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 Michigan Municipal Income Trust

(Exact name of registrant as specified in charter)

 

The Eaton Vance Building, 255 State Street, Boston, Massachusetts

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

November 30

 

 

Date of reporting period:

May 31, 2005

 

 



Item 1. Reports to Stockholders

 



Semiannual Report May 31, 2005

EATON VANCE
MUNICIPAL
INCOME
TRUSTS

CLOSED-END FUNDS:

California

Florida

Massachusetts

Michigan

New Jersey

New York

Ohio

Pennsylvania



IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy Policy") with respect to nonpublic personal information about its customers:

•  Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

•  None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.

•  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

•  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc.

In addition, our Privacy Policy only applies to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer's account (i.e. fund shares) is held in the name of a third-party financial adviser/broker-dealer, it is likely that only such adviser's privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.

For more information about Eaton Vance's Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents. The Securities and Exchange Commission 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 it's underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to Portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov.



 

Eaton Vance Municipal Income Trusts as of May 31, 2005

 

LETTER TO SHAREHOLDERS

 

 

Thomas J. Fetter

President

 

Like all fixed-income markets, the municipal bond market responds to many factors, from changes in interest rates and economic trends to fluctuations in municipal bond issuance. Another key variable is the policy of the Federal Reserve, the nations’s central bank, known popularly as “The Fed.” In this edition of our educational series, we will discuss the Fed and its importance to the nation’s economy and financial markets.

 

Founded in the wake of crisis, the Federal Reserve plays a vital role...

 

The Federal Reserve System was established by the Federal Reserve Act of 1913 in the wake of a series of financial crises, the most recent of which – the Panic of 1907 – had caused bank failures, a rash of bankruptcies, a dramatic loss of confidence and a severe economic downturn. Congress was determined to create a central bank that provided a vigilant monetary policy, price stability, a more elastic currency and more careful supervision over the nation’s banks.

 

The Open Market Committee: influencing the money supply and credit conditions...

 

The Fed has a number of tools at its disposal to adjust monetary policy. Of these, the most commonly used tools are open market operations. The Federal Open Market Committee (FOMC) meets regularly to review inflation, credit conditions and the overall health of the economy. The Fed uses its own research, as well as that of other key economic agencies, to review its various policy options. Treasury, corporate and municipal bond investors alike eagerly await the transcripts of FOMC meetings for a hint of future interest rate trends.

 

If it deems a change necessary in short-term rates, the Fed will announce an adjustment to its target for the Federal Funds rate – its primary market instrument. To effect that change, the FOMC issues a directive to the trading desk of the Federal Reserve Bank of New York, whose responsibility it is to implement the policy.

 

Open market operations:The Fed intervenes...

 

If the Fed sees weakness in the economy and little threat of inflation, it may make outright purchases of Treasury securities – either from the “street” or privately from foreign central banks – thus adding reserves to the banking system. This action tends to lower interest rates, increase loans and stimulate economic activity. In so doing, the Fed is said to be easing monetary policy.

 

On the other hand, if the Fed sees the economy overheating and inflation looming, it may sell Treasury securities, thus draining reserves from the system. This action tends to raise rates, discourage consumer and business borrowing and dampen economic activity. In this case, the Fed is said to be tightening monetary policy.

 

While changes in Fed policy primarily affect short-term rates, long-term rates are determined by inflationary expectations. However, the Fed’s actions can have a significant effect on market psychology and, over time, impact market rates across the borrowing spectrum – for homebuyers seeking mortgages, businesses seeking bank loans and municipal bond issuers.

 

Fed-watching: A continuing pre-occupation of the market...

 

Interpreting the Federal Reserve’s actions has long been of keen interest to bond market investors. Until the mid-1990s, analysts needed to keep daily tabs on bank reserves and the Fed’s daily open market activity to determine a change in monetary policy. Starting in February 1994, however, the Fed began to indicate specifically its target Federal Funds rate. That marked a significant change, as analysts were now free to focus less on current policy and more on future potential changes in policy.

 

Throughout its history, the Federal Reserve has contributed to a more stable and safer monetary system. As that history unfolds, investors will surely continue to monitor its activities closely.

 

 

Sincerely,

 

 

 

/s/ Thomas J. Fetter

 

 

Thomas J. Fetter

 

President

 

July 6, 2005

 

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.

 

2



 

Eaton Vance Municipal Income Trusts as of May 31, 2005

 

MARKET RECAP

 

The U.S. economy continued to generate moderate growth during the six months ended May 31, 2005, although surging energy prices and high interest rates were a continuing concern for investors.

 

Signs of a somewhat weaker economy in the first half of 2005...

 

The nation’s Gross Domestic Product grew by 3.8% in the first quarter of 2005, according to final Commerce Department figures, matching a 3.8% rise in the fourth quarter of 2004. However, manufacturing slowed in some areas, especially in durable goods. Consumer spending and a strong housing market remained the twin pillars of growth, although signs of strain were evident in those areas. Consumers were increasingly hard-pressed by soaring oil prices, which translated to higher costs for heating oil and gasoline, as well as lower savings rates.

 

Meanwhile, the housing sector remained very strong, although analysts expressed concern over real estate speculation. Further concerns centered on heavily mortgaged homeowners whose adjustable-rate loans may be vulnerable to rising interest rates. Capital spending, which started 2005 strongly, weakened as the period progressed as businesses curtailed investment somewhat, very likely in response to higher energy and transportation costs. Purchases of equipment and software were especially weak. The trade gap widened further, aggravated by weak export growth. The slow export market has been especially vexing in light of the prolonged weakness of the dollar.

 

Job growth was erratic in the first half of 2005...

 

Job creation increased in 2005, although the rate of job growth varied dramatically from month to month. Many employers indicated some uneasiness with the uncertainty of the economy and the continuing unpredictability of energy costs. In the service sector, health care and business services remained primary sources of new employment.

 

Municipal bond yields exceeded Treasury yields

 

4.49%

 

6.91%

 

 

 

30-Year AAA-rated

 

Taxable equivalent yield

General Obligation (GO) Bonds*

 

in 35.0% tax bracket

 

4.34%

 

 

 

30-Year Treasury bond

 

Principal and interest payments of Treasury securities are guaranteed by the U.S. government.

 


*GO yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Trust yield.  Statistics as of May 31, 2005.

 

Past performance is no guarantee of future results.

Source: Bloomberg, LP.

 

In the goods-producing segment, construction remained strong, while manufacturing continued to suffer from weak export demand.

 

The Federal Reserve continued to raise short-term interest rates in 2005...

 

Inflation accelerated somewhat during the period, an increase apparent not only in core energy costs, but also in finished products, a sign that producers are passing their higher energy costs along to consumers. The Federal Reserve hiked short-term interest rates, suggesting it will continue to raise rates to keep the economy from growing too quickly and to keep inflation under control. Beginning in June 2004, the Fed increased its Federal Funds rate – a key short-term interest rate barometer – on nine occasions, raising that benchmark from 1.00% to 3.25% (as of the most recent rate hike in June 2005).

 

Against this backdrop, the municipal bond market generated solid gains for the period. For the six months ended May 31, 2005, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51%.*

 


* It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

 

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.

 

3



 

Eaton Vance California Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

     Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of -0.55% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $15.16 on November 30, 2004 to $14.60 on May 31, 2005 and the reinvestment of $0.481 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 7.45% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $15.07 on November 30, 2004 to $15.68 on May 31, 2005, and the reinvestment of all distributions.

 

     In comparison, the Lehman Brothers Municipal Bond Index – a broad-based, unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $14.60, the Trust had a market yield of 6.16% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 10.45%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.007833 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Cynthia J. Clemson

Portfolio Manager

 

Management Discussion

 

     California’s job creation improved in late 2004 and early 2005. Business services, construction, financial services and health care generated strong new employment. Government sector losses, a result of the continuing budget deficit, remained a drag on job growth. The state’s jobless rate was 5.3% in May 2005, down from 6.3% a year ago.

 

     Hospital bonds constituted the Trust’s largest sector weighting at May 31, 2005. The Trust’s investments included bonds issued by local facilities, as well as statewide community development authority bonds, for a wide range of hospitals throughout the state.

 

     Special tax revenue bonds were a large investment. Many California communities have issued these bonds in recent years to meet the infrastructure needs that have accompanied rapid growth. The Trust’s investments included a geographically diversified mix of financing authorities and unified school districts.

 

     Insured* transportation bonds were key investments for the Trust. Holdings included issues for regional highway authorities, selected Puerto Rico highway bonds, San Francisco’s rapid transit authority and Los Angeles County’s METRO, which runs the county’s bus and rail service.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 34% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated.Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

10.58

%

Five Years

 

13.04

 

Life of Trust (1/29/99)

 

5.92

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

14.15

%

Five Years

 

13.97

 

Life of Trust (1/29/99)

 

7.12

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

4



 

Eaton Vance Florida Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of 1.73% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $15.25 on November 30, 2004 to $15.02 on May 31, 2005 and the reinvestment of $0.490 in monthly dividends.(1)

 

Based on net asset value, the Trust had a total return of 5.15% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $15.04 on November 30, 2004 to $15.31 on May 31, 2005, and the reinvestment of all distributions.

 

In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

Based on the last dividend of the semiannual period and a share price of $15.02, the Trust had a market yield of 5.97% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 9.18%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.00675 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Cynthia J. Clemson

Portfolio Manager

 

Management Discussion

 

Florida’s economy remained among the fastest growing state economies. Florida tourism registered strong gains, due, in part, to the lure of a weak dollar for foreign visitors. Immigration by retirees and those relocating for work boosted the construction and service sectors. Growth was not uniform across the state, however, as some areas were slow to recover from last year’s hurricanes. The state’s May 2005 jobless rate was 4.0%, down from 4.8% a year ago.

 

Insured* water and sewer constituted the Trust’s largest sector weighting at May 31, 2005. Water and sewer bond revenues come from non-discretionary water bill payments, and as such, are attractive investmentsin all economic scenarios.

 

Insured* transportation bonds were major investments. The Trust’s investments included a port commission, turnpike and expressway authorities, local and regional airport authorities and selected Puerto Rico highway authority bonds.

 

Insured* electric utilities were among the Trust’s prominent holdings. Investments included issues for Jupiter Island and Jacksonville that financed system upgrades, as well as Guam and Puerto Rico issues.

 

At May 31, 2005, the Trust had leverage in the amount of approximately 35% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated.Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

16.43

%

Five Years

 

14.56

 

Life of Trust (1/29/99)

 

6.46

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

10.43

%

Five Years

 

13.54

 

Life of Trust (1/29/99)

 

6.78

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state intangibles tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 35.00% combined federal and state intangibles tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Fund’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

5



 

Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of -1.96% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $16.81 on November 30, 2004 to $16.00 on May 31, 2005 and the reinvestment of $0.479 in monthly dividends.(1)

 

 Based on net asset value, the Trust had a total return of 6.83% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $15.09 on November 30, 2004 to $15.65 on May 31, 2005, and the reinvestment of all distributions.

 

In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment- grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

Based on the last dividend of the semiannual period and a share price of $16.00, the Trust had a market yield of 5.63% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 9.15%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.009333 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Robert B. MacIntosh

Portfolio Manager

 

Management Discussion

 

     Massachusetts’ economy made further advances in the first half of 2005. Service sector employment in health and education increased during the period, while the leisure and tourism sectors were also strong. Manufacturing remained a weak spot in the Commonwealth’s employment picture. The jobless rate was 4.8% in May 2005, down from 5.2% a year ago.

 

     Education and insured* education bonds were among the Trust’s largest sector weightings at May 31, 2005. The education sector generally has more defensive characteristics in an uncertain economy than economically sensitive sectors. The Trust focused on bonds of well-regarded institutions at the university and secondary level with continuing strong applicant demand.

 

     The Trust was selective within the hospital sector, given that industry’s continuing challenges. Investments represented a broad geographical mix across the Commonwealth – facilities with marketable health care specialties and what we believe are sound fundamentals.

 

     Insured* non-sector specific, miscellaneous bonds also provided opportunities for the Trust. Investments included issues for a new convention center and for a public television foundation.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 34% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated.Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

17.13

%

Five Years

 

14.30

 

Life of Trust (1/29/99)

 

7.34

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

13.87

%

Five Years

 

14.54

 

Life of Trust (1/29/99)

 

6.96

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

6



 

Eaton Vance Michigan Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

     Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of -0.93% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $16.60 on November 30, 2004 to $15.96 on May 31, 2005 and the reinvestment of $0.470 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 5.47% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $14.86 on November 30, 2004 to $15.21 on May 31, 2005, and the reinvestment of all distributions.

 

In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $15.96, the Trust had a market yield of 5.30% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 8.49%.(4) The dividend declared on June 30, 2005 reflects a reductionof the monthly dividend of $0.004167 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

William H. Ahern

Portfolio Manager

 

Management Discussion

 

     Michigan’s economy turned in a poor performance in the first half of 2005. While less severe than in 2004, manufacturing – which accounts for about 16% of Michigan jobs – posted further losses. The service sector – trade, retail, health care – registered modestgains during the period. The state’s May 2005 jobless rate was 7.1%, up from 7.0% a year ago.

 

     Hospital bonds were the Trust’s largest sector weighting at May 31, 2005. The Trust’s investments were primarily state hospital finance authority bonds. Facilities were from a diverse range throughout the state and represented institutions with good market share and what we believe are sound management and well-regarded teaching affiliations.

 

     The Trust has a large commitment in general obligations(GOs). Given Michigan’s troubled economy, management focused on school district bonds in communities with a relatively strong local job climate and a solid tax base.

 

     Insured* escrowed bonds were among the Trust’s largest commitments. Escrowed bonds are essentially refinanced like a homeowner refinances a mortgage. Because they are backed by Treasury bonds, escrowed bonds are considered to be of the highest quality.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 35% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated.Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

11.66

%

Five Years

 

16.38

 

Life of Trust (1/29/99)

 

7.38

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

11.69

%

Five Years

 

13.02

 

Life of Trust (1/29/99)

 

6.57

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state and local income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 37.54% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

7



 

Eaton Vance New Jersey Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

     Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of -1.79% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $15.54 on November 30, 2004 to $14.78 on May 31, 2005 and the reinvestment of $0.480 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 6.95% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $14.81 on November 30, 2004 to $15.34 on May 31, 2005, and the reinvestment of all distributions.

 

     In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $14.78, the Trust had a market yield of 5.72% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 9.67%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.005833 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Robert B. MacIntosh

Portfolio Manager

 

Management Discussion

 

     In the first half of 2005, New Jersey enjoyed its strongest showing since 2000. Leisure, business services, trade, transportation, and utilities generated the lion’s share of new jobs. Manufacturing remained among New Jersey’s weakest sectors. The state’s May 2005 jobless rate was 3.9%, down from 4.9% a year ago, and below the national rate.

 

     Hospital bonds constituted the Trust’s largest sector weighting at May 31, 2005. In a very cost-conscious hospital climate, the Trust focused on health care financing authority bonds for facilities that management believes are well managed, financially strong and leading care providers in their communities.

 

     Insured* transportation bonds constituted another large focus for the Trust. Investments included issues for regional and state port authorities, turnpike authorities and Newark’s marine terminal.

 

     Insured* general obligations (GOs) were a large investment for the Trust. Management emphasized local board of education and school district bonds of communities with a sound property tax base. The Trust focused on issues with good call protection – either long-dated calls or non-callable bonds.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 34% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

11.15

%

Five Years

 

13.39

 

Life of Trust (1/29/99)

 

6.28

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

15.28

%

Five Years

 

13.99

 

Life of Trust (1/29/99)

 

6.91

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

8



 

Eaton Vance New York Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of 7.58% for the six months ended May 31, 2005. That return was the result of an increase in share price from $15.37 on November 30, 2004 to $16.00 on May 31, 2005 and the reinvestment of $0.518 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 7.21% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $15.49 on November 30, 2004 to $16.07 on May 31, 2005, and the reinvestment of all distributions.

 

     In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment- grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $16.00, the Trust had a market yield of 6.31% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 10.52%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.008417 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 

 

Thomas J. Fetter

Portfolio Manager

 

Management Discussion

 

     In the first half of 2005, New York State continued its recovery, registering impressive employment growth. Business services, education, health care and tourism have been the main sources of growth. Gains in finance have been modest, while the state continued to shed manufacturing jobs. The state’s May 2005 jobless rate was 5.0%, down from 5.8% a year ago.

 

     Electric utilities bonds were the Trust’s largest sector weighting at May 31, 2005. These essential services bonds are considered less subject to economic fluctuations than more discretionary services or purchases because their revenues derive from relatively stable utility bill payments.

 

     Hospital bonds played a significant role in the Trust. Management remained very selective, focusing on the more competitive county and New York City-based institutions with what we believe to be sound management, lean cost structures and good market share.

 

     Transportation bonds were a continued focus of the Trust. As the nation’s business and financial capital, transportation plays a key role in New York’s economy. The Trust’s holdings included issues for port authorities, rapid transit facilities and Puerto Rico highway authority bonds.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 34% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

22.23

%

Five Years

 

16.19

 

Life of Trust (1/29/99)

 

7.55

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

15.12

%

Five Years

 

14.24

 

Life of Trust (1/29/99)

 

7.63

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state and city income tax. (2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 40.01% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

9



 

Eaton Vance Ohio Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

     Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of -6.95% for the six months ended May 31, 2005. That return was the result of a decrease in share price from $16.75 on November 30, 2004 to $15.11 on May 31, 2005 and the reinvestment of $0.491 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 5.62% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $15.04 on November 30, 2004 to $15.40 on May 31, 2005, and the reinvestment of all distributions.

 

     In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $15.11, the Trust had a market yield of 5.88% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 9.78%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.0065 per share.

 

Rating Distribution (5),(6)

 

By total investments


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Thomas J. Fetter

Portfolio Manager

 

Management Discussion

 

Ohio’s economy continued its slow improvement in the first half of 2005, although manufacturing remained vulnerable to a soft auto industry, corporate restructurings and technology-driven productivity gains. Among expanding industries, business services, health care and education generated impressive employment growth. The state’s May 2005 jobless rate was 6.1%, unchanged from a year ago.

 

     Hospital bonds were the Trust’s largest weighting at May 31, 2005. The Trust remained very selective, focusing on the more competitive institutions that have what we believe are favorable demographic and market positions, sound cost structures and in-demand health care specialties.

 

     Insured* general obligations (GOs) were key investments for the Trust. Against the backdrop of a slow-to-recover manufacturing sector, the Trust sought to use insured* school district GOs as a counterweight against the possibility of a downturn in local tax revenues.

 

     The Trust maintained selective investments in industrial development revenue bonds, with exposure in cyclical as well as defensive industries. The Trust’s investments included issues for airlines and air freight, several auto manufacturers and a beverage producer.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 35% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

12.18

%

Five Years

 

12.82

 

Life of Trust (1/29/99)

 

6.40

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

14.25

%

Five Years

 

13.60

 

Life of Trust (1/29/99)

 

6.73

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 39.88% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

10



 

Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2005

 

INVESTMENT UPDATE

 

The Trust

 

Based on share price (the Trust is a closed-end fund traded on the American Stock Exchange), the Trust had a total return of 3.56% for the six months ended May 31, 2005. That return was the result of an increase in share price from $15.54 on November 30, 2004 to $15.58 on May 31, 2005 and the reinvestment of $0.496 in monthly dividends.(1)

 

     Based on net asset value, the Trust had a total return of 4.82% for the six months ended May 31, 2005. That return was the result of an increase in net asset value per share from $14.89 on November 30, 2004 to $15.11 on May 31, 2005, and the reinvestment of all distributions.

 

     In comparison, the Lehman Brothers Municipal Bond Index – an unmanaged index of longer-term, investment-grade, municipal debt securities made up of issues larger than $50 million – had a total return of 3.51% for the six months ended May 31, 2005.(2)

 

     Based on the last dividend of the semiannual period and a share price of $15.58, the Trust had a market yield of 6.05% at May 31, 2005.(3) The Trust’s market yield is equivalent to a taxable yield of 9.60%.(4) The dividend declared on June 30, 2005 reflects a reduction of the monthly dividend of $0.003583 per share.

 

Rating Distribution(5),(6)

 

By total investments

 

 


* Private insurance does not decrease the risk of principal fluctuations associated with this investment.

 

 

Thomas M. Metzold

Portfolio Manager

 

Management Discussion

 

     Pennsylvania job creation gained some momentum in late 2004 and early 2005, although the pace of growth was unevenly distributed. Business, education, tourism, construction and health care were the primary areas of growth, while manufacturing continued to shed jobs. The Commonwealth’s May 2005 jobless rate was 4.8%, down from 5.5% a year ago.

 

     Insured* education bonds constituted the Trust’s largest sector weighting at May 31, 2005. With the education sector enjoying more predictable revenues than many cyclical sectors, the Trust’s investments included issues for some of the Commonwealth’s most prominent colleges and universities.

 

     Insured* escrowed/prerefunded bonds remained a large commitment in the Trust. Escrowed bonds are pre-refunded and backed by Treasury bonds, most often as the result of a refinancing of existing higher-coupon debt. Escrowed issues are attractive for their high quality and may provide above-average coupons.

 

     In the competitive hospital sector, the Trust remained very selective. Management focused on insured* bonds of facilities it believes have an advantage due to what it deems marketable health care services, superior management and a sound financial profile.

 

     At May 31, 2005, the Trust had leverage in the amount of approximately 35% of the Trust’s total assets. The Trust uses leverage through the issuance of preferred shares. Use of financial 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).

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Trust performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Trust’s current performance may be lower or higher than the quoted return.

 

Trust Information as of May 31, 2005

 

Performance(7)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

One Year

 

18.98

%

Five Years

 

14.65

 

Life of Trust (1/29/99)

 

6.92

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

One Year

 

11.18

%

Five Years

 

12.72

 

Life of Trust (1/29/99)

 

6.41

 

 


(1) A portion of the Trust’s income may be subject to federal income tax and/or alternative minimum tax and state income tax.

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

(3) The Trust’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result.

(4) Taxable-equivalent figures assume a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures.

(5) Rating Distribution may not be representative of the Trust’s current or future investments.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust.

(7) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust’s issuance of Auction Preferred Shares.

 

11



Eaton Vance California Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments - 150.3%  
Principal Amount
(000's omitted)
  Security   Value  
Education - 9.4%  
$ 1,000     California Educational Facilities Authority,
(Dominican University), 5.75%, 12/1/30
  $ 1,049,120    
  2,770     California Educational Facilities Authority,
(Lutheran University), 5.00%, 10/1/29
    2,866,950    
  500     California Educational Facilities Authority,
(Pepperdine University), 5.00%, 11/1/29
    518,990    
  1,850     California Educational Facilities Authority,
(Santa Clara University), 5.00%, 9/1/23
    2,063,619    
  4,000     California Educational Facilities Authority,
(Stanford University), 5.125%, 1/1/31
    4,131,840    
            $ 10,630,519    
General Obligations - 6.6%  
  2,250     California, 5.00%, 6/1/34     2,351,227    
  1,100     California, 5.25%, 4/1/30     1,180,971    
  3,500     California, 5.50%, 11/1/33     3,894,660    
            $ 7,426,858    
Hospital - 22.3%  
  2,000     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 6.25%, 12/1/34
    2,181,820    
  750     California Infrastructure and Economic Development,
(Kaiser Hospital), 5.50%, 8/1/31
    802,320    
  450     California Statewide Communities Development Authority,
(Daughters of Charity Health System), 5.00%, 7/1/39
    459,783    
  1,200     California Statewide Communities Development Authority,
(Daughters of Charity Health System), 5.25%, 7/1/30
    1,257,384    
  4,900     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    5,094,236    
  1,650     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.50%, 11/1/32
    1,755,352    
  1,750     California Statewide Communities Development Authority,
(Sonoma County Indian Health), 6.40%, 9/1/29
    1,817,182    
  1,500     California Statewide Communities Development Authority,
(Sutter Health), 5.50%, 8/15/28
    1,607,055    
  1,500     Duarte, COP, (City of Hope), 5.25%, 4/1/24     1,541,880    
  1,000     Stockton Health Facilities Authority, (Dameron Hospital),
5.70%, 12/1/14
    1,054,450    
  2,000     Tahoe Forest Hospital District, 5.85%, 7/1/22     2,092,720    
  2,000     Torrance Hospital, (Torrance Memorial Medical Center),
5.50%, 6/1/31
    2,128,680    
  1,140     Turlock, (Emanuel Medical Center, Inc.),
5.375%, 10/15/34
    1,190,513    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Hospital (continued)        
$ 2,000     Washington Township, Health Care District,
5.25%, 7/1/29
  $ 2,078,440    
            $ 25,061,815    
  Housing - 2.3%        
  1,000     California Statewide Communities Development Authority,
(Corporate Fund for Housing), 6.50%, 12/1/29
    1,003,820    
  500     California Statewide Communities Development Authority,
(Corporate Fund for Housing), 7.25%, 12/1/34
    500,430    
  768     Commerce, (Hermitage III Senior Apartments),
6.50%, 12/1/29
    711,362    
  439     Commerce, (Hermitage III Senior Apartments),
6.85%, 12/1/29
    403,775    
            $ 2,619,387    
  Industrial Development Revenue - 1.2%        
  1,250     California Pollution Control Financing Authority,
(Mobil Oil Corp.), (AMT), 5.50%, 12/1/29
    1,311,562    
            $ 1,311,562    
  Insured-Education - 7.3%        
  6,510     California Educational Facilities Authority,
(Loyola Marymount University), (MBIA), 0.00%, 10/1/33
    1,651,587    
  3,270     California Educational Facilities Authority, (Pooled College
and University), (MBIA), 5.10%, 4/1/23
    3,476,141    
  3,000     California State University, (AMBAC), 5.00%, 11/1/33     3,150,510    
            $ 8,278,238    
  Insured-Electric Utilities - 11.1%        
  3,250     California Pollution Control Financing Authority, (Southern
California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31
    3,503,403    
  2,500     California Pollution Control Financing Authority, PCR, (Pacific
Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16
    2,743,125    
  4,000     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
8.39%, 7/1/29(1)(2)
    4,641,320    
  665     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
9.248%, 7/1/29(1)(3)
    824,933    
  500     Puerto Rico Electric Power Authority, (MBIA), Variable Rate,
12.295%, 7/1/16(1)(3)
    756,285    
            $ 12,469,066    
  Insured-Escrowed / Prerefunded - 1.8%        
  5,130     Foothill/Eastern Transportation Corridor Agency, (FSA),
Escrowed to Maturity, 0.00%, 1/1/26
    2,019,835    
            $ 2,019,835    

 

See notes to financial statements

12



Eaton Vance California Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations - 17.6%  
$ 1,650     California RITES, (AMBAC), Variable Rate, 10.593%,
5/1/26(1)(3)
  $ 2,125,299    
  1,000     California, (AMBAC), 4.25%, 3/1/28     982,050    
  1,000     California, (AMBAC), 4.50%, 5/1/28     1,007,050    
  3,750     Los Angeles Unified School District, (FGIC), 5.375%,
7/1/25
    4,036,725    
  2,500     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(1)(3)     3,168,325    
  1,600     San Diego Unified School District, (MBIA), Variable Rate,
10.095%, 7/1/24(1)(3)
    2,550,896    
  3,000     Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28     3,198,510    
  6,995     Sweetwater, Union High School District, (Election 2000),
(FSA), 0.00%, 8/1/25
    2,730,218    
            $ 19,799,073    
Insured-Hospital - 4.5%  
  3,200     California Statewide Communities Development Authority,
(Children's Hospital Los Angeles), (MBIA), 5.25%,
8/15/29(4)
    3,425,248    
  1,245     California Statewide Communities Development Authority,
(Sutter Health), (FSA), Variable Rate,
10.853%, 8/15/27(1)(3)
    1,603,062    
            $ 5,028,310    
Insured-Lease Revenue / Certificates of
Participation - 10.6%
 
  10,750     Anaheim Public Financing Authority, (Public Improvements),
(FSA), 0.00%, 9/1/25
    4,196,155    
  6,500     Anaheim Public Financing Authority, (Public Improvements),
(FSA), 0.00%, 9/1/17
    3,897,075    
  11,500     Anaheim Public Financing Authority, (Public Improvements),
(FSA), 0.00%, 9/1/28
    3,808,570    
            $ 11,901,800    
Insured-Special Tax Revenue - 1.2%  
  250     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 6.814%, 7/1/28(1)(2)
    272,298    
  945     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 10.286%, 7/1/28(1)(3)
    1,071,432    
            $ 1,343,730    
Insured-Transportation - 18.2%  
  5,000     Alameda Corridor Transportation Authority, (AMBAC),
0.00%, 10/1/29
    1,560,500    
  8,000     Alameda Corridor Transportation Authority, (MBIA),
0.00%, 10/1/31
    2,190,400    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)  
$ 2,500     Los Angeles County Metropolitan Transportation Authority,
(FGIC), 5.25%, 7/1/30
  $ 2,682,150    
  2,515     Puerto Rico Highway and Transportation Authority,
(AMBAC), Variable Rate, 8.643%, 7/1/28(1)(3)
    2,899,342    
  1,750     Puerto Rico Highway and Transportation Authority, (FSA),
4.75%, 7/1/38
    1,846,968    
  6,000     San Francisco, (Bay Area Rapid Transportation District),
(FGIC), 5.50%, 7/1/34
    6,495,240    
  10,000     San Joaquin Hills Transportation Corridor Agency, (MBIA),
0.00%, 1/15/32
    2,766,200    
            $ 20,440,800    
Insured-Water and Sewer - 5.7%  
  6,250     East Bay Municipal Utilities District Water System, (MBIA),
5.00%, 6/1/38
    6,442,063    
            $ 6,442,063    
Lease Revenue / Certificates of Participation - 6.3%  
  4,000     Sacramento Financing Authority, 5.40%, 11/1/20     4,516,720    
  2,500     San Diego County, Certificates of Participation,
5.375%, 10/1/41
    2,629,500    
            $ 7,146,220    
Other Revenue - 1.4%  
  1,500     California Statewide Communities Development Authority,
(East Valley Tourist Development Authority),
8.25%, 10/1/14
    1,634,205    
            $ 1,634,205    
Special Tax Revenue - 21.8%  
  1,500     Bonita Canyon Public Facilities Financing Authority,
5.375%, 9/1/28
    1,523,175    
  1,600     Brentwood Infrastructure Financing Authority,
6.375%, 9/2/33
    1,648,928    
  1,750     Capistrano Unified School District, 5.75%, 9/1/29     1,949,973    
  1,665     Corona, Public Financing Authority, 5.80%, 9/1/20     1,668,513    
  1,000     Corona-Norco Unified School District Public Financing
Authority, 6.125%, 9/1/31
    1,051,990    
  1,590     Fontana Redevelopment Agency, (Jurupa Hills),
5.60%, 10/1/27
    1,683,603    
  500     Jurupa Community Services District, (Community Facilities
District No. 16), 5.30%, 9/1/34
    507,800    
  1,335     Lincoln Public Financing Authority, Improvement Bond
Act of 1915 (Twelve Bridges), 6.20%, 9/2/25
    1,418,745    
  420     Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.75%, 9/1/24
    428,778    

 

See notes to financial statements

13



Eaton Vance California Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Special Tax Revenue (continued)  
$ 750     Moreno Valley Unified School District, (Community School
District No. 2003-2), 5.90%, 9/1/29
  $ 765,705    
  750     Murrieta Valley Unified School District, 6.20%, 9/1/35     793,665    
  2,460     Oakland Joint Powers Financing Authority, 5.40%, 9/2/18     2,607,575    
  995     Oakland Joint Powers Financing Authority, 5.50%, 9/2/24     1,054,829    
  700     Rancho Cucamonga Public Financing Authority,
6.00%, 9/2/20
    742,651    
  1,195     Roseville Special Tax, 6.30%, 9/1/25     1,279,690    
  1,325     San Pablo Redevelopment Agency, 5.65%, 12/1/23     1,409,098    
  1,500     Santa Margarita Water District, 6.20%, 9/1/20     1,643,700    
  250     Santaluz Community Facilities District No. 2,
6.10%, 9/1/21
    256,333    
  500     Santaluz Community Facilities District No. 2,
6.20%, 9/1/30
    510,750    
  500     Turlock Public Financing Authority, 5.45%, 9/1/24     515,835    
  1,000     Whittier Public Financing Authority, (Greenleaf Avenue
Redevelopment), 5.50%, 11/1/23
    1,044,870    
            $ 24,506,206    
Transportation - 1.0%  
  1,170     Port Redwood City, (AMT), 5.125%, 6/1/30     1,170,000    
            $ 1,170,000    
  Total Tax-Exempt Investments - 150.3%
(identified cost $154,173,104)
        $ 169,229,687    
  Other Assets, Less Liabilities - 2.1%         $ 2,387,395    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (52.4)%
        $ (59,009,657 )  
  Net Assets Applicable to Common
Shares - 100.0%
        $ 112,607,425    

 

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005,

51.8% of the securities in the portfolio of 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 7.7% to 19.3% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $19,913,192 or 17.7% of the Trust's net assets.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

14



Eaton Vance Florida Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

  Tax-Exempt Investments - 153.4%        
Principal Amount
(000's omitted)
  Security   Value  
  Education - 1.6%        
$ 1,000     Volusia County Educational Facilities Authority,
(Embry Riddle Aeronautical), 5.75%, 10/15/29
  $ 1,049,370    
            $ 1,049,370    
  Electric Utilities - 3.2%        
  2,000     Jacksonville Electric Authority, Variable Rate,
6.91%, 10/1/32(1)(2)
    2,105,400    
            $ 2,105,400    
  General Obligations - 2.7%        
  350     Florida Board of Education, 4.75%, 6/1/28     355,666    
  1,250     Florida, Variable Rate, 6.72%, 7/1/27(1)(2)     1,380,700    
            $ 1,736,366    
  Health Care-Miscellaneous - 0.3%        
  160     Osceola County IDA Community Provider Pooled Loan,
7.75%, 7/1/17
    160,118    
            $ 160,118    
  Hospital - 12.1%        
  1,250     Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36     1,344,637    
  1,750     Lakeland Hospital System, (Lakeland Regional Health System), 
5.50%, 11/15/32
    1,856,120    
  2,000     Orange County Health Facilities Authority, (Adventist Health
System), 5.625%, 11/15/32
    2,149,560    
  1,000     South Miami Health Facility Authority, (Baptist Health),
5.25%, 11/15/33
    1,051,090    
  1,400     West Orange Health Care District, 5.80%, 2/1/31     1,491,378    
            $ 7,892,785    
  Housing - 2.4%        
  1,000     Escambia County Housing Finance Authority, SFM,
(Multi-County Program), (AMT), 5.50%, 10/1/31
    1,034,190    
  500     Florida Capital Projects Finance Authority, Student Housing
Revenue, (Florida University), 7.75%, 8/15/20
    460,455    
  45     Florida Capital Projects Finance Authority, Student Housing
Revenue, (Florida University), 9.50%, 8/15/05
    44,973    
            $ 1,539,618    

 

Principal Amount
(000's omitted)  
Security
      Value  
Industrial Development Revenue - 3.6%      
$ 882     Broward County IDR, (Lynxs Cargoport), (AMT),
6.75%, 6/1/19
  $ 825,523    
  1,000     Capital Trust Agency, (Fort Lauderdale Project), (AMT),
5.75%, 1/1/32
    1,010,950    
  650     Puerto Rico Port Authority, (American Airlines), (AMT),
6.30%, 6/1/23
    517,510    
        $ 2,353,983    
Insured-Electric Utilities - 14.2%      
  1,600     Burke County Development Authority (Georgia Power Co.),
(MBIA), (AMT), 5.45%, 5/1/34
    1,618,240    
  1,100     Guam Power Authority, (MBIA), 5.125%, 10/1/29     1,175,570    
  2,700     JEA, (FSA), 4.75%, 10/1/34     2,737,665    
  2,750     Jupiter Island, Utility System, (South Martin Regional Utility),
(MBIA), 5.00%, 10/1/28
    2,842,867    
  750     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
8.39%, 7/1/29(1)(2)
    870,247    
        $ 9,244,589    
Insured-Escrowed / Prerefunded - 2.9%      
  650     Dade County, Professional Sports Franchise Facility, (MBIA),
Escrowed to Maturity, 5.25%, 10/1/30
    752,973    
  1,000     Tampa Bay Water Utility System, (FGIC), Prerefunded to
10/1/11, 5.75%, 10/1/29
    1,143,550    
        $ 1,896,523    
Insured-General Obligations - 2.9%      
  1,500     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(1)(3)     1,900,995    
        $ 1,900,995    
Insured-Hospital - 7.5%      
  1,000     Coral Gables Health Facilities Authority, (Baptist Health
System of South Florida), (FSA), 5.00%, 8/15/29
    1,056,190    
  1,000     Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC),
5.25%, 11/15/37
    1,055,430    
  1,350     Miami Dade County Health Facilities Authority, (Miami
Children's Hospital), (AMBAC), 5.125%, 8/15/26
    1,430,744    
  1,250     South Miami Health Facility Authority, (Baptist Health),
(AMBAC), 5.25%, 11/15/33
    1,339,013    
        $ 4,881,377    

 

See notes to financial statements

15



Eaton Vance Florida Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)  
Security
      Value  
Insured-Housing - 1.7%  
$ 1,100     Broward County Housing Finance Authority, Multifamily
Housing, (Venice Homes Apartments), (FSA), (AMT),
5.70%, 1/1/32
  $ 1,132,296    
        $ 1,132,296    
Insured-Miscellaneous - 11.9%  
  4,000     Miami-Dade County, (Professional Sport Franchise), (MBIA),
4.75%, 10/1/30
    4,066,640    
  3,500     Orange County Tourist Development, (AMBAC),
5.125%, 10/1/30
    3,699,955    
        $ 7,766,595    
Insured-Special Tax Revenue - 12.7%  
  1,500     Dade County Convention Center Special Tax, (AMBAC),
5.00%, 10/1/35
    1,558,035    
  970     Dade County, Special Obligation Residual Certificates,
(AMBAC), Variable Rate, 8.555%, 10/1/35(1)(3)
    1,082,588    
  2,250     Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30     2,348,415    
  1,470     Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22     1,879,498    
  1,395     Miami-Dade County, Special Obligation, (MBIA),
5.00%, 10/1/37
    1,432,233    
        $ 8,300,769    
Insured-Transportation - 24.7%  
  2,250     Florida Ports Financing Commission, (FGIC), (AMT),
5.50%, 10/1/29
    2,420,955    
  3,700     Florida Turnpike Authority, (Department of Transportation),
(FGIC) , 4.50%, 7/1/27(4)
    3,721,127    
  1,500     Greater Orlando Aviation Authority, (FGIC), (AMT),
Variable Rate, 9.216%, 10/1/18(1)(3)
    1,761,060    
  500     Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25     547,815    
  650     Lee County Airport, (FSA), (AMT), 6.00%, 10/1/29     724,893    
  1,000     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 5.00%, 1/1/37
    1,027,160    
  1,000     Miami-Dade County Expressway Authority, (FGIC),
5.00%, 7/1/33
    1,058,700    
  1,000     Miami-Dade County Expressway Authority, (FGIC),
5.125%, 7/1/29
    1,058,330    
  1,000     Orlando and Orange County Expressway Authority, (FGIC),
5.00%, 7/1/28
    1,032,110    
  1,250     Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/36
    1,431,213    
  1,165     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 10.143%, 7/1/26(1)(3)
    1,316,357    
        $ 16,099,720    

 

Principal Amount
(000's omitted)  
Security
      Value  
Insured-Utilities - 0.8%      
$ 500     Ocala Utility System, (FGIC), 5.00%, 10/1/31   $ 534,305    
        $ 534,305    
Insured-Water and Sewer - 25.8%      
  3,000     Marco Island Utility System, (MBIA), 5.00%, 10/1/33     3,170,370    
  1,500     Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30     1,622,220    
  1,000     Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25     1,055,230    
  1,250     Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28     1,298,175    
  4,000     Sunrise Utility System, (AMBAC), 5.00%, 10/1/28     4,351,680    
  1,500     Tampa Bay Water Utility System, (FGIC), Variable Rate,
6.22%, 10/1/27(1)(2)
    1,597,995    
  3,650     Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28     3,706,174    
        $ 16,801,844    
Nursing Home - 2.6%      
  785     Okaloosa County Retirement Rental Housing, (Encore
Retirement Partners), 6.125%, 2/1/14
    716,085    
  265     Orange County Health Facilities Authority, (Westminster
Community Care), 6.60%, 4/1/24
    261,044    
  735     Orange County Health Facilities Authority, (Westminster
Community Care), 6.75%, 4/1/34
    726,628    
        $ 1,703,757    
Other Revenue - 0.9%      
  500     Capital Trust Agency, (Seminole Tribe Convention),
8.95%, 10/1/33
    553,630    
        $ 553,630    
Senior Living / Life Care - 2.4%      
  1,500     Lee County IDA, (Shell Point Village), 5.50%, 11/15/29     1,533,930    
        $ 1,533,930    
Special Tax Revenue - 13.1%      
  550     Dupree Lakes Community Development District,
5.00%, 11/1/10
    555,561    
  325     Heritage Harbour South Community Development District,
6.20%, 5/1/35
    337,285    
  405     Heritage Harbour South Community Development District,
(Capital Improvements), 5.40%, 11/1/08
    411,002    
  810     Heritage Springs Community Development District,
6.75%, 5/1/21
    834,332    
  840     Longleaf Community Development District, 6.65%, 5/1/20     782,519    
  690     North Springs Improvement District, (Heron Bay),
7.00%, 5/1/19
    714,764    

 

See notes to financial statements

16



Eaton Vance Florida Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)  
Security
      Value  
Special Tax Revenue (continued)      
$ 1,000     Northern Palm Beach County Improvement District, (Water
Control and Improvement), 6.00%, 8/1/25
  $ 1,033,700    
  500     Southern Hills Plantation I Community Development District,
5.80%, 5/1/35
    505,280    
  600     Sterling Hill Community Development District,
6.20%, 5/1/35
    621,348    
  500     Stoneybrook West Community Development District,
7.00%, 5/1/32
    536,730    
  855     University Square Community Development District,
6.75%, 5/1/20
    904,573    
  460     Vista Lakes Community Development District, 7.20%, 5/1/32     495,650    
  735     Waterlefe Community Development District, 6.95%, 5/1/31     795,615    
        $ 8,528,359    
Water and Sewer - 3.4%      
  2,000     Seminole County, Water and Sewer, 5.375%, 10/1/22     2,207,020    
        $ 2,207,020    
Total Tax-Exempt Investments - 153.4%
(identified cost $92,553,600)
      $ 99,923,349    
Other Assets, Less Liabilities - 1.1%       $ 745,792    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (54.5)%
      $ (35,514,886 )  
Net Assets Applicable to Common
Shares - 100.0%
      $ 65,154,255    

 

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

The Trust invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 68.6% of the securities in the portfolio of 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 11.3% to 22.6% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $12,015,342 or 18.4% of the Trust's net assets.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

17



Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

  Tax-Exempt Investments - 148.2%        
Principal Amount
(000's omitted)
  Security   Value  
  Education - 24.9%        
$ 500     Massachusetts Development Finance Agency, (Belmont Hill School),
5.00%, 9/1/31
  $ 522,245    
  2,000     Massachusetts Development Finance Agency, (Boston
University), 5.45%, 5/15/59
    2,263,160    
  500     Massachusetts Development Finance Agency, (Massachusetts
College of Pharmacy), 5.75%, 7/1/33
    534,615    
  600     Massachusetts Development Finance Agency, (Middlesex
School), 5.00%, 9/1/33
    626,754    
  500     Massachusetts Development Finance Agency, (Mount Holyoke
College), 5.25%, 7/1/31
    531,630    
  1,000     Massachusetts Development Finance Agency, (Suffolk
University), 5.85%, 7/1/29
    1,039,360    
  400     Massachusetts Development Finance Agency, (Western New
England College), 6.125%, 12/1/32
    427,596    
  1,500     Massachusetts Development Finance Agency, (Wheeler
School), 6.50%, 12/1/29
    1,587,705    
  1,000     Massachusetts Development Finance Agency, (Xaverian
Brothers High School), 5.65%, 7/1/29
    1,041,640    
  1,000     Massachusetts HEFA, (Boston College), 5.125%, 6/1/33     1,059,440    
  500     Massachusetts IFA, (Babson College), 5.25%, 10/1/27     519,970    
  400     Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28     413,328    
            $ 10,567,443    
  Electric Utilities - 2.5%        
  1,000     Massachusetts IFA, (Devens Electric System),
6.00%, 12/1/30
    1,075,830    
            $ 1,075,830    
  Escrowed / Prerefunded - 3.8%        
  1,000     Massachusetts HEFA, (Winchester Hospital), Prerefunded to
7/1/10, 6.75%, 7/1/30
    1,159,000    
  1,000     Rail Connections, Inc., (Route 128 Parking), (ACA),
Prerefunded to 7/1/09, 0.00%, 7/1/20
    440,660    
            $ 1,599,660    
  General Obligations - 0.7%        
  250     Massachusetts, 5.25%, 8/1/28     290,867    
            $ 290,867    
  Health Care-Miscellaneous - 2.9%        
  510     Massachusetts Development Finance Agency, (MCHSP Human
Services), 6.60%, 8/15/29
    502,666    

 

Principal Amount
(000's omitted)  
Security
      Value  
Health Care-Miscellaneous (continued)  
$ 700     Massachusetts HEFA, (Learning Center for Deaf Children),
6.125%, 7/1/29
  $ 715,435    
        $ 1,218,101    
Hospital - 17.7%  
  1,000     Massachusetts Development Finance Agency, (Biomedical
Research Corp.), 6.25%, 8/1/20
    1,098,660    
  1,000     Massachusetts HEFA, (Baystate Medical Center),
5.75%, 7/1/33
    1,075,370    
  400     Massachusetts HEFA, (Berkshire Health System),
6.25%, 10/1/31
    428,580    
  175     Massachusetts HEFA, (Central New England Health Systems),
6.30%, 8/1/18
    175,065    
  1,100     Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31     1,187,571    
  1,375     Massachusetts HEFA, (Partners Healthcare System),
5.25%, 7/1/29
    1,443,379    
  2,000     Massachusetts HEFA, (South Shore Hospital),
5.75%, 7/1/29
    2,095,180    
        $ 7,503,805    
Industrial Development Revenue - 1.7%  
  695     Massachusetts IFA, (American Hingham Water Co.), (AMT),
6.60%, 12/1/15
    729,131    
        $ 729,131    
Insured-Education - 15.6%  
  1,000     Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39(1)
    1,215,780    
  1,000     Massachusetts Development Finance Agency, (Boston
University), (XLCA), 5.375%, 5/15/39
    1,162,900    
  1,600     Massachusetts Development Finance Agency, (Franklin W.
Olin College), (XLCA), 5.25%, 7/1/33
    1,721,472    
  850     Massachusetts HEFA, (Berklee College of Music), (MBIA),
Variable Rate, 6.98%, 10/1/27(2)(3)
    941,043    
  1,000     Massachusetts HEFA, (Northeastern University), (MBIA),
5.00%, 10/1/29
    1,041,510    
  500     Massachusetts HEFA, (UMass-Worcester Campus), (FGIC),
5.25%, 10/1/31
    537,820    
        $ 6,620,525    
Insured-Electric Utilities - 1.9%  
  750     Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29     810,127    
        $ 810,127    

 

See notes to financial statements

18



Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
  Security   Value  
  Insured-General Obligations - 9.7%        
$ 1,000     Massachusetts, (AMBAC), Variable Rate,
10.075%, 8/1/30(2)(4)
  $ 1,658,020    
  500     Plymouth, (MBIA), 5.25%, 10/15/20     546,645    
  900     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(2)(4)     1,140,597    
  740     Sandwich, (MBIA), 4.50%, 7/15/29     755,592    
            $ 4,100,854    
  Insured-Miscellaneous - 13.2%        
  2,000     Boston Convention Center, (AMBAC), 5.00%, 5/1/27     2,100,620    
  2,750     Massachusetts Development Finance Agency, (WGBH),
(AMBAC), 5.75%, 1/1/42
    3,479,823    
            $ 5,580,443    
  Insured-Special Tax Revenue - 10.1%        
  1,500     Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32     1,581,615    
  2,500     Massachusetts State Special Obligation - Convention Center,
(FGIC), 5.25%, 1/1/29
    2,716,550    
            $ 4,298,165    
  Insured-Transportation - 11.3%        
  1,020     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 0.00%, 1/1/29
    337,273    
  2,000     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 5.25%, 1/1/29
    2,094,100    
  1,100     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), Variable Rate, 8.643%, 1/1/37(2)(4)
    1,189,628    
  1,000     Puerto Rico Highway and Transportation Authority, (AMBAC),
Variable Rate, 8.643%, 7/1/28(2)(4)
    1,152,820    
            $ 4,773,821    
  Nursing Home - 3.7%        
  500     Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37     530,275    
  455     Massachusetts Development Finance Agency, (Odd Fellows
Home of Massachusetts), 6.25%, 1/1/15
    429,611    
  600     Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29     604,200    
            $ 1,564,086    
  Senior Living / Life Care - 3.6%        
  1,500     Massachusetts Development Finance Agency, (Berkshire
Retirement), 5.625%, 7/1/29
    1,507,200    
            $ 1,507,200    

 

Principal Amount
(000's omitted)
  Security   Value  
  Special Tax Revenue - 6.4%        
$ 1,000     Massachusetts Bay Transportation Authority,
(Sales Tax Revenue), 5.00%, 7/1/28
  $ 1,127,830    
  1,350     Massachusetts Bay Transportation Authority, (Sales Tax
Revenue), 5.25%, 7/1/30
    1,567,310    
            $ 2,695,140    
  Transportation - 6.0%        
  1,350     Massachusetts Bay Transportation Authority, Variable Rate,
6.73%, 3/1/27(2)(3)
    1,472,810    
  1,000     Puerto Rico Highway and Transportation Authority,
5.00%, 7/1/36
    1,051,430    
            $ 2,524,240    
  Water and Sewer - 12.5%        
  2,000     Massachusetts Water Pollution Abatement Trust,
5.00%, 8/1/32
    2,102,440    
  2,000     Massachusetts Water Pollution Abatement Trust,
5.25%, 8/1/33
    2,163,180    
  965     Massachusetts Water Pollution Abatement Trust,
5.375%, 8/1/27
    1,040,627    
            $ 5,306,247    
  Total Tax-Exempt Investments - 148.2%
(identified cost $57,241,597)
        $ 62,765,685    
  Other Assets, Less Liabilities - 2.6%         $ 1,081,062    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (50.8)%
        $ (21,501,616 )  
  Net Assets Applicable to Common
Shares - 100.0%
        $ 42,345,131    

 

See notes to financial statements

19



Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 41.7% of the securities in the portfolio of 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 3.1% to 15.9% of total investments.

(1)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(2)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $7,554,918 or 17.8% of the Trust's net assets.

(3)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

See notes to financial statements

20



Eaton Vance Michigan Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

  Tax-Exempt Investments - 151.9%        
Principal Amount
(000's omitted)
 
Security
 
Value
 
  Education - 5.8%        
$ 1,250     Michigan Higher Education Facilities Authority,
(Creative Studies), 5.90%, 12/1/27
  $ 1,294,937    
  540     Michigan Higher Education Facilities Authority,
(Hillsdale College), 5.00%, 3/1/35
    560,104    
            $ 1,855,041    
  Electric Utilities - 7.4%        
  1,250     Michigan Strategic Fund, (Detroit Edison
Pollution Control), 5.45%, 9/1/29
    1,322,975    
  1,000     Puerto Rico Electric Power Authority, 5.25%, 7/1/31     1,069,180    
            $ 2,392,155    
  Escrowed / Prerefunded - 2.6%        
  750     Michigan Hospital Finance Authority, (Ascension Health
Care), Prerefunded to 11/15/09, 6.125%, 11/15/26
    850,267    
            $ 850,267    
  General Obligations - 20.1%        
  500     East Grand Rapids Public Schools, 5.00%, 5/1/25     527,715    
  500     Garden City School District, 5.00%, 5/1/26     521,945    
  5,335     Grand Rapids and Kent County Joint Building Authority,
0.00%, 12/1/29
    1,664,947    
  1,000     Manistee Area Public Schools, 5.00%, 5/1/24     1,063,020    
  750     Puerto Rico Public Buildings Authority,
Commonwealth Guaranteed, 5.25%, 7/1/29
    804,832    
  1,000     White Cloud Public Schools, 5.125%, 5/1/31     1,046,380    
  800     Woodhaven Brownstown School District,
5.125%, 5/1/32
    842,473    
            $ 6,471,312    
  Health Care-Miscellaneous - 1.2%        
  385     Pittsfield Township EDC, (Arbor Hospice),
7.875%, 8/15/27
    377,423    
            $ 377,423    
  Hospital - 29.5%        
  500     Allegan Hospital Finance Authority, (Allegan
General Hospital), 7.00%, 11/15/21
    522,305    
  125     Gaylord Hospital Finance Authority, (Otsego Memorial
Hospital Association), 6.20%, 1/1/25
    126,904    
  125     Gaylord Hospital Finance Authority, (Otsego Memorial
Hospital Association), 6.50%, 1/1/37
    127,435    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Hospital (continued)        
$ 500     Kent Hospital Finance Authority, (Spectrum
Health), 5.50%, 1/15/31
  $ 535,405    
  500     Macomb County Hospital Finance Authority, (Mount
Clemens General Hospital), 5.875%, 11/15/34
    505,455    
  500     Mecosta County, (Michigan General Hospital),
6.00%, 5/15/18
    499,980    
  750     Michigan Health Facilities Authority, (Henry Ford Health),
5.25%, 11/15/25
    764,865    
  1,000     Michigan Hospital Finance Authority, (Central Michigan
Community Hospital), 6.25%, 10/1/27
    1,028,440    
  1,000     Michigan Hospital Finance Authority, (Henry Ford Health),
5.25%, 11/15/20
    1,024,830    
  750     Michigan Hospital Finance Authority, (Memorial
Healthcare Center), 5.875%, 11/15/21
    797,228    
  750     Michigan Hospital Finance Authority, (Sparrow Obligation
Group), 5.625%, 11/15/36
    801,255    
  1,000     Michigan Hospital Finance Authority, (Trinity Health),
6.00%, 12/1/27
    1,107,480    
  750     Royal Oak Hospital Finance Authority, (William
Beaumount Hospital), 5.25%, 1/1/20
    771,015    
  800     Saginaw Hospital Finance Authority, (Covenant Medical
Center), 6.50%, 7/1/30
    882,344    
            $ 9,494,941    
  Industrial Development Revenue - 7.4%        
  1,000     Detroit Local Development Finance Authority,
(Chrysler Corp.), 5.375%, 5/1/21
    1,027,990    
  800     Dickinson County Economic Development Corp.,
(International Paper Co.), 5.75%, 6/1/16
    864,216    
  625     Puerto Rico Port Authority, (American Airlines), (AMT),
6.25%, 6/1/26
    485,100    
            $ 2,377,306    
  Insured-Education - 2.4%        
  250     Central Michigan University, (AMBAC), 4.75%, 10/1/29     258,343    
  500     Central Michigan University, (FGIC), 5.00%, 10/1/27     520,500    
            $ 778,843    
  Insured-Electric Utilities - 5.0%        
  1,000     Michigan Strategic Fund Resource Recovery, (Detroit
Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29
    1,065,670    
  500     Michigan Strategic Fund Resource Recovery, (Detroit
Edison Co.), (XLCA), 5.25%, 12/15/32
    533,285    
            $ 1,598,955    

 

See notes to financial statements

21



Eaton Vance Michigan Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Insured-Escrowed / Prerefunded - 17.0%        
$ 1,000     Central Montcalm Public Schools, (MBIA),
6.00%, 5/1/29
  $ 1,109,580    
  2,000     Fenton Area Public Schools, (FGIC), 5.00%, 5/1/24     2,115,340    
  2,000     Novi Building Authority, (FSA), 5.50%, 10/1/25     2,245,400    
            $ 5,470,320    
  Insured-General Obligations - 9.0%        
  650     Detroit School District, (FGIC), 4.75%, 5/1/28     662,903    
  200     Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25     203,386    
  700     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(1)(2)     887,131    
  1,000     St. Johns Public Schools, (FGIC), 5.10%, 5/1/25     1,132,980    
            $ 2,886,400    
  Insured-Hospital - 6.7%        
  1,000     Royal Oak Hospital Finance Authority, (William
Beaumont Hospital), (MBIA), 5.25%, 11/15/35
    1,058,230    
  1,000     Saginaw Hospital Finance Authority, (Covenant Medical
Center), (MBIA), 5.50%, 7/1/24
    1,079,370    
            $ 2,137,600    
  Insured-Sewer Revenue - 5.1%        
  550     Detriot Sewer Disposal, (MBIA), 5.00%, 7/1/30     584,683    
  1,000     Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31     1,063,010    
            $ 1,647,693    
  Insured-Special Tax Revenue - 11.0%        
  600     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 6.814%, 7/1/28(1)(3)
    653,514    
  455     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 10.286%, 7/1/28(1)(2)
    515,874    
  2,250     Wayne Charter County, (Airport Hotel-Detroit Metroplitan
Airport), (MBIA), 5.00%, 12/1/30
    2,358,135    
            $ 3,527,523    
  Insured-Student Loan - 3.3%        
  1,000     Michigan Higher Education Student Loan Authority
Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(4)
    1,047,250    
            $ 1,047,250    
  Insured-Transportation - 11.0%        
  670     Puerto Rico Highway and Transportation Authority,
(AMBAC), Variable Rate, 8.643%, 7/1/28(1)(2)
    772,389    
  600     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 10.143%, 7/1/26(1)(2)
    677,952    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)  
$ 2,000     Wayne Charter County Airport, Residual Certificates,
(MBIA), (AMT), Variable Rate, 6.72%, 12/1/28(1)(3)
  $ 2,095,520    
            $ 3,545,861    
Insured-Water Revenue - 5.3%  
  1,650     Detroit Water Supply System, (FGIC), 5.00%, 7/1/30     1,717,914    
            $ 1,717,914    
Lease Revenue / Certificates of
Participation - 0.8%
 
  250     Puerto Rico, (Guaynabo Municipal Government Center
Lease), 5.625%, 7/1/22
    258,613    
            $ 258,613    
Transportation - 1.3%  
  375     Kent County Airport Facility, Variable Rate,
10.19%, 1/1/25(1)(3)
    419,460    
            $ 419,460    
  Total Tax-Exempt Investments
(identified cost $44,323,047)
        $ 48,854,877    
Put Options Purchased - 0.0%  
  55     U.S. Long Bond Futures Put, Exp. 8/26/2005,
Strike Price 109.00
    7,734    
  Total Put Options Purchased
(identified cost, $24,296)
        $ 7,734    
  Total Investments - 151.9%
(identified cost $44,347,343)
        $ 48,862,611    
  Other Assets, Less Liabilities - 2.5%         $ 811,603    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (54.4)%
        $ (17,505,754 )  
  Net Assets Applicable to Common
Shares - 100.0%
        $ 32,168,460    

 

See notes to financial statements

22



Eaton Vance Michigan Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 49.9% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.1% to 20.9% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $6,021,840 or 18.7% of the Trust's net assets.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(3)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

23



Eaton Vance New Jersey Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

  Tax-Exempt Investments - 156.6%        
Principal Amount
(000's omitted)
 
Security
 
Value
 
  Education - 6.9%        
$ 1,420     New Jersey Educational Facilities Authority,
(Bloomfield College), 6.85%, 7/1/30
  $ 1,449,607    
  3,250     New Jersey Educational Facilities Authority, (Stevens
Institute of Technology), 5.25%, 7/1/32
    3,421,405    
            $ 4,871,012    
  Electric Utilities - 9.7%        
  5,000     Puerto Rico Electric Power Authority, 5.125%, 7/1/29     5,275,450    
  1,500     Salem County Pollution Control Financing Authority, (Public
Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31
    1,594,455    
            $ 6,869,905    
  Escrowed / Prerefunded - 10.3%        
  2,700     New Jersey EDA, (The Seeing Eye, Inc.), Prerefunded to
12/1/09, 6.20%, 12/1/24
    3,082,320    
  3,935     New Jersey Educational Facilities Authority, (Princeton
University), Prerefunded to 7/1/10, 5.00%, 7/1/20
    4,179,324    
            $ 7,261,644    
  General Obligations - 5.3%        
  3,500     Puerto Rico Public Buildings Authority, Commonwealth
Guaranteed, 5.25%, 7/1/29
    3,755,885    
            $ 3,755,885    
  Hospital - 23.7%        
  2,000     Camden County, Improvements Authority, (Cooper
Health), 5.75%, 2/15/34
    2,136,040    
  1,035     New Jersey Health Care Facilities Financing Authority,
(Atlantic City Medical Center), 5.75%, 7/1/25
    1,126,090    
  2,140     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.25%, 7/1/27
    2,193,158    
  1,765     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.375%, 7/1/33
    1,849,120    
  2,000     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), 6.00%, 1/1/34
    2,157,740    
  750     New Jersey Health Care Facilities Financing Authority,
(Palisades Medical Center), 6.50%, 7/1/21
    835,897    
  2,000     New Jersey Health Care Facilities Financing Authority, (Robert
Wood Johnson University Hospital), 5.75%, 7/1/31
    2,169,520    
  1,450     New Jersey Health Care Facilities Financing Authority, (Saint
Peters University Hospital), 6.875%, 7/1/20
    1,631,467    
  1,900     New Jersey Health Care Facilities Financing Authority,
(St. Elizabeth's Hospital), 6.00%, 7/1/20
    1,998,211    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Hospital (continued)        
$ 600     New Jersey Health Care Facilities Financing Authority,
(Trinitas Hospital), 7.50%, 7/1/30
  $ 680,616    
            $ 16,777,859    
  Industrial Development Revenue - 12.8%        
  1,000     Gloucester County, Improvements Authority, (Waste
Management, Inc.), (AMT), 7.00%, 12/1/29
    1,117,290    
  3,000     Middlesex County Pollution Control Authority, (Amerada
Hess Corp.), 6.05%, 9/15/34
    3,224,580    
  1,000     New Jersey EDA, (Anheuser-Busch), (AMT),
5.85%, 12/1/30
    1,031,430    
  750     New Jersey EDA, (Continental Airlines), (AMT),
6.25%, 9/15/29
    634,440    
  750     New Jersey EDA, (Continental Airlines), (AMT),
9.00%, 6/1/33
    794,745    
  2,300     New Jersey EDA, (Waste Management, Inc.), (AMT),
4.50%, 6/1/15(1)
    2,300,000    
            $ 9,102,485    
  Insured-Education - 7.3%        
  3,250     New Jersey Educational Facilities Authority, (Rowan
University), (AMBAC), 4.50%, 7/1/30
    3,280,615    
  1,600     Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental, Residual Certificates, (MBIA), Variable Rate,
10.855%, 7/1/33(2)(3)
    1,884,304    
            $ 5,164,919    
  Insured-Electric Utilities - 1.9%        
  1,250     Vineland, (Electric Utility), (MBIA), (AMT),
5.25%, 5/15/26
    1,319,750    
            $ 1,319,750    
  Insured-Escrowed / Prerefunded - 2.8%        
  1,580     New Jersey EDA, (FSA), Prerefunded to 5/1/09, Variable
Rate, 9.354%, 5/1/17(2)(3)
    1,972,693    
            $ 1,972,693    
  Insured-General Obligations - 19.0%        
  1,555     Colts Neck Township Board of Education, (FSA),
5.00%, 2/1/26
    1,716,549    
  750     Eastampton Township, Board of Education, (MBIA),
4.50%, 3/1/28
    757,253    
  775     Eastampton Township, Board of Education, (MBIA),
4.50%, 3/1/29
    781,371    

 

See notes to financial statements

24



Eaton Vance New Jersey Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Insured-General Obligations (continued)        
$ 790     Eastampton Township, Board of Education, (MBIA),
4.50%, 3/1/30
  $ 795,356    
  1,745     Freehold Township, Board of Education, (FSA),
4.375%, 7/15/27
    1,759,710    
  3,500     Irvington Township, (FSA), 0.00%, 7/15/24     1,504,335    
  5,500     Irvington Township, (FSA), 0.00%, 7/15/25     2,248,510    
  1,400     Washington Township Board of Education Gloucester
County, (FSA), 5.25%, 1/1/27
    1,627,990    
  1,945     Washington Township Board of Education Gloucester
County, (FSA), 5.25%, 1/1/28
    2,264,427    
            $ 13,455,501    
  Insured-Housing - 5.2%        
  3,390     New Jersey Housing and Mortgage Finance Agency, (FSA),
(AMT), 5.05%, 5/1/34
    3,431,833    
  230     New Jersey Housing and Mortgage Finance Agency,
Multifamily Housing, (FSA), 5.75%, 5/1/25
    242,889    
            $ 3,674,722    
  Insured-Special Tax Revenue - 7.1%        
  7,100     Garden Preservation Trust and Open Space and Farmland,
(FSA), 0.00%, 11/1/27
    2,586,956    
  6,000     Garden Preservation Trust and Open Space and Farmland,
(FSA), 0.00%, 11/1/25(4)
    2,421,000    
            $ 5,007,956    
  Insured-Transportation - 19.6%        
  1,000     Delaware River Port Authority, (FSA), 5.625%, 1/1/26(5)     1,087,030    
  3,250     Delaware River Port Authority, (FSA), 5.75%, 1/1/26(5)     3,544,125    
  1,500     New Jersey Turnpike Authority, (FSA), 5.25%, 1/1/28(1)     1,751,205    
  1,500     New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate,
10.124%, 1/1/30(2)(3)
    1,860,120    
  1,250     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), Variable Rate, 8.56%, 1/1/37(2)(3)
    1,448,988    
  4,000     Port Authority of New York and New Jersey, (JFK International
Terminal), (MBIA), (AMT), 5.75%, 12/1/25
    4,229,880    
            $ 13,921,348    
  Insured-Water Revenue - 2.6%        
  1,800     Bayonne Municipal Utilities Authority, Water and Sewer
Revenue, (XLCA), 4.75%, 4/1/33
    1,843,056    
            $ 1,843,056    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Nursing Home - 3.0%  
$ 1,000     New Jersey EDA, (Masonic Charity Foundation),
5.50%, 6/1/31
  $ 1,082,180    
  970     New Jersey EDA, (Victoria Health), 5.20%, 12/20/36     1,046,135    
            $ 2,128,315    
Other Revenue - 3.5%  
  950     Tobacco Settlement Financing Corp., 6.75%, 6/1/39     1,034,683    
  1,250     Tobacco Settlement Financing Corp., Variable Rate,
9.902%, 6/1/39(2)(6)(7)
    1,472,838    
            $ 2,507,521    
Senior Living / Life Care - 2.4%  
  1,700     New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25     1,723,596    
            $ 1,723,596    
Special Tax Revenue - 5.5%  
  750     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/31     790,650    
  1,310     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29     1,416,831    
  1,500     New Jersey EDA, (Cigarette Tax), Variable Rate,
7.91%, 6/15/34(2)(6)
    1,714,905    
            $ 3,922,386    
Transportation - 8.0%  
  1,600     Port Authority of New York and New Jersey, Variable
Rate, 9.729%, 3/1/28(3)
    2,401,504    
  2,000     Puerto Rico Highway and Transportation Authority,
5.00%, 7/1/42
    2,068,440    
  1,175     South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33
    1,231,823    
            $ 5,701,767    
  Total Tax-Exempt Investments - 156.6%
(identified cost $101,308,810)
        $ 110,982,320    
  Other Assets, Less Liabilities - (3.0)%         $ (2,116,464 )  
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (53.6)%
        $ (38,002,696 )  
  Net Assets Applicable to Common
Shares - 100.0%
        $ 70,863,160    

 

See notes to financial statements

25



Eaton Vance New Jersey Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

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.

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 41.8% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.7% to 25.4% of total investments.

(1)  When-issued security.

(2)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $10,353,848 or 14.6% of the Trust's net assets.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(5)  Security (or a portion thereof) has been segregated to cover when-issued securities.

(6)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(7)  Security is subject to a shortfall and forbearance agreement.

See notes to financial statements

26



Eaton Vance New York Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments - 149.1%  
Principal Amount
(000's omitted)
 
Security
 
Value
 
Cogeneration - 1.3%  
$ 1,150     Suffolk County IDA, (Nissequogue Cogeneration
Partners Facility), (AMT), 5.50%, 1/1/23
  $ 1,130,875    
            $ 1,130,875    
Education - 11.5%  
  1,000     Dutchess County IDA, (Marist College), 5.00%, 7/1/20     1,051,870    
  5,500     Hempstead IDA, (Hofstra University Civic Facilities),
5.00%, 7/1/33
    5,741,230    
  3,025     New York Dormitory Authority, (Rockefeller University),
4.75%, 7/1/37
    3,090,612    
            $ 9,883,712    
Electric Utilities - 17.7%  
  2,000     Long Island Power Authority, 5.50%, 12/1/23     2,133,660    
  1,655     Long Island Power Authority, Electric System Revenue,
5.25%, 12/1/26
    1,748,557    
  1,000     Long Island Power Authority, Electric System Revenue,
5.375%, 9/1/25
    1,086,710    
  4,100     New York Power Authority, 5.25%, 11/15/40     4,400,817    
  1,500     Puerto Rico Electric Power Authority, 5.125%, 7/1/29     1,582,635    
  2,000     Puerto Rico Electric Power Authority, 5.25%, 7/1/31     2,138,360    
  2,100     Suffolk County IDA, (Keyspan-Port Jefferson), (AMT),
5.25%, 6/1/27
    2,204,979    
            $ 15,295,718    
General Obligations - 15.0%  
  6,000     New York City, 5.25%, 9/15/33     6,444,600    
  3,800     New York State, 4.50%, 3/15/35     3,823,712    
  2,500     Puerto Rico Public Buildings Authority, Commonwealth
Guaranteed, 5.25%, 7/1/29
    2,682,775    
            $ 12,951,087    
Health Care-Miscellaneous - 6.3%  
  1,250     New York City IDA, (A Very Special Place, Inc.),
5.75%, 1/1/29
    1,048,125    
  1,500     New York City IDA, (Ohel Children's Home),
6.00%, 3/15/23
    1,366,500    
  140     Suffolk County IDA, Civic Facility Revenue, (Alliance of LI),
7.50%, 9/1/15
    153,073    
  180     Suffolk County IDA, Civic Facility Revenue, (Alliance of LI),
7.50%, 9/1/15
    196,808    
  2,600     Westchester County IDA, (Children's Village),
5.375%, 3/15/19
    2,641,756    
            $ 5,406,262    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Hospital - 15.4%  
$ 230     Chautauqua County IDA, (Womans Christian Association),
6.35%, 11/15/17
  $ 235,111    
  485     Chautauqua County IDA, (Womans Christian Association),
6.40%, 11/15/29
    489,307    
  1,250     Fulton County IDA, (Nathan Littauer Hospital),
6.00%, 11/1/18
    1,224,037    
  400     Nassau County IDA, Civic Facility Revenue, (North Shore
Health System), 6.25%, 11/1/21
    442,776    
  3,200     New York City Health and Hospital Corp., 5.25%, 2/15/17     3,335,520    
  300     New York City Health and Hospital Corp., (Health System),
5.375%, 2/15/26
    314,673    
  1,500     New York Dormitory Authority Revenue, (Lenox Hill Hospital),
5.50%, 7/1/30
    1,577,985    
  2,000     New York Dormitory Authority, (Methodist Hospital),
5.25%, 7/1/33
    2,133,800    
  1,250     Oneida County IDA, (St. Elizabeth Hospital),
5.75%, 12/1/19
    1,248,787    
  2,105     Suffolk County IDA, Civic Facility, (Huntington Hospital),
6.00%, 11/1/22
    2,289,019    
            $ 13,291,015    
Housing - 5.7%  
  3,500     New York City Housing Development Corp., (Multi-Family
Housing), 4.95%, 11/1/33
    3,611,545    
  1,250     New York City Housing Development Corp., (Multi-Family
Housing), (AMT), 5.00%, 11/1/24
    1,280,612    
            $ 4,892,157    
Industrial Development Revenue - 6.4%  
  1,500     New York City IDA, (American Airlines, Inc.-JFK International
Airport), (AMT), 8.00%, 8/1/12
    1,409,340    
  775     Onandaga County IDA, Aero Syracuse Cargo, (AMT),
6.125%, 1/1/32
    798,607    
  2,500     Onondaga County IDA, (Anheuser-Busch), (AMT),
6.25%, 12/1/34
    2,750,625    
  550     Port Authority of New York and New Jersey, (Continental
Airlines), (AMT), 9.125%, 12/1/15
    556,270    
            $ 5,514,842    
Insured-Education - 8.7%  
  1,000     Madison County IDA, (Colgate University), (MBIA),
5.00%, 7/1/39
    1,059,320    
  1,200     New York Dormitory Authority, (Cooper Union), (MBIA),
6.25%, 7/1/29
    1,349,808    
  1,750     New York Dormitory Authority, (CUNY), (AMBAC),
5.25%, 7/1/23
    2,001,528    

 

See notes to financial statements

27



Eaton Vance New York Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Education (continued)  
$ 1,000     New York Dormitory Authority, (CUNY), (AMBAC),
5.25%, 7/1/30
  $ 1,142,380    
  900     New York Dormitory Authority, (New York University),
(MBIA), Variable Rate, 15.955%, 7/1/27(1)(2)
    1,945,557    
            $ 7,498,593    
Insured-Escrowed / Prerefunded - 4.9%  
  1,500     Metropolitan Transportation Authority of New York, Escrowed
to Maturity, (FGIC), 4.75%, 7/1/26
    1,564,785    
  1,400     Metropolitan Transportation Authority of New York, Escrowed
to Maturity, (FGIC), 4.75%, 7/1/26
    1,460,466    
  1,000     New York City, Trust for Cultural Resources, (Museum of
History), Prerefunded to 7/1/09, (AMBAC), Variable Rate,
10.749%, 7/1/29(1)(2)
    1,200,070    
            $ 4,225,321    
Insured-General Obligations - 2.6%  
  1,750     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(1)(2)     2,217,828    
            $ 2,217,828    
Insured-Hospital - 6.9%  
  5,000     New York Dormitory Authority, (Memorial Sloan Kettering
Cancer Center), (MBIA), 5.50%, 7/1/23(3)
    5,905,250    
            $ 5,905,250    
Insured-Special Tax Revenue - 3.0%  
  1,175     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 6.814%, 7/1/28(1)(4)
    1,279,798    
  1,190     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 10.286%, 7/1/28(1)(2)
    1,349,210    
            $ 2,629,008    
Insured-Transportation - 9.3%  
  2,325     Monroe County Airport Authority, (MBIA), (AMT), Variable
Rate, 8.403%, 1/1/17(1)(4)
    3,084,322    
  2,735     Niagara Frontier Airport Authority, (Buffalo Niagara
International Airport), (MBIA), (AMT), 5.625%, 4/1/29
    2,940,590    
  1,750     Niagara Frontier Airport Authority, (Buffalo Niagara
International Airport), (MBIA), (AMT), Variable Rate,
7.914%, 4/1/29(1)(4)
    2,013,095    
            $ 8,038,007    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water and Sewer - 2.5%  
$ 2,000     New York City Municipal Water Finance Authority, (FGIC),
5.50%, 6/15/32
  $ 2,163,640    
            $ 2,163,640    
Lease Revenue / Certificates of
Participation - 5.6%
 
  4,385     New York Dormitory Authority, (Court Facility),
6.00%, 5/15/39
    4,857,528    
            $ 4,857,528    
Other Revenue - 3.5%  
  1,285     Albany Industrial Development Agency Civic Facility,
(Charitable Leadership), 5.75%, 7/1/26
    1,341,861    
  1,250     Puerto Rico Infrastructure Financing Authority, Variable Rate,
7.858%, 10/1/32(1)(2)
    1,632,388    
            $ 2,974,249    
Senior Living / Life Care - 3.0%  
  1,450     Mount Vernon IDA, (Wartburg Senior Housing, Inc. -
Meadowview), 6.20%, 6/1/29
    1,486,627    
  1,000     Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19     1,070,750    
            $ 2,557,377    
Solid Waste - 2.5%  
  2,000     Niagara County IDA, (American Ref-Fuel Co. LLC), (AMT),
5.45%, 11/15/26
    2,159,460    
            $ 2,159,460    
Transportation - 15.2%  
  6,000     Metropolitan Transportation Authority of New York,
5.25%, 11/15/32
    6,455,400    
  1,000     Port Authority of New York and New Jersey, (AMT),
4.75%, 12/1/34
    1,018,650    
  1,300     Port Authority of New York and New Jersey, (AMT), Variable
Rate, 6.265%, 6/15/33(1)(4)
    1,340,443    
  1,800     Port Authority of New York and New Jersey, Variable Rate,
9.729%, 3/1/28(2)
    2,701,692    
  1,550     Puerto Rico Highway and Transportation Authority,
5.00%, 7/1/42
    1,603,041    
            $ 13,119,226    
Water and Sewer - 1.8%  
  1,500     New York City Municipal Water Finance Authority,
5.25%, 6/15/29
    1,565,685    
            $ 1,565,685    

 

See notes to financial statements

28



Eaton Vance New York Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Water Revenue - 0.3%  
$ 250     New York State Environmental Facilites Corp.,
4.50%, 11/15/34
  $ 251,113    
        $ 251,113    
Total Tax-Exempt Investments - 149.1%
(identified cost $117,963,148)
      $ 128,527,953    
Other Assets, Less Liabilities - 2.5%       $ 2,192,432    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (51.6)%
      $ (44,515,246 )  
Net Assets Applicable to Common
Shares - 100.0%
      $ 86,205,139    

 

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 25.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.7% to 14.2% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $16,062,711 or 18.6% of the Trust's net assets.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(4)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

See notes to financial statements

29



Eaton Vance Ohio Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

  Tax-Exempt Investments - 152.3%        
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
  $ 388,534    
  200     Ohio Water Development Authority, Solid Waste Disposal,
(Bay Shore Power), (AMT), 6.625%, 9/1/20
    207,820    
            $ 596,354    
  Education - 3.7%        
  1,500     Ohio Higher Educational Facilities Authority, (Oberlin College),
Variable Rate, 6.73%, 10/1/29(1)(2)
    1,614,165    
            $ 1,614,165    
  Electric Utilities - 3.7%        
  500     Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14     527,615    
  1,000     Puerto Rico Electric Power Authority, 5.25%, 7/1/31     1,069,180    
            $ 1,596,795    
  Escrowed / Prerefunded - 6.6%        
  1,000     Delaware County, Prerefunded to 12/1/10,
6.00%, 12/1/25
    1,152,680    
  1,530     Hamilton City School District, Prerefunded to 12/01/09,
5.625%, 12/1/24
    1,709,071    
            $ 2,861,751    
  Hospital - 21.9%        
  550     Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29
    592,889    
  1,500     Erie County Hospital Facilities, (Firelands Regional Medical
Center), 5.625%, 8/15/32
    1,588,740    
  2,000     Franklin County, (Childrens Hospital), 5.20%, 5/1/29     2,082,580    
  610     Highland County, (Joint Township Hospital District),
6.75%, 12/1/29
    621,535    
  400     Mahoning County Hospital Facility, (Forum Health Obligation
Group), 6.00%, 11/15/32
    437,716    
  1,250     Parma Community General Hospital Association,
5.35%, 11/1/18
    1,305,737    
  1,750     Parma Community General Hospital Association,
5.375%, 11/1/29
    1,805,772    
  1,000     Richland County Hospital Facilities, (Medcentral Health
Systems), 6.375%, 11/15/22
    1,100,940    
            $ 9,535,909    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Industrial Development Revenue - 17.1%  
$ 1,385     Cleveland Airport, (Continental Airlines), (AMT),
5.375%, 9/15/27
  $ 1,018,571    
  1,300     Dayton Special Facilities Revenue, (Emery Air Freight),
5.625%, 2/1/18
    1,389,765    
  1,500     Moraine Solid Waste Disposal, (General Motors Corp.),
(AMT), 5.65%, 7/1/24
    1,394,880    
  1,350     Ohio Environmental Facilities, (Ford Motor Co.), (AMT),
5.75%, 4/1/35
    1,253,947    
  2,250     Ohio Water Development Authority, (Anheuser-Busch),
(AMT), 6.00%, 8/1/38
    2,399,198    
            $ 7,456,361    
Insured-Education - 7.4%  
  750     Cleveland-Cuyahoga County Port Authority, (Cleveland State
University), (AMBAC), 4.50%, 8/1/36
    749,708    
  1,000     Ohio Higher Educational Facilities, (University of Dayton),
(AMBAC), 5.50%, 12/1/30
    1,100,160    
  1,250     University of Cincinnati, (FGIC), 5.25%, 6/1/24     1,363,425    
            $ 3,213,293    
Insured-Electric Utilities - 4.6%  
  2,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/25
    824,140    
  3,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26
    1,172,310    
            $ 1,996,450    
Insured-Escrowed / Prerefunded - 4.9%  
  245     Cuyahoga County Hospital, (MBIA), Escrowed to Maturity,
5.125%, 1/1/29(3)
    259,208    
  1,500     University of Akron, (FGIC), Prerefunded to 1/1/10,
Variable Rate, 8.23%, 1/1/29(1)(2)
    1,870,740    
            $ 2,129,948    
Insured-General Obligations - 19.6%  
  2,455     Canal Winchester Local School District, (MBIA),
0.00%, 12/1/30
    723,709    
  1,000     Cincinnati City School District, (Classroom Facilities
Construction & Improvement), (FSA), 5.00%, 12/1/31
    1,059,990    
  1,000     Lima City School District, (AMBAC), 5.50%, 12/1/22     1,122,870    
  500     Lima City School District, (AMBAC), 6.00%, 12/1/22     575,750    
  1,000     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(1)(4)     1,267,330    
  400     Puerto Rico, (MBIA), Variable Rate, 10.095%, 7/1/20(1)(4)     630,240    
  2,860     Springfield City School District Clark County, (FGIC),
5.20%, 12/1/23
    3,158,613    
            $ 8,538,502    

 

See notes to financial statements

30



Eaton Vance Ohio Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Insured-Hospital - 6.7%        
$ 255     Cuyahoga County, (Cleveland Clinic), (MBIA),
5.125%, 1/1/29(3)
  $ 269,787    
  1,000     Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
5.00%, 5/15/32
    1,055,050    
  1,500     Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
5.125%, 5/15/28
    1,600,335    
            $ 2,925,172    
  Insured-Lease Revenue / Certificates of
Participation - 8.0%
       
  1,500     Cleveland, Certificates of Participation, (Cleveland Stadium),
(AMBAC), 5.25%, 11/15/22
    1,591,710    
  600     Puerto Rico Public Finance Corp., (AMBAC), Variable Rate,
12.827%, 6/1/24(1)(4)
    861,216    
  1,000     Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33
    1,043,650    
            $ 3,496,576    
  Insured-Special Tax Revenue - 12.6%        
  2,500     Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24     2,573,225    
  2,000     Hamiliton County Sales Tax Revenue, (AMBAC),
5.25%, 12/1/32
    2,148,880    
  2,235     Hamilton County Sales Tax Revenue, (AMBAC),
0.00%, 12/1/28
    758,805    
            $ 5,480,910    
  Insured-Transportation - 9.3%        
  500     Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31     518,825    
  1,000     Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24     1,191,030    
  1,000     Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26     1,202,660    
  1,000     Puerto Rico Highway and Transportation Authority, (AMBAC),
Variable Rate, 8.643%, 7/1/28(1)(4)
    1,152,820    
            $ 4,065,335    
  Lease Revenue / Certificates of
Participation - 3.2%
       
  1,300     Union County, (Pleasant Valley Joint Fire District),
6.125%, 12/1/19
    1,388,335    
            $ 1,388,335    
  Other Revenue - 3.0%        
  1,000     Puerto Rico Infrastructure Financing Authority, Variable Rate,
7.858%, 10/1/32(1)(4)
    1,305,910    
            $ 1,305,910    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Pooled Loans - 8.9%  
$ 530     Cleveland-Cuyahoga County Port Authority, (Myers
University), 5.60%, 5/15/25
  $ 543,791    
  1,020     Ohio Economic Development, (Ohio Enterprise Bond Fund),
(AMT), 5.85%, 12/1/22
    1,093,542    
  1,000     Rickenbacker Port Authority, Oasbo Expanded Asset Pooled
Loan, 5.375%, 1/1/32
    1,106,670    
  1,100     Toledo-Lucas County Port Authority, 5.40%, 5/15/19     1,116,511    
            $ 3,860,514    
Special Tax Revenue - 5.2%  
  600     Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18     647,316    
  1,410     Cuyahoga County, Economic Development, (Shaker Square),
6.75%, 12/1/30
    1,645,216    
            $ 2,292,532    
Transportation - 2.1%  
  875     Puerto Rico Highway and Transportation Authority,
5.00%, 7/1/34
    913,929    
            $ 913,929    
Water and Sewer - 2.4%  
  1,000     Ohio Water Development Authority, (Fresh Water
Improvement), 5.00%, 12/1/28
    1,065,230    
            $ 1,065,230    
  Total Tax-Exempt Investments - 152.3%
(identified cost $60,408,777)
        $ 66,333,971    
  Other Assets, Less Liabilities - 1.6%         $ 708,904    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (53.9)%
        $ (23,500,000 )  
  Net Assets Applicable to Common
Shares - 100.0%
        $ 43,542,875    

 

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

See notes to financial statements

31



Eaton Vance Ohio Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 48.0% of the securities in the portfolio of 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 4.3% to 17.2% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $8,702,421 or 20.0% of the Trust's net assets.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(4)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

See notes to financial statements

32



Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments - 154.2%  
Principal Amount
(000's omitted)
 
Security
 
Value
 
Cogeneration - 3.6%  
$ 425     Carbon County IDA, (Panther Creek Partners), (AMT),
6.65%, 5/1/10
  $ 461,720    
  500     Pennsylvania EDA, (Northampton Generating), (AMT),
6.50%, 1/1/13
    504,015    
  500     Pennsylvania EDA, (Resource Recovery-Colver), (AMT),
7.05%, 12/1/10
    511,765    
            $ 1,477,500    
Education - 1.5%  
  600     Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29     617,586    
            $ 617,586    
Electric Utilities - 3.1%  
  600     Pennsylvania EDA, (Reliant Energy, Inc.), (AMT),
6.75%, 12/1/36
    645,918    
  600     York County IDA, Pollution Control, (Public Service Enterprise
Group, Inc.), 5.50%, 9/1/20
    634,680    
            $ 1,280,598    
Escrowed / Prerefunded - 4.1%  
  1,500     Pennsylvania HEFA, (Drexel University), Prerefunded to
5/1/09 @ 100, 6.00%, 5/1/29
    1,662,615    
            $ 1,662,615    
Health Care-Miscellaneous - 5.5%  
  600     Allegheny County IDA, (Residential Resources, Inc.),
6.50%, 9/1/21
    644,346    
  1,500     Chester County HEFA, (Devereux Foundation),
6.00%, 11/1/29
    1,590,150    
            $ 2,234,496    
Hospital - 11.8%  
  750     Lancaster County Hospital Authority, 5.50%, 3/15/26     798,420    
  1,250     Lehigh County, General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32
    1,306,475    
  500     Monroe County Hospital Authority, (Pocono Medical Center),
6.00%, 1/1/43
    539,045    
  360     Montgomery County Higher Education and Health Authority,
(Catholic Health East), 5.375%, 11/15/34
    379,721    
  850     Pennsylvania HEFA, (UPMC Health System),
6.00%, 1/15/31
    944,996    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Hospital (continued)        
$ 300     St. Mary Hospital Authority, (Catholic Health East),
5.375%, 11/15/34
  $ 316,905    
  500     Washington County Hospital Authority, (Monongahela
Hospital), 5.50%, 6/1/17
    539,680    
            $ 4,825,242    
  Industrial Development Revenue - 7.0%        
  500     New Morgan IDA, (New Morgan Landfill), (AMT),
6.50%, 4/1/19
    500,105    
  1,000     Pennsylvania EDA, (Proctor & Gamble Paper Products Co.),
(AMT), 5.375%, 3/1/31
    1,126,450    
  1,550     Puerto Rico Port Authority, (American Airlines), (AMT),
6.30%, 6/1/23
    1,224,748    
            $ 2,851,303    
  Insured-Education - 28.6%        
  1,900     Lycoming County Authority, (Pennsylvania College of
Technology), (AMBAC), 5.25%, 5/1/32(1)
    2,057,719    
  1,000     Northampton County HEFA, (Lafayette College), (MBIA),
5.00%, 11/1/27
    1,036,160    
  1,000     Pennsylvania HEFA, (Bryn Mawr College), (AMBAC),
5.125%, 12/1/29
    1,065,550    
  2,000     Pennsylvania HEFA, (State System Higher Education), (FSA),
5.00%, 6/15/24
    2,105,880    
  2,000     Pennsylvania HEFA, (Temple University), (MBIA),
5.00%, 4/1/29
    2,088,360    
  1,000     Pennsylvania HEFA, (University of the Science in Philadelphia),
(XLCA), 4.75%, 11/1/33
    1,019,380    
  600     Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental, Residual Certificates, (MBIA), Variable Rate,
10.855%, 7/1/33(2)(3)
    706,614    
  1,500     University of Pittsburgh, (MBIA), 5.00%, 6/1/21     1,575,270    
            $ 11,654,933    
  Insured-Electric Utilities - 4.4%        
  600     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
9.248%, 7/1/29(2)(3)
    744,300    
  835     Puerto Rico Electric Power Authority, DRIVERS, (FSA),
Variable Rate, 12.902%, 7/1/29(2)(3)
    1,035,817    
            $ 1,780,117    
  Insured-Escrowed / Prerefunded - 15.3%        
  1,000     Allegheny County Sanitation and Sewer Authority, (MBIA),
Prerefunded to 12/01/10 @ 101, 5.50%, 12/1/24
    1,121,130    
  650     Berks County Municipal Authority, (Reading Hospital and
Medical Center), (FSA), Prerefunded to 11/1/09 @ 102,
6.00%, 11/1/29
    740,668    

 

See notes to financial statements

33



Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Insured-Escrowed / Prerefunded (continued)        
$ 265     McKeesport Area School District, (FGIC), Escrowed to
Maturity, 0.00%, 10/1/31
  $ 75,605    
  3,100     Pennsylvania Turnpike Commision, Oil Franchise Tax,
(AMBAC), Escrowed to Maturity, 4.75%, 12/1/27
    3,219,691    
  2,000     Westmoreland County Municipal Authority, (FGIC), Escrowed
to Maturity, 0.00%, 8/15/19
    1,091,320    
            $ 6,248,414    
  Insured-Gas Utilities - 3.5%        
  1,325     Philadelphia Natural Gas Works, (FSA), Variable Rate,
6.72%, 7/1/28(4)
    1,426,005    
            $ 1,426,005    
  Insured-General Obligations - 10.7%        
  1,825     Hopewell School District, (FSA), 0.00%, 9/1/25     716,605    
  735     McKeesport Area School District, (FGIC), 0.00%, 10/1/31     208,622    
  2,000     Philadelphia, (FSA), 5.00%, 3/15/28     2,074,240    
  1,000     Puerto Rico, (FSA), Variable Rate, 7.219%, 7/1/27(2)(3)     1,267,330    
  250     Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24     106,578    
            $ 4,373,375    
  Insured-Hospital - 15.3%        
  1,000     Dauphin County General Authority, (Pinnacle Health System),
(MBIA), 5.50%, 5/15/27
    1,047,430    
  500     Delaware County Authority, (Catholic Health East), (AMBAC),
4.875%, 11/15/26
    511,400    
  1,500     Lehigh County General Purpose Authority, (Lehigh Valley
Health Network), (MBIA), 5.25%, 7/1/29
    1,596,525    
  3,000     Montgomery County HEFA, (Abington Memorial Hospital),
(AMBAC), 5.00%, 6/1/28
    3,086,640    
            $ 6,241,995    
  Insured-Special Tax Revenue - 4.3%        
  1,000     Pittsburgh and Allegheny County Public Auditorium Authority,
(AMBAC), 5.00%, 2/1/24
    1,062,810    
  595     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 10.286%, 7/1/28(2)(3)
    674,605    
            $ 1,737,415    
  Insured-Transportation - 7.4%        
  1,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29     1,048,030    
  1,005     Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29     1,065,260    
  800     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 10.143%, 7/1/26(2)(3)
    903,936    
            $ 3,017,226    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
  Insured-Water and Sewer - 11.7%        
$ 1,000     Delaware County IDA, (Aqua PA, Inc.), (FGIC), (AMT),
5.00%, 11/1/38
  $ 1,035,700    
  500     Delaware County IDA, (Water Facilities), (FGIC), (AMT),
6.00%, 6/1/29
    548,375    
  1,000     Philadelphia Water and Wastewater, (FGIC),
5.00%, 11/1/31
    1,049,520    
  2,000     Pittsburgh Water and Sewer Authority, (AMBAC),
5.125%, 12/1/31
    2,114,920    
            $ 4,748,515    
  Miscellaneous - 1.5%        
  600     Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26     604,188    
            $ 604,188    
  Nursing Home - 1.4%        
  250     Clarion County IDA, (Beverly Enterprises, Inc.),
5.875%, 5/1/07
    247,960    
  335     Cumberland County IDA, (Beverly Enterprises, Inc.),
5.50%, 10/1/08
    334,973    
            $ 582,933    
  Senior Living / Life Care - 7.8%        
  600     Bucks County IDA, (Pennswood), 6.00%, 10/1/27     646,524    
  1,000     Cliff House Trust (AMT), 6.625%, 6/1/27     502,450    
  500     Crawford County Hospital Authority, (Wesbury United
Methodist Community), 6.25%, 8/15/29
    514,615    
  500     Lancaster County Hospital Authority, (Health Center),
5.875%, 6/1/31
    532,320    
  925     Montgomery County HEFA, (Faulkeways at Gwynedd),
6.75%, 11/15/30
    987,410    
            $ 3,183,319    
  Transportation - 5.7%        
  1,200     Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28     1,256,808    
  280     Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09     286,605    
  500     Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16     506,290    
  270     Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31     286,116    
            $ 2,335,819    

 

See notes to financial statements

34



Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2005

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Total Tax-Exempt Investments - 154.2%
(identified cost $57,989,244)
      $ 62,883,594    
Other Assets, Less Liabilities - 1.0%       $ 390,984    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends - (55.2)%
      $ (22,501,717 )  
Net Assets Applicable to Common
Shares - 100.0%
      $ 40,772,861    

 

AMBAC - AMBAC Financial Group, Inc.

AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2005, 65.6% of the securities in the portfolio of 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 23.6% of total investments.

(1)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(2)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2005, the aggregate value of the securities is $5,332,602 or 13.1% of the Trust's net assets.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

(4)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at May 31, 2005.

See notes to financial statements

35



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) 

Statements of Assets and Liabilities

As of May 31, 2005

    California Trust   Florida Trust   Massachusetts Trust   Michigan Trust  
Assets      
Investments -  
Identified cost   $ 154,173,104     $ 92,553,600     $ 57,241,597     $ 44,347,343    
Unrealized appreciation     15,056,583       7,369,749       5,524,088       4,515,268    
Investments, at value   $ 169,229,687     $ 99,923,349     $ 62,765,685     $ 48,862,611    
Cash   $ 334,909     $ -     $ 139,689     $ 198,047    
Receivable for investments sold     7,500       510,866       -       -    
Interest receivable     2,504,964       1,155,672       1,141,773       733,696    
Prepaid expenses     5,451       4,239       3,613       -    
Total assets   $ 172,082,511     $ 101,594,126     $ 64,050,760     $ 49,794,354    
Liabilities      
Payable for investments purchased   $ -     $ 517,738     $ -     $ -    
Payable for daily variation margin on open financial futures contracts     410,156       240,625       164,062       82,906    
Due to bank     -       119,525       -       -    
Payable to affiliate for Trustees' fees     1,236       975       218       343    
Accrued expenses     54,037       46,122       39,733       36,891    
Total liabilities   $ 465,429     $ 924,985     $ 204,013     $ 120,140    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     59,009,657       35,514,886       21,501,616       17,505,754    
Net assets applicable to common shares   $ 112,607,425     $ 65,154,255     $ 42,345,131     $ 32,168,460    
Sources of Net Assets      
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 71,815     $ 42,559     $ 27,065     $ 21,155    
Additional paid-in capital     106,462,788       63,231,373       40,078,789       31,439,263    
Accumulated net realized loss (computed on the basis of identified cost)     (9,740,238 )     (5,880,430 )     (3,544,770 )     (3,981,368 )  
Accumulated undistributed net investment income     915,121       484,075       349,503       217,354    
Net unrealized appreciation (computed on the basis of identified cost)     14,897,939       7,276,678       5,434,544       4,472,056    
Net assets applicable to common shares   $ 112,607,425     $ 65,154,255     $ 42,345,131     $ 32,168,460    
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share)      
      2,360       1,420       860       700    
Common Shares Outstanding      
      7,181,488       4,255,887       2,706,497       2,115,522    
Net Asset Value Per Common Share      
Net assets applicable to common shares ÷ common shares issued
and outstanding
  $ 15.68     $ 15.31     $ 15.65     $ 15.21    

 

See notes to financial statements

36



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Assets and Liabilities

As of May 31, 2005

    New Jersey Trust   New York Trust   Ohio Trust   Pennsylvania Trust  
Assets  
Investments -  
Identified cost   $ 101,308,810     $ 117,963,148     $ 60,408,777     $ 57,989,244    
Unrealized appreciation     9,673,510       10,564,805       5,925,194       4,894,350    
Investments, at value   $ 110,982,320     $ 128,527,953     $ 66,333,971     $ 62,883,594    
Receivable for investments sold   $ 456,100     $ 755,302     $ -     $ 512,647    
Interest receivable     1,965,953       2,147,967       1,187,559       1,119,248    
Prepaid expenses     4,335       -       3,665       -    
Total assets   $ 113,408,708     $ 131,431,222     $ 67,525,195     $ 64,515,489    
Liabilities  
Payable for daily variation margin on open financial futures contracts   $ 284,375     $ 248,281     $ 114,844     $ 191,406    
Payable for when-issued securities     4,042,565       -       -       -    
Due to bank     169,420       416,087       324,593       1,010,052    
Payable to affiliate for Trustees' fees     975       975       218       343    
Accrued expenses     45,517       45,494       42,665       39,110    
Total liabilities   $ 4,542,852     $ 710,837     $ 482,320     $ 1,240,911    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     38,002,696       44,515,246       23,500,000       22,501,717    
Net assets applicable to common shares   $ 70,863,160     $ 86,205,139     $ 43,542,875     $ 40,772,861    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 46,191     $ 53,644     $ 28,276     $ 26,981    
Additional paid-in capital     68,562,739       79,607,950       42,007,519       40,091,981    
Accumulated net realized loss (computed on the basis of identified cost)     (7,683,475 )     (4,686,707 )     (4,676,002 )     (4,592,700 )  
Accumulated undistributed net investment income     419,362       854,088       345,145       432,290    
Net unrealized appreciation (computed on the basis of identified cost)     9,518,343       10,376,164       5,837,937       4,814,309    
Net assets applicable to common shares   $ 70,863,160     $ 86,205,139     $ 43,542,875     $ 40,772,861    
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share)  
      1,520       1,780       940       900    
Common Shares Outstanding  
      4,619,136       5,364,388       2,827,552       2,698,121    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued
and outstanding
  $ 15.34     $ 16.07     $ 15.40     $ 15.11    

 

See notes to financial statements

37



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended May 31, 2005

    California Trust   Florida Trust   Massachusetts Trust   Michigan Trust  
Investment Income  
Interest   $ 4,659,276     $ 2,775,774     $ 1,731,800     $ 1,377,114    
Total investment income   $ 4,659,276     $ 2,775,774     $ 1,731,800     $ 1,377,114    
Expenses  
Investment adviser fee   $ 592,731     $ 350,461     $ 220,824     $ 172,359    
Administration fee     169,352       100,132       63,092       49,245    
Trustees fees and expenses     3,744       2,965       650       729    
Legal and accounting services     20,789       19,148       17,877       16,201    
Printing and postage     14,737       8,401       5,707       3,650    
Custodian fee     40,583       26,822       20,574       19,065    
Transfer and dividend disbursing agent fees     52,733       35,075       24,696       19,416    
Preferred shares remarketing agent fee     73,548       44,253       26,801       21,815    
Miscellaneous     18,547       14,964       13,278       14,852    
Total expenses   $ 986,764     $ 602,221     $ 393,499     $ 317,332    
Deduct -  
Reduction of custodian fee     8,391       4,352       1,120       3,532    
Total expense reductions   $ 8,391     $ 4,352     $ 1,120     $ 3,532    
Net expenses   $ 978,373     $ 597,869     $ 392,379     $ 313,800    
Net investment income   $ 3,680,903     $ 2,177,905     $ 1,339,421     $ 1,063,314    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) -  
Investment transactions (identified cost basis)     1,885,499       309,143       359,773       283,076    
Financial futures contracts     (2,936,062 )     (1,598,696 )     (1,130,050 )     (703,799 )  
Net realized loss   $ (1,050,563 )   $ (1,289,553 )   $ (770,277 )   $ (420,723 )  
Change in unrealized appreciation (depreciation) -  
Investments (identified cost basis)     5,866,820       2,756,736       2,478,755       1,288,573    
Financial futures contracts     (133,613 )     (78,386 )     (98,281 )     (45,807 )  
Net change in unrealized appreciation (depreciation)   $ 5,733,207     $ 2,678,350     $ 2,380,474     $ 1,242,766    
Net realized and unrealized gain   $ 4,682,644     $ 1,388,797     $ 1,610,197     $ 822,043    
Distributions to preferred shareholders 
From net investment income
  $ (492,518 )   $ (325,376 )   $ (166,494 )   $ (164,503 )  
Net increase in net assets from operations   $ 7,871,029     $ 3,241,326     $ 2,783,124     $ 1,720,854    

 

See notes to financial statements

38



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended May 31, 2005

    New Jersey Trust   New York Trust   Ohio Trust   Pennsylvania Trust  
Investment Income      
Interest   $ 3,009,480     $ 3,638,477     $ 1,853,263     $ 1,776,219    
Total investment income   $ 3,009,480     $ 3,638,477     $ 1,853,263     $ 1,776,219    
Expenses      
Investment adviser fee   $ 376,804     $ 452,592     $ 233,296     $ 220,811    
Administration fee     107,658       129,312       66,656       63,089    
Trustees fees and expenses     2,965       2,965       651       729    
Legal and accounting services     25,158       18,715       17,075       14,766    
Printing and postage     9,976       2,592       6,674       4,242    
Custodian fee     29,662       34,084       19,543       25,279    
Transfer and dividend disbursing agent fees     38,049       41,261       25,932       22,626    
Preferred shares remarketing agent fee     47,369       55,472       29,215       28,048    
Miscellaneous     13,856       18,440       12,784       15,941    
Total expenses   $ 651,497     $ 755,433     $ 411,826     $ 395,531    
Deduct -  
Reduction of custodian fee     5,908       3,227       2,737       2,834    
Total expense reductions   $ 5,908     $ 3,227     $ 2,737     $ 2,834    
Net expenses   $ 645,589     $ 752,206     $ 409,089     $ 392,697    
Net investment income   $ 2,363,891     $ 2,886,271     $ 1,444,174     $ 1,383,522    
Realized and Unrealized Gain (Loss)      
Net realized gain (loss) -  
Investment transactions (identified cost basis)     1,631,067       904,925       (171,621 )     151,613    
Financial futures contracts     (1,958,795 )     (1,788,920 )     (765,861 )     (1,211,598 )  
Net realized loss   $ (327,728 )   $ (883,995 )   $ (937,482 )   $ (1,059,985 )  
Change in unrealized appreciation (depreciation) -  
Investments (identified cost basis)     3,158,390       4,454,521       2,212,322       1,917,393    
Financial futures contracts     (170,312 )     (207,436 )     (95,312 )     (71,364 )  
Net change in unrealized appreciation (depreciation)   $ 2,988,078     $ 4,247,085     $ 2,117,010     $ 1,846,029    
Net realized and unrealized gain   $ 2,660,350     $ 3,363,090     $ 1,179,528     $ 786,044    
Distributions to preferred shareholders 
From net investment income
  $ (353,211 )   $ (379,187 )   $ (223,767 )   $ (229,414 )  
Net increase in net assets from operations   $ 4,671,030     $ 5,870,174     $ 2,399,935     $ 1,940,152    

 

See notes to financial statements

39



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) CONT'D 

Statements of Changes in Net Assets

For the Six Months Ended May 31, 2005

Increase (Decrease) in Net Assets   California Trust   Florida Trust   Massachusetts Trust   Michigan Trust  
From operations -  
Net investment income   $ 3,680,903     $ 2,177,905     $ 1,339,421     $ 1,063,314    
Net realized loss from investment transactions and financial futures contracts     (1,050,563 )     (1,289,553 )     (770,277 )     (420,723 )  
Net change in unrealized appreciation (depreciation) from investments
and financial futures contracts
    5,733,207       2,678,350       2,380,474       1,242,766    
Distributions to preferred shareholders 
From net investment income
    (492,518 )     (325,376 )     (166,494 )     (164,503 )  
Net increase in net assets from operations   $ 7,871,029     $ 3,241,326     $ 2,783,124     $ 1,720,854    
Distributions to common shareholders -
From net investment income
  $ (3,456,177 )   $ (2,084,440 )   $ (1,292,136 )   $ (993,983 )  
Total distributions to common shareholders     $(3,456,177)       $(2,084,440)       $(1,292,136)       $(993,983)    
Capital share transactions -  
Reinvestment of distributions to common shareholders   $ -     $ 86,581     $ 192,597     $ 78,425    
Net increase in net assets from capital share transactions   $ -     $ 86,581     $ 192,597     $ 78,425    
Net increase in net assets   $ 4,414,852     $ 1,243,467     $ 1,683,585     $ 805,296    
Net Assets Applicable to Common Shares  
At beginning of period   $ 108,192,573     $ 63,910,788     $ 40,661,546     $ 31,363,164    
At end of period   $ 112,607,425     $ 65,154,255     $ 42,345,131     $ 32,168,460    
Accumulated undistributed
net investment income included in
net assets applicable to common shares
 
At end of period   $ 915,121     $ 484,075     $ 349,503     $ 217,354    

 

See notes to financial statements

40



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended May 31, 2005

Increase (Decrease) in Net Assets   New Jersey Trust   New York Trust   Ohio Trust   Pennsylvania Trust  
From operations -  
Net investment income   $ 2,363,891     $ 2,886,271     $ 1,444,174     $ 1,383,522    
Net realized loss from investment transactions and financial futures contracts     (327,728 )     (883,995 )     (937,482 )     (1,059,985 )  
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    2,988,078       4,247,085       2,117,010       1,846,029    
Distributions to preferred shareholders 
From net investment income
    (353,211 )     (379,187 )     (223,767 )     (229,414 )  
Net increase in net assets from operations   $ 4,671,030     $ 5,870,174     $ 2,399,935     $ 1,940,152    
Distributions to common shareholders -
From net investment income
  $ (2,216,643 )   $ (2,773,977 )   $ (1,385,631 )   $ (1,336,825 )  
Total distributions to common shareholders   $ (2,216,643 )   $ (2,773,977 )   $ (1,385,631 )   $ (1,336,825 )  
Capital share transactions -  
Reinvestment of distributions to common shareholders   $ 110,426     $ 64,967     $ 85,022     $ 146,671    
Net increase in net assets from capital share transactions   $ 110,426     $ 64,967     $ 85,022     $ 146,671    
Net increase in net assets   $ 2,564,813     $ 3,161,164     $ 1,099,326     $ 749,998    
Net Assets Applicable to Common Shares      
At beginning of period   $ 68,298,347     $ 83,043,975     $ 42,443,549     $ 40,022,863    
At end of period   $ 70,863,160     $ 86,205,139     $ 43,542,875     $ 40,772,861    
Accumulated undistributed
net investment income included in
net assets applicable to common shares
     
At end of period   $ 419,362     $ 854,088     $ 345,145     $ 432,290    

 

See notes to financial statements

41



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended November 30, 2004

Increase (Decrease) in Net Assets   California Trust   Florida Trust   Massachusetts Trust   Michigan Trust  
From operations -  
Net investment income   $ 7,746,358     $ 4,593,255     $ 2,826,512     $ 2,255,367    
Net realized gain (loss) from investment transactions and financial
futures contracts
    (578,059 )     (1,253,376 )     449,455       (601,468 )  
Net change in unrealized appreciation (depreciation) from investments
and financial futures contracts
    (1,119,538 )     (666,032 )     (1,128,965 )     (102,166 )  
Distributions to preferred shareholders 
From net investment income
    (568,421 )     (371,078 )     (188,013 )     (181,468 )  
Net increase in net assets from operations   $ 5,480,340     $ 2,302,769     $ 1,958,989     $ 1,370,265    
Distributions to common shareholders -
From net investment income
  $ (7,342,534 )   $ (4,394,421 )   $ (2,741,889 )   $ (2,170,802 )  
Total distributions to common shareholders   $ (7,342,534 )   $ (4,394,421 )   $ (2,741,889 )   $ (2,170,802 )  
Capital share transactions -  
Reinvestment of distributions to common shareholders   $ 63,513     $ 100,028     $ 409,239     $ 200,473    
Net increase in net assets from capital transactions   $ 63,513     $ 100,028     $ 409,239     $ 200,473    
Net decrease in net assets   $ (1,798,681 )   $ (1,991,624 )   $ (373,661 )   $ (600,064 )  
Net Assets Applicable to Common Shares  
At beginning of year   $ 109,991,254     $ 65,902,412     $ 41,035,207     $ 31,963,228    
At end of year   $ 108,192,573     $ 63,910,788     $ 40,661,546     $ 31,363,164    
Accumulated undistributed
net investment income included in
net assets applicable to common shares
 
At end of year   $ 1,182,913     $ 715,986     $ 468,712     $ 312,526    

 

See notes to financial statements

42



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended November 30, 2004

Increase (Decrease) in Net Assets   New Jersey Trust   New York Trust   Ohio Trust   Pennsylvania Trust  
From operations -  
Net investment income   $ 4,967,958     $ 6,033,627     $ 3,043,131     $ 2,886,737    
Net realized gain (loss) from investment transactions and financial
futures contracts
    794,863       2,202,103       (658,241 )     (346,022 )  
Net change in unrealized appreciation (depreciation) from investments
and financial futures contracts
    (2,254,006 )     (3,964,920 )     635,272       (466,325 )  
Distributions to preferred shareholders 
From net investment income
    (373,643 )     (396,309 )     (255,482 )     (245,569 )  
Net increase in net assets from operations   $ 3,135,172     $ 3,874,501     $ 2,764,680     $ 1,828,821    
Distributions to common shareholders -  
From net investment income   $ (4,902,864 )   $ (5,574,755 )   $ (2,839,891 )   $ (2,689,270 )  
Total distributions to common shareholders   $ (4,902,864 )   $ (5,574,755 )   $ (2,839,891 )   $ (2,689,270 )  
Capital share transactions -  
Reinvestment of distributions to common shareholders   $ 565,589     $ -     $ 215,222     $ 213,411    
Net increase in net assets from capital transactions   $ 565,589     $ -     $ 215,222     $ 213,411    
Net increase (decrease) in net assets   $ (1,202,103 )   $ (1,700,254 )   $ 140,011     $ (647,038 )  
Net Assets Applicable to Common Shares      
At beginning of year   $ 69,500,450     $ 84,744,229     $ 42,303,538     $ 40,669,901    
At end of year   $ 68,298,347     $ 83,043,975     $ 42,443,549     $ 40,022,863    
Accumulated undistributed
net investment income included in
net assets applicable to common shares
     
At end of year   $ 625,325     $ 1,120,981     $ 510,369     $ 615,007    

 

See notes to financial statements

43



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    California Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 15.070     $ 15.320     $ 14.590     $ 14.410     $ 13.210     $ 11.630    
Income (loss) from operations  
Net investment income   $ 0.513     $ 1.079     $ 1.079     $ 1.069     $ 1.035     $ 1.008    
Net realized and unrealized gain (loss)     0.647       (0.227 )     0.682       0.155       1.120       1.576    
Distributions to preferred shareholders from net investment income     (0.069 )     (0.079 )     (0.068 )     (0.110 )     (0.222 )     (0.279 )  
Total income from operations   $ 1.091     $ 0.773     $ 1.693     $ 1.114     $ 1.933     $ 2.305    
Less distributions to common shareholders  
From net investment income   $ (0.481 )   $ (1.023 )   $ (0.963 )   $ (0.934 )   $ (0.733 )   $ (0.725 )  
Total distributions to common shareholders   $ (0.481 )   $ (1.023 )   $ (0.963 )   $ (0.934 )   $ (0.733 )   $ (0.725 )  
Net asset value - End of period (Common shares)   $ 15.680     $ 15.070     $ 15.320     $ 14.590     $ 14.410     $ 13.210    
Market value - End of period (Common shares)   $ 14.600     $ 15.160     $ 14.950     $ 13.660     $ 14.320     $ 11.688    
Total Return(3)      7.45 %     8.60 %     17.06 %     1.84 %     29.65 %     8.79 %  

 

See notes to financial statements

44



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    California Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data       
Net assets applicable to common shares, end of period (000's omitted)   $ 112,607     $ 108,193     $ 109,991     $ 104,703     $ 102,664     $ 94,049    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     1.79 %(5)     1.78 %     1.78 %     1.82 %     1.83 %     1.99 %  
Expenses after custodian fee reduction(4)     1.77 %(5)     1.77 %     1.78 %     1.80 %     1.76 %     1.92 %  
Net investment income(4)     6.66 %(5)     7.10 %     7.17 %     7.44 %     7.32 %     8.43 %  
Portfolio Turnover     16 %     17 %     9 %     11 %     47 %     29 %  

 

  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 total net assets):  
Expenses     1.17 %(5)     1.15 %     1.15 %     1.16 %     1.15 %     1.17 %  
Expenses after custodian fee reduction     1.16 %(5)     1.15 %     1.15 %     1.15 %     1.11 %     1.13 %  
Net investment income     4.35 %(5)     4.61 %     4.64 %     4.73 %     4.62 %     4.97 %  
Senior Securities:  
Total preferred shares outstanding     2,360       2,360       2,360       2,360       2,360       2,360    
Asset coverage per preferred share(6)   $ 72,719     $ 70,849     $ 71,608     $ 69,366     $ 68,507     $ 64,862    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.012, decrease net realized and unrealized gains per share by $0.012, increase the ratio of net investment income to average net assets applicable to common shares from 7.36% to 7.44%, and increase the ratio of net investment income to average total net assets from 4.68% to 4.73%. Per-share data and ratios for the period prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

45



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Florida Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 15.040     $ 15.530     $ 14.730     $ 14.340     $ 13.070     $ 11.770    
Income (loss) from operations      
Net investment income   $ 0.512     $ 1.082     $ 1.096     $ 1.103     $ 1.056     $ 1.028    
Net realized and unrealized gain (loss)     0.324       (0.450 )     0.775       0.358       1.162       1.318    
Distributions to preferred shareholders from net investment income     (0.076 )     (0.087 )     (0.076 )     (0.118 )     (0.243 )     (0.338 )  
Total income from operations   $ 0.760     $ 0.545     $ 1.795     $ 1.343     $ 1.975     $ 2.008    
Less distributions to common shareholders      
From net investment income   $ (0.490 )   $ (1.035 )   $ (0.995 )   $ (0.953 )   $ (0.705 )   $ (0.708 )  
Total distributions to common shareholders   $ (0.490 )   $ (1.035 )   $ (0.995 )   $ (0.953 )   $ (0.705 )   $ (0.708 )  
Net asset value - End of period (Common shares)   $ 15.310     $ 15.040     $ 15.530     $ 14.730     $ 14.340     $ 13.070    
Market value - End of period (Common shares)   $ 15.020     $ 15.250     $ 15.455     $ 14.400     $ 13.380     $ 10.500    
Total Return(3)      5.15 %     5.76 %     14.67 %     15.18 %     34.91 %     7.20 %  

 

See notes to financial statements

46



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Florida Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data† ††       
Net assets applicable to common shares, end of period (000's omitted)   $ 65,154     $ 63,911     $ 65,902     $ 62,302     $ 60,646     $ 55,296    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(4)     1.86 %(5)     1.84 %     1.83 %     1.87 %     1.90 %     1.99 %  
Net expenses after custodian fee reduction(4)     1.85 %(5)     1.83 %     1.82 %     1.86 %     1.82 %     1.91 %  
Net investment income(4)     6.73 %(5)     7.09 %     7.20 %     7.61 %     7.46 %     8.59 %  
Portfolio Turnover     5 %     4 %     15 %     14 %     24 %     20 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     2.07 %  
Expenses after custodian fee reduction(4)     1.99 %  
Net investment income(4)     8.51 %  
Net investment income per share   $ 1.018    

 

††  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 total net assets):  
Net expenses     1.20 %(5)     1.18 %     1.18 %     1.18 %     1.19 %     1.16 %  
Net expenses after custodian fee reduction     1.19 %(5)     1.18 %     1.18 %     1.18 %     1.14 %     1.12 %  
Net investment income     4.35 %(5)     4.58 %     4.64 %     4.82 %     4.68 %     5.05 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses                                             1.20 %  
Expenses after custodian fee reduction                                             1.16 %  
Net investment income                                             5.01 %  
Senior Securities:  
Total preferred shares outstanding     1,420       1,420       1,420       1,420       1,420       1,420    
Asset coverage per preferred share(6)   $ 70,894     $ 70,011     $ 71,412     $ 68,878     $ 67,695     $ 63,944    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.60% to 7.61%, and increase the ratio of net investment income to average total net assets from 4.81% to 4.82%. Per share data and ratios for the period prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

47



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Massachusetts Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 15.090     $ 15.380     $ 14.350     $ 14.110     $ 12.530     $ 11.470    
Income (loss) from operations      
Net investment income   $ 0.496     $ 1.054     $ 1.091     $ 1.065     $ 1.044     $ 1.008    
Net realized and unrealized gain (loss)     0.605       (0.251 )     0.982       0.218       1.486       1.058    
Distributions to preferred shareholders from net investment income     (0.062 )     (0.070 )     (0.070 )     (0.106 )     (0.227 )     (0.286 )  
Total income from operations   $ 1.039     $ 0.733     $ 2.003     $ 1.177     $ 2.303     $ 1.780    
Less distributions to common shareholders      
From net investment income   $ (0.479 )   $ (1.023 )   $ (0.973 )   $ (0.937 )   $ (0.723 )   $ (0.720 )  
Total distributions to common shareholders   $ (0.479 )   $ (1.023 )   $ (0.973 )   $ (0.937 )   $ (0.723 )   $ (0.720 )  
Net asset value - End of period (Common shares)   $ 15.650     $ 15.090     $ 15.380     $ 14.350     $ 14.110     $ 12.530    
Market value - End of period (Common shares)   $ 16.000     $ 16.810     $ 15.400     $ 15.510     $ 14.370     $ 10.813    
Total Return(3)      6.83 %     16.71 %     5.91 %     15.16 %     40.54 %     0.69 %  

 

See notes to financial statements

48



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Massachusetts Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data††       
Net assets applicable to common shares, end of period (000's omitted)   $ 42,345     $ 40,662     $ 41,035     $ 37,795     $ 36,634     $ 32,501    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     1.89 %(5)     1.87 %     1.86 %     1.97 %     1.97 %     2.17 %  
Expenses after custodian fee reduction(4)     1.88 %(5)     1.86 %     1.86 %     1.94 %     1.88 %     2.09 %  
Net investment income(4)     6.43 %(5)     6.97 %     7.27 %     7.55 %     7.60 %     8.80 %  
Portfolio Turnover     5 %     39 %     26 %     7 %     13 %     32 %  

 

††  The ratios reported above are based on net assets 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 total net assets):  
Expenses     1.25 %(5)     1.22 %     1.21 %     1.24 %     1.23 %     1.26 %  
Expenses after custodian fee reduction     1.24 %(5)     1.22 %     1.21 %     1.22 %     1.17 %     1.21 %  
Net investment income     4.25 %(5)     4.55 %     4.72 %     4.77 %     4.74 %     5.10 %  
Senior Securities:  
Total preferred shares outstanding     860       860       860       860       860       860    
Asset coverage per preferred share(6)   $ 74,240     $ 72,281     $ 72,719     $ 68,951     $ 67,602     $ 62,797    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.51% to 7.55%, and increase the ratio of net investment income to average total net assets from 4.75% to 4.77%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

49



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Michigan Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 14.860     $ 15.240     $ 14.400     $ 14.490     $ 13.060     $ 11.840    
Income (loss) from operations      
Net investment income   $ 0.503     $ 1.072     $ 1.092     $ 1.085     $ 1.045     $ 0.996    
Net realized and unrealized gain (loss)     0.395       (0.334 )     0.802       (0.109 )     1.317       1.250    
Distributions to preferred shareholders from net investment income     (0.078 )     (0.086 )     (0.072 )     (0.113 )     (0.242 )     (0.321 )  
Total income from operations   $ 0.820     $ 0.652     $ 1.822     $ 0.863     $ 2.120     $ 1.925    
Less distributions to common shareholders      
From net investment income   $ (0.470 )   $ (1.032 )   $ (0.982 )   $ (0.953 )   $ (0.690 )   $ (0.705 )  
Total distributions to common shareholders   $ (0.470 )   $ (1.032 )   $ (0.982 )   $ (0.953 )   $ (0.690 )   $ (0.705 )  
Net asset value - End of period (Common shares)   $ 15.210     $ 14.860     $ 15.240     $ 14.400     $ 14.490     $ 13.060    
Market value - End of period (Common shares)   $ 15.960     $ 16.600     $ 15.635     $ 13.940     $ 13.000     $ 10.438    
Total Return(3)      5.47 %     13.63 %     19.82 %     14.72 %     31.69 %     2.30 %  

 

See notes to financial statements

50



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Michigan Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data† ††       
Net assets applicable to common shares, end of period (000's omitted)   $ 32,168     $ 31,363     $ 31,963     $ 30,064     $ 30,213     $ 27,233    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(4)     2.00 %(5)     1.96 %     1.97 %     2.00 %     1.99 %     2.18 %  
Net expenses after custodian fee reduction(4)     1.97 %(5)     1.96 %     1.97 %     1.99 %     1.90 %     2.09 %  
Net investment income(4)     6.69 %(5)     7.16 %     7.31 %     7.54 %     7.36 %     8.34 %  
Portfolio Turnover     9 %     5 %     8 %     13 %     33 %     18 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     2.21 %  
Expenses after custodian fee reduction(4)     2.12 %  
Net investment income(4)     8.31 %  
Net investment income per share   $ 0.992    

 

††  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 total net assets):  
Net expenses     1.29 %(5)     1.26 %     1.26 %     1.27 %     1.25 %     1.27 %  
Net expenses after custodian fee reduction     1.27 %(5)     1.26 %     1.26 %     1.26 %     1.19 %     1.22 %  
Net investment income     4.32 %(5)     4.60 %     4.69 %     4.76 %     4.63 %     4.90 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses                                             1.29 %  
Expenses after custodian fee reduction                                             1.24 %  
Net investment income                                             4.88 %  
Senior Securities:  
Total preferred shares outstanding     700       700       700       700       700       700    
Asset coverage per preferred share(6)   $ 70,963     $ 69,810     $ 70,664     $ 67,952     $ 68,163     $ 63,906    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, increase net realized and unrealized losses per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.51% to 7.54% and increase the ratio of net investment income to average total net assets from 4.74% to 4.76%. Per-share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

51



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    New Jersey Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 14.810     $ 15.190     $ 14.060     $ 13.880     $ 12.680     $ 11.720    
Income (loss) from operations      
Net investment income   $ 0.512     $ 1.082     $ 1.120     $ 1.098     $ 1.057     $ 1.012    
Net realized and unrealized gain (loss)     0.574       (0.313 )     1.099       0.163       1.089       0.977    
Distributions to preferred shareholders from net investment income     (0.076 )     (0.081 )     (0.071 )     (0.105 )     (0.234 )     (0.324 )  
Total income from operations   $ 1.010     $ 0.688     $ 2.148     $ 1.156     $ 1.912     $ 1.665    
Less distributions to common shareholders      
From net investment income   $ (0.480 )   $ (1.068 )   $ (1.018 )   $ (0.976 )   $ (0.712 )   $ (0.705 )  
Total distributions to common shareholders   $ (0.480 )   $ (1.068 )   $ (1.018 )   $ (0.976 )   $ (0.712 )   $ (0.705 )  
Net asset value - End of period (Common shares)   $ 15.340     $ 14.810     $ 15.190     $ 14.060     $ 13.880     $ 12.680    
Market value - End of period (Common shares)   $ 14.780     $ 15.540     $ 15.415     $ 14.400     $ 13.340     $ 10.750    
Total Return(3)      6.95 %     8.31 %     14.75 %     15.70 %     31.34 %     5.28 %  

 

See notes to financial statements

52



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    New Jersey Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 70,863     $ 68,298     $ 69,500     $ 63,803     $ 62,237     $ 56,883    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     1.87 %(5)     1.85 %     1.84 %     1.89 %     1.95 %     2.08 %  
Expenses after custodian fee reduction(4)     1.85 %(5)     1.84 %     1.84 %     1.88 %     1.90 %     2.00 %  
Net investment income(4)     6.77 %(5)     7.28 %     7.64 %     7.80 %     7.64 %     8.64 %  
Portfolio Turnover     21 %     52 %     28 %     25 %     35 %     54 %  

 

  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 total net assets):  
Expenses     1.21 %(5)     1.19 %     1.18 %     1.19 %     1.21 %     1.21 %  
Expenses after custodian fee reduction     1.20 %(5)     1.18 %     1.18 %     1.18 %     1.18 %     1.16 %  
Net investment income     4.39 %(5)     4.68 %     4.87 %     4.88 %     4.74 %     5.01 %  
Senior Securities:  
Total preferred shares outstanding     1,520       1,520       1,520       1,520       1,520       1,520    
Asset coverage per preferred share(6)   $ 71,622     $ 69,935     $ 70,724     $ 66,976     $ 65,951     $ 62,434    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.78% to 7.80% and increase the ratio of net investment income to average total net assets from 4.87% to 4.88%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

53



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    New York Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 15.490     $ 15.810     $ 14.860     $ 14.280     $ 13.020     $ 11.800    
Income (loss) from operations      
Net investment income   $ 0.538     $ 1.126     $ 1.108     $ 1.114     $ 1.057     $ 1.002    
Net realized and unrealized gain (loss)     0.631       (0.332 )     0.936       0.553       1.150       1.239    
Distributions to preferred shareholders from net investment income     (0.071 )     (0.074 )     (0.068 )     (0.103 )     (0.220 )     (0.301 )  
Total income from operations   $ 1.098     $ 0.720     $ 1.976     $ 1.564     $ 1.987     $ 1.940    
Less distributions to common shareholders      
From net investment income   $ (0.518 )   $ (1.040 )   $ (1.026 )   $ (0.984 )   $ (0.727 )   $ (0.720 )  
Total distributions to common shareholders   $ (0.518 )   $ (1.040 )   $ (1.026 )   $ (0.984 )   $ (0.727 )   $ (0.720 )  
Net asset value - End of period (Common shares)   $ 16.070     $ 15.490     $ 15.810     $ 14.860     $ 14.280     $ 13.020    
Market value - End of period (Common shares)   $ 16.000     $ 15.370     $ 15.460     $ 13.990     $ 14.050     $ 10.750    
Total Return(3)      7.21 %     6.46 %     18.34 %     6.56 %     38.30 %     5.90 %  

 

See notes to financial statements

54



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    New York Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data       
Net assets applicable to common shares, end of period (000's omitted)   $ 86,205     $ 83,044     $ 84,744     $ 79,589     $ 75,658     $ 69,023    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     1.78 %(5)     1.78 %     1.77 %     1.86 %     1.88 %     2.03 %  
Expenses after custodian fee reduction(4)     1.77 %(5)     1.78 %     1.77 %     1.86 %     1.86 %     1.95 %  
Net investment income(4)     6.79 %(5)     7.23 %     7.21 %     7.64 %     7.45 %     8.33 %  
Portfolio Turnover     13 %     31 %     19 %     8 %     21 %     36 %  

 

  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 total net assets):  
Expenses     1.17 %(5)     1.16 %     1.15 %     1.18 %     1.19 %     1.20 %  
Expenses after custodian fee reduction     1.16 %(5)     1.16 %     1.15 %     1.18 %     1.17 %     1.15 %  
Net investment income     4.46 %(5)     4.71 %     4.68 %     4.84 %     4.68 %     4.91 %  
Senior Securities:  
Total preferred shares outstanding     1,780       1,780       1,780       1,780       1,780       1,780    
Asset coverage per preferred share(6)   $ 73,438     $ 71,659     $ 72,603     $ 69,714     $ 67,506     $ 63,777    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.62% to 7.64% and increase the ratio of net investment income to average total net assets from 4.83% to 4.84%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

55



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Ohio Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 15.040     $ 15.070     $ 14.150     $ 14.070     $ 12.820     $ 11.910    
Income (loss) from operations      
Net investment income   $ 0.511     $ 1.081     $ 1.083     $ 1.107     $ 1.068     $ 1.028    
Net realized and unrealized gain (loss)     0.419       (0.011 )     0.913       0.036       1.134       0.930    
Distributions to preferred shareholders from net investment income     (0.079 )     (0.091 )     (0.077 )     (0.109 )     (0.242 )     (0.335 )  
Total income from operations   $ 0.851     $ 0.979     $ 1.919     $ 1.034     $ 1.960     $ 1.623    
Less distributions to common shareholders      
From net investment income   $ (0.491 )   $ (1.009 )   $ (0.999 )   $ (0.954 )   $ (0.710 )   $ (0.713 )  
Total distributions to common shareholders   $ (0.491 )   $ (1.009 )   $ (0.999 )   $ (0.954 )   $ (0.710 )   $ (0.713 )  
Net asset value - End of period (Common shares)   $ 15.400     $ 15.040     $ 15.070     $ 14.150     $ 14.070     $ 12.820    
Market value - End of period (Common shares)   $ 15.110     $ 16.750     $ 15.715     $ 14.730     $ 13.620     $ 11.375    
Total Return(3)      5.62 %     13.96 %     14.12 %     15.59 %     26.39 %     7.55 %  

 

See notes to financial statements

56



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Ohio Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data† ††       
Net assets applicable to common shares, end of period (000's omitted)   $ 43,543     $ 42,444     $ 42,304     $ 39,507     $ 39,072     $ 35,613    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(4)     1.91 %(5)     1.91 %     1.90 %     1.96 %     1.99 %     2.08 %  
Net expenses after custodian fee reduction(4)     1.89 %(5)     1.90 %     1.88 %     1.87 %     1.90 %     2.01 %  
Net investment income(4)     6.68 %(5)     7.23 %     7.37 %     7.84 %     7.69 %     8.56 %  
Portfolio Turnover     7 %     12 %     23 %     8 %     26 %     26 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     2.16 %  
Expenses after custodian fee reduction(4)     2.09 %  
Net investment income(4)     8.48 %  
Net investment income per share   $ 1.018    

 

††  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 total net assets):  
Net expenses     1.24 %(5)     1.23 %     1.21 %     1.23 %     1.24 %     1.22 %  
Net expenses after custodian fee reduction     1.23 %(5)     1.22 %     1.20 %     1.17 %     1.18 %     1.18 %  
Net investment income     4.33 %(5)     4.64 %     4.69 %     4.91 %     4.78 %     5.02 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses                                             1.26 %  
Expenses after custodian fee reduction                                             1.22 %  
Net investment income                                             4.98 %  
Senior Securities:  
Total preferred shares outstanding     940       940       940       940       940       940    
Asset coverage per preferred share(6)   $ 71,322     $ 70,153     $ 70,007     $ 67,032     $ 66,569     $ 62,895    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.80% to 7.84% and increase the ratio of net investment income to average total net assets from 4.88% to 4.91%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

57



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Pennsylvania Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Net asset value - Beginning of period (Common shares)   $ 14.890     $ 15.210     $ 14.260     $ 14.160     $ 12.960     $ 11.840    
Income (loss) from operations  
Net investment income   $ 0.514     $ 1.076     $ 1.089     $ 1.059     $ 1.015     $ 1.013    
Net realized and unrealized gain (loss)     0.287       (0.301 )     0.884       0.039       1.107       1.147    
Distributions to preferred shareholders from net investment income     (0.085 )     (0.092 )     (0.080 )     (0.111 )     (0.244 )     (0.332 )  
Total income from operations   $ 0.716     $ 0.683     $ 1.893     $ 0.987     $ 1.878     $ 1.828    
Less distributions to common shareholders  
From net investment income   $ (0.496 )   $ (1.003 )   $ (0.943 )   $ (0.887 )   $ (0.678 )   $ (0.708 )  
Total distributions to common shareholders   $ (0.496 )   $ (1.003 )   $ (0.943 )   $ (0.887 )   $ (0.678 )   $ (0.708 )  
Net asset value - End of period (Common shares)   $ 15.110     $ 14.890     $ 15.210     $ 14.260     $ 14.160     $ 12.960    
Market value - End of period (Common shares)   $ 15.580     $ 15.540     $ 15.980     $ 13.960     $ 12.750     $ 10.625    
Total Return(3)      4.82 %     4.07 %     22.05 %     16.77 %     26.88 %     5.29 %  

 

See notes to financial statements

58



Eaton Vance Municipal Income Trusts as of May 31, 2005

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Pennsylvania Trust  
    Six Months Ended
May 31, 2005
  Year Ended November 30,  
    (Unaudited)(1)    2004(1)    2003(1)    2002(1)(2)    2001(1)    2000(1)   
Ratios/Supplemental Data† ††       
Net assets applicable to common shares, end of period (000's omitted)   $ 40,773     $ 40,023     $ 40,670     $ 38,027     $ 37,723     $ 34,514    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(4)     1.95 %(5)     1.91 %     1.92 %     1.95 %     1.97 %     1.95 %  
Net expenses after custodian fee reduction(4)     1.93 %(5)     1.91 %     1.92 %     1.95 %     1.94 %     1.86 %  
Net investment income(4)     6.81 %(5)     7.18 %     7.35 %     7.48 %     7.26 %     8.46 %  
Portfolio Turnover     7 %     8 %     6 %     20 %     34 %     19 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(4)     2.14 %  
Expenses after custodian fee reduction(4)     2.05 %  
Net investment income(4)     8.27 %  
Net investment income per share   $ 0.990    

 

††  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 total net assets):  
Net expenses     1.25 %(5)     1.23 %     1.23 %     1.22 %     1.23 %     1.14 %  
Net expenses after custodian fee reduction     1.24 %(5)     1.22 %     1.23 %     1.22 %     1.20 %     1.09 %  
Net investment income     4.39 %(5)     4.61 %     4.69 %     4.68 %     4.53 %     4.96 %  

 

  The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses                                             1.25 %  
Expenses after custodian fee reduction                                             1.20 %  
Net investment income                                             4.85 %  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900       900       900    
Asset coverage per preferred share(6)   $ 70,305     $ 69,471     $ 70,193     $ 67,257     $ 66,920     $ 63,357    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums of fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.45% to 7.48% and increase the ratio of net investment income to average total net assets from 4.67% to 4.68%. Per-share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

(3)  Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis.

(4)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure.

(5)  Annualized.

(6)  Calculated by subtracting the Trust's total liabilites (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

See notes to financial statements

59



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida 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), (individually referred to as the Trust or collectively the Trusts) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Trusts were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated December 10, 1998. Each Trust's investment objective is to provide current income exempt from regular federal income taxes and taxes in its specified state. Each Trust seeks to achieve its objective by investing primarily in investment grade municipal obligations issued by its specified state.

The following is a summary of significant accounting policies consistently followed by each Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation - Municipal bonds and taxable obligations, if any, are normally valued on the basis of valuations furnished by a pricing service. Futures contracts and options on futures contracts listed on commodity exchanges are valued at closing settlement prices. Over-the-counter options on futures contracts are normally valued at the mean between the latest bid and asked prices. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates value. Investments for which valuations or market quotations are not readily available are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

B  Investment Transactions - Investment transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined using the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuations during this period. To the extent that when-issued or delayed delivery purchases are outstanding, the Trust instructs the custodian to segregate assets in a separate account, with a current value at least equal to the amount of its purchase commitments.

C  Income - Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or discount.

D  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 all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary. At November 30, 2004, the Trusts, for federal income tax purposes, had capital loss carryovers which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of the 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 carryovers of each Trust are as follows:

Trust   Amount   Expires  
California   $ 5,832,093     November 30, 2007  
      2,239,451     November 30, 2008  
      995,999     November 30, 2012  
Florida     1,207,714     November 30, 2007  
      1,777,536     November 30, 2008  
      160,909     November 30, 2009  
      1,495,013     November 30, 2012  
Massachusetts     650,717     November 30, 2007  
      1,739,252     November 30, 2008  
      39,627     November 30, 2009  
      343,176     November 30, 2010  
Michigan     1,193,621     November 30, 2007  
      624,509     November 30, 2008  
      165,469     November 30, 2009  
      475,985     November 30, 2010  
      443,883     November 30, 2011  
      697,198     November 30, 2012  
New Jersey     3,733,314     November 30, 2007  
      3,178,038     November 30, 2008  
      262,308     November 30, 2009  
      177,350     November 30, 2011  
New York     1,820,387     November 30, 2008  
      1,920,646     November 30, 2009  
      70,059     November 30, 2010  

 

60



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Trust   Amount   Expires  
Ohio   $ 1,531,618     November 30, 2007  
      643,577     November 30, 2008  
      850,745     November 30, 2009  
      764,355     November 30, 2012  
Pennsylvania     1,395,577     November 30, 2007  
      807,118     November 30, 2008  
      844,973     November 30, 2009  
      41,331     November 30, 2010  
      502,868     November 30, 2012  

 

In addition, 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 taxes 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 for investors.

E  Financial Futures Contracts - Upon the entering of a financial futures contract, a Trust is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Trust (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Trust. A Trust's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.

F  Options on Financial Futures Contracts - Upon the purchase of a put option on a financial futures contract by a Trust, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Trust will realize a loss in the amount of the cost of the option. When a Trust enters into a closing sale transaction, a Trust will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Trust exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid.

G  Use of Estimates - The preparation of 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.

H  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.

I  Expense Reduction - Investors Bank & Trust Company (IBT) serves as custodian of the Trusts. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Trust maintains with IBT. All credit balances used to reduce the Trusts' custodian fees are reported as a reduction of total expenses in the Statement of Operations.

J  Interim Financial Statements - The interim financial statements relating to May 31, 2005 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trusts' management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares (APS)

Each Trust issued Auction Preferred Shares on March 1, 1999 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every seven days thereafter by an auction.

61



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Auction Preferred Shares issued and outstanding as of May 31, 2005 and dividend rate ranges for the six months ended May 31, 2005 are as indicated below:

Trust   Preferred Shares
Issued and Outstanding
  Dividends Rate
Ranges
 
California     2,360       1.05 % – 2.40%  
Florida     1,420       0.10 % – 2.85%  
Massachusetts     860       0.80 % – 2.75%  
Michigan     700       1.35 % – 2.70%  
New Jersey     1,520       1.15 % – 2.70%  
New York     1,780       1.00 % – 2.70%  
Ohio     940       1.173 % – 2.75%  
Pennsylvania     900       1.59 % – 2.85%  

 

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 any Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS shall 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 each Trust's By-Laws and the Investment Company Act of 1940. Each Trust pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction.

3  Distributions to Shareholders

Each Trust intends to make monthly distributions of net investment income, after payment of any dividends on any outstanding Auction Preferred Shares. Distributions are recorded on the ex-dividend date. Distributions of any realized capital gains, if any, are made at least annually. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. Each dividend payment period for the Auction Preferred Shares is generally seven days. The applicable dividend rate for Auction Preferred Shares on May 31, 2005 are listed below. For the six months ended May 31, 2005, the amount of dividends each Trust paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:

Trust   APS
Dividend Rates
as of
May 31, 2005
  Dividends
Paid to
Preferred
Shareholders
from net investment
income for
the six months
ended
May 31, 2005
  Average
APS
Dividend
Rates for
the six months
ended
May 31, 2005
 
California     1.99 %   $ 492,518       1.67 %  
Florida     2.55 %     325,376       1.84 %  
Massachusetts     2.75 %     166,494       1.55 %  
Michigan     2.00 %     164,503       1.88 %  
New Jersey     2.589 %     353,211       1.86 %  
New York     2.50 %     379,187       1.72 %  
Ohio     2.58 %     223,767       1.91 %  
Pennsylvania     2.79 %     229,414       2.07 %  

 

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.

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee, computed at an annual rate of 0.70% of each Trust's average weekly gross assets, was earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. Except for Trustees of each Trust who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Trust out of such investment adviser fee. For the six months ended May 31, 2005, the fee was equivalent to 0.70% (annualized) of each Trust's average weekly gross assets and amounted to $592,731, $350,461, $220,824, $172,359, $376,804, $452,592, $233,296, and $220,811, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. EVM also serves as the administrator of each Trust. An administration fee, computed at the annual rate of 0.20% (annualized) of the average weekly gross assets of each Trust is paid to EVM for

62



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

administering business affairs of each Trust. For the six months ended May 31, 2005, the administrative fee amounted to $169,352, $100,132, $63,092, $49,245, $107,658, $129,312, $66,656, and $63,089, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively.

Certain officers and one Trustee of each Trust are officers of the above organization.

5  Investments

Purchases and sales of investments, other than U.S. Government securities and short-term obligations for the six months ended May 31, 2005 were as follows:

California Trust      
Purchases   $ 26,050,149    
Sales     28,935,305    
Florida Trust      
Purchases   $ 5,299,023    
Sales     5,849,801    
Massachusetts Trust      
Purchases   $ 2,897,484    
Sales     3,648,682    
Michigan Trust      
Purchases   $ 4,511,569    
Sales     5,266,190    
New Jersey Trust      
Purchases   $ 24,881,212    
Sales     22,465,994    
New York Trust      
Purchases   $ 16,564,534    
Sales     18,541,513    
Ohio Trust      
Purchases   $ 4,497,103    
Sales     4,590,690    

 

Pennsylvania Trust  
Purchases   $ 5,049,161    
Sales     4,548,249    

 

6  Federal Income Tax Basis of Unrealized Appreciation (Depreciation)

The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at May 31, 2005, as computed for Federal income tax purposes, were as follows:

California Trust      
Aggregate cost   $ 153,892,593    
Gross unrealized appreciation   $ 15,428,758    
Gross unrealized depreciation     (91,664 )  
Net unrealized appreciation   $ 15,337,094    
Florida Trust      
Aggregate cost   $ 92,517,233    
Gross unrealized appreciation   $ 7,609,519    
Gross unrealized depreciation     (203,403 )  
Net unrealized appreciation   $ 7,406,116    
Massachusetts Trust      
Aggregate cost   $ 57,210,240    
Gross unrealized appreciation   $ 5,588,693    
Gross unrealized depreciation     (33,248 )  
Net unrealized appreciation   $ 5,555,445    
Michigan Trust      
Aggregate cost   $ 44,301,054    
Gross unrealized appreciation   $ 4,713,988    
Gross unrealized depreciation     (152,431 )  
Net unrealized appreciation   $ 4,561,557    
New Jersey Trust      
Aggregate cost   $ 101,293,870    
Gross unrealized appreciation   $ 9,737,543    
Gross unrealized depreciation     (49,093 )  
Net unrealized appreciation   $ 9,688,450    

 

63



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

New York Trust      
Aggregate cost   $ 117,942,216    
Gross unrealized appreciation   $ 10,921,173    
Gross unrealized depreciation     (335,436 )  
Net unrealized appreciation   $ 10,585,737    
Ohio Trust      
Aggregate cost   $ 60,355,468    
Gross unrealized appreciation   $ 6,185,335    
Gross unrealized depreciation     (206,832 )  
Net unrealized appreciation   $ 5,978,503    
Pennsylvania Trust      
Aggregate cost   $ 57,933,321    
Gross unrealized appreciation   $ 5,559,774    
Gross unrealized depreciation     (609,501 )  
Net unrealized appreciation   $ 4,950,273    

 

7  Shares of Beneficial Interest

Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:

    California Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    -       4,201    
Net increase     -       4,201    
    Florida Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    5,664       6,514    
Net increase     5,664       6,514    

 

    Massachusetts Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    11,952       26,699    
Net increase     11,952       26,699    
    Michigan Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    5,007       13,221    
Net increase     5,007       13,221    
    New Jersey Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    7,346       37,840    
Net increase     7,346       37,840    
    New York Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    4,068       -    
Net increase     4,068       -    
    Ohio Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    5,368       14,182    
Net increase     5,368       14,182    
    Pennsylvania Trust  
    Six Months Ended
May 31, 2005
(Unaudited)
  Year Ended
November 30, 2004
 
Shares issued pursuant to the
Trust's dividend reinvestment plan
    9,600       13,939    
Net increase     9,600       13,939    

 

64



Eaton Vance Municipal Income Trusts as of May 31, 2005

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

8  Financial Instruments  

Each Trust regularly trades in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

A summary of obligations under these financial instruments at May 31, 2005 is as follows:

Futures Contracts

Trust   Expiration
Date(s)
  Contracts   Position   Aggregate
Cost
  Value   Net Unrealized
Appreciation
(Depreciation)
 
California   09/05   375 U.S.
Treasury Bond
 
Short
 
$(43,880,419)
 
$(44,039,063)
 
$(158,644)
 
Florida   09/05   220 U.S.
Treasury Bond
 
Short
 
$(25,743,179)
 
$(25,836,250)
 
$(93,071)
 
Massachusetts   09/05   150 U.S.
Treasury Bond
 
Short
 
$(17,526,081)
 
$(17,615,625)
 
$(89,544)
 

Michigan
 
 
09/05
 
09/05
  71 U.S.
Treasury Bond
12 U.S.
Treasury Note
 
Short
 
Short
 
$(8,305,589)
 
$(1,348,450)
 
$(8,338,063)
 
$(1,359,188)
 
$(32,474)
 
$(10,738)
 
New Jersey   09/05   260 U.S.
Treasury Bond
 
Short
 
$(30,378,583)
 
$(30,533,750)
 
$(155,167)
 
New York   09/05   227 U.S.
Treasury Bond
 
Short
 
$(26,469,672)
 
$(26,658,313)
 
$(188,641)
 
Ohio   09/05   105 U.S.
Treasury Bond
 
Short
 
$(12,243,681)
 
$(12,330,938)
 
$(87,257)
 
Pennsylvania   09/05   175 U.S.
Treasury Bond
 
Short
 
$(20,471,521)
 
$(20,551,562)
 
$(80,041)
 

 

At May 31, 2005, each Trust had sufficient cash and/or securities to cover margin requirements on open future contracts.

9  Overdraft Advances

Pursuant to the custodian agreement between the Trusts and Investors Bank & Trust (IBT), IBT may in its discretion advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft by the Trusts, the Trusts are obligated to repay IBT at the current rate of interest charged by IBT for secured loans (currently, a rate above the federal funds rate). This obligation is payable on demand to IBT. IBT has a lien on the Trust's assets to the extent of any overdraft. At May 31, 2005, Florida Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust had payments due to IBT pursuant to the foregoing arrangement of $119,525, $169,420, $416,087, $324,593 and $1,010,052, respectively.

10  Annual Meeting of Shareholders

Each Trust held its Annual Meeting of Shareholders on March 18, 2005. The following action was taken by the shareholders of each Trust:

Item 1:  The election of William H. Park, Norton H. Reamer and Lynn A. Stout as Class III Trustees of the Trust for a three-year term expiring in 2008. Mr. Reamer was designated the Nominee to be elected solely by APS shareholders:

Trust   Nominee for
Class III Trustee
Elected by APS
Shareholders:
Norton H. Reamer
  Nominee for
Class III Trustee
Elected by All
Shareholders:
William H. Park
  Nominee for
Class III Trustee
Elected by All
Shareholders:
Lynn A. Stout
 
California
For
Withheld
  2,280
24
  7,022,440
48,366
  7,008,507
62,299
 
Florida
For
Withheld
  1,353
0
  3,973,572
32,017
  3,971,931
33,658
 
Massachusetts
For
Withheld
  703
5
  2,387,021
20,808
  2,383,144
24,685
 
Michigan
For
Withheld
  576
0
  2,052,962
23,482
  2,052,962
23,482
 
New Jersey
For
Withheld
  1,286
8
  4,419,210
34,264
  4,421,357
32,117
 
New York
For
Withheld
  1,778
1
  5,119,064
20,767
  5,102,650
37,181
 
Ohio
For
Withheld
  708
21
  2,429,093
11,464
  2,428,393
12,164
 
Pennsylvania
For
Withheld
  810
0
  2,594,545
13,657
  2,594,545
13,657
 

 

65



Eaton Vance Municipal Income Trusts

DIVIDEND REINVESTMENT PLAN

Each Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the same Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.

If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Trust's transfer agent, PFPC Inc., 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 inquires regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710.

66



Eaton Vance Municipal Income Trusts

APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN

This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

  Please print exact name on account

  Shareholder signature  Date

  Shareholder signature  Date

  Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

  Eaton Vance Municipal Income Trusts
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710

Number of Employees

Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees.

Number of Shareholders

As of May 31, 2005, our records indicate that there are 65, 45, 58, 31, 10, 59, 55 and 65 registered shareholders for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively, and approximately 8,800, 1,400, 900, 1,000, 1,600, 7,900, 1,500 and 1,900 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively.

If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call:

  Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265

American Stock Exchange symbols

California Trust   CEV  
Florida Trust   FEV  
Massachusetts Trust   MMV  
Michigan Trust   EMI  
New Jersey Trust   EVJ  
New York Trust   EVY  
Ohio Trust   EVO  
Pennsylvania Trust   EVP  

 

67



Eaton Vance Municipal Income Trusts

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS

The investment advisory agreements between each of Eaton Vance California Municipal Income Trust, Eaton Vance Florida 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 (collectively the "Funds" or individually the "Fund"), and the investment adviser, Eaton Vance Management ("Eaton Vance"), each provide that the advisory agreement will continue in effect from year to year so long as its continuance is approved at least annually (i) by a vote of a majority of the noninterested Trustees of the Fund cast in person at a meeting called for the purpose of voting on such approval and (ii) by the Trustees of the Fund or by vote of a majority of the outstanding interests of the Fund.

In considering the annual approval of the investment advisory agreements between the Funds and the investment adviser, the Special Committee of the Board of Trustees considered information that had been provided throughout the year at regular Board meetings, as well as information furnished for a series of meetings held in February and March in preparation for a Board meeting held on March 21, 2005 to specifically consider the renewal of the investment advisory agreements. Such information included, among other things, the following:

•  An independent report comparing the advisory fees of each Fund with those of comparable funds;

•  An independent report comparing the expense ratio of each Fund to those of comparable funds;

•  Information regarding Fund investment performance in comparison to relevant peer groups of funds and appropriate indices;

•  The economic outlook and the general investment outlook in relevant investment markets;

•  Eaton Vance's results and financial condition and the overall organization of the investment adviser;

•  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;

•  Eaton Vance's management of the relationship with the custodian, subcustodians and fund accountants;

•  The resources devoted to compliance efforts undertaken by Eaton Vance on behalf of the funds it manages and the record of compliance with the investment policies and restrictions and with policies on personal securities transactions;

•  The quality, nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance and its affiliates; and

•  The terms of each advisory agreement and the reasonableness and appropriateness of the particular fee paid by each Fund for the services described therein.

The Special Committee also considered the nature, extent and quality of the management services provided by the investment adviser. In so doing, the Special Committee considered the investment adviser's management capabilities with respect to the types of investments held by each Fund, including information relating to the education, experience and number of investment professionals and other personnel who provide services under the investment advisory agreements. Specifically, the Special Committee considered the investment adviser's 30-person municipal bond team, which includes six portfolio managers and nine credit specialists who provide services to each Fund. The Special Committee noted that the investment adviser's municipal bond team affords the investment adviser extensive in-house research capabilities in addition to the other resources available to the investment adviser. The Special Committee also took into account the time and attention to be devoted by senior management to the Funds and the other funds in the complex. The Special Committee evaluated the level of skill required to manage each Fund and concluded that the human resources available at the investment adviser were appropriate to fulfill effectively its duties on behalf of each Fund.

In its review of comparative information with respect to each Fund's investment performance, the Special Committee concluded that each Fund has performed within a range that the Special Committee deemed competitive. With respect to its review of the advisory fees paid by each Fund and each Fund's expense ratio, the Special Committee noted the benefits that have accrued to shareholders as a result of the financial resources committed by Eaton Vance in structuring the Funds at the time of their initial public offering and concluded that the fees paid by each Fund and each Fund's expense ratio are reasonable.

In addition to the factors mentioned above, the Special Committee reviewed the level of the investment adviser's profits in providing investment management services for each Fund and for all Eaton Vance funds as a group. The Special Committee also reviewed the

68



Eaton Vance Municipal Income Trusts

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT'D

benefits to Eaton Vance and its affiliates in providing administration services for the Fund and for all Eaton Vance funds as a group. In addition, the Special Committee considered the fiduciary duty assumed by the investment adviser in connection with the services rendered to each Fund and the business reputation of the investment adviser and its financial resources. The Trustees concluded that in light of the services rendered, the profits realized by the investment adviser are not unreasonable. The Special Committee also considered the fact that each Fund is not continuously offered and concluded that, in light of the level of the investment adviser's profits with respect to each Fund, the implementation of breakpoints is not appropriate.

The Special Committee did not consider any single factor as controlling in determining whether or not to renew the investment advisory agreements. Nor are the items described herein all the matters considered by the Special Committee. In assessing the information provided by Eaton Vance and its affiliates, the Special Committee also took into consideration the benefits to shareholders of investing in a fund that is a part of a large family of funds which provides a large variety of shareholder services.

Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, and assisted by independent counsel, the Special Committee concluded that the renewal of the investment advisory agreements, including the fee structures, is in the interests of shareholders.

69



Eaton Vance Municipal Income Trusts

INVESTMENT MANAGEMENT

Eaton Vance Municipal Income Trusts

Officers
Thomas J. Fetter
President
Portfolio Manager of New York and Ohio Municipal Income Trusts
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio Manager of Michigan
Municipal Income Trust
Cynthia J. Clemson
Vice President
Portfolio Manager of California and Florida Municipal Income Trusts
Robert B. MacIntosh
Vice President
Portfolio Manager of Massachusetts and New Jersey Municipal Income Trusts
Thomas M. Metzold
Vice President and Portfolio
Manager of Pennsylvania
Municipal Income Trust
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer
  Trustees
Samuel L. Hayes, III
Chairman
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
 

 

70



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Investment Adviser and Administrator of Eaton Vance Municipal Income Trusts
Eaton Vance Management

The Eaton Vance Building
255 State Street
Boston, MA 02109

Custodian
Investors Bank & Trust Company

200 Clarendon Street
Boston, MA 02116

Transfer Agent and Dividend Disbursing Agent
PFPC Inc.

P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710

Eaton Vance Municipal Income Trusts
The Eaton Vance Building
255 State Street
Boston, MA 02109



147-7/05  CE-MUNISRC



 

Item 2. Code of Ethics

 

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.  The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

 

Item 3. Audit Committee Financial Expert

 

The registrant’s Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts.  Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm).  Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms).  Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration.  Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company).  Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).

 

Item 4. Principal Accountant Fees and Services

 

Not required in this filing

 

Item 5.  Audit Committee of Listed registrants

 

Not required in this filing.

 

Item 6. Schedule of Investments

 

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

 

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below.  The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year.  In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy.  The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.

 

The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders.  The investment adviser will generally support company management on proposals relating to environmental and social policy issues, on matters regarding the state of organization of the company and routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders.  On all other matters, the investment adviser will review each matter on a case-by-case

 



 

basis and reserves the right to deviate from the Policies’ guidelines when it believes the situation warrants such a deviation.  The Policies include voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses.  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.

 

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 members of senior management of the investment adviser identified in the Policies. Such members of senior management will determine if a conflict exists.  If a 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. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

No such purchases this period.

 

Item 9.  Submission of Matters to a Vote of Security Holders.

 

Effective February 7, 2005, the Governance Committee of the Board of Trustees revised the procedures by which a Fund’s shareholders may recommend nominees to the registrant’s Board of Trustees to add the following (highlighted):

 

The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains  (i)sufficient background information concerning the candidate, including evidence the candidate is willing to serve as an Independent Trustee if selected for the position; and (ii) is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund).  Shareholders shall be directed to address any such recommendations in writing to the attention of the Governance Committee, c/o the Secretary of the Fund. The Secretary shall retain copies of any shareholder recommendations which meet the foregoing requirements for a period of not more than 12 months following receipt. The Secretary shall have no obligation to acknowledge receipt of any shareholder recommendations.

 

Item 10. 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 11. 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 Michigan Municipal Income Trust

 

By:

/s/Thomas J. Fetter

 

 

Thomas J. Fetter

 

President

 

 

 

 

Date:

 

July 14, 2005

 

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/James L. O’Connor

 

 

James L. O’Connor

 

Treasurer

 

 

 

 

Date:

July 14, 2005

 

 

 

 

 

By:

/s/Thomas J. Fetter

 

 

Thomas J. Fetter

 

President

 

 

 

 

Date:

 

July 14, 2005