UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS 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, Esq.
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Services)

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

Date of Fiscal Year End:

 

November 30

Date of Reporting Period:

 

August 31, 2007

 

 




Item 1. Schedule of Investments




Eaton Vance Michigan Municipal Income Trust                                                                          as of August 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 161.8%

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Security

 

Value

 

Education — 6.0%

 

 

 

$                   1,250

 

Michigan Higher Education Facilities Authority, (Creative Studies), 5.90%, 12/1/27

 

$           1,298,587

 

540

 

Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35

 

529,713

 

 

 

 

 

$           1,828,300

 

Electric Utilities — 12.7%

 

 

 

$                   1,250

 

Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29

 

$           1,272,700

 

375

 

Puerto Rico Electric Power Authority, DRIVERS, Variable Rate, 6.73%, 7/1/25 (1)(2)

 

393,727

 

1,125

 

Puerto Rico Electric Power Authority, DRIVERS, Variable Rate, 6.73%, 7/1/37 (1)(2)

 

1,120,871

 

1,000

 

Puerto Rico Electric Power Authority, Prerefunded to 7/1/12, 5.25%, 7/1/31

 

1,079,350

 

 

 

 

 

$           3,866,648

 

Escrowed/Prerefunded — 8.8%

 

 

 

$                      500

 

Garden City School District, Prerefunded to 5/1/11, 5.00%, 5/1/26

 

$              522,685

 

500

 

Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31

 

536,280

 

750

 

Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26

 

794,145

 

750

 

Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36

 

812,287

 

 

 

 

 

$           2,665,397

 

General Obligations — 10.8%

 

 

 

$                      500

 

East Grand Rapids, Public School District, 5.00%, 5/1/25

 

$              507,825

 

1,000

 

Manistee Area Public Schools, 5.00%, 5/1/24

 

1,016,670

 

750

 

Puerto Rico Public Buildings Authority, Commonwealth Guaranteed, 5.25%, 7/1/29

 

769,635

 

1,000

 

White Cloud, Public Schools, Prerefunded to 5/1/11, 5.125%, 5/1/31

 

1,017,330

 

 

 

 

 

$           3,311,460

 

Hospital — 28.4%

 

 

 

$                      500

 

Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21

 

$              523,660

 

185

 

Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25

 

188,676

 

1




 

 

$                      125

 

Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37

 

$              128,644

 

560

 

Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), 5.875%, 11/15/34

 

543,676

 

500

 

Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18

 

508,315

 

1,000

 

Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27

 

1,007,570

 

750

 

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38

 

724,215

 

1,000

 

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

 

991,370

 

1,430

 

Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35

 

1,391,133

 

750

 

Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21

 

766,972

 

1,000

 

Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27

 

1,061,090

 

800

 

Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30

 

852,296

 

 

 

 

 

$           8,687,617

 

Housing — 3.0%

 

 

 

$                   1,000

 

Michigan State Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48

 

$              921,960

 

 

 

 

 

$              921,960

 

Industrial Development Revenue — 8.0%

 

 

 

$                   1,000

 

Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21

 

$           1,004,500

 

800

 

Dickinson County Electronic Devolpment Corp., (International Paper Co.), 5.75%, 6/1/16

 

829,640

 

625

 

Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26

 

625,219

 

 

 

 

 

$           2,459,359

 

Insured-Electric Utilities — 9.0%

 

 

 

$                   1,000

 

Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29

 

$           1,031,150

 

500

 

Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32

 

511,885

 

1,200

 

Puerto Rico Electric Power Authority, (MBIA), 4.75%, 7/1/33 (3)

 

1,204,476

 

 

 

 

 

$           2,747,511

 

2




 

 

Insured-Escrowed/Prerefunded — 20.4%

 

 

 

$                   1,000

 

Central Montcalm Public Schools, (MBIA), Prerefunded to 5/1/09, 6.00%, 5/1/29

 

$           1,037,150

 

1,000

 

Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31

 

1,051,720

 

2,000

 

Fenton Area Public Schools, (FGIC), Prerefunded to 5/1/08, 5.00%, 5/1/24

 

2,017,320

 

2,000

 

Novi Building Authority, (FSA), Prerefunded to 10/1/10, 5.50%, 10/1/25

 

2,123,300

 

 

 

 

 

$           6,229,490

 

Insured-General Obligations — 8.1%

 

 

 

$                      650

 

Detroit, School District, (FGIC), 4.75%, 5/1/28

 

$              650,501

 

750

 

Detroit, School District, (FSA), 5.25%, 5/1/32

 

816,165

 

200

 

Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25

 

200,448

 

700

 

Puerto Rico, (FSA), Variable Rate, 7.642%, 7/1/27 (1)(2)

 

805,392

 

 

 

 

 

$           2,472,506

 

Insured-Hospital — 6.7%

 

 

 

$                   1,000

 

Royal Oak, Hospital Finance Authority Revenue, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35

 

$           1,015,170

 

1,000

 

Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24

 

1,032,630

 

 

 

 

 

$           2,047,800

 

Insured-Lease Revenue/Certificates of Participation — 4.1%

 

 

 

$                   4,300

 

Michigan State Building Authority, (FGIC), 0.00%, 10/15/30

 

$           1,254,310

 

 

 

 

 

$           1,254,310

 

Insured-Special Tax Revenue — 11.4%

 

 

 

$                   5,160

 

Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54

 

$              455,731

 

1,225

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44

 

185,441

 

2,430

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45

 

349,385

 

1,470

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46

 

200,670

 

2,250

 

Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30

 

2,280,915

 

 

 

 

 

$           3,472,142

 

Insured-Student Loan — 6.6%

 

 

 

$                   1,000

 

Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31

 

$           1,000,720

 

1,000

 

Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25 (4)

 

1,018,340

 

 

 

 

 

$           2,019,060

 

Insured-Transportation — 3.3%

 

 

 

$                   1,000

 

Wayne Charter County Airport, (MBIA), (AMT), 5.00%, 12/1/28

 

$           1,002,000

 

 

 

 

 

$           1,002,000

 

3




 

 

Insured-Water Revenue — 5.4%

 

 

 

$                   1,650

 

Detroit, Water Supply System, (FGIC), 5.00%, 7/1/30

 

$           1,665,626

 

 

 

 

 

$           1,665,626

 

Lease Revenue/Certificates of Participation — 0.8%

 

 

 

$                      250

 

Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22

 

$              251,738

 

 

 

 

 

$              251,738

 

Other Revenue — 3.4%

 

 

 

$                12,500

 

Michigan Tobacco Settlement Finance Authority, 0.00%, 6/1/52

 

$              531,750

 

500

 

Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48

 

502,325

 

 

 

 

 

$           1,034,075

 

Transportation — 4.9%

 

 

 

$                   1,500

 

Kent County Airport Facility, 5.00%, 1/1/25 (3)

 

$           1,509,570

 

 

 

 

 

$           1,509,570

 

Total Tax-Exempt Investments — 161.8%
(identified cost $48,162,409)

 

$        49,446,569

 

Other Assets, Less Liabilities — (4.5)%

 

$         (1,386,420

)

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (57.3)%

 

$       (17,503,837

)

Net Assets Applicable to Common Shares — 100.0%

 

$        30,556,312

 

 

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.

DRIVERS

Derivative Inverse Tax-Exempt Receipts

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 August 31, 2007, 46.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.0% 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 August 31, 2007, the aggregate value of the securities is $2,319,990 or 7.6% of the net assets applicable to common shares.

(2)

 

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2007.

4




 

 

(3)

 

Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust.

(4) 

 

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

 

A summary of financial instruments at August 31, 2007 is as follows:

Futures Contracts

Expiration

 

 

 

 

 

Aggregate

 

 

 

Net Unrealized

 

Date(s)

 

Contracts

 

Position

 

Cost

 

Value

 

Appreciation

 

12/07

 

5 U.S. Treasury Note

 

 

Short

 

 

$ (546,193

)

$ (545,234

)

 

$ 959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 959

 

 

 

Interest Rate Swaps

Counterparty

 

Notional
Amount

 

Annual
Fixed Rate
Paid By
Trust

 

Floating Rate
Paid To Trust

 

Effective Date/
Termination Date

 

Unrealized
Depreciation

 

Citibank, N.A.

 

$ 275,000

 

 

5.732

%

 

3-month USD-LIBOR-BBA

 

 

May 16, 2008/
May 16, 2038

 

 

 

$ (11,035

)

 

Merrill Lynch Capital Services, Inc.

 

$ 400,000

 

 

5.817

%

 

3-month USD-LIBOR-BBA

 

 

April 1, 2008/
April 1, 2038

 

 

 

$ (21,997

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ (33,032

)

 

 

The effective date represents the date on which the Fund and the counterparty to the interest rate swap contract begin interest rate payment accruals.

At August 31, 2007, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

The cost and unrealized appreciation (depreciation) in value of the investments owned at August 31, 2007 as computed on a federal income tax basis, were as follows:

Aggregate cost

 

$        46,201,482

 

Gross unrealized appreciation

 

$           1,969,026

 

Gross unrealized depreciation

 

(648,939

)

Net unrealized appreciation

 

$           1,320,087

 

 

5




Item 2. 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.




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/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

 

President and Principal Executive Officer

Date:

 

October 23, 2007

 

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/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

 

President and Principal Executive Officer

Date:

 

October 23, 2007

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer and Principal Financial Officer

Date:

 

October 23, 2007