stockholders

 


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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 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 a 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 Bond Funds  as of September 30, 2010
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TABLE OF CONTENTS
         
    2  
 
       
       
    4  
    5  
    6  
 
       
Financial Statements
    7  
 
       
Federal Tax Information
    36  
 
       
Notice to Shareholders
    37  
 
       
Annual Meeting of Shareholders
    38  
 
       
Dividend Reinvestment Plan
    39  
 
       
Board of Trustees’ Contract Approval
    41  
 
       
Management and Organization
    44  
 EX-99.CERT Section 302 Certification
 EX-99.906CERT Section 906 Certification
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Eaton Vance Municipal Bond Funds  as of September 30, 2010
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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

Eaton Vance Municipal Bond Funds (the “Funds”) are closed-end funds traded on the NYSE Amex, which are designed to provide current income exempt from regular federal income tax, federal alternative minimum tax and, in state specific funds, state personal income taxes. On January 29, 2010, shareholders of the Funds approved a modification to each Fund’s 80 percent policy to eliminate the requirement to invest primarily in insured municipal obligations and to eliminate “Insured” from each Fund’s name. Under normal market conditions, the Funds are now required to invest at least 80 percent of net assets in municipal obligations rated A or better by Moody’s Investors Service, Inc., Standard & Poor’s Ratings Group or Fitch Ratings.
Economic and Market Conditions
The U.S. economy remained generally stable, if still weak, during the year ending September 30, 2010, even as concerns about high unemployment and budget deficits provoked ongoing skittishness in the capital markets. The U.S. economy grew at an annualized rate of 3.7% in the first quarter of 2010, but slowed to 1.7% in the second quarter, according to the U.S. Department of Commerce. Advance estimates for the third quarter indicated an annualized increase in GDP of 2%.
Municipal bond performance was positive for the fiscal year, in spite of ongoing negative media attention on the tax-exempt sector. Solid performance resulted in part from continued investor concern about the strength (or weakness) of the economic recovery, and investments such as higher-quality municipals and Treasuries benefited. Toward the end of the period, the market was bolstered by very light issuance and sustained demand, as well as a flight to quality during July and August. September 2010 brought a change in sentiment, and investors took on more risk, helping higher-yielding, lower-rated sectors of the market.
Against this backdrop, the Barclays Capital Municipal Bond Index (the Muni Bond Index) – an unmanaged index of municipal bonds traded in the U.S. – gained 5.81% for the fiscal year ending September 30, 2010. Munis with longer maturities performed best during

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
the year; the Barclays Capital Long (22+) Municipal Bond Index (the Long 22+ Index)— an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more—had a return of 6.56%. Intermediate-maturity bonds, represented by the 7-year segment of the Index, also performed well, gaining 6.48%. Shorter-maturity bonds in the 5-year segment of the Index returned 5.63%.
Management Discussion
In this generally positive environment, Eaton Vance Municipal Bond Fund outperformed its benchmark, the Long 22+ Index,1 at net asset value (NAV) for the year ending September 30, 2010. Management’s research and selection of bonds across the sector and credit spectrum helped performance relative to the Long 22+ Index. In particular, an overweighting in high-coupon bonds and AAA-rated bonds made significant contributions to relative performance, as did the Fund’s duration profile. In contrast, an overweighting in insured bonds detracted, and a modest hedging position—an ongoing strategy that management has employed that is designed to help mitigate interest-rate risk— also caused some underperformance for the year.
Eaton Vance California Municipal Bond Fund underperformed the Muni Bond Index and the Long 22+ Index at NAV, while Eaton Vance New York Municipal Bond Fund outperformed the Muni Bond Index and underperformed the Long 22+ Index. Positive contributors to performance included overweighting high-coupon bonds, overweighting AAA-rated bonds, the duration profiles of the Funds, and sector selection. In contrast, an overweighting in insured bonds and an underweighting of 5%-6% coupon bonds hurt relative performance. Modest hedging positions also detracted from performance during the period.
Management employed leverage in the Funds, through which additional exposure to the municipal market was achieved. Leverage has the impact of magnifying a Fund’s exposure to its underlying investments in both up and down markets. During the period, the Funds’ leverage generally helped their relative performance.
 
1
It is not possible to invest directly in an Index. The Indices’ total returns do not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices.
 
 
Past performance is no guarantee of future results.


The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in the report may not be representative of the Funds’ current or future investments and may change due to active management.
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Eaton Vance Municipal Bond Funds  as of September 30, 2010
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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

As we move ahead, we continue to focus on state and local government budget deficits, which likely peaked in 2010 or are expected to peak in early 2011. The decline in tax revenues appears to be reaching a bottom, with some municipalities realizing growth in tax receipts due to a combination of slim economic growth and an increase in actual tax rates. However, spending continues to grow faster than tax receipts despite deep spending cuts enacted by some government officials. We will continue to analyze any new developments and solutions that government leaders formulate to address their fiscal problems.
As of February 19, 2010, William H. Ahern, Jr. became the portfolio manager of Eaton Vance Municipal Bond Fund. Mr. Ahern is a Vice President of Eaton Vance and manages other Eaton Vance municipal portfolios. He has been employed by Eaton Vance since 1989.
A Note Regarding The Use Of Leverage
The Funds employ leverage through the use of residual interest bond (RIB) financing.1 Each Fund’s RIB leverage percentage as of September 30, 2010 is reflected on the Fund-specific pages following this letter. The leverage created by 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.
      


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Eaton Vance Municipal Bond Fund  as of September 30, 2010
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PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

                 
Performance1              
NYSE Amex Symbol     EIM          
 
 
               
Average Annual Total Returns (by market price)
 
 
               
One Year
    13.55 %        
Five Years
    5.53          
Life of Fund (8/30/02)
    6.57          
 
               
Average Annual Total Returns (by net asset value)
 
 
               
One Year
    6.77 %        
Five Years
    3.88          
Life of Fund (8/30/02)
    5.77          
 
               
Premium/(Discount) to NAV
    6.27 %        
 
               
Market Yields
 
 
               
Market Yield2
    6.59 %        
Taxable-Equivalent Market Yield3
    10.14 %        
 
               
Index Performance4 (Average Annual Total Returns)
 
                 
Barclays Capital Long (22+) Municipal Bond Index      
 
One Year
    6.56 %
Five Years
    4.50  
Life of Fund (8/31/02)
    5.39  
 
       
Lipper Averages5 (Average Annual Total Returns)
 
 
       
Lipper General Municipal Debt Funds (Leveraged) Classification (by net asset value)
 
One Year
    9.50 %
Five Years
    4.72  
Life of Fund (8/31/02)
    5.80  

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 Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 9/30/10 is as follows:
                     
AAA
      33.0 %   BB       0.2 %
AA
    32.1 %   CCC     0.5 %
A
    25.0 %   CC     0.1 %
BBB
    8.7 %   C     0.4 %
Fund Statistics7
 
     
Number of Issues:
  166 
 
Average Maturity:
  25.5 years 
 
Average Effective Maturity:
  13.7 years 
 
Average Call Protection:
  9.5 years 
 
Average Dollar Price:
  $110.79 
 
RIB Leverage**:
  40.9% 
 
 
**
See Note 1H to the Fund’s financial statements. RIB leverage represents the amount of Floating Rate Notes outstanding as of 9/30/10 as a percentage of the Fund’s net assets plus Floating Rate Notes.


1 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 Fund’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 Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of auction preferred shares (for certain periods) outstanding and/or 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 Fund’s market yield is calculated by dividing the last regular dividend per share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Index’s total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. 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 Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper General Municipal Debt Funds (Leveraged) Classification (closed-end) contained 63, 59 and 54 funds for the 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. 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 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.
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Eaton Vance California Municipal Bond Fund  as of September 30, 2010
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PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

                 
Performance1              
NYSE Amex Symbol     EVM          
 
 
               
Average Annual Total Returns (by market price)
 
 
               
One Year
    10.00 %        
Five Years
    5.57          
Life of Fund (8/30/02)
    5.52          
 
               
Average Annual Total Returns (by net asset value)
 
 
               
One Year
    4.53 %        
Five Years
    3.33          
Life of Fund (8/30/02)
    4.83          
 
               
Premium/(Discount) to NAV
    5.47 %        
 
               
Market Yields
 
 
               
Market Yield2
    6.38 %        
Taxable-Equivalent Market Yield3
    10.97 %        
 
               
Index Performance4 (Average Annual Total Returns)
 
                 
    Barclays Capital   Barclays Capital Long (22+)
    Municipal Bond Index   Municipal Bond Index
 
One Year
    5.81 %     6.56 %
Five Years
    5.13       4.50  
Life of Fund (8/31/02)
5.00       5.39  
                 
Lipper Averages5 (Average Annual Total Returns)
 
Lipper California Municipal Debt Funds Classification (by net asset value)
 
One Year
    7.95 %
Five Years
    3.87  
Life of Fund (8/31/02)
    5.27  

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 Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Cynthia J. Clemson
Rating Distribution*6
By total investments
(PIE CHART)
 
* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 9/30/10 is as follows:
                     
AAA
    34.2 %   BBB      0.8 %
AA
    30.7 %   BB      2.3 %
A
    32.0 %            
 
Fund Statistics7
 
     
Number of Issues:
  100 
 
Average Maturity:
  22.6 years 
 
Average Effective Maturity:
  15.1 years 
 
Average Call Protection:
  8.4 years 
 
Average Dollar Price:
  $101.10 
 
RIB Leverage**:
  41.8% 
 
 
**
See Note 1H to the Fund’s financial statements. RIB leverage represents the amount of Floating Rate Notes outstanding as of 9/30/10 as a percentage of the Fund’s net assets plus Floating Rate Notes.


1 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 Fund’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 Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of auction preferred shares (for certain periods) outstanding and/or 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 Fund’s market yield is calculated by dividing the last regular dividend per 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 Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification (closed-end) contained 24, 23 and 21 funds for the 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. 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 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.
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Eaton Vance New York Municipal Bond Fund  as of September 30, 2010
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PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

                 
Performance1              
NYSE Amex Symbol     ENX          
 
 
               
Average Annual Total Returns (by market price)
 
 
               
One Year
    5.56 %        
Five Years
    6.25          
Life of Fund (8/30/02)
    5.69          
 
               
Average Annual Total Returns (by net asset value)
 
 
               
One Year
    6.16 %        
Five Years
    4.09          
Life of Fund (8/30/02)
    5.31          
 
               
Premium/(Discount) to NAV
    2.94 %        
 
               
Market Yields
 
 
               
Market Yield2
    5.91 %        
Taxable-Equivalent Market Yield3
    9.99 %        
 
               
Index Performance4 (Average Annual Total Returns)
 
                 
    Barclays Capital   Barclays Capital Long (22+)
    Municipal Bond Index   Municipal Bond Index
 
One Year
    5.81 %     6.56 %
Five Years
    5.13       4.50  
Life of Fund (8/31/02)
5.00       5.39  
                 
Lipper Averages5 (Average Annual Total Returns)
 
Lipper New York Municipal Debt Funds Classification (by net asset value)
 
One Year
    8.47 %
Five Years
    4.15  
Life of Fund (8/31/02)
    5.56  

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 Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 9/30/10 is as follows:
                     
AAA
    23.6 %   BBB      3.6 %
AA
    50.5 %   Not Rated      2.2 %
A
    20.1 %            
Fund Statistics7
 
     
Number of Issues:
  104 
 
Average Maturity:
  23.5 years 
 
Average Effective Maturity:
  11.5 years 
 
Average Call Protection:
  9.0 years 
 
Average Dollar Price:
  $119.76 
 
RIB Leverage**:
  39.8% 
 
 
**
See Note 1H to the Fund’s financial statements. RIB leverage represents the amount of Floating Rate Notes outstanding as of 9/30/10 as a percentage of the Fund’s net assets plus Floating Rate Notes.


1 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 Fund’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 Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of auction preferred shares (for certain periods) outstanding and/or 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 Fund’s market yield is calculated by dividing the last regular dividend per 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 Fund. 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, 19 and 17 funds for the 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. 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 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.
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Eaton Vance Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 167.6%
 
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Electric Utilities — 0.5%
 
$ 10,300     Sabine River Authority, TX, (TXU Energy Co. LLC), 5.20%, 5/1/28   $ 4,036,673      
 
 
            $ 4,036,673      
 
 
 
 
Hospital — 10.9%
 
$ 11,940     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39   $ 12,127,577      
  5,000     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36     5,012,300      
  19,550     California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45     19,750,974      
  620     Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/25     622,623      
  2,610     Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35     2,513,743      
  1,870     Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27     1,888,794      
  5,900     Camden County, NJ, Improvement Authority, (Cooper Health System), 5.75%, 2/15/34     6,003,899      
  3,900     Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33     3,940,170      
  7,190     Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36     7,378,737      
  8,310     Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38     1,764,795      
  10,000     Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/41     1,758,800      
  8,165     Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32     8,315,399      
  5,085     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38     5,039,184      
  10,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46     10,049,300      
  100     South Miami, FL, Health Facilities Authority, (Baptist Health), 5.00%, 8/15/42     101,505      
  900     South Miami, FL, Health Facilities Authority, (Baptist Health), 5.00%, 8/15/42(1)     913,545      
  10,000     Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.25%, 8/15/40     10,208,000      
 
 
            $ 97,389,345      
 
 
 
 
Industrial Development Revenue — 1.6%
 
$ 1,175     Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1)   $ 1,246,544      
  12,775     St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37     12,849,989      
 
 
            $ 14,096,533      
 
 
 
Insured-Electric Utilities — 11.0%
 
$ 5,000     American Municipal Power-Ohio, Inc., OH, (Prairie State Energy), (AGC), 5.75%, 2/15/39   $ 5,508,400      
  1,350     Long Island, NY, Power Authority, (BHAC), 5.50%, 5/1/33     1,524,663      
  14,005     Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41     14,024,187      
  2,735     Paducah, KY, Electric Plant Board, (AGC), 5.25%, 10/1/35     2,937,554      
  60,755     South Carolina Public Service Authority, (AGM), 5.125%, 1/1/37(1)     63,075,233      
  7,840     South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38     8,743,795      
  2,170     Springfield, MO, Public Utility, (BHAC), (FGIC), 4.50%, 8/1/36     2,225,313      
 
 
            $ 98,039,145      
 
 
 
 
Insured-Escrowed / Prerefunded — 0.1%
 
$ 145     Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36   $ 175,882      
  378     Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36(1)     459,090      
 
 
            $ 634,972      
 
 
 
 
Insured-General Obligations — 21.4%
 
$ 9,705     Alamo, TX, Community College District, (BHAC), (NPFG), 4.75%, 8/15/32(1)   $ 10,206,845      
  34,035     Chabot - Las Positas, CA, Community College District, (AMBAC), 0.00%, 8/1/45     3,475,654      
  35,370     Chabot - Las Positas, CA, Community College District, (AMBAC), 0.00%, 8/1/46     3,347,770      
  32,765     Chicago, IL, Board of Education, (FGIC), (NPFG), 0.00%, 12/1/21     20,274,327      
  12,465     Clark County, NV, (AMBAC), 2.50%, 11/1/36     8,750,555      
  10,055     Frisco, TX, Independent School District, (AGM), 2.75%, 8/15/39     7,552,713      
  14,330     Frisco, TX, Independent School District, (AGM), 4.00%, 8/15/40     14,317,103      
  2,840     Goose Creek, TX, Consolidated Independent School District, (FGIC), (NPFG), 4.55%, 2/15/29     2,945,421      
  2,975     Goose Creek, TX, Consolidated Independent School District, (FGIC), (NPFG), 4.55%, 2/15/30     3,073,264      
  15,725     Kane, Cook and Du Page Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/21     10,593,618      
  50,650     Kane, Cook and Du Page Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/22     32,507,676      
  7,000     King County, WA, Public Hospital District No. 1, (AGC), 5.00%, 12/1/37(1)     7,351,820      
  7,000     Los Angeles, CA, Unified School District, (AGC), 5.00%, 1/1/34     7,340,830      

 
See notes to financial statements

7


Table of Contents

 
Eaton Vance Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
Insured-General Obligations (continued)
 
                     
$ 2,585     North Las Vegas, NV, Wastewater Reclamation System, (NPFG), 4.25%, 10/1/33   $ 2,525,597      
  8,955     Palm Springs, CA, Unified School District, (AGC), 5.00%, 8/1/32     9,632,804      
  11,045     Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38(1)     11,143,632      
  12,750     Schaumburg, IL, (BHAC), (FGIC), 5.00%, 12/1/38(1)     13,138,110      
  13,060     Texas Transportation Commission, (NPFG), 5.00%, 4/1/29     14,217,900      
  8,325     Yuma and La Paz Counties, AZ, Community College District, (Arizona Western College), (NPFG), 3.75%, 7/1/31     7,754,404      
 
 
            $ 190,150,043      
 
 
 
 
Insured-Hospital — 18.8%
 
$ 8,250     Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32   $ 8,863,470      
  11,000     California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)     11,437,580      
  3,950     Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.125%, 11/15/39     4,174,637      
  1,050     Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44     1,108,905      
  11,500     Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)     11,919,865      
  6,085     Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36     6,384,747      
  15,872     Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)     16,653,350      
  3,795     Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35     3,837,504      
  15,000     Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)     15,375,144      
  2,500     Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)     2,634,875      
  2,625     Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), 5.625%, 8/15/37     2,892,461      
  1,675     Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32     1,779,889      
  19,150     Maryland Health and Higher Educational Facilities Authority, (Lifebridge Health), (AGC), 4.75%, 7/1/47(1)     19,444,909      
  5,250     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)     5,532,502      
  6,735     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38     7,008,778      
  240     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38     249,756      
  3,750     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1)     3,902,702      
  13,115     New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38     14,357,122      
  5,795     Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), 6.00%, 8/15/39     6,379,947      
  8,700     Washington Health Care Facilities Authority, (Providence Health Care), Series C, (AGM), 5.25%, 10/1/33(1)     9,362,243      
  12,605     Washington Health Care Facilities Authority, (Providence Health Care), Series D, (AGM), 5.25%, 10/1/33(1)     13,607,854      
 
 
            $ 166,908,240      
 
 
 
 
Insured-Industrial Development Revenue — 1.1%
 
$ 9,000     Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39(1)   $ 9,636,120      
 
 
            $ 9,636,120      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 11.3%
 
$ 15,000     Hudson Yards, NY, Infrastructure Corp., (NPFG), 4.50%, 2/15/47   $ 14,534,700      
  2,910     New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34     3,261,732      
  24,000     San Diego County, CA, Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)     25,291,200      
  42,750     San Jose, CA, Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)     43,338,240      
  13,000     Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)     14,019,200      
 
 
            $ 100,445,072      
 
 
 
 
Insured-Other Revenue — 5.4%
 
$ 37,800     Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)   $ 37,612,134      
  16,795     Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34     2,842,890      
  6,750     New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49     7,986,937      
 
 
            $ 48,441,961      
 
 
 

 
See notes to financial statements

8


Table of Contents

 
Eaton Vance Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Insured-Private Education — 3.0%
 
$ 8,000     Massachusetts Development Finance Agency, (Boston University), (AMBAC), (BHAC), 5.00%, 10/1/35   $ 8,722,240      
  7,865     Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31     8,299,935      
  9,595     Washington, DC, Georgetown University, (AMBAC), 4.50%, 4/1/42     9,659,574      
 
 
            $ 26,681,749      
 
 
 
 
Insured-Solid Waste — 0.5%
 
$ 2,760     Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24   $ 3,105,027      
  1,575     Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26     1,749,022      
 
 
            $ 4,854,049      
 
 
 
 
Insured-Special Tax Revenue — 12.5%
 
$ 18,005     Alabama Public School and College Authority, (AGM), 2.50%, 12/1/27   $ 15,102,774      
  18,980     Houston, TX, Hotel Occupancy Tax, (AMBAC), 0.00%, 9/1/24     9,139,060      
  1,175     Jacksonville, FL, Excise Tax, (FGIC), (NPFG), 5.125%, 10/1/27     1,239,061      
  34,500     Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 0.00%, 12/15/34     8,664,330      
  15,000     Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 0.00%, 10/1/39     10,009,500      
  600     Miami-Dade County, FL, Special Obligation, (NPFG), 0.00%, 10/1/35     125,250      
  8,000     Miami-Dade County, FL, Special Obligation, (NPFG), 0.00%, 10/1/39     1,252,400      
  14,620     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45     14,708,451      
  5,785     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     5,885,312      
  196,275     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     13,252,488      
  26,815     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     3,616,003      
  78,410     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     9,874,955      
  49,580     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     5,848,952      
  1,075     Sunrise, FL, Public Facilities, (NPFG), 0.00%, 10/1/20     699,664      
  10,800     Utah Transportation Authority, Sales Tax Revenue, (AGM), 4.75%, 6/15/32(1)     11,468,304      
 
 
            $ 110,886,504      
 
 
 
Insured-Student Loan — 1.1%
 
$ 9,350     Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27   $ 10,135,961      
 
 
            $ 10,135,961      
 
 
 
 
Insured-Transportation — 27.0%
 
$ 21,640     Chicago, IL, (O’Hare International Airport), (AGM), 4.75%, 1/1/34(1)   $ 21,997,060      
  13,360     Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/38(1)     13,768,548      
  8,080     Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39     8,477,778      
  10,070     Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23     1,040,030      
  3,100     Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28     238,173      
  15,000     Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40(2)     3,157,500      
  10,200     E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/21     5,606,226      
  25,000     E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/39     3,472,250      
  7,800     Harris County, TX, Toll Road, Senior Lien, (BHAC), (NPFG), 5.00%, 8/15/33(1)     8,344,284      
  6,710     Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30     7,036,039      
  10,150     Maryland Transportation Authority, (AGM), 4.50%, 7/1/41(1)     10,413,900      
  20,995     Maryland Transportation Authority, (AGM), 5.00%, 7/1/35(1)     22,767,188      
  14,000     Maryland Transportation Authority, (AGM), 5.00%, 7/1/36(1)     15,162,140      
  1,785     Metropolitan Washington, DC, Airports Authority, (BHAC), 5.00%, 10/1/29     1,957,717      
  14,190     Minneapolis and St. Paul, MN, Metropolitan Airports Commission, (FGIC), (NPFG), 4.50%, 1/1/32     14,351,056      
  13,000     New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38     14,569,490      
  1,015     North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29     1,121,433      
  1,160     North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39     1,271,928      
  20,000     North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48(1)     21,998,200      
  10,000     Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/26(1)     11,204,100      
  1,605     Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/24     676,877      
  1,950     Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/25     765,121      
  1,000     Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/26     364,560      
  36,215     San Joaquin Hills, CA, Transportation Corridor Agency, (Toll Road Bonds), (NPFG), 0.00%, 1/15/25     12,166,067      

 
See notes to financial statements

9


Table of Contents

 
Eaton Vance Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
Insured-Transportation (continued)
 
                     
$ 25,305     Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20   $ 15,673,917      
  22,590     Texas Turnpike Authority, (Central Texas Turnpike System), (AMBAC), 5.00%, 8/15/42     22,287,294      
 
 
            $ 239,888,876      
 
 
 
 
Insured-Water and Sewer — 12.3%
 
$ 2,000     Austin, TX, Water and Wastewater, (AGM), (BHAC), 5.00%, 11/15/33(1)   $ 2,119,320      
  1,015     Birmingham, AL, Waterworks and Sewer Board, (AMBAC), (BHAC), 4.50%, 1/1/39     1,023,475      
  3,185     Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26     3,598,381      
  1,985     Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27     2,226,376      
  3,170     Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38     3,471,309      
  3,570     Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38     3,881,768      
  13,670     Chicago, IL, Wastewater Transmission Revenue, (NPFG), 0.00%, 1/1/23     8,293,862      
  1,100     DeKalb County, GA, Water and Sewer, (AGM), 5.25%, 10/1/32     1,292,104      
  8,500     District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1)     9,074,175      
  2,410     East Baton Rouge, LA, Sewerage Commission, (AGM), (BHAC), 4.50%, 2/1/31     2,464,370      
  2,000     Fernley, NV, Water and Sewer, (AGC), 5.00%, 2/1/38(1)     2,061,780      
  27,570     Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33(1)     29,342,473      
  160     New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40     185,006      
  9,500     New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40(1)     10,984,755      
  27,670     Seattle, WA, Drain and Wastewater Revenue, (AGM), 5.00%, 6/1/38(1)     29,697,934      
 
 
            $ 109,717,088      
 
 
 
 
Insured-Water Revenue — 11.1%
 
$ 53,500     Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)   $ 54,153,770      
  5,540     Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/32     6,600,467      
  1,070     Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/38     1,260,193      
  22,305     Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40     22,092,879      
  5,750     Metropolitan Water District, CA, Water and Sewer Systems, (BHAC), (FGIC), 5.00%, 10/1/36(1)     5,941,590      
  8,625     San Luis Obispo County, CA, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40     8,423,606      
 
 
            $ 98,472,505      
 
 
 
 
Other Revenue — 0.3%
 
$ 2,920     Main Street Natural Gas, Inc., GA, Gas Project Revenue, 5.50%, 9/15/27   $ 3,048,743      
 
 
            $ 3,048,743      
 
 
 
 
Private Education — 10.9%
 
$ 14,700     Connecticut Health and Educational Facilities Authority, (Wesleyan University), 5.00%, 7/1/39(1)   $ 16,031,673      
  4,850     Connecticut Health and Educational Facilities Authority, (Yale University), 5.00%, 7/1/42     5,182,807      
  15,000     Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35(1)     16,382,100      
  2,000     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     2,175,180      
  8,790     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36     10,242,459      
  11,800     Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.50%, 7/1/32     15,234,626      
  15,340     New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(3)     16,764,626      
  13,500     North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38(1)     14,581,080      
 
 
            $ 96,594,551      
 
 
 
 
Transportation — 4.7%
 
$ 8,275     Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35   $ 8,751,640      
  2,535     Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40     2,667,150      
  14,545     Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41     14,664,705      
  2,915     Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/35     3,047,574      
  3,480     Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/40     3,627,065      
  5,000     Pennsylvania Turnpike Commission, 0.00%, 12/1/34     3,921,650      
  5,000     Port Authority of New York and New Jersey, 5.00%, 7/15/39     5,454,450      
 
 
            $ 42,134,234      
 
 
 

 
See notes to financial statements

10


Table of Contents

 
Eaton Vance Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Water and Sewer — 0.9%
 
$ 1,445     Marco Island, FL, Utility System, 5.00%, 10/1/34   $ 1,500,314      
  6,325     Marco Island, FL, Utility System, 5.00%, 10/1/40     6,608,613      
 
 
            $ 8,108,927      
 
 
 
 
Water Revenue — 1.2%
 
$ 10,000     King County, WA, Sewer Revenue, 5.00%, 1/1/45   $ 10,754,400      
 
 
            $ 10,754,400      
 
 
     
Total Tax-Exempt Investments — 167.6%
   
(identified cost $1,470,125,000)
  $ 1,491,055,691      
 
 
             
Other Assets, Less Liabilities — (67.6)%
  $ (601,516,278 )    
 
 
             
Net Assets — 100.0%
  $ 889,539,413      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
At September 30, 2010, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments is as follows:
 
         
California
    17.4%  
Texas
    13.8%  
Others, representing less than 10% individually
    68.8%  
 
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2010, 81.5% 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 1.1% to 25.7% of total investments.
 
(1) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(2) Defaulted bond.
 
(3) Security (or a portion thereof) has been pledged as collateral for open swap contracts. The aggregate value of such collateral is $464,470.

 
See notes to financial statements

11


Table of Contents

Eaton Vance California Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 169.0%
 
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Electric Utilities — 2.4%
 
$ 3,940     Puerto Rico Electric Power Authority, 5.25%, 7/1/40   $ 4,120,216      
  2,375     Vernon, Electric System Revenue, 5.125%, 8/1/21     2,534,386      
 
 
            $ 6,654,602      
 
 
 
 
General Obligations — 2.8%
 
$ 7,020     Palo Alto, (Election of 2008), 5.00%, 8/1/40(1)   $ 7,678,476      
 
 
            $ 7,678,476      
 
 
 
 
Hospital — 11.3%
 
$ 2,000     California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 7/1/23   $ 2,083,720      
  4,745     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39     4,819,544      
  4,780     California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35     4,766,186      
  2,330     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34     2,320,214      
  3,850     California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45     3,889,578      
  3,950     Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31     3,992,936      
  2,045     Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34     2,003,057      
  3,165     Washington Township Health Care District, 5.00%, 7/1/32     3,144,016      
  1,000     Washington Township Health Care District, 5.00%, 7/1/37     975,430      
  3,005     Washington Township Health Care District, 5.25%, 7/1/29     3,010,890      
 
 
            $ 31,005,571      
 
 
 
 
Insured-Electric Utilities — 13.1%
 
$ 20,000     Anaheim Public Financing Authority, (Electric System District), (BHAC), (NPFG), 4.50%, 10/1/32(1)   $ 20,435,398      
  6,750     Los Angeles Department of Water and Power, (AMBAC), (BHAC), 5.00%, 7/1/26(1)     7,402,793      
  2,000     Northern California Power Agency, (Hydroelectric), (AGC), 5.00%, 7/1/24     2,197,780      
  1,000     Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27     1,099,180      
  4,000     Sacramento Municipal Utility District, (AMBAC), (BHAC), 5.25%, 7/1/24     4,777,120      
 
 
            $ 35,912,271      
 
 
 
Insured-Escrowed / Prerefunded — 6.9%
 
$ 3,045     California Infrastructure & Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36(2)   $ 3,839,166      
  13,940     Sacramento County Airport System, (AGM), Prerefunded to 7/1/12, 5.00%, 7/1/27(1)     15,072,904      
 
 
            $ 18,912,070      
 
 
 
 
Insured-General Obligations — 31.2%
 
$ 4,260     Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39   $ 4,470,231      
  18,375     Arcadia Unified School District, (AGM), 0.00%, 8/1/41     2,740,448      
  1,190     Azusa Unified School District, (AGM), 0.00%, 7/1/25     561,228      
  4,135     Burbank Unified School District, (FGIC), (NPFG), 0.00%, 8/1/21     2,574,451      
  10,000     Chabot - Las Positas, Community College District, (AMBAC), 0.00%, 8/1/32     2,558,000      
  9,500     Chabot - Las Positas, Community College District, (AMBAC), 0.00%, 8/1/37     1,750,090      
  14,755     Chabot - Las Positas, Community College District, (AMBAC), 0.00%, 8/1/44     1,689,743      
  2,000     Chino Valley Unified School District, (AGM), 5.00%, 8/1/26     2,105,220      
  10,600     Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/33     2,734,482      
  23,150     Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/34     5,584,011      
  4,400     El Camino Hospital District, (NPFG), 4.45%, 8/1/36     4,365,020      
  6,040     Escondido, (Election of 2004), (NPFG), 4.75%, 9/1/36     6,039,758      
  2,060     Huntington Beach, City School District, (FGIC), (NPFG), 0.00%, 8/1/25     952,153      
  2,140     Huntington Beach, City School District, (FGIC), (NPFG), 0.00%, 8/1/26     930,344      
  2,000     Jurupa Unified School District, (FGIC), (NPFG), 0.00%, 8/1/23     992,100      
  2,000     Jurupa Unified School District, (FGIC), (NPFG), 0.00%, 8/1/26     811,240      
  7,300     Los Angeles Community College District, (Election of 2001), (AGM), (FGIC), 5.00%, 8/1/32     7,730,262      
  2,900     Modesto High School District, Stanislaus County, (FGIC), (NPFG), 0.00%, 8/1/24     1,402,498      
  4,500     Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33     4,826,745      
  3,825     San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/22     2,289,454      
  8,015     San Diego Unified School District, (FGIC), (NPFG), 0.00%, 7/1/23     4,347,336      
  5,630     San Juan Unified School District, (AGM), 0.00%, 8/1/21     3,505,238      

 
See notes to financial statements

12


Table of Contents

 
Eaton Vance California Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
Insured-General Obligations (continued)
 
                     
$ 4,840     San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/22   $ 2,873,314      
  4,365     San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/23     2,447,063      
  3,955     San Mateo County, Community College District, (FGIC), (NPFG), 0.00%, 9/1/25     1,968,957      
  5,240     San Mateo Union High School District, (FGIC), (NPFG), 0.00%, 9/1/21     3,354,386      
  5,195     Santa Clara Unified School District, (Election of 2004), (AGM), 4.375%, 7/1/30     5,268,301      
  2,450     Union Elementary School District, (FGIC), (NPFG), 0.00%, 9/1/24     1,240,435      
  3,000     Ventura County, Community College District, (NPFG), 5.00%, 8/1/27     3,178,470      
 
 
            $ 85,290,978      
 
 
 
 
Insured-Hospital — 13.9%
 
$ 2,205     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34   $ 2,269,584      
  19,495     California Health Facilities Financing Authority, (Sutter Health), (BHAC), (NPFG), 5.00%, 8/15/38(1)     19,590,915      
  10,000     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/31(1)     10,494,600      
  3,500     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1)     3,590,825      
  2,000     California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)     2,066,480      
 
 
            $ 38,012,404      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 15.0%
 
$ 11,915     California Public Works Board, (California Community College), (FGIC), (NPFG), 4.00%, 10/1/30   $ 10,236,534      
  3,885     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     5,037,990      
  10,000     San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)     10,538,000      
  1,000     San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37     1,013,760      
  14,000     San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)     14,192,640      
 
 
            $ 41,018,924      
 
 
 
Insured-Other Revenue — 2.8%
 
$ 7,800     Golden State Tobacco Securitization Corp., (AGC), 5.00%, 6/1/45(1)   $ 7,761,234      
 
 
            $ 7,761,234      
 
 
 
 
Insured-Private Education — 0.4%
 
$ 1,000     California Educational Facilities Authority, (Pepperdine University), (FGIC), (NPFG), 5.00%, 9/1/33   $ 1,011,170      
 
 
            $ 1,011,170      
 
 
 
 
Insured-Public Education — 11.6%
 
$ 8,250     California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)   $ 8,655,570      
  3,095     University of California, (AGM), 4.50%, 5/15/26(1)     3,252,473      
  6,690     University of California, (AGM), 4.50%, 5/15/28(1)     6,933,516      
  2,115     University of California, (BHAC), (FGIC), 4.75%, 5/15/37     2,145,477      
  10,750     University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)     10,904,908      
 
 
            $ 31,891,944      
 
 
 
 
Insured-Special Assessment Revenue — 5.8%
 
$ 7,765     Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36   $ 5,963,365      
  6,275     Pomona, Public Financing Authority, (NPFG), 5.00%, 2/1/33     6,073,635      
  4,110     Santa Cruz County, Redevelopment Agency Tax, (NPFG), 5.00%, 9/1/35     3,910,377      
 
 
            $ 15,947,377      
 
 
 
 
Insured-Special Tax Revenue — 13.2%
 
$ 595     Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/31   $ 484,907      
  7,240     Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37     5,669,427      
  2,400     North City, School Facility Financing Authority, (AMBAC), 0.00%, 9/1/26     968,856      
  59,440     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     4,013,389      
  8,900     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     1,200,165      
  25,860     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     3,256,808      
  16,350     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     1,928,810      
  6,645     San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AGM), 4.25%, 7/1/36     6,649,651      

 
See notes to financial statements

13


Table of Contents

 
Eaton Vance California Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
Insured-Special Tax Revenue (continued)
 
                     
$ 3,595     San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31   $ 3,674,521      
  1,850     San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36     1,893,346      
  7,215     San Jose Redevelopment Agency, (Merged Area Redevelopment Project), (XLCA), 4.25%, 8/1/36     6,448,911      
 
 
            $ 36,188,791      
 
 
 
 
Insured-Transportation — 0.3%
 
$ 3,445     San Joaquin Hills, Transportation Corridor Agency, (NPFG), 0.00%, 1/15/30   $ 771,336      
 
 
            $ 771,336      
 
 
 
 
Insured-Water Revenue — 28.0%
 
$ 8,000     California Department of Water Resources Center, (Valley Project), (BHAC), (FGIC), 5.00%, 12/1/29(1)   $ 8,507,920      
  65     Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37     66,789      
  7,000     Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37(1)     7,192,710      
  5,500     Contra Costa, Water District, (AGM), 4.50%, 10/1/31(1)     5,517,380      
  345     East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), 5.00%, 6/1/32     376,385      
  5,615     East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32     6,125,796      
  7,750     Los Angeles Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)     7,844,705      
  14,750     Los Angeles Department of Water and Power, (BHAC), (NPFG), 5.125%, 7/1/41(1)     14,844,399      
  10,000     Metropolitan Water District Water and Sewer Systems, (BHAC), (FGIC), 5.00%, 10/1/36(1)     10,333,200      
  1,570     Riverside, Water Revenue, (AGM), 5.00%, 10/1/38     1,652,990      
  6,135     San Luis Obispo County, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40     5,991,748      
  8,415     Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28     8,323,445      
 
 
            $ 76,777,467      
 
 
 
 
Private Education — 4.6%
 
$ 2,630     California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/27   $ 2,881,507      
  1,375     California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30     1,455,699      
  3,345     California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29     3,642,738      
  4,290     California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/40     4,578,202      
 
 
            $ 12,558,146      
 
 
 
 
Public Education — 2.0%
 
$ 5,000     California Educational Facilities Authority, (California Institute of Technology), 5.00%, 11/1/39   $ 5,475,300      
 
 
            $ 5,475,300      
 
 
 
 
Transportation — 3.7%
 
$ 1,960     Long Beach, Harbor Revenue, 5.00%, 5/15/27   $ 2,199,257      
  7,500     Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)     7,885,725      
 
 
            $ 10,084,982      
 
 
     
Total Tax-Exempt Investments — 169.0%
   
(identified cost $460,144,154)
  $ 462,953,043      
 
 
             
Other Assets, Less Liabilities — (69.0)%
  $ (189,039,308 )    
 
 
             
Net Assets — 100.0%
  $ 273,913,735      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FGIC - Financial Guaranty Insurance Company
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Fund 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 September 30, 2010, 84.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.7% to 33.8% of total investments.
 
(1) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(2) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 
See notes to financial statements

14


Table of Contents

 
Eaton Vance New York Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS
 
 
                     
Tax-Exempt Investments — 164.6%
 
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Escrowed / Prerefunded — 0.1%
 
$ 300     New York, Prerefunded to 1/15/13, 5.25%, 1/15/33   $ 332,391      
 
 
            $ 332,391      
 
 
 
 
General Obligations — 0.7%
 
$ 200     New York, 5.25%, 1/15/33   $ 212,938      
  1,550     New York, 5.25%, 1/15/33(1)     1,340,085      
 
 
            $ 1,553,023      
 
 
 
 
Hospital — 1.0%
 
$ 620     New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26   $ 651,459      
  820     New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32     850,422      
  640     New York Dormitory Authority, (Lenox Hill Hospital), 5.50%, 7/1/30     640,467      
 
 
            $ 2,142,348      
 
 
 
 
Housing — 1.2%
 
$ 2,500     New York Housing Development Corp., 4.95%, 11/1/39   $ 2,572,125      
 
 
            $ 2,572,125      
 
 
 
 
Industrial Development Revenue — 2.2%
 
$ 3,040     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35   $ 3,225,106      
  1,440     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.50%, 10/1/37     1,585,152      
 
 
            $ 4,810,258      
 
 
 
 
Insured-Electric Utilities — 6.6%
 
$ 5,000     Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33   $ 5,775,450      
  1,060     Long Island Power Authority, Electric System Revenue, (NPFG), 4.25%, 5/1/33     1,065,279      
  7,210     New York Power Authority, (BHAC), (NPFG), 4.50%, 11/15/47(1)     7,339,924      
 
 
            $ 14,180,653      
 
 
 
Insured-Escrowed / Prerefunded — 3.2%
 
$ 2,095     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/26   $ 1,260,750      
  2,485     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/27     1,424,328      
  8,615     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30     4,200,243      
 
 
            $ 6,885,321      
 
 
 
 
Insured-General Obligations — 11.7%
 
$ 2,290     Brentwood Union Free School District, (AGC), 4.75%, 11/15/23   $ 2,651,110      
  2,390     Brentwood Union Free School District, (AGC), 5.00%, 11/15/24     2,801,916      
  200     East Northport Fire District, (AGC), 4.50%, 11/1/20     234,338      
  200     East Northport Fire District, (AGC), 4.50%, 11/1/21     233,064      
  200     East Northport Fire District, (AGC), 4.50%, 11/1/22     230,890      
  200     East Northport Fire District, (AGC), 4.50%, 11/1/23     229,148      
  245     Eastchester Union Free School District, (AGM), 3.50%, 6/15/20     262,145      
  255     Eastchester Union Free School District, (AGM), 3.75%, 6/15/21     275,117      
  175     Eastchester Union Free School District, (AGM), 4.00%, 6/15/23     189,350      
  185     Freeport, (AGC), 5.00%, 10/15/20     220,283      
  195     Freeport, (AGC), 5.00%, 10/15/21     230,765      
  750     Freeport Union Free School District, (AGC), 4.00%, 4/1/23     812,370      
  870     Freeport Union Free School District, (AGC), 4.00%, 4/1/24     936,729      
  940     Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24     1,007,924      
  1,110     Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23     1,196,857      
  820     Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23     885,846      
  860     Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24     927,441      
  2,250     New York, (AGM), 5.00%, 4/1/22     2,518,965      
  1,750     New York Dormitory Authority, (School Districts Financing Program), (NPFG), 5.00%, 10/1/30     1,782,340      
  645     Oneida County, (AGC), 4.00%, 4/15/22     691,118      
  1,065     Syracuse, (AGC), 5.00%, 6/15/19     1,251,205      
  785     Wantagh Union Free School District, (AGC), 4.50%, 11/15/19     896,384      
  825     Wantagh Union Free School District, (AGC), 4.50%, 11/15/20     932,399      

 
See notes to financial statements

15


Table of Contents

 
Eaton Vance New York Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
 
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
Insured-General Obligations (continued)
 
                     
$ 905     Wantagh Union Free School District, (AGC), 4.75%, 11/15/22   $ 1,025,682      
  950     Wantagh Union Free School District, (AGC), 4.75%, 11/15/23     1,070,118      
  1,590     William Floyd Union Free School District, (AGC), 4.00%, 12/15/24     1,726,819      
 
 
            $ 25,220,323      
 
 
 
 
Insured-Hospital — 12.6%
 
$ 7,250     New York Dormitory Authority, (Health Quest Systems), (AGC), 5.125%, 7/1/37(1)   $ 7,581,688      
  4,355     New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36     4,650,748      
  4,305     New York Dormitory Authority, (Maimonides Medical Center), (NPFG), 5.00%, 8/1/33     4,445,644      
  10,000     New York Dormitory Authority, (Presbyterian Hospital), (AGM), (BHAC), (FHA), 5.25%, 2/15/31(1)     10,500,900      
 
 
            $ 27,178,980      
 
 
 
 
Insured-Housing — 1.2%
 
$ 2,350     New York Housing Development Corp., (FGIC), (NPFG), 5.00%, 7/1/25   $ 2,512,009      
 
 
            $ 2,512,009      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 5.3%
 
$ 7,060     Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47   $ 6,840,999      
  4,050     New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38     4,555,359      
 
 
            $ 11,396,358      
 
 
 
 
Insured-Other Revenue — 12.4%
 
$ 3,985     New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44   $ 4,111,843      
  4,250     New York City Cultural Resource Trust, (Museum of Modern Art), (AMBAC), (BHAC), 5.125%, 7/1/31(1)     4,468,067      
  7,515     New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46     7,456,082      
  10,000     New York City Transitional Finance Authority, (AGM), (FGIC), 5.00%, 7/15/31(1)     10,731,900      
 
 
            $ 26,767,892      
 
 
 
Insured-Private Education — 33.9%
 
$ 4,000     Madison County Industrial Development Agency, (Colgate University), (NPFG), 5.00%, 7/1/39   $ 4,130,120      
  16,500     New York City Industrial Development Agency, (New York University), (AMBAC), (BHAC), 5.00%, 7/1/41(1)     16,625,565      
  5,500     New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30     5,639,205      
  10,750     New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)     11,507,982      
  3,500     New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/41     3,523,800      
  4,250     New York Dormitory Authority, (New York University), (AMBAC), (BHAC), 5.00%, 7/1/31(1)     4,354,338      
  1,555     New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34     1,651,674      
  3,665     New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39     3,909,529      
  3,020     New York Dormitory Authority, (Rochester Institute of Technology), (AMBAC), 5.25%, 7/1/32     3,172,872      
  3,750     New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37     3,938,663      
  8,500     New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38(1)     9,099,335      
  5,555     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/34     1,797,931      
  8,455     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/36     2,471,143      
  4,000     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/37     1,100,080      
 
 
            $ 72,922,237      
 
 
 
 
Insured-Public Education — 1.3%
 
$ 925     New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35   $ 974,599      
  1,750     New York Dormitory Authority, (Educational Housing Services CUNY Student Housing), (AMBAC), 5.25%, 7/1/23     1,905,487      
 
 
            $ 2,880,086      
 
 
 
 
Insured-Solid Waste — 1.8%
 
$ 1,490     Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/21   $ 1,060,418      
  1,090     Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/23     704,521      
  3,635     Ulster County, Resource Recovery Agency, Solid Waste System, (AMBAC), 0.00%, 3/1/25     2,127,384      
 
 
            $ 3,892,323      
 
 
 

 
See notes to financial statements

16


Table of Contents

 
Eaton Vance New York Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
 
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Insured-Special Tax Revenue — 19.5%
 
$ 14,560     Metropolitan Transportation Authority, (AGM), 5.00%, 11/15/32(1)   $ 15,392,395      
  3,130     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45     3,148,937      
  1,855     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     1,887,166      
  2,415     New York State Housing Finance Agency, (AGM), 5.00%, 3/15/37(2)     2,553,017      
  3,000     Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/36     595,410      
  4,000     Puerto Rico Infrastructure Financing Authority, (FGIC), 0.00%, 7/1/32     1,045,160      
  56,755     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     7,653,412      
  18,180     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     2,289,589      
  11,605     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     1,369,042      
  1,310     Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29     1,437,725      
  4,185     Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32     4,548,174      
 
 
            $ 41,920,027      
 
 
 
 
Insured-Transportation — 19.9%
 
$ 18,500     Metropolitan Transportation Authority, (AGM), 5.00%, 11/15/30(1)   $ 19,252,395      
  2,175     New York Thruway Authority, (AMBAC), 5.50%, 4/1/20     2,664,658      
  5,600     Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/24(1)     6,336,620      
  11,000     Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33(1)     11,857,120      
  2,705     Triborough Bridge and Tunnel Authority, (NPFG), 5.00%, 11/15/32     2,832,730      
 
 
            $ 42,943,523      
 
 
 
 
Insured-Water and Sewer — 10.3%
 
$ 300     Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.125%, 11/1/23   $ 347,799      
  3,835     Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28     4,405,878      
  6,500     New York City Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), (BHAC), 5.00%, 6/15/38(1)     6,941,610      
  10,000     New York City Municipal Water Finance Authority, (Water and Sewer System), (BHAC), (NPFG), 5.125%, 6/15/34(1)     10,518,200      
 
 
            $ 22,213,487      
 
 
 
 
Insured-Water Revenue — 0.7%
 
$ 1,475     Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25   $ 1,546,921      
 
 
            $ 1,546,921      
 
 
 
 
Lease Revenue / Certificates of Participation — 4.7%
 
$ 3,370     Metropolitan Transportation Authority, Lease Contract, 5.125%, 1/1/29   $ 3,539,342      
  6,490     New York Dormitory Authority, (North General Hospital), 5.00%, 2/15/25     6,574,370      
 
 
            $ 10,113,712      
 
 
 
 
Other Revenue — 0.7%
 
$ 4,900     Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31   $ 1,421,931      
 
 
            $ 1,421,931      
 
 
 
 
Private Education — 5.1%
 
$ 1,630     Madison County Industrial Development Agency, (Colgate University), 5.00%, 7/1/33   $ 1,674,352      
  5,720     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37     6,291,829      
  2,715     New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40     2,967,142      
 
 
            $ 10,933,323      
 
 
 
 
Special Tax Revenue — 0.9%
 
$ 1,765     New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/32   $ 1,892,045      
 
 
            $ 1,892,045      
 
 
 
 
Transportation — 2.2%
 
$ 1,565     Nassau County Bridge Authority, 5.00%, 10/1/35   $ 1,636,458      
  300     Nassau County Bridge Authority, 5.00%, 10/1/40     310,020      
  2,370     New York Thruway Authority, 5.00%, 4/1/26     2,711,967      
 
 
            $ 4,658,445      
 
 
 

 
See notes to financial statements

17


Table of Contents

 
Eaton Vance New York Municipal Bond Fund as of September 30, 2010
 
PORTFOLIO OF INVESTMENTS CONT’D
 
 
                     
Principal Amount
               
(000’s omitted)      Security   Value      
 
 
 
Water Revenue — 5.4%
 
$ 3,360     New York Environmental Facilities Corp., 5.00%, 10/15/39   $ 3,678,696      
  7,500     New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance), 5.00%, 10/15/35     7,996,275      
 
 
            $ 11,674,971      
 
 
     
Total Tax-Exempt Investments — 164.6%
   
(identified cost $339,269,059)
  $ 354,564,712      
 
 
             
Other Assets, Less Liabilities — (64.6)%
  $ (139,111,709 )    
 
 
             
Net Assets — 100.0%
  $ 215,453,003      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
 
AGC - Assured Guaranty Corp.
 
AGM - Assured Guaranty Municipal Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FGIC - Financial Guaranty Insurance Company
 
FHA - Federal Housing Administration
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Fund 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 September 30, 2010, 85.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 28.5% of total investments.
 
(1) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(2) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 
See notes to financial statements

18


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS
 
Statements of Assets and Liabilities
 
                             
As of September 30, 2010   Municipal Fund     California Fund     New York Fund      
 
 
 
Assets
 
Investments —
                           
Identified cost
  $ 1,470,125,000     $ 460,144,154     $ 339,269,059      
Unrealized appreciation
    20,930,691       2,808,889       15,295,653      
 
 
Investments, at value
  $ 1,491,055,691     $ 462,953,043     $ 354,564,712      
 
 
Cash
  $     $ 2,439,717     $      
Interest receivable
    17,698,526       5,608,205       4,308,011      
Receivable for investments sold
    5,593,879             52,578      
Receivable from the transfer agent
    150,035       30,059       43,552      
Deferred debt issuance costs
    1,513,651       382,814       227,802      
 
 
Total assets
  $ 1,516,011,782     $ 471,413,838     $ 359,196,655      
 
 
                             
                             
 
Liabilities
 
Payable for floating rate notes issued
  $ 616,610,000     $ 196,525,000     $ 142,225,000      
Payable for investments purchased
    6,022,460                  
Payable for variation margin on open financial futures contracts
          9,000       3,125      
Payable for open swap contracts
    468,384             118,978      
Due to custodian
    895,059             791,159      
Payable to affiliates:
                           
Investment adviser fee
    803,299       250,606       191,527      
Interest expense and fees payable
    1,333,577       551,841       272,535      
Accrued expenses
    339,590       163,656       141,328      
 
 
Total liabilities
  $ 626,472,369     $ 197,500,103     $ 143,743,652      
 
 
Net Assets
  $ 889,539,413     $ 273,913,735     $ 215,453,003      
 
 
                             
                             
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 679,956     $ 217,179     $ 158,347      
Additional paid-in capital
    956,440,937       306,294,122       223,163,877      
Accumulated net realized loss
    (95,658,321 )     (37,941,722 )     (24,370,679 )    
Accumulated undistributed net investment income
    7,614,534       2,440,120       1,291,746      
Net unrealized appreciation
    20,462,307       2,904,036       15,209,712      
 
 
Net Assets
  $ 889,539,413     $ 273,913,735     $ 215,453,003      
 
 
                             
                             
 
Common Shares Outstanding
 
      67,995,644       21,717,929       15,834,698      
 
 
                             
                             
 
Net Asset Value
 
Net assets ¸ common shares issued and outstanding
  $ 13.08     $ 12.61     $ 13.61      
 
 

 
See notes to financial statements

19


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Statements of Operations
 
                             
For the Year Ended September 30, 2010   Municipal Fund     California Fund     New York Fund      
 
 
 
Investment Income
 
Interest
  $ 73,713,131     $ 22,898,037     $ 16,632,256      
 
 
Total investment income
  $ 73,713,131     $ 22,898,037     $ 16,632,256      
 
 
                             
                             
 
Expenses
 
Investment adviser fee
  $ 9,507,206     $ 2,972,852     $ 2,273,836      
Trustees’ fees and expenses
    49,345       16,133       12,439      
Custodian fee
    292,979       178,692       142,740      
Transfer and dividend disbursing agent fees
    26,308       16,751       16,975      
Legal and accounting services
    389,785       80,330       65,801      
Printing and postage
    226,277       61,187       64,493      
Interest expense and fees
    4,603,747       1,480,582       1,143,942      
Miscellaneous
    33,656       39,465       24,935      
 
 
Total expenses
  $ 15,129,303     $ 4,845,992     $ 3,745,161      
 
 
Deduct —
                           
Reduction of custodian fee
  $ 3,273     $ 1,285     $ 2,079      
Allocation of expenses to affiliate
    1,064,644       333,041       254,737      
 
 
Total expense reductions
  $ 1,067,917     $ 334,326     $ 256,816      
 
 
                             
Net expenses
  $ 14,061,386     $ 4,511,666     $ 3,488,345      
 
 
                             
Net investment income
  $ 59,651,745     $ 18,386,371     $ 13,143,911      
 
 
                             
                             
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                           
Investment transactions
  $ (4,610,774 )   $ (3,569,196 )   $ (702,305 )    
Extinguishment of debt
    (224,580 )     (67,586 )     (7,709 )    
Financial futures contracts
          (3,562,526 )     (1,315,677 )    
Swap contracts
    (10,897,135 )     (1,009,968 )     (3,938,437 )    
 
 
Net realized loss
  $ (15,732,489 )   $ (8,209,276 )   $ (5,964,128 )    
 
 
Change in unrealized appreciation (depreciation) —
                           
Investments
  $ 9,114,550     $ 321,117     $ 3,799,773      
Financial futures contracts
          578,284       359,793      
Swap contracts
    2,773,856       89,450       1,163,454      
 
 
Net change in unrealized appreciation (depreciation)
  $ 11,888,406     $ 988,851     $ 5,323,020      
 
 
                             
Net realized and unrealized loss
  $ (3,844,083 )   $ (7,220,425 )   $ (641,108 )    
 
 
                             
Net increase in net assets from operations
  $ 55,807,662     $ 11,165,946     $ 12,502,803      
 
 

 
See notes to financial statements

20


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Statements of Changes in Net Assets
 
                             
For the Year Ended September 30, 2010                      
Increase (Decrease) in Net Assets   Municipal Fund     California Fund     New York Fund      
 
From operations —
                           
Net investment income
  $ 59,651,745     $ 18,386,371     $ 13,143,911      
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts
    (15,732,489 )     (8,209,276 )     (5,964,128 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    11,888,406       988,851       5,323,020      
 
 
Net increase in net assets from operations
  $ 55,807,662     $ 11,165,946     $ 12,502,803      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (61,758,399 )   $ (18,353,136 )   $ (12,961,298 )    
 
 
Total distributions to common shareholders
  $ (61,758,399 )   $ (18,353,136 )   $ (12,961,298 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 2,099,016     $ 358,334     $ 608,000      
 
 
Net increase in net assets from capital share transactions
  $ 2,099,016     $ 358,334     $ 608,000      
 
 
                             
Net increase (decrease) in net assets
  $ (3,851,721 )   $ (6,828,856 )   $ 149,505      
 
 
                             
                             
 
Net Assets
 
At beginning of year
  $ 893,391,134     $ 280,742,591     $ 215,303,498      
 
 
At end of year
  $ 889,539,413     $ 273,913,735     $ 215,453,003      
 
 
                             
                             
 
Accumulated undistributed net investment income included
in net assets
 
At end of year
  $ 7,614,534     $ 2,440,120     $ 1,291,746      
 
 

 
See notes to financial statements

21


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Statements of Changes in Net Assets
 
                             
For the Year Ended September 30, 2009                      
Increase (Decrease) in Net Assets   Municipal Fund     California Fund     New York Fund      
 
From operations —
                           
Net investment income
  $ 56,812,789     $ 17,921,015     $ 12,462,062      
Net realized loss from investment transactions, financial futures contracts and swap contracts
    (58,106,471 )     (21,430,474 )     (13,060,623 )    
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts
    207,373,156       55,652,776       43,455,539      
 
 
Net increase in net assets from operations
  $ 206,079,474     $ 52,143,317     $ 42,856,978      
 
 
Distributions to common shareholders —
                           
From net investment income
  $ (54,304,179 )   $ (16,634,117 )   $ (11,572,247 )    
 
 
Total distributions to common shareholders
  $ (54,304,179 )   $ (16,634,117 )   $ (11,572,247 )    
 
 
Capital share transactions —
                           
Reinvestment of distributions to common shareholders
  $ 1,585,555     $ 222,414     $ 375,543      
Issued in connection with tax-free reorganization (see Note 10)
    20,638,318                  
 
 
Net increase in net assets from capital share transactions
  $ 22,223,873     $ 222,414     $ 375,543      
 
 
                             
Net increase in net assets
  $ 173,999,168     $ 35,731,614     $ 31,660,274      
 
 
                             
                             
 
Net Assets
 
At beginning of year
  $ 719,391,966     $ 245,010,977     $ 183,643,224      
 
 
At end of year
  $ 893,391,134     $ 280,742,591     $ 215,303,498      
 
 
                             
                             
 
Accumulated undistributed net investment income included
in net assets
 
At end of year
  $ 8,819,306     $ 2,427,958     $ 1,056,377      
 
 

 
See notes to financial statements

22


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Statements of Cash Flows
 
                             
For the Year Ended September 30, 2010                      
Cash Flows From Operating Activities   Municipal Fund     California Fund     New York Fund      
 
Net increase in net assets from operations
  $ 55,807,662     $ 11,165,946     $ 12,502,803      
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
                           
Investments purchased
    (261,630,278 )     (50,484,654 )     (37,433,992 )    
Investments sold
    281,768,761       60,797,659       40,193,504      
Decrease in short-term investments, net
    1,549,694                  
Net accretion/amortization of premium (discount)
    (11,689,393 )     (3,590,048 )     (1,330,783 )    
Amortization of deferred debt issuance costs
    274,815       144,289       139,799      
Decrease (increase) in interest receivable
    (23,569 )     (191,575 )     137,822      
Increase in receivable for investments sold
    (5,448,157 )           (52,578 )    
Decrease in receivable for variation margin on open financial futures contracts
          61,000       41,750      
Increase in receivable from the transfer agent
    (150,035 )     (30,059 )     (43,552 )    
Increase in payable for investments purchased
    6,022,460                  
Increase in payable for variation margin on open financial futures contracts
          9,000       3,125      
Decrease in payable for open swap contracts
    (2,773,856 )     (89,450 )     (1,163,454 )    
Increase in payable to affiliate for investment adviser fee
    40,107       34,598       28,868      
Decrease in interest expense and fees payable
    (259,876 )     (2,862 )     (92,255 )    
Increase in accrued expenses
    60,185       30,937       14,988      
Net realized loss on extinguishment of debt
    224,580       67,586       7,709      
Net change in unrealized (appreciation) depreciation from investments
    (9,114,550 )     (321,117 )     (3,799,773 )    
Net realized loss from investments
    4,610,774       3,569,196       702,305      
 
 
Net cash provided by operating activities
  $ 59,269,324     $ 21,170,446     $ 9,856,286      
 
 
                             
                             
 
Cash Flows From Financing Activities
 
Distributions paid to common shareholders, net of reinvestments
  $ (59,659,383 )   $ (17,994,802 )   $ (12,353,298 )    
Proceeds from secured borrowings
    57,245,000       17,255,000       6,800,000      
Repayment of secured borrowings
    (57,750,000 )     (17,240,000 )     (4,450,000 )    
Increase (decrease) in due to custodian
    895,059       (750,927 )     147,012      
 
 
Net cash used in financing activities
  $ (59,269,324 )   $ (18,730,729 )   $ (9,856,286 )    
 
 
                             
Net increase in cash
  $     $ 2,439,717     $      
 
 
                             
Cash at beginning of year
  $     $     $      
 
 
                             
Cash at end of year
  $     $ 2,439,717     $      
 
 
                             
                             
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of:
                           
Reinvestment of dividends and distributions
  $ 2,099,016     $ 358,334     $ 608,000      
Cash paid for interest and fees
    4,588,808       1,339,155       1,096,398      
 
 

 
See notes to financial statements

23


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Financial Highlights
 
                                             
    Municipal Fund
   
    Year Ended September 30,
   
    2010     2009     2008     2007     2006      
 
Net asset value — Beginning of year (Common shares)
  $ 13.170     $ 11.080     $ 15.100     $ 15.910     $ 15.320      
 
 
                                             
                                             
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.878     $ 0.846     $ 0.959     $ 1.050     $ 1.060      
Net realized and unrealized gain (loss)
    (0.059 )     2.051       (3.797 )     (0.419 )     0.696      
Distributions to preferred shareholders
                                           
From net investment income
                (0.171 )     (0.225 )     (0.270 )    
From net realized gain
                (0.051 )     (0.113 )     (0.014 )    
 
 
Total income (loss) from operations
  $ 0.819     $ 2.897     $ (3.060 )   $ 0.293     $ 1.472      
 
 
                                             
                                             
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.909 )   $ (0.807 )   $ (0.773 )   $ (0.771 )   $ (0.813 )    
From net realized gain
                (0.187 )     (0.332 )     (0.069 )    
 
 
Total distributions to common shareholders
  $ (0.909 )   $ (0.807 )   $ (0.960 )   $ (1.103 )   $ (0.882 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 13.080     $ 13.170     $ 11.080     $ 15.100     $ 15.910      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.900     $ 13.160     $ 11.140     $ 15.310     $ 15.220      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    6.77 %     28.15 %     (21.24 )%     1.87 %     10.21 %    
 
 
                                             
Total Investment Return on Market Value(2)
    13.55 %     27.36 %     (21.90 )%     7.97 %     7.32 %    
 
 
                                             
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 889,539     $ 893,391     $ 719,392     $ 977,406     $ 1,028,359      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    1.12 %     1.04 %     0.89 %     0.79 %     0.79 %    
Interest and fee expense(4)
    0.54 %     1.33 %     0.59 %                
Total expenses before custodian fee reduction
    1.66 %     2.37 %     1.48 %     0.79 %     0.79 %    
Expenses after custodian fee reduction excluding interest and fees
    1.12 %     1.04 %     0.86 %     0.78 %     0.78 %    
Net investment income
    7.04 %     7.94 %     6.94 %     6.76 %     6.91 %    
Portfolio Turnover
    18 %     19 %     54 %     39 %     56 %    
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

 
See notes to financial statements

24


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Financial Highlights
 
                                             
    California Fund
   
    Year Ended September 30,
   
    2010     2009     2008     2007     2006      
 
Net asset value — Beginning of year (Common shares)
  $ 12.940     $ 11.310     $ 15.000     $ 15.280     $ 14.690      
 
 
                                             
                                             
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.847     $ 0.827     $ 0.930     $ 1.024     $ 1.015      
Net realized and unrealized gain (loss)
    (0.331 )     1.570       (3.418 )     (0.269 )     0.598      
Distributions to preferred shareholders
                                           
From net investment income
                (0.153 )     (0.296 )     (0.259 )    
From net realized gain
                (0.094 )                
 
 
Total income (loss) from operations
  $ 0.516     $ 2.397     $ (2.735 )   $ 0.459     $ 1.354      
 
 
                                             
                                             
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.846 )   $ (0.767 )   $ (0.724 )   $ (0.739 )   $ (0.764 )    
From net realized gain
                (0.231 )                
 
 
Total distributions to common shareholders
  $ (0.846 )   $ (0.767 )   $ (0.955 )   $ (0.739 )   $ (0.764 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 12.610     $ 12.940     $ 11.310     $ 15.000     $ 15.280      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.300     $ 12.970     $ 11.090     $ 14.720     $ 14.840      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    4.53 %     22.99 %     (19.08 )%     3.10 %     9.85 %    
 
 
                                             
Total Investment Return on Market Value(2)
    10.00 %     25.72 %     (19.15 )%     4.18 %     12.58 %    
 
 
                                             
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 273,914     $ 280,743     $ 245,011     $ 324,508     $ 330,464      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    1.16 %     1.06 %     0.95 %     0.81 %     0.85 %    
Interest and fee expense(4)
    0.56 %     1.28 %     0.51 %                
Total expenses before custodian fee reduction
    1.72 %     2.34 %     1.46 %     0.81 %     0.85 %    
Expenses after custodian fee reduction excluding interest and fees
    1.16 %     1.04 %     0.92 %     0.81 %     0.84 %    
Net investment income
    7.01 %     7.64 %     6.74 %     6.73 %     6.85 %    
Portfolio Turnover
    11 %     8 %     39 %     27 %     24 %    
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

 
See notes to financial statements

25


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FINANCIAL STATEMENTS CONT’D
 
Financial Highlights
 
                                             
    New York Fund
   
    Year Ended September 30,
   
    2010     2009     2008     2007     2006      
 
Net asset value – Beginning of year (Common shares)
  $ 13.640     $ 11.650     $ 14.800     $ 15.140     $ 14.730      
 
 
                                             
                                             
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.831     $ 0.790     $ 0.923     $ 1.012     $ 1.010      
Net realized and unrealized gain (loss)
    (0.041 )     1.934       (3.152 )     (0.335 )     0.424      
Distributions to preferred shareholders
                                           
From net investment income
                (0.215 )     (0.302 )     (0.268 )    
 
 
Total income (loss) from operations
  $ 0.790     $ 2.724     $ (2.444 )   $ 0.375     $ 1.166      
 
 
                                             
                                             
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.820 )   $ (0.734 )   $ (0.706 )   $ (0.715 )   $ (0.756 )    
 
 
Total distributions to common shareholders
  $ (0.820 )   $ (0.734 )   $ (0.706 )   $ (0.715 )   $ (0.756 )    
 
 
                                             
Net asset value – End of year (Common shares)
  $ 13.610     $ 13.640     $ 11.650     $ 14.800     $ 15.140      
 
 
                                             
Market value – End of year (Common shares)
  $ 14.010     $ 14.120     $ 10.980     $ 14.500     $ 14.650      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    6.16 %     24.78 %     (17.07 )%     2.59 %     8.41 %    
 
 
                                             
Total Investment Return on Market Value(2)
    5.56 %     37.06 %     (20.22 )%     3.87 %     12.95 %    
 
 
                                             
                                             
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 215,453     $ 215,303     $ 183,643     $ 232,624     $ 237,664      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    1.12 %     1.04 %     0.99 %     0.86 %     0.88 %    
Interest and fee expense(4)
    0.55 %     1.34 %     0.55 %                
Total expenses before custodian fee reduction
    1.67 %     2.38 %     1.54 %     0.86 %     0.88 %    
Expenses after custodian fee reduction excluding interest and fees
    1.12 %     1.03 %     0.95 %     0.85 %     0.88 %    
Net investment income
    6.30 %     6.83 %     6.63 %     6.72 %     6.86 %    
Portfolio Turnover
    11 %     21 %     48 %     28 %     14 %    
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

 
See notes to financial statements

26


Table of Contents

Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS
 
1   Significant Accounting Policies
 
Eaton Vance Municipal Bond Fund (formerly, Eaton Vance Insured Municipal Bond Fund) (Municipal Fund), Eaton Vance California Municipal Bond Fund (formerly, Eaton Vance Insured California Municipal Bond Fund) (California Fund) and Eaton Vance New York Municipal Bond Fund (formerly, Eaton Vance Insured New York Municipal Bond Fund) (New York Fund), (each individually referred to as the Fund, and collectively, the Funds), 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 Fund seeks to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state.
 
The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.
 
A  Investment Valuation — Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security.
 
Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap 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 Fund in a manner that most fairly reflects the security’s value, or the amount that the Fund 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 Fund’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 Fund 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 Fund, as exempt-interest dividends.
 
At September 30, 2010, the following Funds, for federal income tax purposes, had capital loss carryforwards which will reduce the respective Fund’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 Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryforwards are as follows:
 
                     
Fund   Amount     Expiration Date      
 
Municipal
  $ 314,751       September 30, 2012      
      31,250       September 30, 2015      
      6,857,645       September 30, 2016      
      18,034,628       September 30, 2017      
      56,183,712       September 30, 2018      

27


Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                     
Fund   Amount     Expiration Date      
 
                     
California
  $ 533,889       September 30, 2016      
      4,562,453       September 30, 2017      
      23,169,615       September 30, 2018      
                     
New York
  $ 125,998       September 30, 2013      
      7,946,914       September 30, 2017      
      8,909,352       September 30, 2018      
 
Additionally, at September 30, 2010, the Municipal Fund, California Fund and New York Fund had net capital losses of $16,062,611, $8,015,133 and $6,739,385, respectively, attributable to security transactions incurred after October 31, 2009. These net capital losses are treated as arising on the first day of the Funds’ taxable year ending September 30, 2011.
 
As of September 30, 2010, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended September 30, 2010 remains subject to examination by the Internal Revenue Service.
 
D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’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 Fund’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 Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Fund) could be deemed to have personal liability for the obligations of the Fund. However, each Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund 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 Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.
 
H  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in inverse floating rate securities, also referred to as residual interest bonds, whereby a Fund may sell a fixed rate bond to a broker for cash. At the same time, the Fund 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 Fund, and which may have been, but is not required to be, the fixed rate bond purchased from the Fund (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 Fund gives the Fund 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 Fund, thereby terminating the SPV. Should the Fund 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 Funds 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 Funds’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, 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

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At September 30, 2010, the amounts of the Funds’ 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
     
Fund   Outstanding     Rates (%)   Outstanding      
 
Municipal
  $ 616,610,000     0.27 – 0.32   $ 676,972,291      
California
    196,525,000     0.25 – 0.32     210,696,771      
New York
    142,225,000     0.27 – 0.29     153,848,124      
 
For the year ended September 30, 2010, the Funds’ average Floating Rate Notes outstanding and the average interest rate including fees and amortization of deferred debt issuance costs were as follows:
 
                     
    Average
           
    Floating
           
    Rate Notes
    Average
     
Fund   Outstanding     Interest Rate      
 
Municipal
  $ 616,650,178       0.75 %    
California
    196,293,068       0.75      
New York
    141,134,151       0.81      
 
The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund 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 Funds had no shortfalls as of September 30, 2010.
 
The Funds 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 Funds’ 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 Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ 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 Funds’ 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 Funds’ restrictions apply. Inverse Floaters held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.
 
I  Financial Futures Contracts — The Funds may enter into financial futures contracts. The Funds’ 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 Fund 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 Fund 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 Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund 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 Funds 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 Fund makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Fund is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.

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Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
K  When-Issued Securities and Delayed Delivery Transactions — The Funds 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 Funds 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 Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
 
2   Distributions to Shareholders
 
Each Fund intends to make monthly distributions of net investment income to common shareholders. In addition, at least annually, each Fund 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 are recorded on the ex-dividend date.
 
The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
 
The tax character of distributions declared for the years ended September 30, 2010 and September 30, 2009 was as follows:
 
                             
    Year Ended September 30, 2010
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Distributions declared from:
                           
Tax-exempt income
  $ 61,651,650     $ 18,342,429     $ 12,958,618      
Ordinary income
  $ 106,749     $ 10,707     $ 2,680      
 
                             
    Year Ended September 30, 2009
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Distributions declared from:
                           
Tax-exempt income
  $ 54,285,211     $ 16,632,390     $ 11,569,180      
Ordinary income
  $ 18,968     $ 1,727     $ 3,067      
 
During the year ended September 30, 2010, the following amounts were reclassified due to differences between book and tax accounting, primarily for accretion of market discount.
 
                             
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Decrease (increase) in accumulated net realized loss
  $ (901,882 )   $ 21,073     $ (52,756 )    
Increase (decrease) in accumulated undistributed net investment income
  $ 901,882     $ (21,073 )   $ 52,756      
 
These reclassifications had no effect on the net assets or net asset value per share of the Funds.
 
As of September 30, 2010, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:
 
                             
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Undistributed income
  $ 7,614,534     $ 2,440,120     $ 1,291,746      
Capital loss carryforward and post October losses
  $ (97,484,597 )   $ (36,281,090 )   $ (23,721,649 )    
Net unrealized appreciation
  $ 22,288,583     $ 1,243,404     $ 14,560,682      
 
The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, inverse floaters, futures contracts and accretion of market discount.
 
3   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 Fund. The fee is computed at an annual rate of 0.65% of each Fund’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 Fund. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the Auction Preferred Shares (APS) outstanding prior to any APS redemptions by the Fund. EVM also serves as the administrator of each Fund, but receives no compensation.

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Table of Contents

 
Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
In addition, EVM has contractually agreed to reimburse the Funds for fees and other expenses at an annual rate of 0.32% of average weekly gross assets of each Fund during the first five full years of its operations, 0.24% of a Fund’s average weekly gross assets in year six, 0.16% in year seven and 0.08% in year eight. The Funds concluded their first eight full years of operations on August 30, 2010. For the year ended September 30, 2010, the investment adviser fee and expenses contractually reduced by EVM were as follows:
 
                     
    Investment
    Expenses
     
Fund   Adviser Fee     Reduced by EVM      
 
Municipal
  $ 9,507,206     $ 1,064,644      
California
    2,972,852       333,041      
New York
    2,273,836       254,737      
 
Except for Trustees of the Funds who are not members of EVM’s organization, officers and Trustees receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended September 30, 2010, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.
 
4   Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the year ended September 30, 2010 were as follows:
 
                     
Fund   Purchases     Sales      
 
Municipal
  $ 261,630,278     $ 281,768,761      
California
    50,484,654       60,797,659      
New York
    37,433,992       40,193,504      
 
5   Common Shares of Beneficial Interest
 
Common share transactions for the years ended September 30, 2010 and September 30, 2009 were as follows:
 
                             
    Year Ended September 30, 2010
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Issued pursuant to the Funds’ dividend reinvestment plan
    167,055       29,357       45,987      
 
 
 
                             
    Year Ended September 30, 2009
    Municipal
    California
    New York
     
    Fund     Fund     Fund      
 
Issued pursuant to the Funds’ dividend reinvestment plan
    146,821       20,054       31,333      
Issued in connection with the acquisition of Eaton Vance Insured Florida Plus Municipal Bond Fund (see Note 10)
    2,748,089                  
 
 
Net increase
    2,894,910       20,054       31,333      
 
 
 
6   Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Fund at September 30, 2010, as determined on a federal income tax basis, were as follows:
 
             
Municipal Fund
           
 
 
Aggregate cost
  $ 851,688,724      
 
 
Gross unrealized appreciation
  $ 80,694,420      
Gross unrealized depreciation
    (57,937,453 )    
 
 
Net unrealized appreciation
  $ 22,756,967      
 
 
             
             
California Fund
           
 
 
Aggregate cost
  $ 265,184,639      
 
 
Gross unrealized appreciation
  $ 55,412,429      
Gross unrealized depreciation
    (54,169,025 )    
 
 
Net unrealized appreciation
  $ 1,243,404      
 
 
             
             
New York Fund
           
 
 
Aggregate cost
  $ 197,660,052      
 
 
Gross unrealized appreciation
  $ 19,213,387      
Gross unrealized depreciation
    (4,533,727 )    
 
 
Net unrealized appreciation
  $ 14,679,660      
 
 
 
7   Overdraft Advances
 
Pursuant to the respective custodian agreements, SSBT may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds 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 Fund’s assets to the extent of any overdraft. At September 30, 2010, the Municipal Fund and New York Fund had payments due to SSBT pursuant to the foregoing arrangement of $895,059 and $791,159, respectively.

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
8   Financial Instruments
 
The Funds 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 Fund 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 September 30, 2010 is as follows:
 
                                         
Futures Contracts
 
                            Net
     
    Expiration
          Aggregate
          Unrealized
     
Fund   Date   Contracts   Position   Cost     Value     Appreciation      
 
California   12/10   144
U.S. 30-Year Treasury Bond
  Short   $ (19,350,647 )   $ (19,255,500 )   $ 95,147      
 
 
New York   12/10   50
U.S. 30-Year Treasury Bond
  Short   $ (6,718,975 )   $ (6,685,938 )   $ 33,037      
 
 
 
                                 
Interest Rate Swaps
 
Municipal Fund
 
          Annual
  Floating
             
    Notional
    Fixed Rate
  Rate
  Effective Date/
  Net Unrealized
     
Counterparty   Amount     Paid By Fund   Paid To Fund   Termination Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 19,525,000     3.488%   3-month
USD-LIBOR-BBA
  December 14, 2010/
December 14, 2040
  $ (423,574 )    
 
 
Merrill Lynch
Capital
Service, Inc. 
  $ 30,000,000     3.374%   3-month
USD-LIBOR-BBA
  November 24, 2010/
November 24, 2040
  $ (44,810 )    
 
 
                        $ (468,384 )    
 
 
                                 
                                 
New York Fund
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Fund   Paid To Fund   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 4,637,500     3.488%   3-month
USD-LIBOR-BBA
  December 14, 2010/
December 14, 2040
  $ (100,606 )    
 
 
Merrill Lynch
Capital
Service, Inc. 
  $ 12,300,000     3.374%   3-month
USD-LIBOR-BBA
  November 24, 2010/
November 24, 2040
  $ (18,372 )    
 
 
                        $ (118,978 )    
 
 
 
The effective date represents the date on which a Fund and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At September 30, 2010, the Funds had sufficient cash and/or securities to cover commitments under these contracts.
 
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Funds hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, each Fund enters into interest rate swap contracts. The California Fund and New York Fund also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
The Funds 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 Fund’s net assets below a certain level over a certain period of time, which would trigger a payment by the Fund for those swaps in a liability position. At September 30, 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 Fund. The value of securities pledged as collateral, if any, for open interest rate swap contracts at September 30, 2010 is disclosed in a note to each Fund’s Portfolio of Investments.
 
The non-exchange traded derivatives in which a Fund invests, including swap contracts, are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. At September 30, 2010, the maximum amount of loss the Funds 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 Fund. 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 Fund 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 values of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at September 30, 2010 were as follows:
 
                     
    Fair Value
     
    Asset Derivative     Liability Derivative      
 
Municipal Fund
                   
Interest Rate Swaps
  $     $ (468,384 )(1)    
 
 
Total
  $     $ (468,384 )    
 
 

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                     
    Fair Value
     
    Asset Derivative     Liability Derivative      
 
                     
California Fund
                   
Futures Contracts
  $ 95,147 (2)   $      
 
 
Total
  $ 95,147     $      
 
 
                     
New York Fund
                   
Futures Contracts
  $ 33,037 (2)   $      
Interest Rate Swaps
          (118,978 )(1)    
 
 
Total
  $ 33,037     $ (118,978 )    
 
 
 
(1) Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized appreciation.
 
(2) 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.
 
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the year ended September 30, 2010 was as follows:
 
                     
          Change in
     
          Unrealized
     
    Realized Gain
    Appreciation
     
    (Loss) on
    (Depreciation) on
     
    Derivatives
    Derivatives
     
    Recognized in
    Recognized in
     
Fund   Income(1)      Income(2)       
 
Municipal
  $ (10,897,135 )   $ 2,773,856      
California
    (4,572,494 )     667,734      
New York
    (5,254,114 )     1,523,247      
 
(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 year ended September 30, 2010, which are indicative of the volume of these derivative types, were approximately as follows:
 
                     
    Average Notional Amount
     
Fund   Futures Contracts     Interest Rate Swaps      
 
Municipal
  $     $ 49,525,000      
California
    21,323,000       5,931,000      
New York
    12,200,000       16,938,000      
 
 
 
9   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.
 
At September 30, 2010, the inputs used in valuing the Funds’ investments, which are carried at value, were as follows:
 
                                     
Municipal Fund
 
    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
  $      —     $ 1,491,055,691     $      —     $ 1,491,055,691      
 
 
Total Investments
  $     $ 1,491,055,691     $     $ 1,491,055,691      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (468,384 )   $     $ (468,384 )    
 
 
Total
  $     $ (468,384 )   $     $ (468,384 )    
 
 
                                     
                                     
California Fund
 
    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
  $     $ 462,953,043     $      —     $ 462,953,043      
 
 
Total Investments
  $     $ 462,953,043     $     $ 462,953,043      
 
 
Futures Contracts
  $ 95,147     $     $     $ 95,147      
 
 
Total
  $ 95,147     $ 462,953,043     $     $ 463,048,190      
 
 

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                                     
New York Fund
 
    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
  $     $ 354,564,712     $      —     $ 354,564,712      
 
 
Total Investments
  $     $ 354,564,712     $     $ 354,564,712      
 
 
Futures Contracts
  $ 33,037     $     $     $ 33,037      
 
 
Total
  $ 33,037     $ 354,564,712     $     $ 354,597,749      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (118,978 )   $     $ (118,978 )    
 
 
Total
  $     $ (118,978 )   $     $ (118,978 )    
 
 
 
The Funds held no investments or other financial instruments as of September 30, 2009 whose fair value was determined using Level 3 inputs.
 
10   Reorganization
 
As of the close of business on December 15, 2008, the Municipal Fund acquired the net assets of Eaton Vance Insured Florida Plus Municipal Bond Fund (Insured Florida Plus Fund) pursuant to a plan of reorganization approved by the shareholders of the Insured Florida Plus Fund. The acquisition was accomplished by a tax-free exchange of 2,748,089 common shares of the Municipal Fund for the 2,575,502 common shares of Insured Florida Plus Fund outstanding on December 15, 2008. The aggregate net assets of the Municipal Fund immediately before the acquisition were $487,655,526. The net assets of Insured Florida Plus Fund at that date of $20,638,318, including $5,317,808 of accumulated net realized losses and $10,469,624 of unrealized depreciation, were combined with those of the Municipal Fund, resulting in combined net assets of $508,293,844.
 
11   Name Change
 
Effective February 1, 2010, the names of the Eaton Vance Municipal Bond Fund, Eaton Vance California Municipal Bond Fund and Eaton Vance New York Municipal Bond Fund were changed from Eaton Vance Insured Municipal Bond Fund, Eaton Vance Insured California Municipal Bond Fund and Eaton Vance Insured New York Municipal Bond Fund, respectively. The name changes resulted from a modification to each Fund’s 80 percent policy to eliminate the requirement to invest primarily in insured municipal obligations, which was approved by the Funds’ shareholders.

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Trustees and Shareholders of Eaton Vance Municipal Bond Fund (formerly, Eaton Vance Insured Municipal Bond Fund), Eaton Vance California Municipal Bond Fund (formerly, Eaton Vance Insured California Municipal Bond Fund) and Eaton Vance New York Municipal Bond Fund (formerly, Eaton Vance Insured New York Municipal Bond Fund):
We have audited the accompanying statements of assets and liabilities of Eaton Vance Municipal Bond Fund (formerly, Eaton Vance Insured Municipal Bond Fund), Eaton Vance California Municipal Bond Fund (formerly, Eaton Vance Insured California Municipal Bond Fund) and Eaton Vance New York Municipal Bond Fund (formerly, Eaton Vance Insured New York Municipal Bond Fund) (collectively, the “Funds”), including the portfolios of investments, as of September 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2010, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Eaton Vance Municipal Bond Fund, Eaton Vance California Municipal Bond Fund, and Eaton Vance New York Municipal Bond Fund as of September 30, 2010, the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
 
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 15, 2010

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
FEDERAL TAX INFORMATION (Unaudited)
 
 
The Form 1099-DIV you receive in January 2011 will show the tax status of all distributions paid to your account in calendar year 2010. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Funds. As required by the Internal Revenue Code and/or regulations, shareholders must be notified within 60 days of the Funds’ fiscal year end regarding exempt-interest dividends.
 
Exempt-Interest Dividends. The Funds designate the following percentages of dividends from net investment income as exempt-interest dividends:
 
             
Eaton Vance Municipal Bond Fund
    99.83 %    
Eaton Vance California Municipal Bond Fund
    99.94 %    
Eaton Vance New York Municipal Bond Fund
    99.98 %    

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Eaton Vance Municipal Bond Funds 
 
NOTICE TO SHAREHOLDERS 
 
At a joint Special Meeting of Shareholders held on January 29, 2010, shareholders of the Funds approved a modification to each Fund’s 80 percent policy to eliminate the requirement to invest primarily in insured municipal obligations. Effective February 1, 2010, the Funds are required, under normal market conditions, to invest at least 80 percent of net assets in municipal obligations rated A or better by Moody’s, S&P or Fitch and each Fund eliminated “Insured” from its name. For purposes of the Funds’ 80 percent requirement, the rating of insured obligations will be deemed to be the higher of the claims-paying rating of the insurer and the rating of the underlying issue.

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Eaton Vance Municipal Bond Funds as of September 30, 2010
 
ANNUAL MEETING OF SHAREHOLDERS (Unaudited)
 
 
The Funds held their Annual Meeting of Shareholders on July 23, 2010. The following action was taken by the shareholders:
 
Item 1: The election of Thomas E. Faust Jr. and Allen R. Freedman as Class II Trustees of each Fund for a term expiring in 2013.
 
                     
    Nominee for
    Nominee for
     
    Class II Trustee
    Class II Trustee
     
    Elected by All
    Elected by All
     
    Shareholders:
    Shareholders:
     
    Thomas E. Faust Jr.     Allen R. Freedman      
 
 
Municipal Fund
                   
For
    63,791,310       63,741,911      
Withheld
    1,664,922       1,714,321      
California Fund
                   
For
    20,100,358       20,084,972      
Withheld
    511,051       526,437      
New York Fund
                   
For
    14,940,626       14,703,407      
Withheld
    394,466       631,685      

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Eaton Vance Municipal Bond Funds 
 
DIVIDEND REINVESTMENT PLAN
 
 
Each Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have distributions automatically reinvested in common shares (the Shares) of the Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by American Stock Transfer & Trust Company (AST) as dividend paying agent. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.
 
If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Fund’s transfer agent, AST, or you will not be able to participate.
 
The Plan Agent’s service fee for handling distributions will be paid by each Fund. Each participant will be charged their pro-rata share of brokerage commissions on all open-market purchases.
 
Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.
 
If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent.
 
Any inquiries regarding the Plan can be directed to the Plan Agent, AST, at 1-866-439-6787.

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Eaton Vance Municipal Bond Funds 
 
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
 
 
This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
 
The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.
 
Please print exact name on account
Shareholder signature                                   Date
Shareholder signature                                   Date
 
Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.
 
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
 
This authorization form, when signed, should be mailed to the following address:
 
Eaton Vance Municipal Bond Funds
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
 
Number of Employees
Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and has no employees.
 
Number of Shareholders
As of September 30, 2010, our records indicate that there are 663, 131 and 131 registered shareholders for Municipal Fund, California Fund and New York Fund, respectively, and approximately 27,757, 6,415 and 6,116 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Fund, California Fund and New York Fund, respectively.
 
If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:
 
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
 
NYSE Amex symbols
 
Municipal Bond Fund                  EIM
California Municipal Bond Fund      EVM
New York Municipal Bond Fund      ENX

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Eaton Vance Municipal Bond Funds 
 
BOARD OF TRUSTEES’ CONTRACT APPROVAL
 
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.

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Eaton Vance Municipal Bond Funds 
 
BOARD OF TRUSTEES’ CONTRACT APPROVAL 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 Municipal Bond Fund (formerly Eaton Vance Insured Municipal Bond Fund)
  •  Eaton Vance California Municipal Bond Fund (formerly Eaton Vance Insured California Municipal Bond Fund)
  •  Eaton Vance New York Municipal Bond Fund (formerly Eaton Vance Insured New York Municipal Bond Fund)
 
(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 (where applicable). 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 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.

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Eaton Vance Municipal Bond Funds 
 
BOARD OF TRUSTEES’ CONTRACT APPROVAL CONT’D
 
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-, five- and ten-year periods ended September 30, 2009 for each Fund. 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 payable by each Fund (referred to as “management fees”). As part of its review, the Board considered each Fund’s management fee 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 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. The Board considered the fact that the Adviser had waived fees and/or paid expenses for each of the Funds.
 
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 and its affiliates in connection with their 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 none of the Funds is 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 Bond Funds 
 
MANAGEMENT AND ORGANIZATION
 
 
Fund Management. The Trustees of Eaton Vance Municipal Bond Fund (EIM), Eaton Vance California Municipal Bond Fund (EVM) and Eaton Vance New York Municipal Bond Fund (ENX), (the Funds) are responsible for the overall management and supervision of the Funds’ affairs. The Trustees and officers of the Funds are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Funds, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below.
 
                         
        Term of
  Principal Occupation(s)
  Number of Portfolios
     
    Position(s)
  Office and
  During Past Five Years and
  in Fund Complex
     
Name and
  with the
  Length of
  Other Relevant
  Overseen By
    Other Directorships
Date of Birth   Funds   Service   Experience   Trustee(1)     Held During the Last Five Years(2)
 
 
 
Interested Trustee
                         
Thomas E. Faust Jr.
5/31/58
  Class II
Trustee
  Until 2013.
3 years.
Trustee since 2007.
  Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 184 registered investment companies and 1 private investment company managed by EVM or BMR. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Funds.     184     Director of EVC
 
Noninterested Trustees
                         
Benjamin C. Esty
1/2/63
  Class II
Trustee
  Until 2013.
3 years.
Trustee since 2005.
  Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration.     184     None
                         
Allen R. Freedman
4/3/40
  Class II
Trustee
  Until 2013.
3 years.
Trustee since 2007.
  Private Investor and Consultant. Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Formerly, Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007).     184     Director of Assurant, Inc. (insurance provider) and Stonemor Partners, L.P. (owner and operator of cemeteries).
                         
William H. Park
9/19/47
  Class I
Trustee
  Until 2012.
3 years.
Trustee since 2003.
  Chief Financial Officer, Aveon Group, L.P. (an investment management firm) (since 2010). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (an institutional investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1972-1981).     184     None
                         
Ronald A. Pearlman
7/10/40
  Class III
Trustee
  Until 2011.
3 years.
Trustee since 2003.
  Professor of Law, Georgetown University Law Center. Formerly, Deputy Assistant Secretary (Tax Policy) and Assistant Secretary (Tax Policy), U.S. Department of the Treasury (1983-1985). Formerly, Chief of Staff, Joint Committee on Taxation, U.S. Congress (1988-1990).     184     None
                         
Helen Frame Peters
3/22/48
  Class III
Trustee
  Until 2011.
3 years.
Trustee since 2008.
  Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).     184     Director of BJ’s Wholesale Club, Inc. (wholesale club retailer). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009).

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Eaton Vance Municipal Bond Funds 
 
MANAGEMENT AND ORGANIZATION CONT’D
 
                         
        Term of
  Principal Occupation(s)
  Number of Portfolios
     
    Position(s)
  Office and
  During Past Five Years and
  in Fund Complex
     
Name and
  with the
  Length of
  Other Relevant
  Overseen By
    Other Directorships
Date of Birth   Funds   Service   Experience   Trustee(1)     Held During the Last Five Years(2)
 
 
Noninterested Trustees (continued)
                         
Heidi L. Steiger
7/8/53
  Class III
Trustee
  Until 2011.
3 years.
Trustee since 2007.
  Managing Partner, Topridge Associates LLC (global wealth management firm) (since 2008); Senior Advisor (since 2008), President (2005-2008), Lowenhaupt Global Advisors, LLC (global wealth management firm). Formerly, President and Contributing Editor, Worth Magazine (2004-2005). Formerly, Executive Vice President and Global Head of Private Asset Management (and various other positions), Neuberger Berman (investment firm) (1986-2004).     184     Director of Nuclear Electric Insurance Ltd. (nuclear insurance provider), Aviva USA (insurance provider) and CIFG (family of financial guaranty companies), and Advisory Director of Berkshire Capital Securities LLC (private investment banking firm).
                         
Lynn A. Stout
9/14/57
  Class I
Trustee
  Until 2012.
3 years.
Trustee since 2002.
  Paul Hastings Professor of Corporate and Securities Law (since 2006) and Professor of Law (2001-2006), University of California at Los Angeles School of Law. Professor Stout teaches classes in corporate law and securities regulation and is the author of numerous academic and professional papers on these areas.     184     None
                         
Ralph F. Verni
1/26/43
  Chairman of
the Board
and Class I
Trustee
  Until 2012. 3 years. Chairman of the Board since 2007; Trustee since 2005.   Consultant and private investor. Formerly, Chief Investment Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (2002-2006).     184     None
 
Principal Officers who are not Trustees
 
             
        Term of
   
    Position(s)
  Office and
   
Name and
  with the
  Length of
  Principal Occupation(s)
Date of Birth   Funds   Service   During Past Five Years
 
             
Cynthia J. Clemson
3/2/63
  President of EVM and ENX; Vice President of EIM   President since 2005 and Vice President since 2004   Vice President of EVM and BMR. Officer of 96 registered investment companies managed by EVM or BMR.
             
Thomas M. Metzold
8/3/58
  President of EIM; Vice President of EVM   President since 2010 and Vice President since 2010   Vice President of EVM and BMR. Officer of 57 registered investment companies managed by EVM or BMR.
             
Craig R. Brandon
12/21/66
  Vice President of EVM and ENX   Of EVM since 2010 and ENX since 2005   Vice President of EVM and BMR. Officer of 50 registered investment companies managed by EVM or BMR.
             
Barbara E. Campbell
6/19/57
  Treasurer   Since 2005   Vice President of EVM and BMR. Officer of 184 registered investment companies managed by EVM or BMR.
             
Maureen A. Gemma
5/24/60
  Secretary and Chief Legal Officer   Secretary since 2007 and Chief Legal Officer since 2008   Vice President of EVM and BMR. Officer of 184 registered investment companies managed by EVM or BMR.
             
Paul M. O’Neil
7/11/53
  Chief Compliance Officer   Since 2004   Vice President of EVM and BMR. Officer of 184 registered investment companies managed by EVM or BMR.
 
(1) Includes both master and feeder funds in a master-feeder structure.
 
(2) During their respective tenures, the Trustees also served as trustees of one or more of the following Eaton Vance funds (which operated in the years noted): Eaton Vance Credit Opportunities Fund (launched in 2005 and terminated in 2010); Eaton Vance Insured Florida Plus Municipal Bond Fund (launched in 2002 and terminated in 2009); and Eaton Vance National Municipal Income Fund (launched in 1998 and terminated in 2009).

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Investment Adviser and Administrator of
Eaton Vance Municipal Bond Funds
Eaton Vance Management
Two International Place
Boston, MA 02110
 
 
 
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
 
 
 
Transfer Agent
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
 
 
 
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
 
 
 
 
 
Eaton Vance Municipal Bond Funds
Two International Place
Boston, MA 02110


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1453-11/10 CE-IMBSRC


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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 Chief Financial Officer of Aveon Group, L.P. (an investment management firm). Previously, he served as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
(a)-(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended September 30, 2009 and September 30, 2010 by the Fund’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by the principal accountant for the same time periods.
                 
Fiscal Years Ended   9/30/09   9/30/10
 
Audit Fees
  $ 55,040     $ 57,260  
Audit-Related Fees(1)
  $ 0     $ 0  
Tax Fees(2)
  $ 10,310     $ 11,582  
All Other Fees(3)
  $ 0     $ 500  
     
Total
  $ 65,350     $ 69,342  
     
 
(1)   Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees.
 
(2)   Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.
 
(3)   All other fees consist of the aggregate fees billed for products and services provided by the registrant’s principal accountant other than audit, audit-related, and tax services.
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.

 


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(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by D&T for the registrant’s fiscal year ended September 30, 2009 and the fiscal year ended September 30, 2010; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by the registrant’s principal accountant for the same time periods.
                 
Fiscal Years Ended   9/30/09   9/30/10
 
Registrant
  $ 10,310     $ 12,082  
Eaton Vance(1)
  $ 288,889     $ 278,901  
 
(1)   The investment adviser to the registrant, as well as any of its affiliates that provide ongoing services to the registrant, are subsidiaries of Eaton Vance Corp.
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants
The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Lynn A. Stout, Heidi L. Steiger and Ralph F. Verni are the members of the registrant’s audit committee.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it

 


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consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer then back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personal of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
California Municipal Bond Fund, Municipal Bond Fund and New York Municipal Bond Fund
Portfolio Management
Cynthia J. Clemson, William H. Ahern, Jr. and Craig R. Brandon, respectively, are the portfolio managers of Eaton Vance California Municipal Bond Fund, Eaton Vance Municipal Bond Fund and Eaton Vance New York Municipal Bond Fund and are responsible for the overall and day-to-day management of each Fund’s investments.
Ms. Clemson has been an Eaton Vance portfolio manager since 1991 and is a Vice President of Eaton Vance Management (“EVM”) and Boston Management and Research (“BMR”). Mr. Ahern has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr. Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a Vice President of EVM and BMR. This information is provided as of the date of filing of this report.

 


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The following tables show, as of each Fund’s most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.
                                 
                    Number of    
    Number           Accounts   Total Assets of
    of All   Total Assets of   Paying a   Accounts Paying a
    Accounts   All Accounts   Performance Fee   Performance Fee
Cynthia J. Clemson
                               
Registered Investment Companies
    11     $ 3,008.6       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
William H. Ahern, Jr.
                               
Registered Investment Companies
    14     $ 3,379.0       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    1     $ 17.8       0     $ 0  
 
                               
Craig R. Brandon
                               
Registered Investment Companies
    14     $ 1,822.8       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Fund’s most recent fiscal year end.
         
    Dollar Range of
    Equity Securities
    Owned
    in the Fund
California Municipal Bond Fund
       
Cynthia J. Clemson
  None
 
Municipal Bond Fund
       
William H. Ahern, Jr.
  None
 
New York Municipal Bond Fund
       
Craig R. Brandon
  None
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of a Fund’s investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between a Fund and the other accounts, a portfolio manager may take action

 


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

 


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operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
     
(a)(1)
  Registrant’s Code of Ethics — Not applicable (please see Item 2).
(a)(2)(i)
  Treasurer’s Section 302 certification.
(a)(2)(ii)
  President’s Section 302 certification.
(b)
  Combined Section 906 certification.

 


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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 New York Municipal Bond Fund
 
   
By:   /s/ Cynthia J. Clemson      
  Cynthia J. Clemson     
  President     
 
Date: November 15, 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: November 15, 2010
         
     
By:   /s/ Cynthia J. Clemson      
  Cynthia J. Clemson     
  President     
 
Date: November 15, 2010