Eaton Vance Ca Muni Income Trust
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-09153
Eaton Vance California Municipal Income Trust
(Exact Name of registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(registrant’s Telephone Number)
November 30
Date of Fiscal Year End
November 30, 2009
Date of Reporting Period
 
 

 


 

Item 1. Reports to Stockholders

 


 

(IMAGE)

 


 

 
IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING
 
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:
 
  •  Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.
 
  •  None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.
 
  •  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.
 
  •  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our 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.
 
In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial 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.


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
         
    2  
 
       
       
 
       
California Municipal Income Trust
    4  
Massachusetts Municipal Income Trust
    5  
Michigan Municipal Income Trust
    6  
New Jersey Municipal Income Trust
    7  
New York Municipal Income Trust
    8  
Ohio Municipal Income Trust
    9  
Pennsylvania Municipal Income Trust
    10  
 
       
Financial Statements
    11  
 
       
Federal Tax Information
    62  
 
       
Dividend Reinvestment Plan
    63  
 
       
Board of Trustees’ Annual Approval of the Investment Advisory Agreements
    65  
 
       
Management and Organization
    68  

1


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
Eaton Vance Municipal Income Trusts (the “Trusts”) are closed-end Trusts, traded on the NYSE Amex, which are designed to provide current income exempt from regular federal income tax and state personal income taxes. This income is earned by investing primarily in investment-grade municipal securities.
Economic and Market Conditions
For the year ending November 30, 2009, the U.S. economy and the capital markets continued to show improvement from the market upheaval that occurred in the fall of 2008 and continued through the first quarter of 2009. After contracting in the last calendar quarter of 2008 and the first two quarters of 2009—declining at annualized rates of 5.4%, 6.4% and 0.7%, respectively—the U.S. economy grew at an annualized rate of 2.2% in the third quarter of 2009, according to the U.S. Department of Commerce.
During the Trusts’ fiscal year, the municipal bond market witnessed a significant rebound as demand returned from investors who had sought the relative safety of Treasury bonds in 2008, and cautious optimism spread on signs of a mildly improving economy. The renewed appetite for municipal bonds was buoyed by provisions in the American Recovery and Reinvestment Act of 2009 aimed at supporting the municipal market. The new Build America Bond program gave municipal issuers broader access to the taxable debt markets, providing the potential for lower net borrowing costs and reducing the supply of traditional tax-exempt bonds. The federal stimulus program also provided direct cash subsidies to municipalities that were facing record budget deficits. The result of these events was a dramatic rally for the sector as yields fell and prices rose across the yield curve.
During the year ending November 30, 2009, municipals continued the rally that had begun in mid-December 2008, posting strong returns for the period. The Trusts’ benchmark, the Barclays Capital Municipal Bond Index (the Index)—a broad-based, unmanaged index of municipal bonds—gained 14.17% for the period.1
Management Discussion
During the year ending November 30, 2009, the Trusts outperformed the Index and their Lipper peer group averages by significant margins. Due to their objective of providing tax-exempt income and the historical upward slope of the municipal yield curve, the Trusts generally hold longer-maturity bonds relative to the broad market than many of our competitors do. Given the significant price movement at the longer end of the municipal yield curve, management’s bias toward longer maturities was the basis for much of the Trusts’ outperformance during the period. Investing across the credit spectrum and making higher allocations to revenue bonds also contributed positively to relative performance.
The Trusts generally invest in bonds with stated maturities of 10 years or longer, as longer-maturity bonds historically have provided greater tax-exempt income for investors than shorter-maturity bonds. While the price declines experienced by municipals in 2008 were most pronounced on the long end of the yield curve, longer-maturity bonds outperformed shorter maturities during 2009, thus providing the basis for much of the Trusts’ outperformance during this fiscal year.
Management employed leverage in the Trusts, through which additional exposure to the municipal market was achieved. Leverage has the impact of magnifying a Trust’s exposure to its leveraged investments in both up and down markets.
As we move ahead, we recognize that many state and local governments face significant budget deficits that are driven primarily by a steep decline in tax revenues. We will continue to monitor any new developments as state and local officials formulate solutions to address these fiscal problems. As in all environments, we maintain our long-term perspective on the markets against the backdrop of relatively short periods of market volatility. We will continue to actively manage the Trusts with the same income-focused, relative value approach we have always employed. We believe that this approach, which is based on credit research and decades of experience in the municipal market, has served municipal investors well over the long term.
 
1   It is not possible to invest directly in an Index or a Lipper Classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
 
    Past performance is no guarantee of future results.

2


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
A Note Regarding The Use Of Leverage
The Trusts may employ leverage through the issuance of Auction Preferred Shares (APS) and the use of residual interest bond (RIB) financing.1 Each Trust’s APS and RIB percentage leverage as of November 30, 2009, as applicable, is reflected on the Trust-specific pages following this letter. The leverage created by APS and RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of the common shares).
During the period, certain of the Trusts redeemed a portion of their outstanding APS to reduce the amount of the Trusts’ financial leverage. Information relating to these redemptions is contained in Note 2 to the Financial Statements.
 
1   See Note 1H to the Financial Statements for more information on RIB investments.

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

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

3


 

Eaton Vance California Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   CEV
 
Average Annual Total Returns (by market price)
One Year
    43.19 %
Five Years
    1.32  
Ten Years
    6.90  
Life of Trust (1/29/99)
    4.10  
 
       
Average Annual Total Returns (by net asset value)
One Year
    34.24 %
Five Years
    1.71  
Ten Years
    6.86  
Life of Trust (1/29/99)
    4.23  
 
       
Premium/(Discount) to NAV (11/30/09)
    -1.31 %
 
       
Market Yields
       
 
Market Yield2
    7.12 %
Taxable-Equivalent Market Yield3
    12.25  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper California Municipal Debt Funds Classification (by net asset value)        
 
One Year
    24.58 %
Five Years
    3.14  
Ten Years
    5.78  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Cynthia J. Clemson
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is AA-:
         
AAA
    27.7%  
AA
    20.9%  
A
    32.5%  
BBB
    11.4%  
Not Rated
    7.5%  
Trust Statistics7
         
Number of Issues:
    102  
Average Maturity:
    21.9  years
Average Effective Maturity:
    15.1  years
Average Call Protection:
    7.5  years
Average Dollar Price:
  $ 87.61  
APS Leverage**:
    31.7 %
RIB Leverage**:
    12.0 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 41.86% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification (closed-end) contained 24, 24 and 14 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

4


 

Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   MMV
 
Average Annual Total Returns (by market price)
One Year
    58.91 %
Five Years
    0.62  
Ten Years
    7.58  
Life of Trust (1/29/99)
    4.71  
 
       
Average Annual Total Returns (by net asset value)
One Year
    43.29 %
Five Years
    3.32  
Ten Years
    7.81  
Life of Trust (1/29/99)
    4.95  
 
       
Premium/(Discount) to NAV (11/30/09)
    -2.43 %
 
       
Market Yields
       
 
       
Market Yield2
    6.83 %
Taxable-Equivalent Market Yield3
    11.10  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)        
 
One Year
    25.98 %
Five Years
    4.20  
Ten Years
    6.20  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Robert B. MacIntosh, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is A+:
         
AAA
    10.2%  
AA
    37.8%  
A
    34.2%  
BBB
    10.5%  
BB
    1.2%  
Not Rated
    6.1%  
Trust Statistics7
         
Number of Issues:
    62  
Average Maturity:
    26.7  years
Average Effective Maturity:
    18.7  years
Average Call Protection:
    9.9  years
Average Dollar Price:
  $ 95.03  
APS Leverage**:
    32.9 %
RIB Leverage**:
    6.4 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 43, 43 and 20 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

5


 

Eaton Vance Michigan Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EMI
 
Average Annual Total Returns (by market price)
One Year
    56.49 %
Five Years
    -1.67  
Ten Years
    6.82  
Life of Trust (1/29/99)
    3.54  
 
       
Average Annual Total Returns (by net asset value)
One Year
    28.08 %
Five Years
    2.88  
Ten Years
    7.14  
Life of Trust (1/29/99)
    4.64  
 
       
Premium/(Discount) to NAV (11/30/09)
    -10.90 %
 
       
Market Yields
       
 
       
Market Yield2
    7.45 %
Taxable-Equivalent Market Yield3
    11.98  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Michigan Municipal Debt Funds Classification (by net asset value)        
 
One Year
    22.07 %
Five Years
    3.62  
Ten Years
    6.44  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution6
By total investments
(PIE CHART)
Trust Statistics7
         
Number of Issues:
    70  
Average Maturity:
    21.5  years
Average Effective Maturity:
    12.9  years
Average Rating:
    AA-
Average Call Protection:
    5.6  years
Average Dollar Price:
  $ 94.97  
APS Leverage*:
    39.0 %
 
*   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and/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 Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification (closed-end) contained 4, 4 and 3 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

6


 

Eaton Vance New Jersey Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVJ
 
Average Annual Total Returns (by market price)
       
One Year
    77.84 %
Five Years
    3.65  
Ten Years
    9.05  
Life of Trust (1/29/99)
    5.53  
 
       
Average Annual Total Returns (by net asset value)
       
One Year
    55.43 %
Five Years
    3.95  
Ten Years
    7.87  
Life of Trust (1/29/99)
    5.20  
 
       
Premium/(Discount) to NAV (11/30/09)
    3.46 %
 
       
Market Yields
       
 
       
Market Yield2
    6.75 %
Taxable-Equivalent Market Yield3
    11.64  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New Jersey Municipal Debt Funds Classification (by net asset value)        
 
One Year
    29.80 %
Five Years
    3.99  
Ten Years
    6.18  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Robert B. MacIntosh, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is A+:
         
AAA
    22.2%  
AA
    27.1%  
A
    27.9%  
BBB
    20.4%  
BB
    0.2%  
B
    1.2%  
Not Rated
    1.0%  
Trust Statistics7
         
Number of Issues:
    80  
Average Maturity:
    25.0  years
Average Effective Maturity:
    16.1  years
Average Call Protection:
    8.4  years
Average Dollar Price:
  $ 92.15  
APS Leverage**:
    30.7 %
RIB Leverage**:
    11.6 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 41.99% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification (closed-end) contained 10, 10 and 6 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

7


 

Eaton Vance New York Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVY
 
Average Annual Total Returns (by market price)
       
One Year
    80.12 %
Five Years
    2.89  
Ten Years
    8.52  
Life of Trust (1/29/99)
    5.02  
 
       
Average Annual Total Returns (by net asset value)
       
One Year
    49.00 %
Five Years
    2.29  
Ten Years
    7.35  
Life of Trust (1/29/99)
    4.81  
 
       
Premium/(Discount) to NAV (11/30/09)
    2.14 %
 
       
Market Yields
       
 
       
Market Yield2
    6.67 %
Taxable-Equivalent Market Yield3
    11.27  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper New York Municipal Debt Funds Classification (by net asset value)        
 
One Year
    25.86 %
Five Years
    3.46  
Ten Years
    6.15  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is A:
         
AAA
    13.1%  
AA
    32.4%  
A
    25.5%  
BBB
    13.5%  
BB
    4.7%  
B
    2.0%  
CCC
    1.0%  
Not Rated
    7.8%  
Trust Statistics7
         
Number of Issues:
    86  
Average Maturity:
    24.0  years
Average Effective Maturity:
    16.8  years
Average Call Protection:
    8.7  years
Average Dollar Price:
  $ 92.44  
APS Leverage**:
    27.9 %
RIB Leverage**:
    14.3 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Municipal Debt Funds Classification (closed-end) contained 17, 17 and 8 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

8


 

Eaton Vance Ohio Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVO
 
Average Annual Total Returns (by market price)
       
One Year
    68.25 %
Five Years
    1.09  
Ten Years
    7.99  
Life of Trust (1/29/99)
    4.91  
 
       
Average Annual Total Returns (by net asset value)
       
One Year
    38.58 %
Five Years
    3.43  
Ten Years
    7.44  
Life of Trust (1/29/99)
    4.97  
 
       
Premium/(Discount) to NAV (11/30/09)
    -0.67 %
 
       
Market Yields
       
 
       
Market Yield2
    6.63 %
Taxable-Equivalent Market Yield3
    10.84  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Other States Municipal Debt Funds Classification (by net asset value)        
 
One Year
    25.98 %
Five Years
    4.20  
Ten Years
    6.20  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is AA-:
         
AAA
    30.6%  
AA
    33.4%  
A
    18.5%  
BBB
    8.5%  
B
    1.8%  
Not Rated
    7.2%  
Trust Statistics7
         
Number of Issues:
    77  
Average Maturity:
    22.7  years
Average Effective Maturity:
    15.1  years
Average Call Protection:
    7.5  years
Average Dollar Price:
  $ 93.95  
APS Leverage**:
    35.9 %
RIB Leverage**:
    3.6 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect the effect of RIBs purchased in secondary market transactions.
 
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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 38.85% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 43, 43 and 20 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

9


 

Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
         
Performance1    
NYSE Amex Symbol   EVP
 
Average Annual Total Returns (by market price)
       
One Year
    45.88 %
Five Years
    2.22  
Ten Years
    8.25  
Life of Trust (1/29/99)
    4.71  
 
       
Average Annual Total Returns (by net asset value)
       
One Year
    39.16 %
Five Years
    3.62  
Ten Years
    7.48  
Life of Trust (1/29/99)
    4.96  
 
       
Premium/(Discount) to NAV (11/30/09)
    -2.48 %
 
       
Market Yields
       
 
       
Market Yield2
    6.64 %
Taxable-Equivalent Market Yield3
    10.54  
Index Performance4 (Average Annual Total Returns)
                 
    Barclays Capital Municipal Bond Index   Barclays Capital Long (22+) Municipal Bond Index
 
One Year
    14.17 %     22.43 %
Five Years
    4.50       3.98  
Ten Years
    5.64       5.98  
Lipper Averages5 (Average Annual Total Returns)
         
Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value)        
 
One Year
    29.26 %
Five Years
    3.49  
Ten Years
    6.00  

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or market price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
Portfolio Manager: Adam A. Weigold, CFA
Rating Distribution*6
By total investments
(PIE CHART)
 
*   The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements. Absent such securities, the Trust’s rating distribution at 11/30/09 is as follows, and the average rating is A+:
         
AAA
    16.3%  
AA
    35.0%  
A
    31.3%  
BBB
    5.8%  
BB
    0.8%  
CCC
    1.8%  
CC
    1.2%  
Not Rated
    7.8%  
Trust Statistics7
         
Number of Issues:
    80  
Average Maturity:
    22.2  years
Average Effective Maturity:
    16.5  years
Average Call Protection:
    7.8  years
Average Dollar Price:
  $ 96.00  
APS Leverage**:
    35.4 %
RIB Leverage**:
    4.0 %
 
**   APS leverage represents the liquidation value of the Trust’s Auction Preferred Shares (APS) outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 11/30/09 as a percentage of the Trust’s net assets applicable to common shares plus APS and 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 Trust’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for the Trust’s shares, or changes in Trust distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Trust’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Trust. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification (closed-end) contained 7, 7 and 5 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. 6 Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 7 Trust holdings information excludes securities held by special purpose vehicles in which the Trust holds a residual interest. See Note 1H to the Trust’s financial statements.

10


 

Eaton Vance California Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 175.9%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 16.0%
 
$ 2,000     California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39   $ 2,011,520      
  2,770     California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29     2,569,119      
  500     California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29     503,800      
  1,105     California Educational Facilities Authority, (Pomona College), 5.00%, 7/1/45     1,122,437      
  1,350     California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23     1,454,544      
  4,000     California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(1)     4,007,080      
  2,500     San Diego County, (University of San Diego), 5.375%, 10/1/41     2,500,075      
 
 
            $ 14,168,575      
 
 
 
 
Electric Utilities — 4.3%
 
$ 270     Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34   $ 291,727      
  2,275     Chula Vista, (San Diego Gas and Electric), (AMT), 5.00%, 12/1/27     2,153,515      
  1,300     Vernon, Electric System Revenue, 5.125%, 8/1/21     1,357,148      
 
 
            $ 3,802,390      
 
 
 
 
General Obligations — 11.6%
 
$ 750     California, 6.00%, 4/1/38   $ 765,503      
  1,590     California, (AMT), 5.05%, 12/1/36     1,389,262      
  4,770     San Francisco Bay Area Rapid Transit District, (Election of 2004), 4.75%, 8/1/37(2)     4,817,056      
  3,180     Santa Clara County, (Election of 2008), 5.00%, 8/1/39(2)(3)     3,281,951      
 
 
            $ 10,253,772      
 
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 271,554      
 
 
            $ 271,554      
 
 
 
 
Hospital — 30.4%
 
$ 1,000     California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32   $ 1,009,710      
  2,310     California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39     2,085,630      
  1,500     California Health Facilities Financing Authority, (Providence Health System), 6.50%, 10/1/38     1,668,060      
  3,480     California Health Facilities Financing Authority, (Sutter Health), 5.25%, 11/15/46(2)     3,283,589      
  750     California Infrastructure and Economic Development Bank, (Kaiser Hospital), 5.50%, 8/1/31     759,367      
  3,000     California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35     2,795,190      
  1,150     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34     1,077,136      
  1,750     California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36     1,637,405      
  1,565     California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32     1,562,903      
  1,750     California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29     1,751,785      
  1,500     California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28     1,511,850      
  1,200     Duarte, (Hope National Medical Center), 5.25%, 4/1/24     1,200,672      
  410     Tahoe Forest Hospital District, 5.85%, 7/1/22     410,037      
  1,900     Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31     1,912,331      
  1,250     Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34     1,000,962      
  1,000     Washington Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29     916,370      
  2,780     Washington Township Health Care District, 5.00%, 7/1/32     2,419,851      
 
 
            $ 27,002,848      
 
 
 
 
Housing — 2.7%
 
$ 1,750     California Housing Finance Agency, (AMT), 4.75%, 8/1/42   $ 1,390,147      
  715     Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29     633,278      
  418     Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29     366,185      
 
 
            $ 2,389,610      
 
 
 
 
Industrial Development Revenue — 4.0%
 
$ 800     California Pollution Control Financing Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.875%, 11/1/27   $ 800,600      
  1,235     California Pollution Control Financing Authority, (Waste Management, Inc.), (AMT), 5.125%, 11/1/23     1,171,879      
  2,000     California Statewide Communities Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.80%, 9/1/46     1,599,460      
 
 
            $ 3,571,939      
 
 
 

 
See notes to financial statements

11


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Education — 7.7%
 
$ 495     California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35   $ 477,551      
  3,270     California Educational Facilities Authority, (Pooled College and University), (NPFG), 5.10%, 4/1/23     3,316,009      
  3,000     California State University, (AMBAC), 5.00%, 11/1/33     3,004,710      
 
 
            $ 6,798,270      
 
 
 
 
Insured-Electric Utilities — 10.2%
 
$ 2,500     California Pollution Control Financing Authority, (Pacific Gas and Electric), (NPFG), (AMT), 5.35%, 12/1/16   $ 2,592,300      
  3,250     California Pollution Control Financing Authority, (Southern California Edison Co.), (NPFG), (AMT), 5.55%, 9/1/31     3,169,563      
  3,360     Los Angeles Department of Water and Power, (FSA), 4.625%, 7/1/37     3,262,963      
 
 
            $ 9,024,826      
 
 
 
 
Insured-Escrowed / Prerefunded — 2.9%
 
$ 5,130     Foothill/Eastern Transportation Corridor Agency, Toll Road Bonds, (FSA), (RADIAN), Escrowed to Maturity, 0.00%, 1/1/26   $ 2,595,780      
 
 
            $ 2,595,780      
 
 
 
 
Insured-General Obligations — 6.1%
 
$ 7,000     Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/34(3)   $ 1,362,270      
  4,825     Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/35     872,842      
  7,995     Sweetwater Union High School District, (Election of 2000), (FSA), 0.00%, 8/1/25     3,207,754      
 
 
            $ 5,442,866      
 
 
 
 
Insured-Hospital — 17.1%
 
$ 3,100     California Health Facilities Financing Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/37   $ 3,076,936      
  2,900     California Statewide Communities Development Authority, (Children’s Hospital Los Angeles), (NPFG), 5.25%, 8/15/29     2,653,413      
  750     California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(2)     739,440      
  5,000     California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(2)     4,954,550      
  3,735     California Statewide Communities Development Authority, (Sutter Health), (FSA), 5.75%, 8/15/27(2)     3,780,368      
 
 
            $ 15,204,707      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 11.3%
 
$ 6,130     Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17   $ 4,279,292      
  2,000     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     2,361,940      
  3,500     San Diego County Water Authority, (FSA), 5.00%, 5/1/38(2)     3,396,540      
 
 
            $ 10,037,772      
 
 
 
 
Insured-Other Revenue — 1.8%
 
$ 1,770     Golden State Tobacco Securitization Corp., (AGC), (FGIC), 5.00%, 6/1/38   $ 1,569,229      
 
 
            $ 1,569,229      
 
 
 
 
Insured-Special Tax Revenue — 4.7%
 
$ 24,800     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 1,511,808      
  4,225     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     535,434      
  8,380     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     994,287      
  5,270     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     582,177      
  480     Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28     534,255      
 
 
            $ 4,157,961      
 
 
 
 
Insured-Transportation — 9.4%
 
$ 5,000     Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29   $ 1,306,900      
  8,000     Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31     1,845,840      
  740     Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(2)     766,200      
  10,000     San Joaquin Hills Transportation Corridor Agency, Toll Road Bonds, (NPFG), 0.00%, 1/15/32     1,755,600      
  1,320     San Jose Airport, (AMBAC), (BHAC), (FSA), (AMT), 5.00%, 3/1/37     1,277,918      
  1,350     San Jose Airport, (AMBAC), (BHAC), (FSA), (AMT), 6.00%, 3/1/47     1,417,433      
 
 
            $ 8,369,891      
 
 
 

 
See notes to financial statements

12


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Water and Sewer — 3.8%
 
$ 4,400     Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30   $ 3,373,744      
 
 
            $ 3,373,744      
 
 
 
 
Other Revenue — 2.2%
 
$ 385     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32   $ 367,779      
  580     California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/37     531,854      
  980     Golden State Tobacco Securitization Corp., 0.00%, 6/1/37     594,096      
  640     Golden State Tobacco Securitization Corp., 5.75%, 6/1/47     462,643      
 
 
            $ 1,956,372      
 
 
 
 
Senior Living / Life Care — 1.5%
 
$ 175     California Statewide Communities Development Authority, (Senior Living -Presbyterian Homes), 4.75%, 11/15/26   $ 154,810      
  700     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 4.875%, 11/15/36     572,166      
  600     California Statewide Communities Development Authority, (Senior Living - Presbyterian Homes), 7.25%, 11/15/41     632,142      
 
 
            $ 1,359,118      
 
 
 
 
Special Tax Revenue — 17.5%
 
$ 1,000     Bonita Canyon Public Financing Authority, 5.375%, 9/1/28   $ 912,280      
  285     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26     224,039      
  460     Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34     332,598      
  970     Corona Public Financing Authority, 5.80%, 9/1/20     917,222      
  200     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/27     163,012      
  500     Eastern California Municipal Water District, Special Tax Revenue, District No. 2004-27 Cottonwood, 5.00%, 9/1/36     374,455      
  1,590     Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27     1,607,474      
  900     Lincoln Public Financing Authority, Improvement Bond Act of 1915, (Twelve Bridges), 6.20%, 9/2/25     900,927      
  420     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24     386,240      
  750     Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29     677,137      
  2,340     Oakland Joint Powers Financing Authority, 5.40%, 9/2/18     2,385,115      
  960     Oakland Joint Powers Financing Authority, 5.50%, 9/2/24     976,906      
  1,325     San Pablo Redevelopment Agency, 5.65%, 12/1/23     1,333,453      
  1,095     Santa Margarita Water District, 6.20%, 9/1/20     1,116,506      
  250     Santaluz Community Facilities District No. 2, 6.10%, 9/1/21     249,988      
  500     Santaluz Community Facilities District No. 2, 6.20%, 9/1/30     487,420      
  250     Temecula Unified School District, 5.00%, 9/1/27     221,898      
  400     Temecula Unified School District, 5.00%, 9/1/37     329,476      
  500     Turlock Public Financing Authority, 5.45%, 9/1/24     501,110      
  500     Tustin Community Facilities District, 6.00%, 9/1/37     460,200      
  1,000     Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23     960,500      
 
 
            $ 15,517,956      
 
 
 
 
Transportation — 5.3%
 
$ 2,000     Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), 5.00%, 4/1/31   $ 2,041,220      
  1,500     Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30     1,521,840      
  1,170     Port of Redwood City, (AMT), 5.125%, 6/1/30     1,086,591      
 
 
            $ 4,649,651      
 
 
 
 
Water and Sewer — 5.1%
 
$ 1,840     California Department of Water Resources, 5.00%, 12/1/29   $ 1,930,914      
  2,500     Metropolitan Water District of Southern California, (Waterworks Revenue Authorization), 5.00%, 1/1/34     2,587,575      
 
 
            $ 4,518,489      
 
 
     
Total Tax-Exempt Investments — 175.9%
   
(identified cost $161,701,966)
  $ 156,037,320      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (56.3)%
  $ (49,976,817 )    
 
 
             
Other Assets, Less Liabilities — (19.6)%
  $ (17,340,220 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 88,720,283      
 
 
 

 
See notes to financial statements

13


 

 
Eaton Vance California Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company.
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
RADIAN - Radian Group, Inc.
 
The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 42.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 16.3% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(3) Security (or a portion thereof) has been pledged as collateral for open swap contracts or inverse floating-rate security transactions. The aggregate value of such collateral is $1,286,171.

 
See notes to financial statements

14


 

Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 163.4%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 37.2%
 
$ 2,440     Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59   $ 2,472,330      
  600     Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33     602,190      
  1,000     Massachusetts Development Finance Agency, (New England Conservatory of Music), 5.25%, 7/1/38     910,680      
  1,500     Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29     1,508,490      
  1,500     Massachusetts Health and Educational Facilities Authority, (Berklee College of Music), 5.00%, 10/1/32     1,518,330      
  1,990     Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/35     2,286,749      
  1,500     Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)     1,576,785      
  1,740     Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.00%, 7/1/38     1,826,687      
  1,000     Massachusetts Health and Educational Facilities Authority, (Tufts University), 5.375%, 8/15/38     1,066,480      
 
 
            $ 13,768,721      
 
 
 
 
Electric Utilities — 7.2%
 
$ 1,000     Massachusetts Development Finance Agency, (Devens Electric System), 6.00%, 12/1/30   $ 1,023,020      
  1,870     Massachusetts Development Finance Agency, (Dominion Energy Brayton Point), (AMT), 5.00%, 2/1/36     1,640,121      
 
 
            $ 2,663,141      
 
 
 
 
Escrowed / Prerefunded — 4.6%
 
$ 400     Massachusetts Development Finance Agency, (Western New England College), Prefunded to 12/1/12, 6.125%, 12/1/32   $ 464,348      
  235     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), Prerefunded to 1/1/12, 6.00%, 7/1/31     263,195      
  940     Massachusetts Health and Educational Facilities Authority, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30     984,425      
 
 
            $ 1,711,968      
 
 
 
 
General Obligations — 2.2%
 
$ 750     Newton, 5.00%, 4/1/36   $ 795,607      
 
 
            $ 795,607      
 
 
 
Health Care-Miscellaneous — 0.2%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 90,518      
 
 
            $ 90,518      
 
 
 
 
Hospital — 22.9%
 
$ 1,000     Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20   $ 1,020,180      
  1,000     Massachusetts Health and Educational Facilities Authority, (Baystate Medical Center, Inc.), 5.75%, 7/1/36     1,038,760      
  400     Massachusetts Health and Educational Facilities Authority, (Berkshire Health System), 6.25%, 10/1/31     403,612      
  105     Massachusetts Health and Educational Facilities Authority, (Central New England Health Systems), 6.30%, 8/1/18     105,050      
  500     Massachusetts Health and Educational Facilities Authority, (Children’s Hospital), 5.25%, 12/1/39     502,315      
  1,135     Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37     1,126,544      
  885     Massachusetts Health and Educational Facilities Authority, (Healthcare System-Covenant Health), 6.00%, 7/1/31     903,736      
  755     Massachusetts Health and Educational Facilities Authority, (Jordan Hospital), 6.75%, 10/1/33     677,507      
  2,000     Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.00%, 7/1/32(1)     2,014,980      
  675     Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29     675,972      
 
 
            $ 8,468,656      
 
 
 
 
Housing — 14.2%
 
$ 2,100     Massachusetts Housing Finance Agency, (AMT), 4.75%, 12/1/48   $ 1,827,714      
  1,000     Massachusetts Housing Finance Agency, (AMT), 4.85%, 6/1/40     911,260      
  650     Massachusetts Housing Finance Agency, (AMT), 5.00%, 12/1/28     626,821      
  2,000     Massachusetts Housing Finance Agency, (AMT), 5.10%, 12/1/37     1,872,840      
 
 
            $ 5,238,635      
 
 
 
 
Industrial Development Revenue — 1.9%
 
$ 695     Massachusetts Industrial Finance Agency, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15   $ 695,598      
 
 
            $ 695,598      
 
 
 

 
See notes to financial statements

15


 

 
Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Education — 11.4%
 
$ 1,000     Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39   $ 1,082,580      
  1,365     Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)     1,528,550      
  1,600     Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33     1,611,872      
 
 
            $ 4,223,002      
 
 
 
 
Insured-Electric Utilities — 1.5%
 
$ 570     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29   $ 573,449      
 
 
            $ 573,449      
 
 
 
 
Insured-General Obligations — 8.8%
 
$ 1,000     Massachusetts, (AMBAC), 5.50%, 8/1/30   $ 1,179,900      
  2,255     Milford, (FSA), 4.25%, 12/15/46     2,091,828      
 
 
            $ 3,271,728      
 
 
 
 
Insured-Other Revenue — 3.2%
 
$ 1,225     Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42   $ 1,200,328      
 
 
            $ 1,200,328      
 
 
 
 
Insured-Special Tax Revenue — 14.7%
 
$ 1,450     Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32   $ 1,465,356      
  1,000     Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29     1,134,050      
  1,350     Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37     1,399,248      
  8,945     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     545,287      
  2,530     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     320,627      
  3,015     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     357,730      
  1,905     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     210,445      
 
 
            $ 5,432,743      
 
 
 
Insured-Student Loan — 6.3%
 
$ 600     Massachusetts Educational Financing Authority, (AGC), (AMT), 6.35%, 1/1/30(2)   $ 626,922      
  1,985     Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33     1,687,071      
 
 
            $ 2,313,993      
 
 
 
 
Insured-Transportation — 5.5%
 
$ 410     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/32   $ 386,179      
  1,820     Massachusetts Port Authority, (Bosfuel Project), (FGIC), (NPFG), (AMT), 5.00%, 7/1/38     1,653,106      
 
 
            $ 2,039,285      
 
 
 
 
Nursing Home — 2.7%
 
$ 500     Boston Industrial Development Authority, (Alzheimer’s Center), (FHA), 6.00%, 2/1/37   $ 500,240      
  565     Massachusetts Health and Educational Facilities Authority, (Christopher House), 6.875%, 1/1/29     508,856      
 
 
            $ 1,009,096      
 
 
 
 
Other Revenue — 1.4%
 
$ 500     Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), 5.00%, 5/1/22   $ 535,420      
 
 
            $ 535,420      
 
 
 
 
Senior Living / Life Care — 5.3%
 
$ 250     Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31   $ 199,818      
  1,500     Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.625%, 7/1/29     1,307,745      
  140     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.125%, 11/1/27     106,602      
  475     Massachusetts Development Finance Agency, (First Mortgage VOA Concord), 5.20%, 11/1/41     329,165      
 
 
            $ 1,943,330      
 
 
 
 
Special Tax Revenue — 6.5%
 
$ 1,665     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/31   $ 540,559      
  5,195     Massachusetts Bay Transportation Authority, Sales Tax Revenue, 0.00%, 7/1/34     1,384,623      
  125     Virgin Islands Public Finance Authority, 5.00%, 10/1/39     112,510      

 
See notes to financial statements

16


 

 
Eaton Vance Massachusetts Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Special Tax Revenue (continued)
 
                     
$ 335     Virgin Islands Public Finance Authority, 6.75%, 10/1/37   $ 352,182      
 
 
            $ 2,389,874      
 
 
 
 
Water and Sewer — 5.7%
 
$ 250     Massachusetts Water Pollution Abatement Trust, 3.50%, 8/1/26   $ 243,052      
  215     Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27     217,451      
  2,000     Massachusetts Water Resources Authority, 4.00%, 8/1/46     1,649,680      
 
 
            $ 2,110,183      
 
 
     
Total Tax-Exempt Investments — 163.4%
   
(identified cost $61,746,448)
  $ 60,475,275      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (54.2)%
  $ (20,051,756 )    
 
 
             
Other Assets, Less Liabilities — (9.2)%
  $ (3,412,812 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 37,010,707      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
FHA - Federal Housing Administration
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 31.5% 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 1.0% to 14.9% 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 as collateral for open swap contracts. The aggregate value of such collateral is $156,731.

 
See notes to financial statements

17


 

Eaton Vance Michigan Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 156.7%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 5.8%
 
$ 525     Grand Valley State University, 5.625%, 12/1/29   $ 551,455      
  525     Grand Valley State University, 5.75%, 12/1/34     543,632      
  540     Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35     501,946      
 
 
            $ 1,597,033      
 
 
 
 
Electric Utilities — 0.2%
 
$ 60     Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29   $ 60,183      
 
 
            $ 60,183      
 
 
 
 
Escrowed / Prerefunded — 18.9%
 
$ 500     Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31   $ 544,130      
  560     Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), Prerefunded to 11/15/13, 5.875%, 11/15/34     659,478      
  1,250     Michigan Higher Education Facilities Authority, (Creative Studies), Prerefunded to 6/1/12, 5.90%, 12/1/27     1,401,612      
  750     Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36     829,973      
  600     Puerto Rico Electric Power Authority, Prerefunded to 7/1/12, 5.25%, 7/1/31     675,156      
  1,000     White Cloud Public Schools, Prerefunded to 5/1/11, 5.125%, 5/1/31     1,066,140      
 
 
            $ 5,176,489      
 
 
 
 
General Obligations — 14.9%
 
$ 500     East Grand Rapids Public School District, 5.00%, 5/1/25   $ 523,255      
  1,500     Kent County, 5.00%, 1/1/25     1,621,590      
  750     Manistee Area Public Schools, 5.00%, 5/1/24     780,465      
  270     Michigan, 5.50%, 11/1/25     291,395      
  345     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     333,115      
  500     Wayne Charter County, 6.75%, 11/1/39     518,840      
 
 
            $ 4,068,660      
 
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 90,518      
 
 
            $ 90,518      
 
 
 
Hospital — 28.0%
 
$ 500     Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21   $ 494,015      
  185     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25     163,936      
  125     Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37     104,710      
  275     Kent Hospital Finance Authority, (Spectrum Health), 5.50% to 1/15/15 (Put Date), 1/15/47     297,396      
  500     Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18     480,770      
  1,000     Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27     999,980      
  750     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38     633,120      
  1,000     Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46     855,920      
  1,080     Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35     985,392      
  750     Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21     754,027      
  500     Michigan Hospital Finance Authority, (Mid Michigan Obligation Group), 6.125%, 6/1/39     526,290      
  1,000     Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27     1,022,530      
  425     Monroe County Hospital Finance Authority, (Mercy Memorial Hospital Corp.), 5.375%, 6/1/26     360,987      
 
 
            $ 7,679,073      
 
 
 
 
Housing — 3.4%
 
$ 1,000     Michigan Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48   $ 937,090      
 
 
            $ 937,090      
 
 
 
 
Industrial Development Revenue — 5.7%
 
$ 1,000     Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21   $ 351,730      
  800     Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16     798,880      
  625     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     396,500      
 
 
            $ 1,547,110      
 
 
 
 
Insured-Education — 5.9%
 
$ 570     Ferris State University, (AGC), 5.125%, 10/1/33   $ 586,068      
  500     Ferris State University, (AGC), 5.25%, 10/1/38     516,740      
  500     Wayne State University, (FSA), 5.00%, 11/15/35     509,025      
 
 
            $ 1,611,833      
 
 
 

 
See notes to financial statements

18


 

 
Eaton Vance Michigan Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Electric Utilities — 9.2%
 
$ 1,000     Michigan Strategic Fund, (Detroit Edison Co.), (NPFG), (AMT), 5.55%, 9/1/29   $ 991,620      
  400     Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32     395,248      
  220     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30     221,093      
  500     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     482,580      
  435     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/29     437,632      
 
 
            $ 2,528,173      
 
 
 
 
Insured-Escrowed / Prerefunded — 11.6%
 
$ 1,000     Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31   $ 1,071,400      
  2,000     Novi Building Authority, (FSA), Prerefunded to 10/1/10, 5.50%, 10/1/25     2,107,680      
 
 
            $ 3,179,080      
 
 
 
 
Insured-General Obligations — 9.0%
 
$ 650     Detroit City School District, (FGIC), 4.75%, 5/1/28   $ 609,713      
  300     Detroit City School District, (FSA), 5.25%, 5/1/32     300,378      
  200     Eaton Rapids Public Schools, (NPFG), 4.75%, 5/1/25     200,214      
  100     Lincoln Consolidated School District, (FSA), 5.00%, 5/1/10     101,947      
  1,250     Van Dyke Public Schools, (FSA), 5.00%, 5/1/38     1,249,950      
 
 
            $ 2,462,202      
 
 
 
 
Insured-Hospital — 6.9%
 
$ 985     Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35   $ 874,227      
  1,000     Saginaw Hospital Finance Authority, (Covenant Medical Center), (NPFG), 5.50%, 7/1/24     1,002,000      
 
 
            $ 1,876,227      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 5.5%
 
$ 1,000     Michigan Building Authority, (FGIC), (FSA), 0.00%, 10/15/29   $ 320,990      
  4,300     Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30     1,183,704      
 
 
            $ 1,504,694      
 
 
 
Insured-Special Tax Revenue — 3.7%
 
$ 5,160     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 314,554      
  2,030     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     257,262      
  2,430     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     288,319      
  1,470     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     162,391      
 
 
            $ 1,022,526      
 
 
 
 
Insured-Student Loan — 7.0%
 
$ 1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31   $ 902,900      
  1,000     Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25     1,001,060      
 
 
            $ 1,903,960      
 
 
 
 
Insured-Transportation — 4.3%
 
$ 1,000     Wayne Charter County Airport, (AGC), (AMT), 5.375%, 12/1/32   $ 913,280      
  300     Wayne Charter County Airport, (NPFG), (AMT), 5.00%, 12/1/28     272,583      
 
 
            $ 1,185,863      
 
 
 
 
Insured-Water and Sewer — 9.5%
 
$ 1,650     Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30   $ 1,562,632      
  1,000     Grand Rapids Water Supply System, (AGC), 5.10%, 1/1/39     1,024,800      
 
 
            $ 2,587,432      
 
 
 
 
Lease Revenue / Certificates of Participation — 0.9%
 
$ 250     Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22   $ 250,163      
 
 
            $ 250,163      
 
 
 
 
Other Revenue — 1.4%
 
$ 500     Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48   $ 382,035      
 
 
            $ 382,035      
 
 
 
 
Special Tax Revenue — 1.3%
 
$ 115     Guam, Limited Obligation Bonds, 5.625%, 12/1/29   $ 116,714      
  125     Guam, Limited Obligation Bonds, 5.75%, 12/1/34     127,572      

 
See notes to financial statements

19


 

 
Eaton Vance Michigan Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Special Tax Revenue (continued)
 
                     
$ 110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37   $ 115,642      
 
 
            $ 359,928      
 
 
 
 
Water and Sewer — 3.3%
 
$ 600     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.00%, 10/1/29   $ 637,326      
  250     Michigan Municipal Bond Authority, (Clean Water Revenue), 5.25%, 10/1/11(1)     270,643      
 
 
            $ 907,969      
 
 
     
Total Tax-Exempt Investments — 156.7%
   
(identified cost $44,152,713)
  $ 42,918,241      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (63.9)%
  $ (17,500,850 )    
 
 
             
Other Assets, Less Liabilities — 7.2%
  $ 1,974,276      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 27,391,667      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 46.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.9% to 18.5% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.

 
See notes to financial statements

20


 

Eaton Vance New Jersey Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 168.5%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Education — 21.3%
 
$ 250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/27   $ 244,273      
  250     New Jersey Educational Facilities Authority, (Georgian Court University), 5.00%, 7/1/33     232,958      
  220     New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37     207,761      
  3,000     New Jersey Educational Facilities Authority, (Kean University), 5.50%, 9/1/36     3,130,890      
  3,500     New Jersey Educational Facilities Authority, (Princeton University), 4.50%, 7/1/38(1)     3,543,435      
  1,650     New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.00%, 7/1/27     1,690,210      
  965     New Jersey Educational Facilities Authority, (University of Medicine and Dentistry), 7.50%, 12/1/32     1,086,571      
  3,150     Rutgers State University, 5.00%, 5/1/39(1)     3,262,392      
 
 
            $ 13,398,490      
 
 
 
 
Electric Utilities — 2.3%
 
$ 1,500     Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31   $ 1,479,915      
 
 
            $ 1,479,915      
 
 
 
 
General Obligations — 2.1%
 
$ 1,365     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29   $ 1,317,976      
 
 
            $ 1,317,976      
 
 
 
 
Health Care-Miscellaneous — 0.4%
 
$ 300     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 271,554      
 
 
            $ 271,554      
 
 
 
 
Hospital — 24.3%
 
$ 90     Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35   $ 72,325      
  100     Camden County Improvement Authority, (Cooper Health System), 5.25%, 2/15/27     89,733      
  2,750     Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34     2,478,245      
  2,515     New Jersey Health Care Facilities Financing Authority, (AHS Hospital Corp.), 5.00%, 7/1/27     2,530,593      
  2,685     New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37     2,599,026      
  500     New Jersey Health Care Facilities Financing Authority, (Chilton Memorial Hospital), 5.75%, 7/1/39     478,105      
  1,525     New Jersey Health Care Facilities Financing Authority, (Kennedy Health System), 5.625%, 7/1/31     1,532,594      
  1,750     New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31     1,755,390      
  2,810     New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46     2,601,105      
  1,075     New Jersey Health Care Facilities Financing Authority, (Virtua Health), 5.75%, 7/1/33     1,109,303      
 
 
            $ 15,246,419      
 
 
 
 
Housing — 4.6%
 
$ 715     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 4.70%, 10/1/37   $ 648,155      
  2,340     New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), 5.00%, 10/1/37     2,258,053      
 
 
            $ 2,906,208      
 
 
 
 
Industrial Development Revenue — 12.8%
 
$ 500     Middlesex County Pollution Control Authority, (Amerada Hess), 5.75%, 9/15/32   $ 500,475      
  585     Middlesex County Pollution Control Authority, (Amerada Hess), 6.05%, 9/15/34     592,271      
  1,235     New Jersey Economic Development Authority, (American Water Co.), (AMT), 5.70%, 10/1/39     1,207,694      
  3,220     New Jersey Economic Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 4.95%, 3/1/47     2,679,813      
  435     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29     362,177      
  750     New Jersey Economic Development Authority, (Continental Airlines), (AMT), 9.00%, 6/1/33     779,610      
  2,080     Virgin Islands Public Finance Authority, (HOVENSA LLC), (AMT), 4.70%, 7/1/22     1,891,386      
 
 
            $ 8,013,426      
 
 
 
 
Insured-Education — 5.5%
 
$ 3,365     New Jersey Educational Facilities Authority, (College of New Jersey), (FSA), 5.00%, 7/1/35(1)   $ 3,447,463      
 
 
            $ 3,447,463      
 
 
 

 
See notes to financial statements

21


 

 
Eaton Vance New Jersey Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Electric Utilities — 2.0%
 
$ 1,250     Vineland, (Electric Utility), (NPFG), (AMT), 5.25%, 5/15/26   $ 1,250,837      
 
 
            $ 1,250,837      
 
 
 
 
Insured-Gas Utilities — 8.2%
 
$ 5,000     New Jersey Economic Development Authority, (New Jersey Natural Gas Co.), (FGIC), (NPFG), (AMT), 4.90% to 10/1/25 (Put Date), 10/1/40   $ 5,137,500      
 
 
            $ 5,137,500      
 
 
 
 
Insured-General Obligations — 2.9%
 
$ 460     Egg Harbor Township School District, (FSA), 3.50%, 4/1/28   $ 424,649      
  1,240     Lakewood Township, (AGC), 5.75%, 11/1/31     1,393,487      
 
 
            $ 1,818,136      
 
 
 
 
Insured-Hospital — 6.6%
 
$ 750     New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)   $ 761,317      
  1,495     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38     1,468,150      
  500     New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1)     491,020      
  1,380     New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38     1,419,275      
 
 
            $ 4,139,762      
 
 
 
 
Insured-Housing — 5.2%
 
$ 3,390     New Jersey Housing and Mortgage Finance Agency, (Multi-Family Housing), (FSA), (AMT), 5.05%, 5/1/34   $ 3,283,554      
 
 
            $ 3,283,554      
 
 
 
 
Insured-Industrial Development Revenue — 1.3%
 
$ 885     New Jersey Economic Development Authority, (New Jersey American Water Co, Inc.), (FGIC), (NPFG), (AMT), 5.25%, 7/1/38   $ 811,642      
 
 
            $ 811,642      
 
 
 
Insured-Lease Revenue / Certificates of Participation — 4.4%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34   $ 1,609,815      
  1,000     New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 9/1/28     1,124,320      
 
 
            $ 2,734,135      
 
 
 
 
Insured-Other Revenue — 1.7%
 
$ 1,015     Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39   $ 1,059,670      
 
 
            $ 1,059,670      
 
 
 
 
Insured-Special Tax Revenue — 11.6%
 
$ 6,000     Garden State Preservation Trust, (FSA), 0.00%, 11/1/25   $ 2,880,060      
  4,315     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26     1,797,499      
  2,020     New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27     790,042      
  7,185     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     437,998      
  2,745     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     347,874      
  5,445     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     646,049      
  3,425     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     378,360      
 
 
            $ 7,277,882      
 
 
 
 
Insured-Student Loan — 5.0%
 
$ 2,970     New Jersey Higher Education Assistance Authority, (AGC), (AMT), 6.125%, 6/1/30(2)   $ 3,127,677      
 
 
            $ 3,127,677      
 
 
 
 
Insured-Transportation — 5.5%
 
$ 2,520     New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), (BHAC), 0.00%, 12/15/26   $ 1,064,549      
  5,570     New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31     1,635,408      
  400     Port Authority of New York and New Jersey, (FGIC), (NPFG), (AMT), 5.00%, 8/1/36     391,892      
  315     South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33     339,447      
 
 
            $ 3,431,296      
 
 
 

 
See notes to financial statements

22


 

 
Eaton Vance New Jersey Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Water and Sewer — 4.7%
 
$ 3,090     New Jersey Economic Development Authority, (United Water New Jersey, Inc.), (AMBAC), (AMT), 4.875%, 11/1/25   $ 2,956,234      
 
 
            $ 2,956,234      
 
 
 
 
Lease Revenue / Certificates of Participation — 6.1%
 
$ 1,500     New Jersey Economic Development Authority, (School Facilities Construction), 5.25%, 12/15/33   $ 1,568,685      
  2,250     New Jersey Health Care Facilities Financing Authority, (Contract Hospital Asset Transportation Program), 5.25%, 10/1/38     2,281,590      
 
 
            $ 3,850,275      
 
 
 
 
Other Revenue — 7.5%
 
$ 7,200     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/50   $ 258,984      
  13,280     Children’s Trust Fund, PR, Tobacco Settlement, 0.00%, 5/15/55     243,821      
  2,700     New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(1)     2,784,132      
  600     New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48(1)     618,696      
  4,270     Tobacco Settlement Financing Corp., 0.00%, 6/1/41     215,379      
  900     Tobacco Settlement Financing Corp., 5.00%, 6/1/41     590,283      
 
 
            $ 4,711,295      
 
 
 
 
Senior Living / Life Care — 2.8%
 
$ 465     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 5.875%, 7/1/28   $ 443,503      
  770     New Jersey Economic Development Authority, (Cranes Mill, Inc.), 6.00%, 7/1/38     702,633      
  815     New Jersey Economic Development Authority, (Seabrook Village), 5.25%, 11/15/36     619,995      
 
 
            $ 1,766,131      
 
 
 
 
Solid Waste — 1.5%
 
$ 985     Cumberland County Improvement Authority, (Solid Waste System), 5.00%, 1/1/30   $ 966,600      
 
 
            $ 966,600      
 
 
 
 
Special Tax Revenue — 1.2%
 
$ 100     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/27   $ 88,795      
  175     New Jersey Economic Development Authority, (Newark Downtown District Management Corp.), 5.125%, 6/15/37     142,992      
  500     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     525,645      
 
 
            $ 757,432      
 
 
 
 
Student Loan — 0.9%
 
$ 510     New Jersey Higher Education Assistance Authority, 5.625%, 6/1/30   $ 534,271      
 
 
            $ 534,271      
 
 
 
 
Transportation — 16.1%
 
$ 250     New Jersey Transportation Trust Fund Authority, (Transportation System), 5.875%, 12/15/38   $ 270,093      
  815     New Jersey Transportation Trust Fund Authority, (Transportation System), 6.00%, 12/15/38     889,784      
  3,600     New Jersey Turnpike Authority, 5.25%, 1/1/40     3,715,344      
  980     Port Authority of New York and New Jersey, 4.50%, 11/1/33     961,654      
  1,000     Port Authority of New York and New Jersey, 5.00%, 9/1/34     1,021,320      
  1,995     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(1)     2,094,005      
  1,175     South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33     1,189,312      
 
 
            $ 10,141,512      
 
 
     
Total Tax-Exempt Investments — 168.5%
   
(identified cost $107,012,592)
  $ 105,837,292      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (53.2)%
  $ (33,426,215 )    
 
 
             
Other Assets, Less Liabilities — (15.3)%
  $ (9,618,585 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 62,792,492      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FGIC - Financial Guaranty Insurance Company

 
See notes to financial statements

23


 

 
Eaton Vance New Jersey Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
 
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 38.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.4% to 11.0% 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 as collateral for open swap contracts. The aggregate value of such collateral is $315,927.

 
See notes to financial statements

24


 

Eaton Vance New York Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 164.7%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.4%
 
$ 1,150     Suffolk County Industrial Development Agency, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23   $ 952,292      
 
 
            $ 952,292      
 
 
 
 
Education — 12.2%
 
$ 315     Geneva Industrial Development Agency, (Hobart & William Smith Project), 5.375%, 2/1/33   $ 317,482      
  1,210     New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/34     1,264,765      
  325     New York City Cultural Resource Trust, (The Juilliard School), 5.00%, 1/1/39     337,490      
  440     New York Dormitory Authority, (Brooklyn Law School), 5.75%, 7/1/33     451,713      
  1,000     New York Dormitory Authority, (Columbia University), 5.00%, 7/1/38(1)     1,055,290      
  510     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/34     535,944      
  2,000     New York Dormitory Authority, (Cornell University), 5.00%, 7/1/39     2,079,460      
  2,250     New York Dormitory Authority, (Rochester Institute of Technology), 6.00%, 7/1/33     2,466,247      
 
 
            $ 8,508,391      
 
 
 
 
Electric Utilities — 5.2%
 
$ 1,420     Long Island Power Authority, Electric System Revenue, 6.00%, 5/1/33   $ 1,593,609      
  2,100     Suffolk County Industrial Development Agency, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27     2,041,473      
 
 
            $ 3,635,082      
 
 
 
 
General Obligations — 11.2%
 
$ 6,000     New York City, 5.25%, 9/15/33(2)   $ 6,134,880      
  1,000     New York City, 6.25%, 10/15/28     1,165,020      
  570     Puerto Rico Public Buildings Authority, (Commonwealth Guaranteed), 5.25%, 7/1/29     550,364      
 
 
            $ 7,850,264      
 
 
 
 
Health Care-Miscellaneous — 6.4%
 
$ 1,115     New York City Industrial Development Agency, (A Very Special Place, Inc.), 5.75%, 1/1/29   $ 887,005      
  1,200     New York City Industrial Development Agency, (Ohel Children’s Home), 6.25%, 8/15/22     918,444      
  200     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37     181,036      
  50     Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class H, 7.50%, 9/1/15     50,696      
  100     Suffolk County Industrial Development Agency, (Alliance of Long Island Agencies), Series A, Class I, 7.50%, 9/1/15     101,393      
  2,600     Westchester County Industrial Development Agency, (Children’s Village), 5.375%, 3/15/19     2,291,900      
 
 
            $ 4,430,474      
 
 
 
 
Hospital — 28.8%
 
$ 175     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.35%, 11/15/17   $ 170,371      
  485     Chautauqua County Industrial Development Agency, (Women’s Christian Association), 6.40%, 11/15/29     421,484      
  1,250     Fulton County Industrial Development Agency, (Nathan Littauer Hospital), 6.00%, 11/1/18     1,164,088      
  2,500     Monroe County Industrial Development Agency, (Highland Hospital), 5.00%, 8/1/25     2,454,550      
  400     Nassau County Industrial Development Agency, (North Shore Health System), 6.25%, 11/1/21     411,752      
  1,500     New York Dormitory Authority, (Lenox Hill Hospital), 5.50%, 7/1/30     1,235,250      
  4,000     New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 5.00%, 7/1/36(2)     4,016,440      
  2,000     New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33     1,662,620      
  900     New York Dormitory Authority, (Mount Sinai Hospital), 5.50%, 7/1/26     900,513      
  845     New York Dormitory Authority, (North Shore Hospital), 5.00%, 11/1/34     797,857      
  1,250     New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37     1,211,650      
  415     New York Dormitory Authority, (Orange Regional Medical Center), 6.125%, 12/1/29     382,070      
  835     New York Dormitory Authority, (Orange Regional Medical Center), 6.25%, 12/1/37     740,937      
  680     New York Dormitory Authority, (St. Luke’s Roosevelt Hospital), 4.90%, 8/15/31     658,920      
  1,250     Oneida County Industrial Development Agency, (St. Elizabeth’s Medical Center), 5.75%, 12/1/19     1,143,138      
  650     Saratoga County Industrial Development Agency, (Saratoga Hospital), 5.25%, 12/1/32     604,903      
  2,105     Suffolk County Industrial Development Agency, (Huntington Hospital), 6.00%, 11/1/22     2,156,825      
 
 
            $ 20,133,368      
 
 
 

 
See notes to financial statements

25


 

 
Eaton Vance New York Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Housing — 17.1%
 
$ 1,500     New York City Housing Development Corp., MFMR, (AMT), 5.05%, 11/1/39   $ 1,439,625      
  2,620     New York City Housing Development Corp., MFMR, (AMT), 5.20%, 11/1/40     2,556,910      
  1,000     New York Housing Finance Agency, 5.25%, 11/1/41     1,004,380      
  2,625     New York Housing Finance Agency, (FNMA), (AMT), 5.40%, 11/15/42     2,665,635      
  1,500     New York Mortgage Agency, (AMT), 4.875%, 10/1/30     1,441,080      
  1,990     New York Mortgage Agency, (AMT), 4.90%, 10/1/37     1,847,417      
  1,000     New York Mortgage Agency, (AMT), 5.125%, 10/1/37     974,610      
 
 
            $ 11,929,657      
 
 
 
 
Industrial Development Revenue — 12.7%
 
$ 1,000     Essex County Industrial Development Agency, (International Paper Company), (AMT), 6.625%, 9/1/32   $ 1,009,440      
  2,525     Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(2)     2,494,619      
  1,500     New York Industrial Development Agency, (American Airlines, Inc. - JFK International Airport), (AMT), 8.00%, 8/1/12     1,485,255      
  440     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), 4.875%, 7/1/41     394,460      
  2,500     Onondaga County Industrial Development Agency, (Anheuser-Busch Cos., Inc.), (AMT), 6.25%, 12/1/34     2,500,700      
  670     Onondaga County Industrial Development Agency, (Senior Air Cargo), (AMT), 6.125%, 1/1/32     539,571      
  465     Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15     465,442      
 
 
            $ 8,889,487      
 
 
 
 
Insured-Education — 6.1%
 
$ 1,250     New York Dormitory Authority, (City University), (AMBAC), 5.50%, 7/1/35   $ 1,209,950      
  1,500     New York Dormitory Authority, (State University), (BHAC), 5.00%, 7/1/38     1,537,830      
  5,365     Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/33     1,519,046      
 
 
            $ 4,266,826      
 
 
 
Insured-Electric Utilities — 2.2%
 
$ 1,365     Long Island Power Authority, Electric System Revenue, (BHAC), 5.75%, 4/1/33   $ 1,518,017      
 
 
            $ 1,518,017      
 
 
 
 
Insured-General Obligations — 1.4%
 
$ 910     New Rochelle City School District, (AGC), 4.00%, 11/15/21   $ 938,993      
 
 
            $ 938,993      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 4.3%
 
$ 3,600     Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47   $ 2,990,412      
 
 
            $ 2,990,412      
 
 
 
 
Insured-Other Revenue — 2.6%
 
$ 2,645     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/31   $ 784,692      
  3,625     New York City Industrial Development Agency, (Yankee Stadium), (AGC), 0.00%, 3/1/32     1,009,091      
 
 
            $ 1,793,783      
 
 
 
 
Insured-Special Tax Revenue — 7.9%
 
$ 1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45   $ 904,630      
  1,000     New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44     947,910      
  4,440     Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/34     748,851      
  19,745     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     1,203,655      
  3,380     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     428,347      
  6,705     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     795,548      
  4,225     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     466,736      
 
 
            $ 5,495,677      
 
 
 
 
Insured-Transportation — 5.8%
 
$ 4,060     Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (NPFG), (AMT), 5.625%, 4/1/29   $ 4,064,060      
 
 
            $ 4,064,060      
 
 
 

 
See notes to financial statements

26


 

 
Eaton Vance New York Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Insured-Water and Sewer — 1.3%
 
$ 1,000     Nassau County Industrial Development Agency, (Water Services Corp.), (AMBAC), (AMT), 5.00%, 12/1/35   $ 908,180      
 
 
            $ 908,180      
 
 
 
 
Lease Revenue / Certificates of Participation — 4.7%
 
$ 2,345     New York City Transitional Finance Authority, (Building Aid), 4.50%, 1/15/38   $ 2,229,978      
  1,000     New York City Transitional Finance Authority, (Building Aid), 5.50%, 7/15/31     1,081,170      
 
 
            $ 3,311,148      
 
 
 
 
Other Revenue — 1.4%
 
$ 1,285     Albany Industrial Development Agency, Civic Facility, (Charitable Leadership), 5.75%, 7/1/26   $ 1,004,150      
 
 
            $ 1,004,150      
 
 
 
 
Senior Living / Life Care — 3.0%
 
$ 1,450     Mount Vernon Industrial Development Agency, (Wartburg Senior Housing, Inc.), 6.20%, 6/1/29   $ 1,310,510      
  900     Suffolk County Industrial Development Agency, (Jefferson’s Ferry Project), 5.00%, 11/1/28     802,710      
 
 
            $ 2,113,220      
 
 
 
 
Special Tax Revenue — 2.3%
 
$ 1,000     New York Dormitory Authority, Personal Income Tax Revenue, (University & College Improvements), 5.25%, 3/15/38   $ 1,043,250      
  545     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     572,953      
 
 
            $ 1,616,203      
 
 
 
 
Transportation — 16.3%
 
$ 1,685     Metropolitan Transportation Authority, 4.50%, 11/15/37   $ 1,542,247      
  3,120     Metropolitan Transportation Authority, 4.50%, 11/15/38     2,847,031      
  1,900     Port Authority of New York and New Jersey, 5.00%, 11/15/37(2)     1,942,513      
  1,190     Port Authority of New York and New Jersey, (AMT), 4.75%, 6/15/33     1,141,127      
  990     Port Authority of New York and New Jersey, (AMT), 5.75%, 3/15/35(2)     1,039,130      
  2,750     Triborough Bridge and Tunnel Authority, 5.25%, 11/15/34     2,900,617      
 
 
            $ 11,412,665      
 
 
 
 
Water and Sewer — 10.4%
 
$ 585     Dutchess County Water and Wastewater Authority, 0.00%, 10/1/34   $ 153,135      
  325     Dutchess County Water and Wastewater Authority, 0.00%, 10/1/35     79,398      
  3,105     New York City Municipal Water Finance Authority, (Water and Sewer System), 5.75%, 6/15/40(2)     3,412,540      
  2,535     New York Environmental Facilities Corp., Clean Water and Drinking Water, (Municipal Water Finance Authority), 5.00%, 6/15/37(2)     2,611,329      
  1,000     Saratoga County Water Authority, 5.00%, 9/1/48     1,006,410      
 
 
            $ 7,262,812      
 
 
     
Total Tax-Exempt Investments — 164.7%
   
(identified cost $117,759,739)
  $ 115,025,161      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (48.3)%
  $ (33,726,635 )    
 
 
             
Other Assets, Less Liabilities — (16.4)%
  $ (11,441,827 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 69,856,699      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
FNMA - Federal National Mortgage Association
 
MFMR - Multi-Family Mortgage Revenue
 
NPFG - National Public Finance Guaranty Corp.
 
The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 19.1% 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 2.4% to 8.9% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

27


 

Eaton Vance Ohio Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 154.1%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Cogeneration — 1.4%
 
$ 385     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 5.875%, 9/1/20   $ 359,602      
  200     Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 6.625%, 9/1/20     197,632      
 
 
            $ 557,234      
 
 
 
 
Electric Utilities — 0.8%
 
$ 310     Clyde, Electric System Revenue, (AMT), 6.00%, 11/15/14   $ 311,017      
 
 
            $ 311,017      
 
 
 
 
Escrowed / Prerefunded — 14.5%
 
$ 1,000     Delaware County, Prerefunded to 12/1/10, 6.00%, 12/1/25   $ 1,067,220      
  1,000     Mahoning County, (Career and Technical Center), Prerefunded to 12/1/11, 6.25%, 12/1/36     1,104,640      
  2,530     Puerto Rico Infrastructure Financing Authority, Prerefunded to 10/1/10, 5.50%, 10/1/32     2,666,671      
  670     Richland County Hospital Facilities, (MedCentral Health Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22     714,655      
 
 
            $ 5,553,186      
 
 
 
 
General Obligations — 12.3%
 
$ 1,000     Barberton City School District, 4.50%, 12/1/33   $ 954,770      
  1,090     Central Ohio Solid Waste Authority, 5.125%, 9/1/27     1,169,744      
  500     Columbus, 5.00%, 7/1/23(1)     532,820      
  1,000     Columbus City School District, 5.00%, 12/1/29     1,059,760      
  1,000     Maple Heights City School District, 5.00%, 1/15/37     981,010      
 
 
            $ 4,698,104      
 
 
 
 
Health Care-Miscellaneous — 0.2%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 90,518      
 
 
            $ 90,518      
 
 
 
 
Hospital — 11.5%
 
$ 1,245     Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32   $ 1,127,410      
  500     Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26     502,705      
  500     Montgomery County, (Catholic Health Initiatives), 5.50%, 5/1/34     517,055      
  1,000     Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.50%, 1/1/39     1,025,820      
  1,000     Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 4.75%, 1/15/46     878,550      
  330     Richland County Hospital Facilities, (MedCentral Health Systems), 6.375%, 11/15/22     337,520      
 
 
            $ 4,389,060      
 
 
 
 
Housing — 12.3%
 
$ 1,000     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.625%, 9/1/27   $ 952,740      
  790     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 4.75%, 3/1/37     719,200      
  600     Ohio Housing Finance Agency, (Residential Mortgage Backed Securities), (AMT), 5.00%, 9/1/31     583,668      
  2,500     Ohio Housing Finance Agency, (Uptown Community Partners), (AMT), 5.25%, 4/20/48     2,450,900      
 
 
            $ 4,706,508      
 
 
 
 
Industrial Development Revenue — 9.1%
 
$ 1,385     Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27   $ 1,028,127      
  2,250     Ohio Water Development Authority, (Anheuser-Busch Cos., Inc.), (AMT), 6.00%, 8/1/38     2,249,775      
  225     Ohio Water Development Authority, Solid Waste Disposal, (Allied Waste North America, Inc.), (AMT), 5.15%, 7/15/15     223,902      
 
 
            $ 3,501,804      
 
 
 
 
Insured-Education — 9.6%
 
$ 1,000     Kent State University, (AGC), 5.00%, 5/1/26   $ 1,050,550      
  730     Miami University, (AMBAC), 3.25%, 9/1/26     614,667      
  1,500     University of Akron, Series A, (FSA), 5.00%, 1/1/38     1,520,850      
  500     University of Akron, Series B, (FSA), 5.00%, 1/1/38     509,300      
 
 
            $ 3,695,367      
 
 
 
 
Insured-Electric Utilities — 16.9%
 
$ 1,000     American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39   $ 1,051,630      
  710     Cleveland Public Power System, (NPFG), 0.00%, 11/15/27     300,586      

 
See notes to financial statements

28


 

 
Eaton Vance Ohio Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Electric Utilities (continued)
 
                     
$ 2,000     Cleveland Public Power System, (NPFG), 0.00%, 11/15/38   $ 428,200      
  830     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25     370,196      
  3,000     Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/26     1,250,970      
  2,195     Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34     2,106,519      
  210     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/30     211,044      
  250     Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/34     241,290      
  500     Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26     517,960      
 
 
            $ 6,478,395      
 
 
 
 
Insured-Escrowed / Prerefunded — 4.8%
 
$ 245     Cuyahoga County Hospital, (Cleveland Clinic Health System), (NPFG), Escrowed to Maturity, 5.125%, 1/1/29   $ 245,919      
  1,000     Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), Prerefunded to 12/1/10, 5.50%, 12/1/30     1,058,340      
  500     University of Cincinnati, (FGIC), Prerefunded to 6/1/11, 5.25%, 6/1/24     540,200      
 
 
            $ 1,844,459      
 
 
 
 
Insured-General Obligations — 16.3%
 
$ 280     Bowling Green City School District, (FSA), 5.00%, 12/1/34   $ 284,197      
  200     Brookfield Local School District, (FSA), 5.00%, 1/15/30     208,390      
  500     Buckeye Valley Local School District, (AGC), 5.00%, 12/1/36     503,605      
  2,455     Canal Winchester Local School District, (NPFG), 0.00%, 12/1/30     811,304      
  1,500     Madeira City School District, (FSA), 3.50%, 12/1/27     1,350,675      
  1,750     Milford Exempt Village School District, (AGC), 5.25%, 12/1/36     1,820,000      
  750     St. Mary’s School District, (FSA), 5.00%, 12/1/35     756,720      
  500     Wadsworth City School District, (AGC), 5.00%, 12/1/37     505,915      
 
 
            $ 6,240,806      
 
 
 
 
Insured-Hospital — 6.7%
 
$ 590     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32   $ 560,223      
  1,500     Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28     1,503,810      
  485     Lorain County, (Catholic Healthcare Partners), (FSA), Variable Rate, 17.583%, 2/1/29(2)(3)(4)     498,231      
 
 
            $ 2,562,264      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 1.3%
 
$ 500     Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33   $ 495,855      
 
 
            $ 495,855      
 
 
 
 
Insured-Special Tax Revenue — 3.8%
 
$ 9,905     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54   $ 603,809      
  1,690     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     214,174      
  3,350     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     397,477      
  2,100     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46     231,987      
 
 
            $ 1,447,447      
 
 
 
 
Insured-Transportation — 7.2%
 
$ 385     Cleveland Airport System, (FSA), 5.00%, 1/1/31   $ 385,104      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/24     1,175,610      
  1,000     Ohio Turnpike Commission, (FGIC), (NPFG), 5.50%, 2/15/26     1,184,180      
 
 
            $ 2,744,894      
 
 
 
 
Insured-Water and Sewer — 2.4%
 
$ 250     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46   $ 230,185      
  750     Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47     686,933      
 
 
            $ 917,118      
 
 
 
 
Lease Revenue / Certificates of Participation — 1.4%
 
$ 500     Franklin County Convention Facilities Authority, 5.00%, 12/1/27   $ 540,530      
 
 
            $ 540,530      
 
 
 

 
See notes to financial statements

29


 

 
Eaton Vance Ohio Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Other Revenue — 4.5%
 
$ 7,345     Buckeye Tobacco Settlement Financing Authority, 0.00%, 6/1/47   $ 305,625      
  710     Buckeye Tobacco Settlement Financing Authority, 5.875%, 6/1/47     505,726      
  1,000     Riversouth Authority, (Lazarus Building Redevelopment), 5.75%, 12/1/27     900,530      
 
 
            $ 1,711,881      
 
 
 
 
Pooled Loans — 10.8%
 
$ 550     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 4.85%, 6/1/25   $ 557,683      
  1,020     Ohio Economic Development Commission, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22     1,060,790      
  1,245     Rickenbacher Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5)     1,301,855      
  310     Summit County Port Authority, (Twinsburg Township), 5.125%, 5/15/25     255,239      
  1,100     Toledo-Lucas County Port Authority, 5.40%, 5/15/19     953,128      
 
 
            $ 4,128,695      
 
 
 
 
Special Tax Revenue — 6.3%
 
$ 520     Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18   $ 528,850      
  1,380     Cuyahoga County Economic Development, (Shaker Square), 6.75%, 12/1/30     1,429,735      
  155     Guam, Limited Obligation Bonds, 5.625%, 12/1/29     157,310      
  170     Guam, Limited Obligation Bonds, 5.75%, 12/1/34     173,499      
  110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37     115,642      
 
 
            $ 2,405,036      
 
 
     
Total Tax-Exempt Investments — 154.1%
   
(identified cost $58,836,479)
  $ 59,020,178      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (59.3)%
  $ (22,726,652 )    
 
 
             
Other Assets, Less Liabilities — 5.2%
  $ 2,001,931      
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 38,295,457      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
XLCA - XL Capital Assurance, Inc.
 
The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 44.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 16.3% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $1,455,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
 
(3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2009, the aggregate value of the securities is $498,231 or 1.3% of the Trust’s net assets applicable to common shares.
 
(4) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2009.
 
(5) Security represents the underlying municipal bond of an inverse floater (see Note 1H).

 
See notes to financial statements

30


 

Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS
 
                     
Tax-Exempt Investments — 160.7%
 
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Bond Bank — 3.1%
 
$ 1,000     Delaware Valley Regional Finance Authority, 5.75%, 7/1/32   $ 1,124,130      
 
 
            $ 1,124,130      
 
 
 
 
Cogeneration — 3.7%
 
$ 160     Carbon County Industrial Development Authority, (Panther Creek Partners), (AMT), 6.65%, 5/1/10   $ 161,334      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.50%, 1/1/13     328,115      
  500     Pennsylvania Economic Development Financing Authority, (Northampton Generating), (AMT), 6.60%, 1/1/19     324,955      
  575     Pennsylvania Economic Development Financing Authority, (Resource Recovery-Colver), (AMT), 5.125%, 12/1/15     520,243      
 
 
            $ 1,334,647      
 
 
 
 
Education — 5.9%
 
$ 500     Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/39   $ 500,345      
  1,200     Cumberland County Municipal Authority, (Dickinson College), 5.00%, 11/1/39     1,137,612      
  500     Northampton County General Purpose Authority, (Lehigh University), 5.00%, 11/15/39     509,045      
 
 
            $ 2,147,002      
 
 
 
 
Electric Utilities — 2.9%
 
$ 435     Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36   $ 430,628      
  600     York County Industrial Development Authority, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20     610,854      
 
 
            $ 1,041,482      
 
 
 
 
Escrowed / Prerefunded — 1.9%
 
$ 600     Bucks County Industrial Development Authority, (Pennswood), Prerefunded to 10/1/12, 6.00%, 10/1/27   $ 688,680      
 
 
            $ 688,680      
 
 
 
General Obligations — 7.3%
 
$ 500     Chester County, 5.00%, 7/15/27(1)   $ 556,280      
  1,000     Daniel Boone Area School District, 5.00%, 8/15/32     1,026,920      
  1,000     Philadelphia School District, 6.00%, 9/1/38     1,078,920      
 
 
            $ 2,662,120      
 
 
 
 
Health Care-Miscellaneous — 0.3%
 
$ 100     Puerto Rico Infrastructure Financing Authority, (Mepsi Campus Project), 6.50%, 10/1/37   $ 90,518      
 
 
            $ 90,518      
 
 
 
 
Hospital — 19.5%
 
$ 500     Allegheny County Hospital Development Authority, (University of Pittsburgh Medical Center), 5.50%, 8/15/34   $ 495,950      
  750     Dauphin County General Authority, (Pinnacle Health System), 6.00%, 6/1/29     783,105      
  1,215     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32     1,188,221      
  750     Lycoming County Authority, (Susquehanna Health System), 5.75%, 7/1/39     721,133      
  1,500     Monroe County Hospital Authority, (Pocono Medical Center), 5.25%, 1/1/43     1,385,325      
  1,000     Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania Health System), 6.00%, 8/15/26(2)     1,120,015      
  850     Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31     876,605      
  500     Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17     514,150      
 
 
            $ 7,084,504      
 
 
 
 
Housing — 16.6%
 
$ 515     Allegheny County Residential Finance Authority, SFMR, (AMT), 4.95%, 11/1/37   $ 486,072      
  1,170     Allegheny County Residential Finance Authority, SFMR, (AMT), 5.00%, 5/1/35     1,161,623      
  935     Pennsylvania Housing Finance Agency, (AMT), 4.70%, 10/1/37     838,882      
  1,200     Pennsylvania Housing Finance Agency, (AMT), 4.875%, 4/1/26     1,174,788      
  500     Pennsylvania Housing Finance Agency, (AMT), 4.875%, 10/1/31     479,530      
  1,000     Pennsylvania Housing Finance Agency, (AMT), 4.90%, 10/1/37     949,020      
  970     Pennsylvania Housing Finance Agency, (AMT), 5.15%, 10/1/37     942,006      
 
 
            $ 6,031,921      
 
 
 

 
See notes to financial statements

31


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
 
Industrial Development Revenue — 11.4%
 
$ 200     Luzerne County Industrial Development Authority, (Pennsylvania-American Water Co.), 5.50%, 12/1/39(3)   $ 200,932      
  750     Montgomery County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (AMT), 5.25%, 7/1/42     705,292      
  500     New Morgan Industrial Development Authority, (Browning-Ferris Industries, Inc.), (AMT), 6.50%, 4/1/19     500,010      
  250     Pennsylvania Economic Development Financing Authority, (Pennsylvania-American Water Co.), 6.20%, 4/1/39     267,330      
  1,000     Pennsylvania Economic Development Financing Authority, (Procter & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31     1,011,960      
  500     Pennsylvania Economic Development Financing Authority, Solid Waste Disposal, (Waste Management, Inc.), (AMT), 5.10%, 10/1/27     455,680      
  1,550     Puerto Rico Port Authority, (American Airlines, Inc.), (AMT), 6.25%, 6/1/26     983,320      
 
 
            $ 4,124,524      
 
 
 
 
Insured-Education — 16.7%
 
$ 500     Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37   $ 515,120      
  1,675     Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32     1,588,302      
  1,115     Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37     1,123,653      
  1,000     Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 5.00%, 4/1/33     1,015,120      
  500     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/27     530,750      
  375     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/29     392,936      
  875     State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/32     898,345      
 
 
            $ 6,064,226      
 
 
 
 
Insured-Electric Utilities — 1.1%
 
$ 400     Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC) (NPFG), 4.75%, 2/15/27   $ 393,052      
 
 
            $ 393,052      
 
 
 
Insured-Escrowed / Prerefunded — 8.4%
 
$ 1,600     Pennsylvania Turnpike Commission, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27   $ 1,604,976      
  2,000     Westmoreland Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19     1,429,260      
 
 
            $ 3,034,236      
 
 
 
 
Insured-General Obligations — 2.3%
 
$ 500     Beaver County, (FSA), 5.55%, 11/15/31   $ 534,370      
  300     West Mifflin Area School District, (FSA), 5.125%, 4/1/31     312,195      
 
 
            $ 846,565      
 
 
 
 
Insured-Hospital — 14.5%
 
$ 250     Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24   $ 276,480      
  450     Delaware County General Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26     429,737      
  1,440     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (FSA), 5.00%, 7/1/35(2)     1,397,491      
  1,285     Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (NPFG), 5.25%, 7/1/29(4)     1,215,777      
  2,000     Montgomery County Higher Education and Health Authority, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28     1,938,960      
 
 
            $ 5,258,445      
 
 
 
 
Insured-Lease Revenue / Certificates of Participation — 7.2%
 
$ 500     Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31   $ 513,705      
  1,195     Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (FSA), 4.75%, 2/15/27     1,228,460      
  750     Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27     885,728      
 
 
            $ 2,627,893      
 
 
 
 
Insured-Special Tax Revenue — 6.8%
 
$ 1,000     Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24   $ 999,930      
  9,870     Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54     601,675      
  1,690     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44     214,174      
  3,350     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45     397,477      

 
See notes to financial statements

32


 

 
Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2009
 
PORTFOLIO OF INVESTMENTS CONT’D
 
                     
Principal Amount
               
(000’s omitted)       Security   Value      
 
 
Insured-Special Tax Revenue (continued)
 
                     
$ 2,100     Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46   $ 231,987      
 
 
            $ 2,445,243      
 
 
 
 
Insured-Transportation — 14.8%
 
$ 1,000     Pennsylvania Turnpike Commission, (AGC), 5.00%, 6/1/38   $ 993,980      
  1,000     Pennsylvania Turnpike Commission, (AGC), 5.00%, 6/1/39     993,280      
  500     Philadelphia, Airport Revenue, (FSA), (AMT), 5.00%, 6/15/27     494,235      
  1,005     Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29     1,005,482      
  1,800     Puerto Rico Highway and Transportation Authority, (AGC) (CIFG), 5.25%, 7/1/41(2)     1,863,729      
 
 
            $ 5,350,706      
 
 
 
 
Insured-Water and Sewer — 7.0%
 
$ 275     Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22   $ 294,162      
  585     Chester County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 2/1/40     546,191      
  875     Delaware County Industrial Development Authority, (Aqua Pennsylvania, Inc.), (FGIC), (NPFG), (AMT), 5.00%, 11/1/36     824,408      
  500     Delaware County Industrial Development Authority, (Water Facilities), (FGIC), (NPFG), (AMT), 6.00%, 6/1/29     502,150      
  360     Philadelphia Water and Wastewater Revenue, (FGIC), (NPFG), 5.00%, 11/1/31     361,440      
 
 
            $ 2,528,351      
 
 
 
 
Senior Living / Life Care — 3.9%
 
$ 1,000     Cliff House Trust, (AMT), 6.625%, 6/1/27(5)   $ 543,020      
  500     Lancaster County Hospital Authority, (Willow Valley Retirement Communities), 5.875%, 6/1/31     505,865      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24     192,842      
  200     Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30     182,070      
 
 
            $ 1,423,797      
 
 
 
 
Special Tax Revenue — 0.3%
 
$ 110     Virgin Islands Public Finance Authority, 6.75%, 10/1/37   $ 115,642      
 
 
            $ 115,642      
 
 
 
Transportation — 2.9%
 
$ 270     Pennsylvania Economic Development Financing Authority, (Amtrak), (AMT), 6.25%, 11/1/31   $ 272,387      
  750     Pennsylvania Turnpike Commission,
5.625%, 6/1/29
    793,852      
 
 
            $ 1,066,239      
 
 
 
 
Water and Sewer — 2.2%
 
$ 750     Harrisburg Water Authority, 5.25%, 7/15/31   $ 787,613      
 
 
            $ 787,613      
 
 
     
Total Tax-Exempt Investments — 160.7%
   
(identified cost $59,221,532)
  $ 58,271,536      
 
 
     
Auction Preferred Shares Plus Cumulative
   
Unpaid Dividends — (58.4)%
  $ (21,176,855 )    
 
 
             
Other Assets, Less Liabilities — (2.3)%
  $ (839,481 )    
 
 
             
Net Assets Applicable to Common Shares — 100.0%
  $ 36,255,200      
 
 
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.
 
AGC - Assured Guaranty Corp.
 
AMBAC - AMBAC Financial Group, Inc.
 
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
 
BHAC - Berkshire Hathaway Assurance Corp.
 
CIFG - CIFG Assurance North America, Inc.
 
FGIC - Financial Guaranty Insurance Company
 
FSA - Financial Security Assurance, Inc.
 
NPFG - National Public Finance Guaranty Corp.
 
SFMR - Single Family Mortgage Revenue
 
The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2009, 49.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 15.5% of total investments.
 
(1) Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
 
(2) Security represents the underlying municipal bond of an inverse floater (see Note 1H).
 
(3) When-issued security.
 
(4) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
 
(5) Security is in default and is making only partial interest payments.

 
See notes to financial statements

33


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS
 
Statements of Assets and Liabilities
 
                                     
As of November 30, 2009   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Assets
 
Investments —
                                   
Identified cost
  $ 161,701,966     $ 61,746,448     $ 44,152,713     $ 107,012,592      
Unrealized depreciation
    (5,664,646 )     (1,271,173 )     (1,234,472 )     (1,175,300 )    
 
 
Investments, at value
  $ 156,037,320     $ 60,475,275     $ 42,918,241     $ 105,837,292      
 
 
Cash
  $     $     $ 1,479,025     $ 485,064      
Interest receivable
    2,022,442       1,083,377       601,114       1,704,359      
Receivable for investments sold
    9,500                   1,031,678      
Deferred debt issuance costs
    34,074       4,725             4,368      
 
 
Total assets
  $ 158,103,336     $ 61,563,377     $ 44,998,380     $ 109,062,761      
 
 
                                     
                                     
 
Liabilities
 
Payable for floating rate notes issued
  $ 18,945,000     $ 3,880,000     $     $ 12,572,000      
Payable for variation margin on open financial futures contracts
    6,750             656            
Payable for open swap contracts
    123,610       45,308       13,675       79,238      
Due to custodian
    95,458       463,481                  
Payable to affiliates:
                                   
Investment adviser fee
    85,495       31,887       25,886       57,950      
Administration fee
    22,959       9,624       7,396       13,649      
Trustees’ fees
    1,023       449       371       713      
Interest expense and fees payable
    33,663       8,940             38,844      
Accrued expenses
    92,278       61,225       57,879       81,660      
 
 
Total liabilities
  $ 19,406,236     $ 4,500,914     $ 105,863     $ 12,844,054      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 49,976,817     $ 20,051,756     $ 17,500,850     $ 33,426,215      
 
 
Net assets applicable to common shares
  $ 88,720,283     $ 37,010,707     $ 27,391,667     $ 62,792,492      
 
 
                                     
                                     
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 71,958     $ 27,244     $ 21,163     $ 46,275      
Additional paid-in capital
    104,374,378       39,685,494       30,947,836       66,507,684      
Accumulated net realized loss
    (10,828,755 )     (1,886,042 )     (2,645,922 )     (3,384,599 )    
Accumulated undistributed net investment income
    1,086,959       500,492       336,851       877,670      
Net unrealized depreciation
    (5,984,257 )     (1,316,481 )     (1,268,261 )     (1,254,538 )    
 
 
Net assets applicable to common shares
  $ 88,720,283     $ 37,010,707     $ 27,391,667     $ 62,792,492      
 
 
                                     
                                     
                                     
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,999       802       700       1,337      
 
 
                                     
                                     
 
Common Shares Outstanding
 
      7,195,830       2,724,361       2,116,294       4,627,486      
 
 
                                     
                                     
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 12.33     $ 13.59     $ 12.94     $ 13.57      
 
 

 
See notes to financial statements

34


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Assets and Liabilities
 
                             
As of November 30, 2009   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Assets
 
Investments —
                           
Identified cost
  $ 117,759,739     $ 58,836,479     $ 59,221,532      
Unrealized appreciation (depreciation)
    (2,734,578 )     183,699       (949,996 )    
 
 
Investments, at value
  $ 115,025,161     $ 59,020,178     $ 58,271,536      
 
 
Cash
  $ 4,448,672     $ 865,127     $ 861,037      
Interest receivable
    1,666,184       980,941       939,645      
Receivable for investments sold
    34,945       1,130,000       59,968      
Deferred debt issuance costs
    27,566                  
 
 
Total assets
  $ 121,202,528     $ 61,996,246     $ 60,132,186      
 
 
                             
                             
 
Liabilities
 
Payable for floating rate notes issued
  $ 17,220,000     $ 830,000     $ 2,370,000      
Payable for when-issued securities
                200,000      
Payable for variation margin on open financial futures contracts
    5,625       1,500       4,688      
Payable for open swap contracts
    183,002       28,297       2,984      
Payable to affiliates:
                           
Investment adviser fee
    65,904       35,514       33,843      
Administration fee
    18,830       10,147       9,670      
Trustees’ fees
    808       470       459      
Interest expense and fees payable
    34,697       4,093       12,988      
Accrued expenses
    90,328       64,116       65,499      
 
 
Total liabilities
  $ 17,619,194     $ 974,137     $ 2,700,131      
 
 
Auction preferred shares at liquidation value plus cumulative unpaid dividends
  $ 33,726,635     $ 22,726,652     $ 21,176,855      
 
 
Net assets applicable to common shares
  $ 69,856,699     $ 38,295,457     $ 36,255,200      
 
 
                             
                             
 
Sources of Net Assets
 
Common shares, $0.01 par value, unlimited number of shares authorized
  $ 54,083     $ 28,330     $ 27,097      
Additional paid-in capital
    78,479,139       40,606,053       38,479,586      
Accumulated net realized loss
    (6,334,145 )     (2,957,058 )     (1,595,074 )    
Accumulated undistributed net investment income
    738,537       506,527       420,183      
Net unrealized appreciation (depreciation)
    (3,080,915 )     111,605       (1,076,592 )    
 
 
Net assets applicable to common shares
  $ 69,856,699     $ 38,295,457     $ 36,255,200      
 
 
                             
                             
                             
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,349       909       847      
 
 
                             
                             
 
Common Shares Outstanding
 
      5,408,323       2,833,026       2,709,670      
 
 
                             
                             
 
Net Asset Value Per Common Share
 
Net assets applicable to common shares ¸ common shares issued and outstanding
  $ 12.92     $ 13.52     $ 13.38      
 
 

 
See notes to financial statements

35


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Operations
 
                                     
For the Year Ended November 30, 2009   California Trust     Massachusetts Trust     Michigan Trust     New Jersey Trust      
 
 
 
Investment Income
 
Interest
  $ 8,570,653     $ 3,295,176     $ 2,514,570     $ 5,719,234      
 
 
Total investment income
  $ 8,570,653     $ 3,295,176     $ 2,514,570     $ 5,719,234      
 
 
                                     
                                     
 
Expenses
 
Investment adviser fee
  $ 982,945     $ 384,156     $ 301,051     $ 650,257      
Administration fee
    280,841       109,245       86,014       185,787      
Trustees’ fees and expenses
    6,329       2,776       2,322       4,325      
Custodian fee
    59,932       32,407       29,844       53,766      
Transfer and dividend disbursing agent fees
    19,344       22,048       19,039       23,052      
Legal and accounting services
    64,743       45,585       44,184       66,555      
Printing and postage
    15,454       10,329       11,490       15,995      
Interest expense and fees
    190,627       46,682       15,377       129,955      
Preferred shares service fee
    87,100       35,014       29,874       59,156      
Miscellaneous
    55,585       28,073       32,065       39,443      
 
 
Total expenses
  $ 1,762,900     $ 716,315     $ 571,260     $ 1,228,291      
 
 
Deduct —
                                   
Reduction of custodian fee
  $ 1,613     $ 475     $ 249     $ 1,475      
 
 
Total expense reductions
  $ 1,613     $ 475     $ 249     $ 1,475      
 
 
                                     
Net expenses
  $ 1,761,287     $ 715,840     $ 571,011     $ 1,226,816      
 
 
                                     
Net investment income
  $ 6,809,366     $ 2,579,336     $ 1,943,559     $ 4,492,418      
 
 
                                     
                                     
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                                   
Investment transactions
  $ (920,349 )   $ 37,626     $ (166,028 )   $ (1,496,039 )    
Financial futures contracts
    (503,659 )           (63,208 )          
Swap contracts
    (2,832,578 )     (1,033,694 )     (131,401 )     (1,815,619 )    
 
 
Net realized loss
  $ (4,256,586 )   $ (996,068 )   $ (360,637 )   $ (3,311,658 )    
 
 
Change in unrealized appreciation (depreciation) —
                                   
Investments
  $ 17,229,689     $ 8,823,280     $ 4,359,788     $ 19,961,300      
Financial futures contracts
    153,248             22,668            
Swap contracts
    3,544,367       1,295,442       200,560       2,271,930      
 
 
Net change in unrealized appreciation (depreciation)
  $ 20,927,304     $ 10,118,722     $ 4,583,016     $ 22,233,230      
 
 
                                     
Net realized and unrealized gain
  $ 16,670,718     $ 9,122,654     $ 4,222,379     $ 18,921,572      
 
 
Distributions to preferred shareholders —
                                   
From net investment income
  $ (335,254 )   $ (133,574 )   $ (117,661 )   $ (221,791 )    
 
 
Net increase in net assets from operations
  $ 23,144,830     $ 11,568,416     $ 6,048,277     $ 23,192,199      
 
 

 
See notes to financial statements

36


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Operations
 
                             
For the Year Ended November 30, 2009   New York Trust     Ohio Trust     Pennsylvania Trust      
 
 
 
Investment Income
 
Interest
  $ 6,538,663     $ 3,396,426     $ 3,280,201      
 
 
Total investment income
  $ 6,538,663     $ 3,396,426     $ 3,280,201      
 
 
                             
                             
 
Expenses
 
Investment adviser fee
  $ 741,770     $ 405,180     $ 388,335      
Administration fee
    211,934       115,766       110,953      
Trustees’ fees and expenses
    4,869       2,925       2,814      
Custodian fee
    45,370       35,274       35,448      
Transfer and dividend disbursing agent fees
    19,530       19,400       23,271      
Legal and accounting services
    80,673       49,349       50,617      
Printing and postage
    18,255       12,579       13,588      
Interest expense and fees
    147,215       7,432       68,391      
Preferred shares service fee
    57,488       38,280       36,863      
Miscellaneous
    39,105       36,693       37,496      
 
 
Total expenses
  $ 1,366,209     $ 722,878     $ 767,776      
 
 
Deduct —
                           
Reduction of custodian fee
  $ 1,831     $ 236     $ 1,000      
 
 
Total expense reductions
  $ 1,831     $ 236     $ 1,000      
 
 
                             
Net expenses
  $ 1,364,378     $ 722,642     $ 766,776      
 
 
                             
Net investment income
  $ 5,174,285     $ 2,673,784     $ 2,513,425      
 
 
                             
                             
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) —
                           
Investment transactions
  $ (1,994,240 )   $ (42,966 )   $ 624,027      
Financial futures contracts
    208,191       (132,657 )     (83,946 )    
Swap contracts
    (1,699,763 )     (692,404 )     (384,794 )    
 
 
Net realized gain (loss)
  $ (3,485,812 )   $ (868,027 )   $ 155,287      
 
 
Change in unrealized appreciation (depreciation) —
                           
Investments
  $ 19,464,909     $ 8,304,061     $ 7,174,474      
Financial futures contracts
    203,232       31,248       150,592      
Swap contracts
    2,593,901       945,807       581,166      
 
 
Net change in unrealized appreciation (depreciation)
  $ 22,262,042     $ 9,281,116     $ 7,906,232      
 
 
                             
Net realized and unrealized gain
  $ 18,776,230     $ 8,413,089     $ 8,061,519      
 
 
Distributions to preferred shareholders —
                           
From net investment income
  $ (225,861 )   $ (154,413 )   $ (143,754 )    
 
 
Net increase in net assets from operations
  $ 23,724,654     $ 10,932,460     $ 10,431,190      
 
 

 
See notes to financial statements

37


 

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

 
See notes to financial statements

38


 

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

 
See notes to financial statements

39


 

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

 
See notes to financial statements

40


 

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

 
See notes to financial statements

41


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Statements of Cash Flows
 
                             
For the Year Ended November 30, 2009                      
Cash Flows From Operating Activities   California Trust     New Jersey Trust     New York Trust      
 
Net increase in net assets from operations
  $ 23,144,830     $ 23,192,199     $ 23,724,654      
Distributions to preferred shareholders
    335,254       221,791       225,861      
 
 
Net increase in net assets from operations excluding distributions to preferred shareholders
  $ 23,480,084     $ 23,413,990     $ 23,950,515      
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:
                           
Investments purchased
    (32,532,391 )     (47,185,162 )     (21,696,556 )    
Investments sold
    26,450,161       47,481,277       24,546,572      
Net accretion/amortization of premium (discount)
    (1,455,680 )     (755,931 )     (496,548 )    
Amortization of deferred debt issuance costs
    7,003       1,363       17,354      
Increase in interest receivable
    (96,014 )     (214,465 )     (3,564 )    
Increase in receivable for investments sold
    (1,000 )     (1,031,678 )     (4,945 )    
Decrease in payable for variation margin on open financial future contracts
    (44,297 )           (47,953 )    
Decrease in payable for open swap contracts
    (3,544,367 )     (2,271,930 )     (2,593,901 )    
Increase in payable to affiliate for investment adviser fee
    6,988       8,947       8,264      
Increase (decrease) in payable to affiliate for administration fee
    1,395       (352 )     2,361      
Increase in payable to affiliate for Trustees’ fees
    187       147       162      
Decrease in interest expense and fees payable
    (61,235 )     (39,078 )     (82,581 )    
Increase (decrease) in accrued expenses
    (10,696 )     6,252       (6,226 )    
Net change in unrealized (appreciation) depreciation from investments
    (17,229,689 )     (19,961,300 )     (19,464,909 )    
Net realized loss from investment transactions
    920,349       1,496,039       1,994,240      
 
 
Net cash provided by (used in) operating activities
  $ (4,109,202 )   $ 948,119     $ 6,122,285      
 
 
                             
                             
 
Cash Flows From Financing Activities
 
Distributions paid to common shareholders, net of reinvestments
  $ (5,489,350 )   $ (3,859,065 )   $ (4,192,983 )    
Cash distributions paid to preferred shareholders
    (337,391 )     (223,512 )     (228,655 )    
Liquidation of auction preferred shares
          (725,000 )          
Proceeds from secured borrowings
    4,705,000       4,525,000       2,070,000      
Repayment of secured borrowings
    (1,330,000 )                
Increase (decrease) in due to custodian
    95,458       (180,478 )          
 
 
Net cash used in financing activities
  $ (2,356,283 )   $ (463,055 )   $ (2,351,638 )    
 
 
                             
Net increase (decrease) in cash
  $ (6,465,485 )   $ 485,064     $ 3,770,647      
 
 
                             
Cash at beginning of year
  $ 6,465,485     $     $ 678,025      
 
 
                             
Cash at end of year
  $     $ 485,064     $ 4,448,672      
 
 
                             
                             
 
Supplemental disclosure of cash flow information:
 
Noncash financing activities not included herein consist of:
                           
Reinvestment of dividends and distributions
  $ 123,925     $ 45,520     $ 339,723      
Cash paid for interest and fees
  $ 250,424     $ 168,670     $ 222,135      
 
 

 
See notes to financial statements

42


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    California Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 9.890     $ 15.120     $ 16.430     $ 15.420     $ 15.070      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.947     $ 0.943     $ 0.936     $ 0.962     $ 1.013      
Net realized and unrealized gain (loss)
    2.321       (5.223 )     (1.294 )     1.028       0.383      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.047 )     (0.277 )     (0.280 )     (0.239 )     (0.154 )    
 
 
Total income (loss) from operations
  $ 3.221     $ (4.557 )   $ (0.638 )   $ 1.751     $ 1.242      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.781 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )    
 
 
Total distributions to common shareholders
  $ (0.781 )   $ (0.673 )   $ (0.672 )   $ (0.741 )   $ (0.892 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 12.330     $ 9.890     $ 15.120     $ 16.430     $ 15.420      
 
 
                                             
Market value — End of year (Common shares)
  $ 12.170     $ 9.150     $ 13.160     $ 15.050     $ 13.650      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    34.24 %     (30.70 )%     (3.65 )%     12.10 %     8.72 %    
 
 
                                             
Total Investment Return on Market Value(2)
    43.19 %     (26.34 )%     (8.44 )%     15.99 %     (4.34 )%    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 88,720     $ 71,065     $ 108,567     $ 117,966     $ 110,760      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
Expenses excluding interest and fees
    1.93 %     1.87 %     1.78 %(4)     1.79 %     1.78 %    
Interest and fee expense(5)
    0.23 %     0.37 %     0.34 %     0.49 %     0.33 %    
Total expenses before custodian fee reduction
    2.16 %     2.24 %     2.12 %(4)     2.28 %     2.11 %    
Expenses after custodian fee reduction excluding interest and fees
    1.93 %     1.85 %     1.76 %(4)     1.77 %     1.76 %    
Net investment income
    8.35 %     6.91 %     5.94 %     6.12 %     6.52 %    
Portfolio Turnover
    18 %     31 %     40 %     26 %     31 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.19 %     1.18 %     1.17 %(4)     1.18 %     1.16 %    
Interest and fee expense(5)
    0.15 %     0.24 %     0.22 %     0.32 %     0.22 %    
Total expenses before custodian fee reduction
    1.34 %     1.42 %     1.39 %(4)     1.50 %     1.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.19 %     1.17 %     1.16 %(4)     1.16 %     1.15 %    
Net investment income
    5.18 %     4.39 %     3.90 %     4.03 %     4.26 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,999       1,999       2,360       2,360       2,360      
Asset coverage per preferred share(6)
  $ 69,383     $ 60,552     $ 71,003     $ 74,997     $ 71,942      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

43


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    Massachusetts Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 10.160     $ 14.860     $ 16.170     $ 15.270     $ 15.090      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.948     $ 0.947     $ 0.914     $ 0.931     $ 0.973      
Net realized and unrealized gain (loss)
    3.356       (4.720 )     (1.314 )     0.926       0.234      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.049 )     (0.278 )     (0.271 )     (0.243 )     (0.145 )    
 
 
Total income (loss) from operations
  $ 4.255     $ (4.051 )   $ (0.671 )   $ 1.614     $ 1.062      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.825 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )    
 
 
Total distributions to common shareholders
  $ (0.825 )   $ (0.649 )   $ (0.639 )   $ (0.714 )   $ (0.882 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 13.590     $ 10.160     $ 14.860     $ 16.170     $ 15.270      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.260     $ 8.930     $ 13.050     $ 14.920     $ 14.800      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    43.29 %     (28.02 )%     (3.94 )%     11.05 %     7.02 %    
 
 
                                             
Total Investment Return on Market Value(2)
    58.91 %     (27.89 )%     (8.57 )%     5.72 %     (6.89 )%    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 37,011     $ 27,576     $ 40,341     $ 43,875     $ 41,395      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    2.02 %     2.06 %     1.91 %(4)     1.88 %     1.88 %    
Interest and fee expense(5)
    0.14 %     0.26 %     0.61 %     0.77 %     0.52 %    
Total expenses before custodian fee reduction
    2.16 %     2.32 %     2.52 %(4)     2.65 %     2.40 %    
Expenses after custodian fee reduction excluding interest and fees
    2.02 %     2.04 %     1.89 %(4)     1.87 %     1.87 %    
Net investment income
    7.77 %     7.03 %     5.90 %     6.01 %     6.29 %    
Portfolio Turnover
    24 %     40 %     42 %     22 %     13 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.26 %     1.31 %     1.26 %(4)     1.24 %     1.24 %    
Interest and fee expense(5)
    0.09 %     0.16 %     0.40 %     0.51 %     0.34 %    
Total expenses before custodian fee reduction
    1.35 %     1.47 %     1.66 %(4)     1.75 %     1.58 %    
Expenses after custodian fee reduction excluding interest and fees
    1.26 %     1.30 %     1.25 %(4)     1.24 %     1.24 %    
Net investment income
    4.85 %     4.47 %     3.91 %     3.98 %     4.15 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    802       802       860       860       860      
Asset coverage per preferred share(6)
  $ 71,150     $ 59,391     $ 71,920     $ 76,024     $ 73,138      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

44


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    Michigan Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 10.860     $ 14.510     $ 15.420     $ 14.820     $ 14.860      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.918     $ 0.931     $ 0.913     $ 0.950     $ 0.995      
Net realized and unrealized gain (loss)
    1.990       (3.669 )     (0.881 )     0.608       0.010      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.056 )     (0.301 )     (0.296 )     (0.256 )     (0.172 )    
 
 
Total income (loss) from operations
  $ 2.852     $ (3.039 )   $ (0.264 )   $ 1.302     $ 0.833      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.772 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )    
 
 
Total distributions to common shareholders
  $ (0.772 )   $ (0.611 )   $ (0.646 )   $ (0.702 )   $ (0.873 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 12.940     $ 10.860     $ 14.510     $ 15.420     $ 14.820      
 
 
                                             
Market value — End of year (Common shares)
  $ 11.530     $ 7.920     $ 12.430     $ 14.110     $ 13.500      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    28.08 %     (21.02 )%     (1.37 )%     9.38 %     5.62 %    
 
 
                                             
Total Investment Return on Market Value(2)
    56.49 %     (32.76 )%     (7.66 )%     9.88 %     (13.87 )%    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 27,392     $ 22,977     $ 30,710     $ 32,643     $ 31,357      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    2.18 %     2.15 %     2.03 %(4)     1.97 %     2.00 %    
Interest and fee expense(5)
    0.06 %     0.16 %     0.32 %     0.46 %     0.40 %    
Expenses before custodian fee reduction
    2.24 %     2.31 %     2.35 %(4)     2.43 %     2.40 %    
Expenses after custodian fee reduction excluding interest and fees
    2.18 %     2.13 %     2.01 %(4)     1.96 %     1.99 %    
Net investment income
    7.61 %     6.96 %     6.12 %     6.35 %     6.60 %    
Portfolio Turnover
    23 %     24 %     22 %     22 %     14 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.29 %     1.33 %     1.31 %(4)     1.27 %     1.29 %    
Interest and fee expense(5)
    0.04 %     0.10 %     0.21 %     0.29 %     0.26 %    
Expenses before custodian fee reduction
    1.33 %     1.43 %     1.52 %(4)     1.56 %     1.55 %    
Expenses after custodian fee reduction excluding interest and fees
    1.29 %     1.31 %     1.29 %(4)     1.26 %     1.28 %    
Net investment income
    4.52 %     4.30 %     3.94 %     4.09 %     4.26 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    700       700       700       700       700      
Asset coverage per preferred share(6)
  $ 64,132     $ 57,828     $ 68,878     $ 71,635     $ 69,796      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

45


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    New Jersey Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 9.400     $ 14.930     $ 16.200     $ 15.020     $ 14.810      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.971     $ 0.968     $ 0.926     $ 0.953     $ 1.014      
Net realized and unrealized gain (loss)
    4.091       (5.579 )     (1.275 )     1.205       0.238      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.048 )     (0.289 )     (0.273 )     (0.253 )     (0.169 )    
 
 
Total income (loss) from operations
  $ 5.014     $ (4.900 )   $ (0.622 )   $ 1.905     $ 1.083      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.844 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )    
 
 
Total distributions to common shareholders
  $ (0.844 )   $ (0.630 )   $ (0.648 )   $ (0.725 )   $ (0.873 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 13.570     $ 9.400     $ 14.930     $ 16.200     $ 15.020      
 
 
                                             
Market value — End of year (Common shares)
  $ 14.040     $ 8.500     $ 12.790     $ 15.080     $ 14.030      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    55.43 %     (33.57 )%     (3.59 )%     13.28 %     7.59 %    
 
 
                                             
Total Investment Return on Market Value(2)
    77.84 %     (29.88 )%     (11.28 )%     12.89 %     (4.22 )%    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 62,792     $ 43,459     $ 69,001     $ 74,846     $ 69,375      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    1.99 %     1.96 %     1.84 %(4)     1.85 %     1.86 %    
Interest and fee expense(5)
    0.24 %     0.45 %     0.89 %     0.93 %     0.58 %    
Total expenses before custodian fee reduction
    2.23 %     2.41 %     2.73 %(4)     2.78 %     2.44 %    
Expenses after custodian fee reduction excluding interest and fees
    1.99 %     1.94 %     1.81 %(4)     1.83 %     1.84 %    
Net investment income
    8.16 %     7.22 %     5.94 %     6.20 %     6.66 %    
Portfolio Turnover
    48 %     54 %     42 %     23 %     46 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.24 %     1.23 %     1.21 %(4)     1.20 %     1.21 %    
Interest and fee expense(5)
    0.15 %     0.28 %     0.58 %     0.61 %     0.38 %    
Total expenses before custodian fee reduction
    1.39 %     1.51 %     1.79 %(4)     1.81 %     1.59 %    
Expenses after custodian fee reduction excluding interest and fees
    1.24 %     1.21 %     1.19 %(4)     1.19 %     1.19 %    
Net investment income
    5.08 %     4.51 %     3.89 %     4.04 %     4.33 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,337       1,366       1,520       1,520       1,520      
Asset coverage per preferred share(6)
  $ 71,966     $ 56,817     $ 70,395     $ 74,250     $ 70,651      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

46


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    New York Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 9.350     $ 15.240     $ 16.550     $ 15.660     $ 15.490      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.960     $ 0.987     $ 0.991     $ 0.987     $ 1.070      
Net realized and unrealized gain (loss)
    3.493       (5.887 )     (1.293 )     0.932       0.243      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.042 )     (0.269 )     (0.287 )     (0.247 )     (0.163 )    
 
 
Total income (loss) from operations
  $ 4.411     $ (5.169 )   $ (0.589 )   $ 1.672     $ 1.150      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.841 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )    
 
 
Total distributions to common shareholders
  $ (0.841 )   $ (0.721 )   $ (0.721 )   $ (0.782 )   $ (0.980 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 12.920     $ 9.350     $ 15.240     $ 16.550     $ 15.660      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.200     $ 7.900     $ 14.100     $ 15.700     $ 14.990      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    49.00 %     (35.07 )%     (3.42 )%     11.28 %     7.61 %    
 
 
                                             
Total Investment Return on Market Value(2)
    80.12 %     (40.71 )%     (5.81 )%     10.28 %     3.81 %    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 69,857     $ 50,325     $ 81,931     $ 88,970     $ 84,194      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    1.98 %     1.92 %     1.80 %(4)     1.82 %     1.81 %    
Interest and fee expense(5)
    0.24 %     0.55 %     0.98 %     1.03 %     0.57 %    
Total expenses before custodian fee reduction
    2.22 %     2.47 %     2.78 %(4)     2.85 %     2.38 %    
Expenses after custodian fee reduction excluding interest and fees
    1.98 %     1.89 %     1.78 %(4)     1.80 %     1.80 %    
Net investment income
    8.40 %     7.21 %     6.23 %     6.22 %     6.72 %    
Portfolio Turnover
    20 %     48 %     29 %     27 %     40 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.28 %     1.23 %     1.18 %(4)     1.19 %     1.19 %    
Interest and fee expense(5)
    0.15 %     0.35 %     0.65 %     0.68 %     0.37 %    
Total expenses before custodian fee reduction
    1.43 %     1.58 %     1.83 %(4)     1.87 %     1.56 %    
Expenses after custodian fee reduction excluding interest and fees
    1.28 %     1.21 %     1.17 %(4)     1.19 %     1.19 %    
Net investment income
    5.43 %     4.63 %     4.10 %     4.09 %     4.42 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    1,349       1,349       1,780       1,780       1,780      
Asset coverage per preferred share(6)
  $ 76,785     $ 62,309     $ 71,032     $ 74,983     $ 72,311      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

47


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    Ohio Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 10.450     $ 14.830     $ 15.690     $ 14.910     $ 15.040      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.945     $ 0.961     $ 0.938     $ 0.958     $ 1.003      
Net realized and unrealized gain (loss)
    2.974       (4.410 )     (0.845 )     0.800       (0.055 )    
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.055 )     (0.303 )     (0.297 )     (0.264 )     (0.175 )    
 
 
Total income (loss) from operations
  $ 3.864     $ (3.752 )   $ (0.204 )   $ 1.494     $ 0.773      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.794 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )    
 
 
Total distributions to common shareholders
  $ (0.794 )   $ (0.628 )   $ (0.656 )   $ (0.714 )   $ (0.903 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 13.520     $ 10.450     $ 14.830     $ 15.690     $ 14.910      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.430     $ 8.550     $ 12.850     $ 14.610     $ 14.170      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    38.58 %     (25.69 )%     (1.06 )%     10.50 %     5.10 %    
 
 
                                             
Total Investment Return on Market Value(2)
    68.25 %     (29.83 )%     (7.93 )%     8.27 %     (10.31 )%    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 38,295     $ 29,563     $ 41,953     $ 44,385     $ 42,193      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    2.08 %     2.08 %     1.93 %(4)     1.92 %     1.91 %    
Interest and fee expense(5)
    0.02 %     0.26 %     0.72 %     0.74 %     0.54 %    
Total expenses before custodian fee reduction
    2.10 %     2.34 %     2.65 %(4)     2.66 %     2.45 %    
Expenses after custodian fee reduction excluding interest and fees
    2.08 %     2.06 %     1.91 %(4)     1.92 %     1.90 %    
Net investment income
    7.77 %     7.12 %     6.17 %     6.31 %     6.57 %    
Portfolio Turnover
    20 %     27 %     24 %     16 %     13 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.26 %     1.29 %     1.25 %(4)     1.25 %     1.24 %    
Interest and fee expense(5)
    0.01 %     0.16 %     0.46 %     0.48 %     0.35 %    
Total expenses before custodian fee reduction
    1.27 %     1.45 %     1.71 %(4)     1.73 %     1.59 %    
Expenses after custodian fee reduction excluding interest and fees
    1.26 %     1.28 %     1.23 %(4)     1.24 %     1.23 %    
Net investment income
    4.68 %     4.41 %     3.99 %     4.08 %     4.25 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    909       918       940       940       940      
Asset coverage per preferred share(6)
  $ 67,131     $ 57,209     $ 69,640     $ 72,223     $ 69,888      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

48


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FINANCIAL STATEMENTS CONT’D
 
 
 
Financial Highlights
 
Selected data for a common share outstanding during the periods stated
                                             
    Pennsylvania Trust
   
    Year Ended November 30,
   
    2009     2008     2007     2006     2005      
 
Net asset value — Beginning of year (Common shares)
  $ 10.320     $ 14.840     $ 15.510     $ 14.870     $ 14.890      
 
 
 
Income (Loss) From Operations
 
Net investment income(1)
  $ 0.928     $ 0.986     $ 0.953     $ 0.983     $ 1.008      
Net realized and unrealized gain (loss)
    2.973       (4.555 )     (0.661 )     0.664       0.103      
Distributions to preferred shareholders
                                           
From net investment income(1)
    (0.053 )     (0.299 )     (0.300 )     (0.274 )     (0.181 )    
 
 
Total income (loss) from operations
  $ 3.848     $ (3.868 )   $ (0.008 )   $ 1.373     $ 0.930      
 
 
 
Less Distributions to Common Shareholders
 
From net investment income
  $ (0.788 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )    
 
 
Total distributions to common shareholders
  $ (0.788 )   $ (0.652 )   $ (0.662 )   $ (0.733 )   $ (0.950 )    
 
 
                                             
Net asset value — End of year (Common shares)
  $ 13.380     $ 10.320     $ 14.840     $ 15.510     $ 14.870      
 
 
                                             
Market value — End of year (Common shares)
  $ 13.050     $ 9.600     $ 12.790     $ 14.560     $ 14.660      
 
 
                                             
Total Investment Return on Net Asset Value(2)
    39.16 %     (26.57 )%     0.27 %     9.68 %     6.27 %    
 
 
                                             
Total Investment Return on Market Value(2)
    45.88 %     (20.75 )%     (7.95 )%     4.44 %     0.39 %    
 
 
 
Ratios/Supplemental Data
 
Net assets applicable to common shares, end of year (000’s omitted)
  $ 36,255     $ 27,944     $ 40,182     $ 41,998     $ 40,233      
Ratios (as a percentage of average daily net assets applicable to common shares):(3)
                                           
Expenses excluding interest and fees
    2.11 %     2.06 %     1.95 %(4)     1.94 %     1.97 %    
Interest and fee expense(5)
    0.21 %     0.37 %     0.70 %     0.93 %     0.44 %    
Total expenses before custodian fee reduction
    2.32 %     2.43 %     2.65 %(4)     2.87 %     2.41 %    
Expenses after custodian fee reduction excluding interest and fees
    2.11 %     2.04 %     1.94 %(4)     1.93 %     1.95 %    
Net investment income
    7.61 %     7.23 %     6.28 %     6.53 %     6.69 %    
Portfolio Turnover
    23 %     25 %     23 %     18 %     28 %    
 
 
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3)
Expenses excluding interest and fees
    1.28 %     1.28 %     1.27 %(4)     1.25 %     1.27 %    
Interest and fee expense(5)
    0.13 %     0.23 %     0.45 %     0.60 %     0.28 %    
Total expenses before custodian fee reduction
    1.41 %     1.51 %     1.72 %(4)     1.85 %     1.55 %    
Expenses after custodian fee reduction excluding interest and fees
    1.28 %     1.27 %     1.26 %(4)     1.24 %     1.26 %    
Net investment income
    4.63 %     4.50 %     4.06 %     4.21 %     4.30 %    
 
 
Senior Securities:
                                           
Total preferred shares outstanding
    847       889       900       900       900      
Asset coverage per preferred share(6)
  $ 67,806     $ 56,439     $ 69,658     $ 71,672     $ 69,708      
Involuntary liquidation preference per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(7)
  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000      
 
 
 
(1) Computed using average common shares outstanding.
 
(2) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.
 
(3) Ratios do not reflect the effect of dividend payments to preferred shareholders.
 
(4) The investment adviser was allocated a portion of the Trust’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended November 30, 2007). Absent this allocation, total return would be lower.
 
(5) Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).
 
(6) Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets, and dividing the result by the number of preferred shares outstanding.
 
(7) Plus accumulated and unpaid dividends.

 
See notes to financial statements

49


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS
 
1   Significant Accounting Policies
 
Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust) and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (each individually referred to as the Trust, and collectively, the Trusts), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. Each Trust seeks to provide current income exempt from regular federal income tax and taxes in its specified state.
 
The following is a summary of significant accounting policies of the Trusts. The policies are in conformity with accounting principles generally accepted in the United States of America. A source of authoritative accounting principles applied in the preparation of the Trusts’ financial statements is the Financial Accounting Standards Board (FASB) Accounting Standards Codification (the Codification), which superseded existing non-Securities and Exchange Commission accounting and reporting standards for interim and annual reporting periods ending after September 15, 2009. The adoption of the Codification for the current reporting period did not impact the Trusts’ application of generally accepted accounting principles.
 
A  Investment Valuation — Municipal bonds and taxable obligations, if any, are generally valued on the basis of valuations furnished by a third party pricing service, as derived from such service’s pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer. The pricing service may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Financial futures contracts are valued at the 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 curves provided by electronic data services or by broker/dealers. Short-term obligations, maturing in sixty days or less, are generally valued at amortized cost, which approximates market value. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Trust in a manner that most fairly reflects the security’s value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or 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 company’s or entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
 
B  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
 
C  Federal Taxes — Each Trust’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
 
At November 30, 2009, the following Trusts, for federal income tax purposes, had capital loss carryforwards which will reduce the respective Trust’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryforwards are as follows:
 

50


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                     
Trust   Amount     Expiration Date      
 
California
  $ 995,999       November 30, 2012      
      6,689,345       November 30, 2016      
      4,084,290       November 30, 2017      
                     
Massachusetts
  $ 343,176       November 30, 2010      
      692,532       November 30, 2016      
      991,790       November 30, 2017      
                     
Michigan
  $ 475,985       November 30, 2010      
      443,883       November 30, 2011      
      697,198       November 30, 2012      
      224,050       November 30, 2013      
      517,712       November 30, 2016      
      337,540       November 30, 2017      
                     
New Jersey
  $ 177,350       November 30, 2011      
      3,185,143       November 30, 2017      
                     
New York
  $ 2,354,581       November 30, 2016      
      3,171,310       November 30, 2017      
                     
Ohio
  $ 764,355       November 30, 2012      
      588,403       November 30, 2013      
      736,482       November 30, 2016      
      842,953       November 30, 2017      
                     
Pennsylvania
  $ 41,331       November 30, 2010      
      502,868       November 30, 2012      
      389,289       November 30, 2013      
      800,874       November 30, 2016      
 
During the year ended November 30, 2009, capital loss carryforwards of $313,904 were utilized to offset net realized gains by Pennsylvania Trust.
 
As of November 30, 2009, the Trusts had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Trusts’ federal tax returns filed in the 3-year period ended November 30, 2009 remains subject to examination by the Internal Revenue Service.
 
D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Trusts. Pursuant to the respective custodian agreements, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Trust maintains with SSBT. All credit balances, if any, used to reduce each Trust’s custodian fees are reported as a reduction of expenses in the Statements of Operations.
 
E  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
 
F  Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
 
G  Indemnifications — Under each Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Trust, and shareholders are indemnified against personal liability for the obligations of each Trust. Additionally, in the normal course of business, each Trust enters into agreements with service providers that may contain indemnification clauses. Each Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred.
 
H  Floating Rate Notes Issued in Conjunction with Securities Held — The Trusts may invest in inverse floating rate securities, also referred to as residual interest bonds, whereby a Trust may sell a fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker, often referred to as an inverse floating rate obligation (Inverse Floater). The broker deposits a fixed rate bond into the SPV with the same CUSIP number as the fixed rate bond sold to the broker by the Trust, and which may have been, but is not required to be, the fixed rate bond purchased from the Trust (the Fixed Rate Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The Inverse Floater held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed Rate Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would pay the broker the par amount due on the Floating Rate Notes and exchange the Inverse Floater for the underlying Fixed Rate Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishments of liabilities, the Trusts account for the transaction described above as a secured borrowing by including the Fixed Rate Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date.

51


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
Interest expense related to the Trusts’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying bond, bankruptcy of or payment failure by the issuer of the underlying bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity date of the related trust. At November 30, 2009, the amounts of the Trusts’ Floating Rate Notes and related interest rates and collateral were as follows:
 
                         
              Collateral
     
    Floating
    Interest Rate
  for Floating
     
    Rate
    or Range of
  Rate
     
    Notes
    Interest
  Notes
     
Trust   Outstanding     Rates (%)   Outstanding      
 
California
  $ 18,945,000     0.24 – 0.94   $ 25,019,694      
Massachusetts
    3,880,000     0.25 – 0.26     5,120,315      
New Jersey
    12,572,000     0.24 – 0.35     17,002,460      
New York
    17,220,000     0.24 – 0.33     21,651,451      
Ohio
    830,000     0.47     1,301,855      
Pennsylvania
    2,370,000     0.25 – 0.94     4,381,235      
 
For the year ended November 30, 2009, the Trusts’ average Floating Rate Notes outstanding and the average interest rate including fees were as follows:
 
                     
    Average
           
    Floating
    Average
     
    Rate Notes
    Interest
     
Trust   Outstanding     Rate      
 
California
  $ 17,324,466       1.10 %    
Massachusetts
    3,880,000       1.20      
Michigan
    597,945       2.57      
New Jersey
    10,290,767       1.26      
New York
    15,212,384       0.97      
Ohio
    830,000       0.90      
Pennsylvania
    3,228,821       2.12      
 
The Trusts may enter into shortfall and forbearance agreements with the broker by which a Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trusts had no shortfalls as of November 30, 2009.
 
The Trusts may also purchase Inverse Floaters from brokers in a secondary market transaction without first owning the underlying fixed rate bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to Inverse Floaters purchased in a secondary market transaction are disclosed in the Portfolio of Investments. The Trusts’ investment policies and restrictions expressly permit investments in Inverse Floaters. Inverse floating rate securities typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of inverse floating rate securities are generally more volatile than that of a fixed rate bond. The Trusts’ investment policies do not allow the Trusts to borrow money, except as permitted by the 1940 Act. Management believes that the Trusts’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts’ restrictions apply. Inverse Floaters held by the Trusts are securities exempt from registration under Rule 144A of the Securities Act of 1933.
 
I  Financial Futures Contracts — The Trusts may enter into financial futures contracts. The Trusts’ investment in financial futures contracts is designed for hedging against changes in interest rates or as a substitute for the purchase of securities. Upon entering into a financial futures contract, a Trust is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Trust each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Trust. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
 
J  Interest Rate Swaps — The Trusts may enter into interest rate swap agreements to enhance return, to hedge against fluctuations in securities prices or interest rates, or as substitution for the purchase or sale of securities. Pursuant to these agreements, a Trust makes periodic payments at a fixed interest rate and, in exchange,

52


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
receives payments based on the interest rate of a benchmark industry index. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Trust is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.
 
K  When-Issued Securities and Delayed Delivery Transactions — The Trusts may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trusts maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
 
L  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Trust is the amount included in the Trust’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
 
2   Auction Preferred Shares
 
Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction.
 
During the year ended November 30, 2009, certain Trusts made a partial redemption of their APS at a liquidation price of $25,000 per share. The number of APS redeemed and redemption amount (excluding the final dividend payment) during the year ended November 30, 2009 and the number of APS issued and outstanding as of November 30, 2009 are as follows:
 
                             
    APS
                 
    Redeemed
    Redemption
    APS Issued and
     
Trust   During the Period     Amount     Outstanding      
 
California
        $       1,999      
Massachusetts
                802      
Michigan
                700      
New Jersey
    29       725,000       1,337      
New York
                1,349      
Ohio
    9       225,000       909      
Pennsylvania
    42       1,050,000       847      
 
The APS are redeemable at the option of each Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years’ dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in the Trusts’ By-Laws and the 1940 Act. Each Trust pays an annual fee up to 0.15% (0.25% prior to March 2009) of the liquidation value of the APS to broker-dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
 
3   Distributions to Shareholders
 
Each Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for the APS at November 30, 2009, and the amount of dividends paid (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the year then ended were as follows:
 

53


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                                 
    APS
    Dividends
    Average APS
    Dividend
   
    Dividend Rates at
    Paid to APS
    Dividend
    Rate
   
Trust   November 30, 2009     Shareholders     Rates     Ranges (%)    
 
California
    0.44 %   $ 335,254       0.67 %   0.35 – 1.72    
Massachusetts
    0.46       133,574       0.67     0.38 – 1.68    
Michigan
    0.44       117,661       0.67     0.35 – 1.72    
New Jersey
    0.44       221,791       0.66     0.35 – 1.72    
New York
    0.46       225,861       0.67     0.35 – 1.72    
Ohio
    0.44       154,413       0.68     0.37 – 1.76    
Pennsylvania
    0.46       143,754       0.68     0.38 – 1.68    
 
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of November 30, 2009.
 
The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
 
The tax character of distributions declared for the years ended November 30, 2009 and November 30, 2008 was as follows:
 
                                                             
    California
    Massachusetts
    Michigan
    New Jersey
    New York
    Ohio
    Pennsylvania
     
Year Ended November 30, 2009   Trust     Trust     Trust     Trust     Trust     Trust     Trust      
 
Distributions declared from:                                                            
Tax-exempt income
  $ 5,947,299     $ 2,374,488     $ 1,750,106     $ 4,118,938     $ 4,756,068     $ 2,399,275     $ 2,278,334      
Ordinary income
  $ 1,230     $ 2,170     $ 1,346     $ 7,438     $ 2,499     $ 3,106     $ 394      
                                                             
                                                             
    California
    Massachusetts
    Michigan
    New Jersey
    New York
    Ohio
    Pennsylvania
     
Year Ended November 30, 2008   Trust     Trust     Trust     Trust     Trust     Trust     Trust      
 
Distributions declared from:                                                            
Tax-exempt income
  $ 6,819,447     $ 2,516,208     $ 1,929,979     $ 4,248,329     $ 5,317,570     $ 2,634,481     $ 2,574,969      
Ordinary income
  $ 67     $     $     $ 688     $ 184     $     $ 2      
 
During the year ended November 30, 2009, the following amounts were reclassified due to expired capital loss carryforwards and differences between book and tax accounting, primarily for accretion of market discount:
                                                             
                                                             
    California
    Massachusetts
    Michigan
    New Jersey
    New York
    Ohio
    Pennsylvania
     
    Trust     Trust     Trust     Trust     Trust     Trust     Trust      
 
Increase (decrease):
                                                           
Paid-in capital
  $     $ (39,627 )   $ (165,469 )   $ (262,308 )   $ (70,059 )   $ (850,745 )   $ (531,069 )    
Accumulated net realized loss
  $ 123,168     $ 48,423     $ 172,914     $ 315,151     $ 112,424     $ 878,032     $ 574,438      
Accumulated undistributed net investment income
  $ (123,168 )   $ (8,796 )   $ (7,445 )   $ (52,843 )   $ (42,365 )   $ (27,287 )   $ (43,369 )    
 

As of November 30, 2009, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:
                                                             
                                                             
    California
    Massachusetts
    Michigan
    New Jersey
    New York
    Ohio
    Pennsylvania
     
    Trust     Trust     Trust     Trust     Trust     Trust     Trust      
 
Undistributed income
  $ 1,088,776     $ 502,248     $ 337,701     $ 878,885     $ 740,172     $ 508,179     $ 422,038      
Capital loss carryforward
  $ (11,769,634 )   $ (2,027,498 )   $ (2,696,368 )   $ (3,362,493 )   $ (5,525,891 )   $ (2,932,193 )   $ (1,734,362 )    
Net unrealized appreciation (depreciation)
  $ (5,043,378 )   $ (1,175,025 )   $ (1,217,815 )   $ (1,276,644 )   $ (3,889,169 )   $ 86,740     $ (937,304 )    
Other temporary differences
  $ (1,817 )   $ (1,756 )   $ (850 )   $ (1,215 )   $ (1,635 )   $ (1,652 )   $ (1,855 )    
 
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, accretion of market discount, futures contracts, the timing of recognizing distributions to shareholders and inverse floaters.

54


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
4   Investment Adviser Fee and Other Transactions with Affiliates
 
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. The fee is computed at an annual rate of 0.70% of each Trust’s average weekly gross assets and is payable monthly. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Trust, and the amount of any outstanding APS issued by the Trust. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Trust’s APS then outstanding and the amount payable by the Trust to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Trust. The administration fee is earned by EVM for administering the business affairs of each Trust and is computed at an annual rate of 0.20% of each Trust’s average weekly gross assets. For the year ended November 30, 2009, the investment adviser fee and administration fee were as follows:
 
                     
    Investment
    Administration
     
Trust   Adviser Fee     Fee      
 
California
  $ 982,945     $ 280,841      
Massachusetts
    384,156       109,245      
Michigan
    301,051       86,014      
New Jersey
    650,257       185,787      
New York
    741,770       211,934      
Ohio
    405,180       115,766      
Pennsylvania
    388,335       110,953      
 
Except for Trustees of the Trusts who are not members of EVM’s organization, officers and Trustees receive remuneration for their services to the Trusts out of the investment adviser fee. Trustees of the Trusts who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended November 30, 2009, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
 
5   Purchases and Sales of Investments
 
Purchases and sales of investments, other than short-term obligations, for the year ended November 30, 2009 were as follows:
 
                     
Trust   Purchases     Sales      
 
California
  $ 32,532,391     $ 26,450,161      
Massachusetts
    15,138,776       13,280,134      
Michigan
    9,978,923       12,883,818      
New Jersey
    47,185,162       47,481,277      
New York
    21,696,556       24,546,572      
Ohio
    11,321,846       14,717,403      
Pennsylvania
    13,199,825       17,546,302      
 
6   Common Shares of Beneficial Interest
 
Common shares issued pursuant to the Trusts’ dividend reinvestment plan for the year ended November 30, 2009 and the year ended November 30, 2008 were as follows:
 
                     
    Year Ended November 30,      
   
Trust   2009     2008      
 
California
    10,321       4,021      
Massachusetts
    8,904       1,394      
Michigan
               
New Jersey
    3,303       2,698      
New York
    27,904       5,073      
Ohio
    3,722            
Pennsylvania
    1,208            
 
7   Federal Income Tax Basis of Investments
 
The cost and unrealized appreciation (depreciation) of investments of each Trust at November 30, 2009, as determined on a federal income tax basis, were as follows:
 
             
California Trust
           
 
 
Aggregate cost
  $ 142,012,088      
 
 
Gross unrealized appreciation
  $ 5,419,678      
Gross unrealized depreciation
    (10,339,446 )    
 
 
Net unrealized depreciation
  $ (4,919,768 )    
 
 
             
             
Massachusetts Trust
           
 
 
Aggregate cost
  $ 57,724,992      
 
 
Gross unrealized appreciation
  $ 1,773,900      
Gross unrealized depreciation
    (2,903,617 )    
 
 
Net unrealized depreciation
  $ (1,129,717 )    
 
 
             
             
Michigan Trust
           
 
 
Aggregate cost
  $ 44,122,381      
 
 
Gross unrealized appreciation
  $ 1,513,283      
Gross unrealized depreciation
    (2,717,423 )    
 
 
Net unrealized depreciation
  $ (1,204,140 )    
 
 
             
             

55


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
             
New Jersey Trust
           
 
 
Aggregate cost
  $ 94,462,698      
 
 
Gross unrealized appreciation
  $ 3,257,937      
Gross unrealized depreciation
    (4,455,343 )    
 
 
Net unrealized depreciation
  $ (1,197,406 )    
 
 
             
             
New York Trust
           
 
 
Aggregate cost
  $ 101,511,328      
 
 
Gross unrealized appreciation
  $ 2,606,158      
Gross unrealized depreciation
    (6,312,325 )    
 
 
Net unrealized depreciation
  $ (3,706,167 )    
 
 
             
             
Ohio Trust
           
 
 
Aggregate cost
  $ 58,075,141      
 
 
Gross unrealized appreciation
  $ 2,108,439      
Gross unrealized depreciation
    (1,993,402 )    
 
 
Net unrealized appreciation
  $ 115,037      
 
 
             
             
Pennsylvania Trust
           
 
 
Aggregate cost
  $ 56,835,856      
 
 
Gross unrealized appreciation
  $ 1,850,726      
Gross unrealized depreciation
    (2,785,046 )    
 
 
Net unrealized depreciation
  $ (934,320 )    
 
 
 
8   Overdraft Advances
 
Pursuant to the respective custodian agreements, SSBT may, in its discretion, advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft, the Trusts are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to SSBT. SSBT has a lien on a Trust’s assets to the extent of any overdraft. At November 30, 2009, California Trust and Massachusetts Trust had payments due to SSBT pursuant to the foregoing arrangement of $95,458 and $463,481, respectively.
 
9   Financial Instruments
 
The Trusts may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and interest rate swaps and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
 
A summary of obligations under these financial instruments at November 30, 2009 is as follows:
 
                                         
Futures Contracts
 
    Expiration
          Aggregate
          Net Unrealized
     
Trust   Date   Contracts   Position   Cost     Value     Depreciation      
 
California   3/10   72
U.S. Treasury Bond
  Short   $ (8,639,749 )   $ (8,835,750 )   $ (196,001 )    
 
 
Michigan   3/10   5
U.S. Treasury Bond
  Short   $ (598,108 )   $ (613,594 )   $ (15,486 )    
    3/10   3
U.S. Treasury Note
  Short   $ (355,185 )   $ (359,813 )   $ (4,628 )    
 
 
New York   3/10   60
U.S. Treasury Bond
  Short   $ (7,199,790 )   $ (7,363,125 )   $ (163,335 )    
 
 
Ohio   3/10   12
U.S. Treasury Bond
  Short   $ (1,438,083 )   $ (1,472,625 )   $ (34,542 )    
    3/10   6
U.S. Treasury Note
  Short   $ (710,370 )   $ (719,625 )   $ (9,255 )    
 
 
Pennsylvania   3/10   50
U.S. Treasury Bond
  Short   $ (6,012,326 )   $ (6,135,938 )   $ (123,612 )    
 
 
 
                                 
Interest Rate Swaps
California Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 2,125,000     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (6,948 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    3,412,500     4.260   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
    (116,662 )    
 
 
                        $ (123,610 )    
 
 
                                 
                                 
Massachusetts Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 787,500     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (2,575 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    1,250,000     4.260   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
    (42,733 )    
 
 
                        $ (45,308 )    
 
 
                                 
                                 

56


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                                 
Michigan Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
Merrill Lynch
Capital
Services, Inc. 
  $ 400,000     4.260%   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
  $ (13,675 )    
 
 
                                 
                                 
New Jersey Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 1,362,500     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (4,455 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    2,187,500     4.260   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
    (74,783 )    
 
 
                        $ (79,238 )    
 
 
                                 
                                 
New York Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 1,600,000     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (5,232 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    5,200,000     4.260   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
    (177,770 )    
 
 
                        $ (183,002 )    
 
 
                                 
                                 
Ohio Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 812,500     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (2,657 )    
 
 
Merrill Lynch
Capital
Services, Inc. 
    750,000     4.260   3-month
USD-LIBOR-BBA
  February 24, 2010/
February 24, 2040
    (25,640 )    
 
 
                        $ (28,297 )    
 
 
                                 
                                 
Pennsylvania Trust
 
          Annual
  Floating
  Effective Date/
         
    Notional
    Fixed Rate
  Rate
  Termination
  Net Unrealized
     
Counterparty   Amount     Paid By Trust   Paid To Trust   Date   Depreciation      
 
JPMorgan
Chase Co. 
  $ 912,500     4.097%   3-month
USD-LIBOR-BBA
  March 15, 2010/
March 15, 2040
  $ (2,984 )    
 
 
 
The effective date represents the date on which a Trust and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At November 30, 2009, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.
 
The Trusts adopted FASB Statement of Financial Accounting Standards No. 161 (FAS 161), “Disclosures about Derivative Instruments and Hedging Activities”, (currently FASB Accounting Standards Codification (ASC) 815-10), effective December 1, 2008. Such standard requires enhanced disclosures about an entity’s derivative and hedging activities, including qualitative disclosures about the objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative instruments. The disclosure below includes additional information as a result of implementing FAS 161.
 
Each Trust is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Trusts hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, each Trust may enter into interest rate swap contracts. The Trusts may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
The Trusts enter into interest rate swap contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in a Trust’s net assets below a certain level over a certain period of time, which would trigger a payment by the Trust for those swaps in a liability position. At November 30, 2009, the fair value of interest rate swaps with credit-related contingent features in a liability position was equal to the fair value of the liability derivative related to interest rate swaps included in the table below for each respective Trust. The value of securities pledged as collateral, if any, for open interest rate swap contracts at November 30, 2009 is disclosed in a note to each Trust’s Portfolio of Investments.
 
The fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at November 30, 2009 was as follows:
 

57


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                     
    Fair Value
     
    Asset Derivative     Liability Derivative      
 
California Trust
                   
Futures Contracts
  $        —     $ (196,001 )(1)     
Interest Rate Swaps
          (123,610 )(2)     
 
 
Total
  $     $ (319,611 )    
 
 
Massachusetts Trust
                   
Interest Rate Swaps
  $     $ (45,308 )(2)     
 
 
Total
  $     $ (45,308 )    
 
 
Michigan Trust
                   
Futures Contracts
  $     $ (20,114 )(1)     
Interest Rate Swaps
          (13,675 )(2)     
 
 
Total
  $     $ (33,789 )    
 
 
New Jersey Trust
                   
Interest Rate Swaps
  $     $ (79,238 )(2)     
 
 
Total
  $     $ (79,238 )    
 
 
New York Trust
                   
Futures Contracts
  $     $ (163,335 )(1)     
Interest Rate Swaps
          (183,002 )(2)     
 
 
Total
  $     $ (346,337 )    
 
 
Ohio Trust
                   
Futures Contracts
  $     $ (43,797 )(1)     
Interest Rate Swaps
          (28,297 )(2)     
 
 
Total
  $     $ (72,094 )    
 
 
Pennsylvania Trust
                   
Futures Contracts
  $     $ (123,612 )(1)     
Interest Rate Swaps
          (2,984 )(2)     
 
 
Total
  $     $ (126,596 )    
 
 
 
(1) Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.
 
(2) Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized appreciation (depreciation).
 
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the year ended November 30, 2009 was as follows:
 
                     
          Change in
     
          Unrealized
     
    Realized Gain
    Appreciation
     
    (Loss) on
    (Depreciation)
     
    Derivatives
    on Derivatives
     
    Recognized in
    Recognized in
     
Trust   Income(1)      Income(2)       
 
California
  $ (3,336,237 )   $ 3,697,615      
Massachusetts
    (1,033,694 )     1,295,442      
Michigan
    (194,609 )     223,228      
New Jersey
    (1,815,619 )     2,271,930      
New York
    (1,491,572 )     2,797,133      
Ohio
    (825,061 )     977,055      
Pennsylvania
    (468,740 )     731,758      
 
(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 November 30, 2009, which are indicative of the volume of these derivative types, were approximately as follows:
 
                     
    Futures
    Interest Rate
     
Trust   Contracts     Swaps      
 
California
  $ 7,425,000     $ 5,967,000      
Massachusetts
          2,347,000      
Michigan
    808,000       446,000      
New Jersey
          3,825,000      
New York
    8,792,000       7,121,000      
Ohio
    1,977,000       1,832,000      
Pennsylvania
    6,500,000       1,067,000      
 
10   Fair Value Measurements
 
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
•  Level 1 – quoted prices in active markets for identical investments
 
•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
•  Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

58


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
                                     
California Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 156,037,320     $      —     $ 156,037,320      
 
 
Total Investments
  $     $ 156,037,320     $     $ 156,037,320      
 
 
                                     
Liability Description
                                   
 
 
Futures Contracts
  $ (196,001 )   $     $     $ (196,001 )    
Interest Rate Swaps
          (123,610 )           (123,610 )    
 
 
Total
  $ (196,001 )   $ (123,610 )   $     $ (319,611 )    
 
 
                                     
                                     
Massachusetts Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $      —     $ 60,475,275     $      —     $ 60,475,275      
 
 
Total Investments
  $     $ 60,475,275     $     $ 60,475,275      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (45,308 )   $     $ (45,308 )    
 
 
Total
  $     $ (45,308 )   $     $ (45,308 )    
 
 
                                     
                                     
Michigan Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 42,918,241     $      —     $ 42,918,241      
 
 
Total Investments
  $     $ 42,918,241     $     $ 42,918,241      
 
 
                                     
Liability Description
                                   
 
 
Futures Contracts
  $ (20,114 )   $     $     $ (20,114 )    
Interest Rate Swaps
          (13,675 )           (13,675 )    
 
 
Total
  $ (20,114 )   $ (13,675 )   $     $ (33,789 )    
 
 
                                     
                                     
New Jersey Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $      —     $ 105,837,292     $      —     $ 105,837,292      
 
 
Total Investments
  $     $ 105,837,292     $     $ 105,837,292      
 
 
                                     
Liability Description
                                   
 
 
Interest Rate Swaps
  $     $ (79,238 )   $     $ (79,238 )    
 
 
Total
  $     $ (79,238 )   $     $ (79,238 )    
 
 
                                     
                                     
New York Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 115,025,161     $      —     $ 115,025,161      
 
 
Total Investments
  $     $ 115,025,161     $     $ 115,025,161      
 
 
                                     
Liability Description
                                   
 
 
Futures Contracts
  $ (163,335 )   $     $     $ (163,335 )    
Interest Rate Swaps
          (183,002 )           (183,002 )    
 
 
Total
  $ (163,335 )   $ (183,002 )   $     $ (346,337 )    
 
 
                                     
                                     
Ohio Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 59,020,178     $      —     $ 59,020,178      
 
 
Total Investments
  $     $ 59,020,178     $     $ 59,020,178      
 
 
                                     
Liability Description
                                   
 
 
Futures Contracts
  $ (43,797 )   $     $     $ (43,797 )    
Interest Rate Swaps
          (28,297 )           (28,297 )    
 
 
Total
  $ (43,797 )   $ (28,297 )   $     $ (72,094 )    
 
 
                                     
                                     

59


 

 
Eaton Vance Municipal Income Trusts as of November 30, 2009
 
NOTES TO FINANCIAL STATEMENTS CONT’D
 
                                     
Pennsylvania Trust
 
    Quoted
                       
    Prices in
                       
    Active
    Significant
                 
    Markets for
    Other
    Significant
           
    Identical
    Observable
    Unobservable
           
    Assets     Inputs     Inputs            
     
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total      
 
Tax-Exempt Investments
  $     $ 58,271,536     $      —     $ 58,271,536      
 
 
Total Investments
  $     $ 58,271,536     $     $ 58,271,536      
 
 
                                     
Liability Description
                                   
 
 
Futures Contracts
  $ (123,612 )   $     $     $ (123,612 )    
Interest Rate Swaps
          (2,984 )           (2,984 )    
 
 
Total
  $ (123,612 )   $ (2,984 )   $     $ (126,596 )    
 
 
 
The Trust held no investments or other financial instruments as of November 30, 2008 whose fair value was determined using Level 3 inputs.
 
11   Review for Subsequent Events
 
In connection with the preparation of the financial statements of the Trusts as of and for the year ended November 30, 2009, events and transactions subsequent to November 30, 2009 through January 15, 2010, the date the financial statements were issued, have been evaluated by the Trusts’ management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.

60


 

Eaton Vance Municipal Income Trusts as of November 30, 2009
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Trustees and Shareholders of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (individually, the “Trust”, collectively, the “Trusts”), as of November 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the statements of cash flows of Eaton Vance California Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust and Eaton Vance New York Municipal Income Trust for the year then ended. These financial statements and financial highlights are the responsibility of each Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the cash flows of Eaton Vance California Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust and Eaton Vance New York Municipal Income Trust for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
 
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 15, 2010

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Eaton Vance Municipal Income Trusts as of November 30, 2009
 
FEDERAL TAX INFORMATION (Unaudited)
 
 
The Form 1099-DIV you receive in January 2010 will show the tax status of all distributions paid to your account in calendar year 2009. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Trusts. As required by the Internal Revenue Code regulations, shareholders must be notified within 60 days of the Trusts’ fiscal year-end regarding exempt-interest dividends.
 
Exempt-Interest Dividends. The Trusts designate the following percentages of dividends from net investment income as an exempt-interest dividend.
 
             
Eaton Vance California Municipal Income Trust
    99.98 %    
Eaton Vance Massachusetts Municipal Income Trust
    99.91 %    
Eaton Vance Michigan Municipal Income Trust
    99.92 %    
Eaton Vance New Jersey Municipal Income Trust
    99.82 %    
Eaton Vance New York Municipal Income Trust
    99.95 %    
Eaton Vance Ohio Municipal Income Trust
    99.87 %    
Eaton Vance Pennsylvania Municipal Income Trust
    99.98 %    

62


 

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

63


 

Eaton Vance Municipal Income Trusts 
 
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
 
 
This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
 
The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.
 
Please print exact name on account
Shareholder signature                                   Date
Shareholder signature                                   Date
 
Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.
 
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
 
This authorization form, when signed, should be mailed to the following address:
 
Eaton Vance Municipal Income Trusts
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
 
Number of Employees
Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, non-diversified, management investment company and has no employees.
 
Number of Shareholders
As of November 30, 2009, our records indicate that there are 97, 82, 56, 111, 96, 83 and 103 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively, and approximately 2,680, 1,180, 1,134, 2,005, 2,314, 1,410 and 1,413 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively.
 
If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call:
 
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
 
NYSE Amex symbols
 
         
California Municipal Income Trust
  CEV    
Massachusetts Municipal Income Trust
  MMV    
Michigan Municipal Income Trust
  EMI    
New Jersey Municipal Income Trust
  EVJ    
New York Municipal Income Trust
  EVY    
Ohio Municipal Income Trust
  EVO    
Pennsylvania Municipal Income Trust
  EVP    

64


 

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

65


 

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

66


 

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

67


 

Eaton Vance Municipal Income Trusts 
 
MANAGEMENT AND ORGANIZATION
 
 
Fund Management. The Trustees and Officers of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO) and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts’ affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trusts, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Trusts’ principal underwriter and a wholly-owned subsidiary of EVM. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below.
 
                         
        Term of
      Number of Portfolios
     
    Position(s)
  Office and
      in Fund Complex
     
Name and
  with the
  Length of
  Principal Occupation(s)
  Overseen By
     
Date of Birth   Trusts   Service   During Past Five Years   Trustee(1)     Other Directorships Held
 
 
 
Interested Trustee
                         
Thomas E. Faust Jr.
5/31/58
  Class II
Trustee
  Until 2010. 3 years. Trustee since 2007.   Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 178 registered investment companies and 4 private investment companies managed by EVM or BMR. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trusts.     178     Director of EVC
 
Noninterested Trustees
                         
Benjamin C. Esty(A)
1/26/63
  Class I
Trustee
  Until 2012. 3 years. Trustee since 2006.   Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration.     178     None
                         
Allen R. Freedman
4/3/40
  Class II
Trustee
  Until 2010. 3 years. Trustee since 2007.   Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Formerly, Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007).     178     Director of Assurant, Inc. (insurance provider) and Stonemor Partners L.P. (owner and operator of cemeteries)
                         
William H. Park
9/19/47
  Class III
Trustee
  Until 2011. 3 years. Trustee since 2003.   Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (since 2006). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005).     178     None
                         
Ronald A. Pearlman
7/10/40
  Class I
Trustee
  Until 2012. 3 years. Trustee since 2003.   Professor of Law, Georgetown University Law Center.     178     None
                         
Helen Frame Peters
3/22/48
  Class III
Trustee
  Until 2011. 2 years. Trustee since 2008.   Professor of Finance, Carroll School of Management, Boston College. Adjunct Professor of Finance, Peking University, Beijing, China (since 2005).     178     Director of BJ’s Wholesale Club, Inc. (wholesale club retailer)
                         
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).     178     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)

68


 

 
Eaton Vance Municipal Income Trusts 
 
MANAGEMENT AND ORGANIZATION CONT’D
 
                         
        Term of
      Number of Portfolios
     
    Position(s)
  Office and
      in Fund Complex
     
Name and
  with the
  Length of
  Principal Occupation(s)
  Overseen By
     
Date of Birth   Trusts   Service   During Past Five Years   Trustee(1)     Other Directorships Held
 
 
Noninterested Trustees (continued)
                         
Lynn A. Stout
9/14/57
  Class I
Trustee
  Until 2012. 3 years. Trustee since 1998.   Paul Hastings Professor of Corporate and Securities Law (since 2006) and Professor of Law (2001-2006), University of California at Los Angeles School of Law.     178     None
                         
Ralph F. Verni(A)
1/26/43
  Chairman of
the Board
and Class II
Trustee
  Until 2010. 3 years. Chairman of the Board since 2007 and Trustee since 2006.   Consultant and private investor.     178     None
 
Principal Officers who are not Trustees
 
             
        Term of
   
    Position(s)
  Office and
   
Name and
  with the
  Length of
  Principal Occupation(s)
Date of Birth   Trusts   Service   During Past Five Years
 
             
Cynthia J. Clemson
3/2/63
  President of CEV, EMI, EVY, EVO and EVP and Vice President of MMV and EVJ   President of CEV, EMI, EVY, EVO and EVP since 2005 and Vice President of MMV and EVJ since 2004   Vice President of EVM and BMR. Officer of 94 registered investment companies managed by EVM or BMR.
             
Robert B. MacIntosh
1/22/57
  President of MMV and EVJ and Vice President of CEV, EMI, EVY, EVO and EVP   President of MMV and EVJ since 2005 and Vice President of CEV, EMI, EVY, EVO and EVP since 1998   Vice President of EVM and BMR. Officer of 93 registered investment companies managed by EVM or BMR.
             
William H. Ahern, Jr.
7/28/59
  Vice President of EMI and EVO   Vice President of EMI since 2000 and of EVO since 2005   Vice President of EVM and BMR. Officer of 78 registered investment companies managed by EVM or BMR.
             
Craig R. Brandon
12/21/66
  Vice President of EVY   Since 2005   Vice President of EVM and BMR. Officer of 46 registered investment companies managed by EVM or BMR.
             
Thomas M. Metzold
8/3/58
  Vice President of EVP   Since 2005   Vice President of EVM and BMR. Officer of 47 registered investment companies managed by EVM or BMR.
             
Adam A. Weigold
3/22/75
  Vice President of EVP   Since 2007   Vice President of EVM and BMR. Officer of 71 registered investment companies managed by EVM or BMR.
             
Barbara E. Campbell
6/19/57
  Treasurer   Since 2005   Vice President of EVM and BMR. Officer of 178 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 178 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 178 registered investment companies managed by EVM or BMR.
 
(1) Includes both master and feeder funds in a master-feeder structure.
 
(A) APS Trustee.
 
 

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


 

147-1/10 CE-MUNISRC7


 

Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms).
Item 4. Principal Accountant Fees and Services
The following table presents the aggregate fees billed to the registrant for the fiscal years ended November 30, 2008 and November 30, 2009 by the registrant’s principal accountant, Deloitte & Touche LLP, for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by the principal accountant during those periods.
                 
Fiscal Years Ended   11/30/2008   11/30/2009
 
Audit Fees
  $ 31,695     $ 35,045  
 
               
Audit-Related Fees(1)
  $ 3,915     $ 3,915  
 
               
Tax Fees(2)
  $ 7,130     $ 9,356  
 
               
All Other Fees(3)
  $ 97     $ 0  
     
 
               
Total
  $ 42,837     $ 48,316  
     
 
(1)   Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant’s auction preferred shares.
 
(2)   Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.
 
(3)   All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

 


 

(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by the registrant’s principal accountant for the registrant’s fiscal years ended November 30, 2008 and November 30, 2009; and (ii) the aggregate non-audit fees (i.e., fees for audit related, tax, and other services) billed to the Eaton Vance organization by the registrant’s principal accountant for the same time periods, respectively.
                 
Fiscal Years Ended   11/30/2008   11/30/2009
 
Registrant
  $ 11,045     $ 13,271  
 
               
Eaton Vance(1)
  $ 345,473     $ 260,717  
 
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant’s investment adviser and administrator.
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed registrants
The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Lynn A. Stout, Heidi L. Steiger and Ralph F. Verni are the members of the registrant’s audit committee.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from

 


 

voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer 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, Massachusetts, Michigan, New York, New Jersey, Ohio and
Pennsylvania Municipal Income Trusts
Portfolio Management
Cynthia J. Clemson, portfolio manager of Eaton Vance California Municipal Income Trust, Robert B. MacIntosh, portfolio manager of Eaton Vance Massachusetts Municipal Income Trust and Eaton Vance New Jersey Municipal Income

 


 

Trust, William H. Ahern, Jr., portfolio manager of Eaton Vance Michigan Municipal Income Trust and Eaton Vance Ohio Municipal Income Trust, Craig R. Brandon, portfolio manager of Eaton Vance New York Municipal Income Trust and Adam A. Weigold, portfolio manager of Eaton Vance Pennsylvania Municipal Income Trust are responsible for the overall and day-to-day management of each Fund’s investments.
Ms. Clemson and Mr. MacIntosh have been Eaton Vance portfolio managers since 1991 and are each co-Directors of Municipal Investments and Vice Presidents of Eaton Vance Management (“EVM”) and Boston Management and Research (“BMR”), an Eaton Vance subsidiary. Mr. Ahern has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr. Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a Vice President of EVM and BMR. Mr. Weigold has been a credit analyst with Eaton Vance since 1991 and a portfolio manager since 2007, and is a Vice President of EVM and BMR. This information is provided as of the date of filing of this report.
The following tables show, as of each Fund’s most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets in those accounts.
                                 
                            Total Assets of
    Number of   Total Assets of   Number of Accounts   Accounts
    All   All   Paying a Performance   Paying a Performance
    Accounts   Accounts*   Fee   Fee*
California Municipal Income Trust
                               
Cynthia J. Clemson
                               
Registered Investment Companies
    10     $ 2,131.1       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
Massachusetts Municipal Income Trust
                               
New Jersey Municipal Income Trust
                               
Robert B. MacIntosh
                               
Registered Investment Companies
    9     $ 2,038.3       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    321     $ 275.0       0     $ 0  
 
                               
Michigan Municipal Income Trust
                               
Ohio Municipal Income Trust
                               
William H. Ahern
                               
Registered Investment Companies
    13     $ 1,821.0       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  

 


 

                                 
                            Total Assets of
    Number of   Total Assets of   Number of Accounts   Accounts
    All   All   Paying a Performance   Paying a Performance
    Accounts   Accounts*   Fee   Fee*
New York Municipal Income Trust
                               
Craig R. Brandon
                               
Registered Investment Companies
    11     $ 1,315.2       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
                               
Pennsylvania Municipal Income Trust
                               
Adam A. Weigold
                               
Registered Investment Companies
    11     $ 992.6       0     $ 0  
Other Pooled Investment Vehicles
    0     $ 0       0     $ 0  
Other Accounts
    0     $ 0       0     $ 0  
 
*   In millions of dollars.
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Fund’s most recent fiscal year end.
     
    Dollar Range of Equity
    Securities Owned in the
    Fund
California Municipal Income Trust
  None
Cynthia J. Clemson
   
 
   
Massachusetts Municipal Income Trust
  $10,001 - $50,000
New Jersey Municipal Income Trust
  None
Robert B. MacIntosh
   
 
   
Michigan Municipal Income Trust
  None
Ohio Municipal Income Trust
  None
William H. Ahern, Jr.
   
 
   
New York Municipal Income Trust
  None
Craig R. Brandon
   
 
   
Pennsylvania Municipal Income Trust
  None
Adam A. Weigold
   
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of the Fund’s investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser or sub-adviser based on the performance of the securities held by that account. The

 


 

existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including: a code of ethics; and policies which govern the investment adviser’s trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVM’s portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVC’s nonvoting common stock and restricted shares of EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus appropriate peer groups or benchmarks. 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 operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.

 


 

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

 


 

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance California Municipal Income Trust
         
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson
   
 
  President    
 
       
Date:
  January 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:
  January 15, 2010    
 
       
By:
  /s/ Cynthia J. Clemson    
 
       
 
  Cynthia J. Clemson    
 
  President    
 
       
Date:
  January 15, 2010