N-CSRS/A 1 a2153351zn-csrsa.txt N-CSRS/A 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: 811-09157 --------- Eaton Vance California 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09143 --------- Eaton Vance Florida 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09147 --------- Eaton Vance Massachusetts 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09155 --------- Eaton Vance New Jersey 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09145 --------- Eaton Vance New York 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09149 --------- Eaton Vance Ohio 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------------------- Date of Fiscal Year End November 30, 2004 ------------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS 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: 811-09151 --------- Eaton Vance Pennsylvania 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) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) November 30 ----------- Date of Fiscal Year End November 30, 2004 ----------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EV LOGO] [GRAPHIC IMAGE] ANNUAL REPORT NOVEMBER 30, 2004 [GRAPHIC IMAGE] EATON VANCE MUNICIPAL INCOME TRUSTS CLOSED-END FUNDS: CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN NEW JERSEY NEW YORK OHIO PENNSYLVANIA [GRAPHIC IMAGE] PRIVACY NOTICE 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, 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. IMPORTANT NOTICE REGARDING 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. Each Fund will file a schedule of its portfolio holdings on Form N-Q with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year. The Fund's 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). 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 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 Fund or Portfolio voted proxies relating to portfolio securities during the 12 month period ended June 30 without charge, upon request, by calling 1-800-262-1122. This description is also available on the Securities and Exchange Commission's website at http://www.sec.gov. EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President The municipal bond market is a center of capital formation for states, municipalities and, in some cases, private economic initiatives. In this edition of our continuing educational series, we will discuss industrial development revenue (IDR) bonds. IDR bonds have long been used as a financing mechanism by local governments to provide assistance to local employers and encourage job retention and creation within their communities. IDR BONDS FINANCE PRIVATE ACTIVITIES THAT BENEFIT THE PUBLIC... IDR bonds are issued by municipal authorities to finance projects and facilities used by private corporations. Historically, IDR bonds have represented a partnership between the private and public sectors - a source of dedicated funding for companies and a source of job creation in projects beneficial to local communities. The "Private-Activities" provision of the Tax Reform Act of 1986 permits issuance of tax-exempt bonds for specific activities, including pollution control; gas and electric service; water distribution; wastewater systems; solid waste disposal; airports and selected transportation projects; and other industrial projects. The Act also placed a cap on the dollar amount that may be raised for IDR bonds in each state, limiting the amount to $50 per person/per state/per year, with a $150 million maximum. These limitations provide protection against potential abuse and ensure that tax-exempt IDR bonds will indeed be issued for projects that will benefit the public. IDR BONDS FINANCE UTILITY-RELATED PROJECTS AND OTHER INDUSTRIAL INITIATIVES... Typically, IDR bond projects provide financing for manufacturing, processing or utility facilities. Historically, about one-half of these bonds have been issued to finance pollution control facilities for manufacturers and electric utilities. As many utilities and manufacturers have been ordered to comply with stricter environmental and fuel standards, pollution control bonds have helped finance the retrofits of existing plants. Other IDR bonds have served as inducements from state and local issuers to locate plants or build new facilities, in the hope that such construction might generate further economic growth for a community. IDR BONDS ARE SECURED BY CORPORATE REVENUES - NOT THOSE OF STATE OR LOCAL GOVERNMENTS... IDR bond issues are secured by the credit of the underlying corporation. The municipal issuing authority acts solely as a conduit to permit tax-exempt financing. The corporation pledges to make payments sufficient to meet all debt service obligations. Unlike some revenue issues, IDR bonds are backed by revenues of the entire corporation, not solely by those of the project being financed. Because IDR bonds are backed by corporate revenues and not by the taxing authority of a state or local jurisdiction, they have historically provided coupon premiums above those of general obligations and other more traditional revenue bonds. Bonds may be either collateralized or unsecured. Collateralized bonds have a lien against the company's assets, which may provide bond holders enhanced bargaining power in the event of a bankruptcy. Unsecured bonds have no such lien. WHILE PROVIDING NEW OPPORTUNITIES, IDR BONDS REQUIRE RIGOROUS ANALYSIS... While IDR bonds may provide unusual investment opportunities, they also may entail increased risk, and therefore, demand especially intensive analysis. At Eaton Vance, we have credit analysts and resources dedicated to IDR bond research. IDR bonds represent a key segment of the municipal bond market and should remain an important source of capital formation. In our view, the experience and resources needed to evaluate these issues further demonstrates the value of professional management. We will continue to look for opportunities in this sector of the municipal market. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President January 12, 2005 SHARES OF THE TRUSTS 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. YIELDS WILL VARY. 2 MARKET RECAP The expansion of the U.S. economy continued throughout the year ended November 30, 2004, bolstered by the strengthening employment data that emerged at the end of the fiscal year. One key economic factor during the period was the surge in gasoline and energy prices, which raised fears that inflation could re-emerge. Amid those concerns, bond market performance was less robust in the second half of the year than in the first half. IN AN UNEVEN ECONOMY, SOME SECTORS GENERATED GROWTH... The nation's Gross Domestic Product grew by 4.0% in the third quarter of 2004, a stronger showing than previously estimated, following a 3.3% rise in the second quarter. Economic activity was uneven, with some segments slowing and others growing at varying rates. For example, auto sales were impacted by higher gas prices, with buyers opting for fuel-efficient smaller vehicles over SUVs and trucks. Interestingly, manufacturing activity grew stronger, driven by rising demand for durable goods and capital equipment. Demand for aerospace equipment, steel products, industrial machinery, and information technology products was especially strong. Non-durable goods manufacturing, tied more closely to consumer spending, weakened significantly. The construction sector followed recent patterns, with residential building on the rise, while commercial activity lagged. MEANWHILE, JOB GROWTH HAS GAINED SOME STRENGTH... The employment picture continued to puzzle many economists throughout the year. Despite having made significant productivity improvements during the recent economic downturn, many businesses were slow to return to previous employment levels. As a result, job gains during the summer and early fall fell short of expectations. However, reports released in December 2004 brought news of a surge in new employment, with the number of new jobs rising and the number of Americans filing initial jobless claims falling. The nation's unemployment rate fell to 5.4% in November 2004, down from 5.9% a year earlier. A resurgence in hiring in 2004 would allow for continued consumer spending in the new year, the key driver in an economy potentially on pace for its strongest rate of growth in several years. [CHART] Municipal bond yields were 94% of Treasury yields 30-Year AAA-rated General Obligation (GO) Bonds* 4.71% Taxable equivalent yield in 35.0% tax bracket 7.25% 30-Year Treasury bond 4.99%
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 the Trusts' yield. Statistics as of November 30, 2004. Past performance is no guarantee of future results. Source: Bloomberg, L.P. THE FEDERAL RESERVE PUSHED SHORT-TERM INTEREST RATES HIGHER IN 2004... Amid soaring oil prices and a weaker U.S. dollar - each a potential inflation threat - the Federal Reserve continued its tighter monetary policy, emphasizing that it would fight any signs of inflation. After maintaining a stable interest rate policy for more than a year, the Fed raised its benchmark Federal Funds rate 5 times since June of 2004, with the fifth increase on December 15, 2004, pushing the key interest rate to 2.25%. Following a strong rally in the first half of the year, the municipal bond market lost some momentum in the second half, as inflation remained a concern for fixed-income investors. For the year ended November 30, 2004, the Lehman Brothers Municipal Bond Index had a total return of 4.07%.* *It is not possible to invest directly in an Index. The Index's total return does not reflect commissions or 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 VARIOUS 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 8.60% for the year ended November 30, 2004. That return was the result of an increase in share price from $14.95 on November 30, 2003 to $15.16 on November 30, 2004 and the reinvestment of $1.023 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 5.34% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.32 on November 30, 2003 to $15.07 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $15.16, the Trust had a market yield of 6.75% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 11.45%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.005 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 58.1% AA 3.6% A 15.9% BBB 7.2% Non-Rated 15.2%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - Although California is no longer losing jobs, job growth continued to lag the nation. The technology sector showed some signs of improvement, while energy, construction, business services and new business creation remained strong. The state's jobless rate was 5.7% in November 2004, down from 6.6% a year ago. - Insured* general obligations bonds (GOs) were the Trust's largest sector weighting at November 30, 2004. The Trust's investments focused primarily on local school district bonds. Given the slow recovery of the California economy, insured* GOs provided an added measure of security. - Special tax revenue bonds were significant investments. These bonds helped finance infrastructure and improvements that benefited local property owners. The bonds are backed by revenues from special assessments on these California communities. - Hospital bonds were prominent holdings in the Trust. Given stricter Medicare reimbursements and intense industry competition, management focused on institutions we believe have sound financial structures and good management and are well-positioned in their local markets. - At November 30, 2004, the Trust had leverage in the amount of approximately 35.3% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 8.60% Five Years 12.80 Life of Trust (1/29/99) 6.54 Average Annual Total Return (by net asset value) One Year 5.34% Five Years 12.29 Life of Trust (1/29/99) 6.44
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 41.05% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 5.76% for the year ended November 30, 2004. That return was the result of a decrease in share price from $15.455 on November 30, 2003 to $15.25 on November 30, 2004 and the reinvestment of $1.035 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 3.80% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.53 on November 30, 2003 to $15.04 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $15.25, the Trust had a market yield of 6.79% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 10.45%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.004 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 66.3% AA 8.5% A 5.5% BBB 3.5% CCC 0.5% Non-Rated 15.7%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - Florida's economic rebound has been among the strongest in the nation. Rebuilding from this year's difficult hurricane season has generated additional momentum in the construction industry. State tourism continued its recovery, with visitor levels up from a year earlier. The state's November 2004 jobless rate was 4.3%, down from 4.9% a year ago. - Insured* transportation bonds constituted the Trust's largest sector weighting at November 30, 2004. These issues have financed key projects within Florida's air, seaport and highway matrix. The Trust's holdings included issues that financed a five-year improvement program intended to ease Miami's traffic congestion. - Insured* water and sewer issuers remained a focus for the Trust. Historically, water and sewer bonds have offered a stable revenue stream in any economic climate. These issues provided funding for Florida communities that were upgrading their water facilities. - Insured* special tax revenue bonds constituted a major investment. These bonds are secured by the levy of special assessments by local governments and helped defray the costs on improvements and infrastructure for Florida communities. - At November 30, 2004, the Trust had leverage in the amount of approximately 35.7% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 5.76% Five Years 15.10 Life of Trust (1/29/99) 6.72 Average Annual Total Return (by net asset value) One Year 3.80% Five Years 12.06 Life of Trust (1/29/99) 6.47
(1) A PORTION OF THE TRUST'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INTANGIBLES TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 35.00% COMBINED FEDERAL AND STATE INTANGIBLES TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 16.71% for the year ended November 30, 2004. That return was the result of an increase in share price from $15.40 on November 30, 2003 to $16.81 on November 30, 2004 and the reinvestment of $1.023 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 4.90% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.38 on November 30, 2003 to $15.09 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $16.81, the Trust had a market yield of 6.09% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 9.89%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.005667 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 52.4% AA 7.5% A 18.9% BBB 12.7% BB 1.1% Non-Rated 7.4%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - The Massachusetts economy continued to improve in 2004, although job creation lagged the national rate. A continuing strong residential real estate market boosted the construction sector, and the state's key financial sector reflected stronger financial markets. The state's November 2004 jobless rate was 4.6%, down from 5.7% a year ago and below the national rate. - Insured* and uninsured education bonds were the Trust's largest sector weightings at November 30, 2004. Investments included some of the Common- wealth's most acclaimed universities and secondary schools. Historically, these institutions have enjoyed strong applicant demand and stable-to-rising tuition income. - Hospital bonds were significant investments, representing a geographically diverse range of institutions, Management emphasized hospitals with sound cost structures, good market share and in-demand health care specialities. - Management continued its efforts to upgrade, where possible, the credit quality of the Trust's investments. Another key strategy was trading bonds with nearing call dates in favor of non-callable bonds and bonds with longer-dated calls. This shift could improve the Trust's appreciation potential in the event of a market rally. - At November 30, 2004, the Trust had leverage in the amount of approximately 34.6% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 16.71% Five Years 15.04 Life of Trust (1/29/99) 8.35 Average Annual Total Return (by net asset value) One Year 4.90% Five Years 12.51 Life of Trust (1/29/99) 6.37
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 38.45% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 13.63% for the year ended November 30, 2004. That return was the result of an increase in share price from $15.64 on November 30, 2003 to $16.60 on November 30, 2004 and the reinvestment of $1.032 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 4.36% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.24 on November 30, 2003 to $14.86 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $16.60, the Trust had a market yield of 6.22% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 9.96%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.0075 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 47.3% AA 13.0% A 20.3% BBB 9.8% CCC 0.9% Non-Rated 8.7%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF WILLIAM H. AHEARN] William H. Ahearn Portfolio Manager MANAGEMENT UPDATE - Michigan's recovery has been among the weakest of the states. The manufacturing sector has been especially hard-hit, but government jobs - pressured by budgetary restraints - have also declined. The construction and furniture industries fared well. The state's November 2004 jobless rate was 7.0%, down from 7.6% a year ago. - Hospital bonds constituted the Trust's largest sector weighting at November 30, 2004. The Trust's investments were diversified geographically throughout the state and included some of the state's finest acute care facilities. These hospitals offer a wide variety of specialized medical care, including cardiac and pediatric care. - Insured* and uninsured general obligations (GOs) were a significant focus for the Trust. Secured by local property taxes, they are deemed very high quality debt. The Trust's investments included industry-based communities, as well as agricultural and tourism-based communities in central and northern Michigan. - The Trust took advantage of its ability to add Puerto Rico bonds, which provided more issuer diversification and a more varied coupon mix. Puerto Rico investments included industrial development revenue bonds, general obligations, insured* transportation issues, electric utilities, special tax revenue bonds and lease revenue bonds. - At November 30, 2004, the Trust had leverage in the amount of approximately 36.0% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 13.63% Five Years 16.04 Life of Trust (1/29/99) 8.21 Average Annual Total Return (by net asset value) One Year 4.36% Five Years 11.59 Life of Trust (1/29/99) 6.18
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 37.54% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN SHARE PRICE OR NET ASSET VALUE WITH ALL DISTRIBUTIONS REIN- VESTED. 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 8.31% for the year ended November 30, 2004. That return was the result of an increase in share price from $15.415 on November 30, 2003 to $15.54 on November 30, 2004 and the reinvestment of $1.068 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 4.76% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.19 on November 30, 2003 to $14.81 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $15.54, the Trust had a market yield of 6.87% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 11.61%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.008833 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 37.5% AA 5.6% A 18.7% BBB 24.3% B 1.3% Non-Rated 12.6%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - The New Jersey economy continued to expand in 2004, with job creation seen across many industries. Job growth exceeded the national rate, with the strongest areas in construction, health care, state and local government and business services. The state's November 2004 jobless rate was 4.4%, down from 5.5% a year ago and below the national rate. - Insured* transportation bonds represented the Trust's largest sector weighting at November 30, 2004. Investments included bonds for port authorities, turn-pike authorities and other toll-backed facilities - all key segments of New Jersey's economic infrastructure. - The Trust was selective within the hospital sector, given the industry's competitive and operating pressures. Management focused on issues of well-managed facilities with sound underlying fundamentals and good cost controls. - Special tax revenue bonds were an emerging theme for the Trust. Investments included an issue backed by a state tax levied on the sale of cigarettes. Another such issue was a motor vehicle surcharge revenue bond, backed by "bad-driver" penalties. - At November 30, 2004, the Trust had leverage in the amount of approximately 35.7% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 8.31% Five Years 14.73 Life of Trust (1/29/99) 7.17 Average Annual Total Return (by net asset value) One Year 4.76% Five Years 11.95 Life of Trust (1/29/99) 6.29
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 40.83% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 6.46% for the year ended November 30, 2004. That return was the result of a decrease in share price from $15.46 on November 30, 2003 to $15.37 on November 30, 2004 and the reinvestment of $1.040 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 4.91% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.81 on November 30, 2003 to $15.49 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $15.37, the Trust had a market yield of 6.77% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 11.29%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 31.1% AA 10.3% A 39.9% BBB 6.4% CCC 1.4% Non-Rated 10.9%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - In 2004, the New York economy achieved its best employment growth since the 2001 recession. Boosted by the service, construction and financial sectors, job creation in the New York City suburbs outpaced the upstate manufacturing areas. The state's November 2004 jobless rate was 4.9%, down from 6.3% a year ago. - Electric utility bonds were the Trust's largest sector weighting at November 30, 2004. As essential services, utilities tend to enjoy a relatively stable revenue stream. The Trust's investments included the state's largest power authority - which has 17 power-generating facilities throughout the state - as well as local authorities serving Long Island. - Education bonds were a significant focus of the Trust. Investments included local development bonds for facilities, as well as state dormitory issues that financed the construction and expansion of dorms, classrooms and lab facilities. - The Trust remained very selective with respect to the hospital sector. The Trust focused its investments on a geographically diverse mix of acute care institutions across the state with sound finances, good cost controls and experienced management. - At November 30, 2004, the Trust had leverage in the amount of approximately 34.9% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 6.46% Five Years 14.48 Life of Trust (1/29/99) 6.88 Average Annual Total Return (by net asset value) One Year 4.91% Five Years 12.67 Life of Trust (1/29/99) 7.02
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 40.01% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 13.96% for the year ended November 30, 2004. That return was the result of an increase in share price from $15.715 on November 30, 2003 to $16.75 on November 30, 2004 and the reinvestment of $1.009 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 6.71% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.07 on November 30, 2003 to $15.04 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $16.75, the Trust had a market yield of 6.02% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 10.01%.(4) The dividend declared on December 31, 2004, reflects a reduction of the monthly dividend of $0.001 per share. [CHART] RATING DISTRIBUTION(5) By total investments AAA 49.1% AA 15.0% A 17.7% BBB 6.4% BB 2.1% CCC 1.5% Non-Rated 8.2%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - Ohio's economy continued to stabilize in 2004, as the pace of job loss eased. While the long-troubled manufacturing sector contracted further, the health care and educational sectors remained a strong source of new job creation. The state's November 2004 jobless rate was 6.5%, up from 6.1% a year ago. - Hospital bonds were the Trust's largest weighting at November 30, 2004. The hospital industry has been under pressure to contain costs in response to competition and strict reimbursement policies. The Trust focused on institutions with strong fundamentals and in-demand health care specialties. - Insured* general obligations (GOs) were a significant focus of the Trust. Investments included school district GOs, which are valued by investors in an economy in which there are lingering uncertainties about some industrial issuers. - Industrial development revenue bonds (IDRs) constituted a large investment of the Trust. Management remained selective, focusing on one of the better-per-forming airlines, a large national brewer and beverage producer and the nation's largest auto manufacturer. - At November 30, 2004, the Trust had leverage in the amount of approximately 35.6% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 13.96% Five Years 15.37 Life of Trust (1/29/99) 8.30 Average Annual Total Return (by net asset value) One Year 6.71% Five Years 11.63 Life of Trust (1/29/99) 6.32
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 39.88% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 November 30, 2004 INVESTMENT UPDATE THE TRUST - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 4.07% for the year ended November 30, 2004. That return was the result of a decrease in share price from $15.98 on November 30, 2003 to $15.54 on November 30, 2004 and the reinvestment of $1.003 in regular monthly dividends.(1) - Based on net asset value, the Trust had a total return of 4.77% for the year ended November 30, 2004. That return was the result of a decrease in net asset value per share from $15.21 on November 30, 2003 to $14.89 on November 30, 2004, and the reinvestment of all distributions.(1) - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.07% during the year ended November 30, 2004.(2) - Based on the last dividend of the fiscal year and a share price of $15.54, the Trust had a market yield of 6.45% at November 30, 2004.(3) The Trust's market yield is equivalent to a taxable yield of 10.24%.(4) [CHART] RATING DISTRIBUTION(5) By total investments AAA 65.0% AA 1.7% A 14.3% BBB 8.0% BB 2.1% CCC 1.8% Non-Rated 7.1%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - Pennsylvania's job situation improved in 2004, following three years of job losses. Employment gains were spread across a range of industries, including retail, business services, education, health care, leisure and tourism. The state's November 2004 jobless rate was 5.4%, up slightly from 5.2% a year ago. - Insured* education bonds were the Trust's largest sector weighting at November 30, 2004. These issuers have enjoyed stable revenues despite the recent economic fluctuations and included issues from the Commonwealth's higher education system as well as some of its esteemed private universities. - Insured* hospital bonds were prominent investments of the Trust. Holdings represented a geographically diverse mix and focused on institutions with good cost controls, experienced management and an attractive range of health care offerings. - Insured* general obligations (GOs) were significant holdings for the Trust. With a slow recovery constraining tax revenue growth, the Trust focused on communities and school districts that management believed can maintain property values and stable revenues. - At November 30, 2004, the Trust had leverage in the amount of approximately 36.0% of the Trust's total assets. The Trust is leveraged 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 SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE TRUST'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE QUOTED RETURN. TRUST INFORMATION as of November 30, 2004 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) One Year 4.07% Five Years 14.66 Life of Trust (1/29/99) 6.90 Average Annual Total Return (by net asset value) One Year 4.77% Five Years 11.50 Life of Trust (1/29/99) 6.12
(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 THE COMMISSIONS OR 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 MOST RECENT DIVIDEND PER SHARE BY THE SHARE PRICE AT THE END OF THE PERIOD AND ANNUALIZING THE RESULT. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 37.00% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE TRUST'S CURRENT OR FUTURE INVESTMENTS AND IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE TRUST. (6) 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 CALIFORNIA MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 151.3%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 9.5% $ 1,000 California Educational Facilities Authority, (Dominican University), 5.75%, 12/1/30 $ 1,031,620 2,770 California Educational Facilities Authority, (Lutheran University), 5.00%, 10/1/29 2,729,115 500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 503,030 1,850 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 1,972,266 4,000 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 4,060,120 ----------------------------------------------------------------------------------------------------------------------- $ 10,296,151 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 1.1% $ 2,425 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, 0.00%, 1/1/20 $ 1,202,315 ----------------------------------------------------------------------------------------------------------------------- $ 1,202,315 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 6.6% $ 2,200 California, 5.00%, 2/1/21 $ 2,281,224 1,100 California, 5.25%, 4/1/30 1,125,113 3,500 California, 5.50%, 11/1/33 3,687,600 ----------------------------------------------------------------------------------------------------------------------- $ 7,093,937 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 15.4% $ 2,000 California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 6.25%, 12/1/34 $ 2,140,080 750 California Infrastructure and Economic Development, (Kaiser Hospital), 5.50%, 8/1/31 767,062 1,650 California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32 1,684,947 1,750 California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29 1,783,040 1,500 California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28 1,553,670 1,500 Duarte, COP, (City of Hope), 5.25%, 4/1/24 1,487,835 1,000 Stockton Health Facilities Authority, (Dameron Hospital), 5.70%, 12/1/14 1,049,350 2,000 Tahoe Forest Hospital District, 5.85%, 7/1/22 2,045,100 2,000 Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31 2,060,040 2,000 Washington Township, Health Care District, 5.25%, 7/1/29 2,022,640 ----------------------------------------------------------------------------------------------------------------------- $ 16,593,764 ----------------------------------------------------------------------------------------------------------------------- HOUSING -- 2.4% $ 1,000 California Statewide Communities Development Authority, (Corporate Fund for Housing), 6.50%, 12/1/29 $ 993,280 500 California Statewide Communities Development Authority, (Corporate Fund for Housing), 7.25%, 12/1/34 493,680 773 Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29 708,854 441 Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29 402,166 ----------------------------------------------------------------------------------------------------------------------- $ 2,597,980 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 1.2% $ 1,250 California Pollution Control Financing Authority, (Mobil Oil Corp.), (AMT), 5.50%, 12/1/29 $ 1,304,550 ----------------------------------------------------------------------------------------------------------------------- $ 1,304,550 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 5.9% $ 3,270 California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23 $ 3,381,245 3,000 California University, (AMBAC), 5.00%, 11/1/33 3,030,150 ----------------------------------------------------------------------------------------------------------------------- $ 6,411,395 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 11.0% $ 3,250 California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31 $ 3,377,172 2,500 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16 2,677,600 4,000 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 8.39%, 7/1/29(1)(2) 4,336,480 665 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 11.892%, 7/1/29(2)(3) 748,910 500 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 12.295%, 7/1/16(2)(3) 722,720 ----------------------------------------------------------------------------------------------------------------------- $ 11,862,882 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 1.6% $ 5,130 Foothill/Eastern Transportation Corridor Agency, (FSA), Escrowed to Maturity, 0.00%, 1/1/26 $ 1,743,225 ----------------------------------------------------------------------------------------------------------------------- $ 1,743,225 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 29.5% $ 3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,909,826 1,650 California RITES, (AMBAC), Variable Rate, 14.158%, 5/1/26(2)(3) 2,086,062
See notes to financial statements 12
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS (CONTINUED) $ 1,600 California, (AMBAC), 5.00%, 2/1/28 $ 1,667,440 6,425 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/20 2,993,536 3,000 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/21 1,312,350 3,750 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 3,993,150 5,000 Murrieta Valley Unified School District, (FGIC), 0.00%, 9/1/20 2,319,800 2,500 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(2)(3) 3,125,875 1,600 San Diego Unified School District, (MBIA), Variable Rate, 12.675%, 7/1/24(2)(3) 2,277,904 9,635 San Ramon Valley Unified School District, (FGIC), 0.00%, 7/1/18(4) 5,061,362 3,000 Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28 3,056,250 4,500 Ukiah Unified School District, (FGIC), 0.00%, 8/1/20 2,096,325 ----------------------------------------------------------------------------------------------------------------------- $ 31,899,880 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 4.5% $ 3,200 California Statewide Communities Development Authority, (Children's Hospital Los Angeles), (MBIA), 5.25%, 8/15/29 $ 3,315,232 1,245 California Statewide Communities Development Authority, (Sutter Health), Residual Certificates, (FSA), Variable Rate, 13.433%, 8/15/27(2)(3) 1,593,612 ----------------------------------------------------------------------------------------------------------------------- $ 4,908,844 ----------------------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 6.2% $ 6,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17 $ 3,565,315 11,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/28 3,136,740 ----------------------------------------------------------------------------------------------------------------------- $ 6,702,055 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 1.2% $ 250 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 8.111%, 7/1/28(1)(2) $ 260,190 945 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 10.286%, 7/1/28(2)(3) 1,002,777 ----------------------------------------------------------------------------------------------------------------------- $ 1,262,967 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 12.4% $ 2,500 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 $ 2,592,475 2,515 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 11.238%, 7/1/28(2)(3) 2,669,371 1,750 Puerto Rico Highway and Transportation Authority, (FSA), 4.75%, 7/1/38 1,754,288 6,000 San Francisco, (Bay Area Rapid Transportation District), (FGIC), 5.50%, 7/1/34 6,407,640 ----------------------------------------------------------------------------------------------------------------------- $ 13,423,774 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 12.2% $ 5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 5,044,600 6,250 East Bay Municipal Utilities District Water System, (MBIA), 5.00%, 6/1/38 6,290,313 4,850 Santa Rosa Wastewater, (AMBAC), 0.00%, 9/1/23 1,860,557 ----------------------------------------------------------------------------------------------------------------------- $ 13,195,470 ----------------------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 6.4% $ 4,000 Sacramento Financing Authority, 5.40%, 11/1/20 $ 4,382,920 2,500 San Diego County, Certificates of Participation, 5.375%, 10/1/41 2,545,575 ----------------------------------------------------------------------------------------------------------------------- $ 6,928,495 ----------------------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.4% $ 1,500 California Statewide Communities Development Authority, (East Valley Tourist Development Authority), 8.25%, 10/1/14 $ 1,529,535 ----------------------------------------------------------------------------------------------------------------------- $ 1,529,535 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 21.8% $ 1,500 Bonita Canyon Public Facilities Financing Authority, 5.375%, 9/1/28 $ 1,502,355 1,600 Brentwood Infrastructure Financing Authority, 6.375%, 9/2/33 1,648,400 1,750 Capistrano Unified School District, 5.75%, 9/1/29 1,768,830 1,665 Corona, Public Financing Authority, 5.80%, 9/1/20 1,667,281 1,000 Corona-Norco Unified School District Public Financing Authority, 6.125%, 9/1/31 1,020,070 1,590 Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 1,648,130 1,360 Lincoln Public Financing Authority, Improvement Bond Act of 1915 (Twelve Bridges), 6.20%, 9/2/25 1,430,897 420 Moreno Valley Unified School District, (Community School District No. 2003-2), 5.75%, 9/1/24 426,170
See notes to financial statements 13
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE $ 750 Moreno Valley Unified School District, (Community School District No. 2003-2), 5.90%, 9/1/29 $ 758,025 750 Murrieta Valley Unified School District, 6.20%, 9/1/35 774,225 2,465 Oakland Joint Powers Financing Authority, 5.40%, 9/2/18 2,603,163 995 Oakland Joint Powers Financing Authority, 5.50%, 9/2/24 1,042,621 700 Rancho Cucamonga Public Financing Authority, 6.00%, 9/2/20 734,538 1,245 Roseville Special Tax, 6.30%, 9/1/25 1,323,522 1,325 San Pablo Redevelopment Agency, 5.65%, 12/1/23 1,376,066 1,500 Santa Margarita Water District, 6.20%, 9/1/20 1,575,555 250 Santaluz Community Facilities District No. 2, 6.10%, 9/1/21 255,723 500 Santaluz Community Facilities District No. 2, 6.20%, 9/1/30 508,255 500 Turlock Public Financing Authority, 5.45%, 9/1/24 508,850 1,000 Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 1,030,670 ----------------------------------------------------------------------------------------------------------------------- $ 23,603,346 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 1.0% $ 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 $ 1,110,985 ----------------------------------------------------------------------------------------------------------------------- $ 1,110,985 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 151.3% (IDENTIFIED COST $154,481,787) $ 163,671,550 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.3% $ 3,532,015 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (54.6)% $ (59,010,992) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 108,192,573 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 November 30, 2004, 55.8% 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 21.0% of total investments. (1) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $18,823,901 or 17.4% 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 November 30, 2004. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 14 FLORIDA MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.4%
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 $ 1,000,660 ----------------------------------------------------------------------------------------------------------------------- $ 1,000,660 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 3.2% $ 2,000 Jacksonville Electric Authority, Variable Rate, 8.20%, 10/1/32(1)(2) $ 2,032,680 ----------------------------------------------------------------------------------------------------------------------- $ 2,032,680 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 4.2% $ 2,500 Escambia County, Health Facilities Authority, (Charity Obligation Group), Prerefunded to 11/1/10, 5.00%, 11/1/28 $ 2,684,150 ----------------------------------------------------------------------------------------------------------------------- $ 2,684,150 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 2.8% $ 350 Florida Board of Education, 4.75%, 6/1/28 $ 344,687 1,250 Florida, Variable Rate, 8.01%, 7/1/27(1)(2) 1,439,750 ----------------------------------------------------------------------------------------------------------------------- $ 1,784,437 ----------------------------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 0.3% $ 166 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 166,807 ----------------------------------------------------------------------------------------------------------------------- $ 166,807 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 12.0% $ 1,250 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 $ 1,300,487 1,750 Lakeland Hospital System, (Lakeland Regional Health System), 5.50%, 11/15/32 1,808,187 2,000 Orange County Health Facilities Authority, (Adventist Health System), 5.625%, 11/15/32 2,100,880 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,014,850 1,400 West Orange Health Care District, 5.80%, 2/1/31 1,452,080 ----------------------------------------------------------------------------------------------------------------------- $ 7,676,484 ----------------------------------------------------------------------------------------------------------------------- HOUSING -- 2.6% $ 1,095 Escambia County Housing Finance Authority, SFM, (Multi-County Program), (AMT), 5.50%, 10/1/31 $ 1,114,305 500 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20 507,005 $ 45 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 9.50%, 8/15/05 $ 45,424 ----------------------------------------------------------------------------------------------------------------------- $ 1,666,734 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 3.5% $ 882 Broward County IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19 $ 806,950 1,000 Capital Trust Agency, (Fort Lauderdale Project), (AMT), 5.75%, 1/1/32 945,750 650 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 456,189 ----------------------------------------------------------------------------------------------------------------------- $ 2,208,889 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 9.9% $ 1,600 Burke County Development Authority (Georgia Power Co.), (MBIA), (AMT), 5.45%, 5/1/34 $ 1,612,160 1,100 Guam Power Authority, (MBIA), 5.125%, 10/1/29 1,138,016 2,750 Jupiter Island, Utility System, (South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 2,777,252 750 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 8.39%, 7/1/29(1)(2) 813,090 ----------------------------------------------------------------------------------------------------------------------- $ 6,340,518 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.3% $ 650 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 698,535 1,250 Tampa Bay Water Utility System, (FGIC), Prerefunded to 10/1/11, 5.75%, 10/1/29 1,435,575 ----------------------------------------------------------------------------------------------------------------------- $ 2,134,110 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 2.9% $ 1,500 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(2)(3) $ 1,875,525 ----------------------------------------------------------------------------------------------------------------------- $ 1,875,525 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 7.4% $ 1,000 Coral Gables Health Facilities Authority, (Baptist Health System of South Florida), (FSA), 5.00%, 8/15/29 $ 1,010,270 1,000 Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC), 5.25%, 11/15/37 1,023,480 1,350 Miami Dade County Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,382,697 1,250 South Miami Health Facility Authority, (Baptist Health), (AMBAC), 5.25%, 11/15/33 1,288,837 ----------------------------------------------------------------------------------------------------------------------- $ 4,705,284 -----------------------------------------------------------------------------------------------------------------------
See notes to financial statements 15
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 $ 1,111,902 ----------------------------------------------------------------------------------------------------------------------- $ 1,111,902 ----------------------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 11.7% $ 4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 $ 3,920,960 3,500 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/30 3,574,830 ----------------------------------------------------------------------------------------------------------------------- $ 7,495,790 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 12.5% $ 1,500 Dade County Convention Center Special Tax, (AMBAC), 5.00%, 10/1/35 $ 1,506,960 970 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 12.255%, 10/1/35(2)(3) 983,502 2,250 Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30 2,269,935 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,806,674 1,395 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 1,398,920 ----------------------------------------------------------------------------------------------------------------------- $ 7,965,991 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 25.2% $ 2,250 Florida Ports Financing Commission, (FGIC), (AMT), 5.50%, 10/1/29 $ 2,329,852 3,700 Florida Turnpike Authority, (Department of Transportation), (FGIC) , 4.50%, 7/1/27(4) 3,558,697 1,500 Greater Orlando Aviation Authority, (FGIC), (AMT), Variable Rate, 11.811%, 10/1/18(2)(3) 1,688,850 500 Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25 534,685 650 Lee County Airport, (FSA), (AMT), 6.00%, 10/1/29 701,019 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37 1,003,070 1,500 Miami-Dade County Expressway Authority, (FGIC), 5.00%, 7/1/33 1,521,045 1,000 Miami-Dade County Expressway Authority, (FGIC), 5.125%, 7/1/29 1,023,930 1,000 Orlando and Orange County Expressway Authority, (FGIC), 5.00%, 7/1/28 1,010,140 1,250 Puerto Rico Highway and Transportation Authority, (MBIA), 5.50%, 7/1/36 1,357,850 1,165 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 12.738%, 7/1/26(2)(3) 1,397,511 ----------------------------------------------------------------------------------------------------------------------- $ 16,126,649 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 25.1% $ 3,000 Marco Island Utility System, (MBIA), 5.00%, 10/1/33 $ 3,039,360 1,500 Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30 1,573,725 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 1,018,930 1,250 Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28 1,262,388 4,000 Sunrise Utility Systems, (AMBAC), 5.00%, 10/1/28 4,099,480 1,500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 7.51%, 10/1/27(1)(2) 1,475,865 3,650 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 3,597,002 ----------------------------------------------------------------------------------------------------------------------- $ 16,066,750 ----------------------------------------------------------------------------------------------------------------------- NURSING HOME -- 2.5% $ 850 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 $ 764,023 265 Orange County Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24 232,050 735 Orange County Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34 634,481 ----------------------------------------------------------------------------------------------------------------------- $ 1,630,554 ----------------------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 2.4% $ 500 Capital Trust Agency, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 585,165 750 Capital Trust Agency, (Seminole Tribe Convention), 10.00%, 10/1/33 919,515 ----------------------------------------------------------------------------------------------------------------------- $ 1,504,680 ----------------------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 2.3% $ 1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,457,355 ----------------------------------------------------------------------------------------------------------------------- $ 1,457,355 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 12.0% $ 25 Fleming Island Plantation Community Development District, 6.30%, 2/1/05 $ 25,014 325 Heritage Harbour South Community Development District, 6.20%, 5/1/35 331,854 470 Heritage Harbour South Community Development District, (Capital Improvements), 5.40%, 11/1/08 474,066 845 Heritage Springs Community Development District, 6.75%, 5/1/21 871,499 875 Longleaf Community Development District, 6.65%, 5/1/20 803,521
See notes to financial statements 16
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE (CONTINUED) $ 725 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 $ 754,805 1,000 Northern Palm Beach County Improvement District, (Water Control and Improvement), 6.00%, 8/1/25 1,019,840 600 Sterling Hill Community Development District, 6.20%, 5/1/35 612,180 500 Stoneybrook West Community Development District, 7.00%, 5/1/32 533,960 890 University Square Community Development District, 6.75%, 5/1/20 935,942 465 Vista Lakes Community Development District, 7.20%, 5/1/32 498,843 745 Waterlefe Community Development District, 6.95%, 5/1/31 790,721 ----------------------------------------------------------------------------------------------------------------------- $ 7,652,245 ----------------------------------------------------------------------------------------------------------------------- WATER AND SEWER -- 3.3% $ 2,000 Seminole County, Water and Sewer, 5.375%, 10/1/22 $ 2,113,180 ----------------------------------------------------------------------------------------------------------------------- $ 2,113,180 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.4% (IDENTIFIED COST $92,788,361) $ 97,401,374 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.2% $ 2,014,278 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.6)% $ (35,504,864) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 63,910,788 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 November 30, 2004, 65.5% 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 8.5% to 22.5% of total investments. (1) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $11,706,773 or 18.3% 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 November 30, 2004. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 17 MASSACHUSETTS MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 149.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 28.7% $ 500 Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31 $ 502,780 2,000 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 2,070,900 500 Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), 5.75%, 7/1/33 516,070 600 Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 602,490 500 Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31 516,400 1,000 Massachusetts Development Finance Agency, (Suffolk University), 5.85%, 7/1/29 1,028,230 400 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 418,864 1,500 Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29 1,570,740 1,000 Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29 1,022,540 1,000 Massachusetts HEFA, (Boston College), 5.125%, 6/1/33 1,018,280 1,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 1,496,805 500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 510,115 400 Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28 405,412 ----------------------------------------------------------------------------------------------------------------------- $ 11,679,626 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 2.6% $ 1,000 Massachusetts IFA, (Devens Electric System), 6.00%, 12/1/30 $ 1,048,350 ----------------------------------------------------------------------------------------------------------------------- $ 1,048,350 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 5.9% $ 1,000 Massachusetts HEFA, (Winchester Hospital), Prerefunded to 7/1/10, 6.75%, 7/1/30 $ 1,163,730 535 Massachusetts Water Pollution Abatement Trust, Prerefunded to 8/1/09, 5.375%, 8/1/27 597,964 1,450 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20 628,067 ----------------------------------------------------------------------------------------------------------------------- $ 2,389,761 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 0.7% $ 250 Massachusetts, 5.25%, 8/1/28 $ 266,380 ----------------------------------------------------------------------------------------------------------------------- $ 266,380 ----------------------------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 2.8% $ 510 Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29 $ 460,229 700 Massachusetts HEFA, (Learning Center for Deaf Children), 6.125%, 7/1/29 679,553 ----------------------------------------------------------------------------------------------------------------------- $ 1,139,782 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 18.0% $ 1,000 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20 $ 1,088,810 1,000 Massachusetts HEFA, (Baystate Medical Center), 5.75%, 7/1/33 1,040,100 400 Massachusetts HEFA, (Berkshire Health System), 6.25%, 10/1/31 416,036 175 Massachusetts HEFA, (Central New England Health Systems), 6.30%, 8/1/18 175,117 1,100 Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31 1,158,190 1,375 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 1,399,434 2,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 2,061,320 ----------------------------------------------------------------------------------------------------------------------- $ 7,339,007 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 1.9% $ 750 Massachusetts IFA, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15 $ 794,910 ----------------------------------------------------------------------------------------------------------------------- $ 794,910 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 15.7% $ 1,000 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39(1) $ 1,107,140 1,800 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 1,857,006 850 Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 8.30%, 10/1/27(2)(3) 885,054 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 1,009,440 500 Massachusetts HEFA, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31 520,425 1,000 Massachusetts IFA, (Merrimack College), (MBIA), 5.00%, 7/1/27 1,010,970 ----------------------------------------------------------------------------------------------------------------------- $ 6,390,035 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 1.9% $ 750 Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29 $ 781,553 ----------------------------------------------------------------------------------------------------------------------- $ 781,553 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 7.5% $ 1,000 Massachusetts, (AMBAC), Variable Rate, 12.675%, 8/1/30(3)(4) $ 1,372,380
See notes to financial statements 18
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS (CONTINUED) $ 500 Plymouth, (MBIA), 5.25%, 10/15/20 $ 545,120 900 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(3)(4) 1,125,315 ----------------------------------------------------------------------------------------------------------------------- $ 3,042,815 ----------------------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 12.8% $ 2,000 Boston Convention Center, (AMBAC), 5.00%, 5/1/27 $ 2,034,880 2,750 Massachusetts Development Finance Agency, (WGBH), (AMBAC), 5.75%, 1/1/42 3,155,515 ----------------------------------------------------------------------------------------------------------------------- $ 5,190,395 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 10.2% $ 1,500 Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32 $ 1,517,610 2,500 Massachusetts State Special Obligation - Convention Center, (FGIC), 5.25%, 1/1/29 2,612,850 ----------------------------------------------------------------------------------------------------------------------- $ 4,130,460 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.1% $ 1,020 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 0.00%, 1/1/29 $ 285,967 2,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.25%, 1/1/29 2,076,720 1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 11.257%, 1/1/37(3)(4) 1,110,131 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 11.238%, 7/1/28(3)(4) 1,061,380 ----------------------------------------------------------------------------------------------------------------------- $ 4,534,198 ----------------------------------------------------------------------------------------------------------------------- NURSING HOME -- 3.9% $ 500 Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37 $ 537,275 490 Massachusetts Development Finance Agency, (Odd Fellows Home of Massachusetts), 6.25%, 1/1/15 456,322 600 Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29 583,062 ----------------------------------------------------------------------------------------------------------------------- $ 1,576,659 ----------------------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 3.5% $ 1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,414,305 ----------------------------------------------------------------------------------------------------------------------- $ 1,414,305 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 3.6% $ 1,350 Massachusetts Bay Transportation Authority, (Sales Tax Revenue), 5.25%, 7/1/30 $ 1,452,438 ----------------------------------------------------------------------------------------------------------------------- $ 1,452,438 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.8% $ 1,350 Massachusetts Bay Transportation Authority, Variable Rate, 8.05%, 3/1/27(2)(3) $ 1,377,905 $ 1,000 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/36 $ 1,001,700 ----------------------------------------------------------------------------------------------------------------------- $ 2,379,605 ----------------------------------------------------------------------------------------------------------------------- WATER AND SEWER -- 12.6% $ 2,000 Massachusetts Water Pollution Abatement Trust, 5.00%, 8/1/32 $ 2,012,400 2,000 Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33 2,076,740 965 Massachusetts Water Pollution Abatement Trust, 5.375%, 8/1/27 1,018,577 ----------------------------------------------------------------------------------------------------------------------- $ 5,107,717 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 149.2% (IDENTIFIED COST $57,612,663) $ 60,657,996 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.7% $ 1,504,084 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (52.9)% $ (21,500,534) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 40,661,546 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 November 30, 2004, 39.7% 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 15.1% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2004, the aggregate value of the securities is $6,932,165 or 17.0% of the Trust's net assets. (4) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. See notes to financial statements 19 MICHIGAN MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 4.1% $ 1,250 Michigan Higher Education Facility Authority, (Creative Studies), 5.90%, 12/1/27 $ 1,271,262 ----------------------------------------------------------------------------------------------------------------------- $ 1,271,262 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 7.4% $ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,284,462 1,000 Puerto Rico Electric Power Authority, 5.25%, 7/1/31 1,031,320 ----------------------------------------------------------------------------------------------------------------------- $ 2,315,782 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 2.8% $ 750 Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26 $ 864,255 ----------------------------------------------------------------------------------------------------------------------- $ 864,255 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 19.3% $ 500 East Grand Rapids Public Schools, 5.00%, 5/1/25 $ 510,015 500 Garden City School District, 5.00%, 5/1/26 508,070 5,335 Grand Rapids and Kent County Joint Building Authority, 0.00%, 12/1/29 1,414,682 1,000 Manistee Area Public Schools, 5.00%, 5/1/24 1,027,290 750 Puerto Rico Public Buildings Authority, Commonwealth Guaranteed, 5.25%, 7/1/29 776,820 1,000 White Cloud Public Schools, 5.125%, 5/1/31 1,015,520 800 Woodhaven Brownstown School District, 5.125%, 5/1/32 813,888 ----------------------------------------------------------------------------------------------------------------------- $ 6,066,285 ----------------------------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 1.2% $ 385 Pittsfield Township EDC, (Arbor Hospice), 7.875%, 8/15/27 $ 370,790 ----------------------------------------------------------------------------------------------------------------------- $ 370,790 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 35.1% $ 500 Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 $ 518,000 125 Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25 121,445 125 Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37 121,532 500 Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/31 518,060 500 Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 490,275 750 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 754,807 $ 1,000 Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27 $ 1,012,000 1,000 Michigan Hospital Finance Authority, (Henry Ford Health), 5.25%, 11/15/20 1,015,910 2,275 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 2,187,640 750 Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 766,275 750 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 768,817 1,000 Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 1,086,620 750 Royal Oak Hospital Finance Authority, (William Beaumount Hospital), 5.25%, 1/1/20 775,500 800 Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 878,224 ----------------------------------------------------------------------------------------------------------------------- $ 11,015,105 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 10.7% $ 500 Delta County EDC, (Mead Westvaco-Escanaba), 6.25%, 4/15/27 $ 530,905 1,000 Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 1,017,240 800 Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16 860,184 475 Michigan Strategic Fund, (S.D. Warren), (AMT), 7.375%, 1/15/22 494,361 625 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 438,644 ----------------------------------------------------------------------------------------------------------------------- $ 3,341,334 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 1.6% $ 500 Central Michigan University, (FGIC), 5.00%, 10/1/27 $ 505,075 ----------------------------------------------------------------------------------------------------------------------- $ 505,075 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 5.0% $ 1,000 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 $ 1,038,770 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 513,845 ----------------------------------------------------------------------------------------------------------------------- $ 1,552,615 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 22.4% $ 1,000 Central Montcalm Public Schools,(MBIA), 6.00%, 5/1/29 $ 1,101,940 650 Detroit School District, (FGIC), 4.75%, 5/1/28 643,539 200 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 200,428
See notes to financial statements 20
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS (CONTINUED) $ 2,000 Fenton Area Public Schools,(FGIC), 5.00%, 5/1/24 $ 2,051,360 2,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 2,163,040 700 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(1)(2) 875,245 ----------------------------------------------------------------------------------------------------------------------- $ 7,035,552 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 6.6% $ 1,000 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 $ 1,023,950 1,000 Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 1,057,650 ----------------------------------------------------------------------------------------------------------------------- $ 2,081,600 ----------------------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 3.2% $ 1,000 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,018,120 ----------------------------------------------------------------------------------------------------------------------- $ 1,018,120 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 10.8% $ 600 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 8.111%, 7/1/28(2)(3) $ 624,456 455 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 10.286%, 7/1/28(1)(2) 482,819 2,250 Wayne Charter County, (Airport Hotel-Detroit Metroplitan Airport), (MBIA), 5.00%, 12/1/30 2,274,390 ----------------------------------------------------------------------------------------------------------------------- $ 3,381,665 ----------------------------------------------------------------------------------------------------------------------- INSURED-STUDENT LOAN -- 3.3% $ 1,000 Michigan Higher Education Student Loan Authority Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(4) $ 1,029,310 ----------------------------------------------------------------------------------------------------------------------- $ 1,029,310 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 10.9% $ 670 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 11.238%, 7/1/28(1)(2) $ 711,125 600 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 12.738%, 7/1/26(1)(2) 719,748 2,000 Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 8.01%, 12/1/28(2)(3) 1,998,280 ----------------------------------------------------------------------------------------------------------------------- $ 3,429,153 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 5.3% $ 1,650 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,661,435 ----------------------------------------------------------------------------------------------------------------------- $ 1,661,435 ----------------------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 0.8% $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 258,373 ----------------------------------------------------------------------------------------------------------------------- $ 258,373 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 2.4% $ 750 Kent County Airport Facility, Variable Rate, 8.01%, 1/1/25(2)(3) $ 767,385 ----------------------------------------------------------------------------------------------------------------------- $ 767,385 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.9% (IDENTIFIED COST $44,738,401) $ 47,965,096 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.9% $ 902,146 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.8)% $ (17,504,078) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 31,363,164 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 November 30, 2004, 45.2% 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 19.6% of total investments. (1) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $6,179,058 or 19.7% 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 November 30, 2004. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 21 NEW JERSEY MUNICIPAL INCOME TRUSt as of November 30, 2004 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 151.6%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- COGENERATION -- 1.3% $ 845 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 872,902 ----------------------------------------------------------------------------------------------------------------------- $ 872,902 ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 13.1% $ 1,445 New Jersey Educational Facilities Authority, (Bloomfield College), 6.85%, 7/1/30 $ 1,477,556 3,935 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/20 4,153,078 3,250 New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.25%, 7/1/32 3,293,550 ----------------------------------------------------------------------------------------------------------------------- $ 8,924,184 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 9.8% $ 5,000 Puerto Rico Electric Power Authority, 5.125%, 7/1/29 $ 5,106,000 1,500 Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31 1,596,390 ----------------------------------------------------------------------------------------------------------------------- $ 6,702,390 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 5.3% $ 3,500 Puerto Rico Public Buildings Authority, Commonwealth Guaranteed, 5.25%, 7/1/29 $ 3,625,160 ----------------------------------------------------------------------------------------------------------------------- $ 3,625,160 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 24.0% $ 2,000 Camden County, Improvements Authority, (Cooper Health), 5.75%, 2/15/34 $ 2,062,080 1,035 New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25 1,100,578 2,140 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27 2,151,149 1,765 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.375%, 7/1/33 1,797,088 2,000 New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34 2,094,660 750 New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 6.50%, 7/1/21 815,272 2,000 New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31 2,128,780 1,450 New Jersey Health Care Facilities Financing Authority, (Saint Peters University Hospital), 6.875%, 7/1/20 1,627,480 1,900 New Jersey Health Care Facilities Financing Authority, (St. Elizabeth's Hospital), 6.00%, 7/1/20 1,972,580 $ 600 New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30 $ 672,486 ----------------------------------------------------------------------------------------------------------------------- $ 16,422,153 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 15.6% $ 1,000 Gloucester County, Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29 $ 1,133,840 3,000 Middlesex County Pollution Control Authority, (Amerada Hess Corp.), 6.05%, 9/15/34 3,106,110 1,000 New Jersey EDA, (Anheuser-Busch), (AMT), 5.85%, 12/1/30 1,024,210 750 New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29 577,500 750 New Jersey EDA, (Continental Airlines), (AMT), 9.00%, 6/1/33 741,652 3,700 New Jersey EDA, (The Seeing Eye, Inc.), 6.20%, 12/1/24 4,080,804 ----------------------------------------------------------------------------------------------------------------------- $ 10,664,116 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 2.4% $ 1,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 10.856%, 7/1/33(1)(2) $ 1,655,728 ----------------------------------------------------------------------------------------------------------------------- $ 1,655,728 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 1.9% $ 1,250 Vineland, (Electric Utility), (MBIA), (AMT), 5.25%, 5/15/26 $ 1,290,350 ----------------------------------------------------------------------------------------------------------------------- $ 1,290,350 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.0% $ 1,580 New Jersey EDA, (FSA), Prerefunded to 5/1/09, Variable Rate, 11.948%, 5/1/17(1)(2) $ 2,048,723 ----------------------------------------------------------------------------------------------------------------------- $ 2,048,723 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 7.2% $ 1,555 Colts Neck Township Board of Education, (FSA), 5.00%, 2/1/26 $ 1,631,553 3,500 Irvington Township, (FSA), 0.00%, 7/15/24 1,311,450 5,500 Irvington Township, (FSA), 0.00%, 7/15/25 1,944,580 ----------------------------------------------------------------------------------------------------------------------- $ 4,887,583 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOUSING -- 0.4% $ 230 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing, (FSA), 5.75%, 5/1/25 $ 240,368 ----------------------------------------------------------------------------------------------------------------------- $ 240,368 -----------------------------------------------------------------------------------------------------------------------
See notes to financial statements 22
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 8.9% $ 8,500 Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/27 $ 2,653,190 6,000 Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/25 2,098,680 1,250 New Jersey EDA, (Motor Vehicle Surcharges), (MBIA), 5.25%, 7/1/26 1,352,337 ----------------------------------------------------------------------------------------------------------------------- $ 6,104,207 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 24.1% $ 4,000 Delaware River and Bay Authority, (AMBAC), 5.75%, 1/1/29(3) $ 4,397,160 1,000 Delaware River Port Authority, (FSA), 5.625%, 1/1/26 1,087,020 3,250 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 3,567,265 1,500 New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate, 12.698%, 1/1/30(1)(2) 1,816,935 50 Newark Housing Authority, (Newark Marine Terminal), (MBIA), 5.00%, 1/1/37 50,588 1,250 Newark Housing Authority, (Newark Marine Terminal), (MBIA), Variable Rate, 11.134%, 1/1/37(1)(2) 1,294,100 4,000 Port Authority of New York and New Jersey, (JFK International Terminal), (MBIA), (AMT), 5.75%, 12/1/25 4,250,320 ----------------------------------------------------------------------------------------------------------------------- $ 16,463,388 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 6.4% $ 2,800 Bayonne Municipal Utilities Authority, Water and Sewer Revenue, (XLCA), 4.75%, 4/1/33 $ 2,754,808 1,500 Bordentown Sewer Authority, (FGIC), 5.375%, 12/1/20 1,640,895 ----------------------------------------------------------------------------------------------------------------------- $ 4,395,703 ----------------------------------------------------------------------------------------------------------------------- NURSING HOME -- 3.0% $ 1,000 New Jersey EDA, (Masonic Charity Foundation), 5.50%, 6/1/31 $ 1,043,790 975 New Jersey EDA, (Victoria Health), 5.20%, 12/20/36 1,007,282 ----------------------------------------------------------------------------------------------------------------------- $ 2,051,072 ----------------------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.8% $ 1,250 Tobacco Settlement Financing Corp., Variable Rate, 12.022%, 6/1/39(2)(4) $ 1,247,475 ----------------------------------------------------------------------------------------------------------------------- $ 1,247,475 ----------------------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 2.4% $ 1,700 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 1,670,522 ----------------------------------------------------------------------------------------------------------------------- $ 1,670,522 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 4.9% $ 750 New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/31 $ 753,128 $ 1,000 New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29 $ 1,022,440 1,500 New Jersey EDA, (Cigarette Tax), Variable Rate, 9.10%, 6/15/34(2)(4) 1,564,620 ----------------------------------------------------------------------------------------------------------------------- $ 3,340,188 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 16.1% $ 5,660 Port Authority of New York and New Jersey, 5.25%, 7/15/34 $ 5,812,424 1,600 Port Authority of New York and New Jersey, Variable Rate, 13.24%, 3/1/28(1) 1,988,736 2,000 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/42 1,979,820 1,175 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,190,322 ----------------------------------------------------------------------------------------------------------------------- $ 10,971,302 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 151.6% (IDENTIFIED COST $97,062,394) $ 103,577,514 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 4.0% $ 2,724,372 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.6)% $ (38,003,539) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 68,298,347 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2004, 35.8% 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 1.6% to 16.0% of total investments. (1) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $9,627,581 or 14.1% of the Trust's net assets. (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 November 30, 2004. See notes to financial statements 23 NEW YORK MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 150.7%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- COGENERATION -- 2.4% $ 845 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 872,902 1,150 Suffolk County IDA, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23 1,093,075 ----------------------------------------------------------------------------------------------------------------------- $ 1,965,977 ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 15.6% $ 1,000 Dutchess County IDA, (Marist College), 5.00%, 7/1/20 $ 1,028,430 6,000 Hempstead IDA, (Hofstra University Civic Facilities), 5.00%, 7/1/33 6,005,940 2,010 New York City IDA, (St. Francis College), 4.50%, 10/1/24 1,927,067 50 New York Dormitory Authority, (City University), 5.25%, 7/1/31 51,156 4,025 New York Dormitory Authority, (Rockefeller University), 4.75%, 7/1/37 3,978,753 ----------------------------------------------------------------------------------------------------------------------- $ 12,991,346 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 17.7% $ 2,000 Long Island Power Authority, 5.50%, 12/1/23 $ 2,075,660 1,655 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 1,687,835 1,000 Long Island Power Authority, Electric System Revenue, 5.375%, 9/1/25 1,041,230 4,100 New York Power Authority, 5.25%, 11/15/40 4,184,542 1,500 Puerto Rico Electric Power Authority, 5.125%, 7/1/29 1,531,800 2,000 Puerto Rico Electric Power Authority, 5.25%, 7/1/31 2,062,640 2,100 Suffolk County IDA, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27 2,125,998 ----------------------------------------------------------------------------------------------------------------------- $ 14,709,705 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 10.6% $ 6,000 New York City, 5.25%, 9/15/33 $ 6,180,480 2,500 Puerto Rico Public Buildings Authority, Commonwealth Guaranteed, 5.25%, 7/1/29 2,589,400 ----------------------------------------------------------------------------------------------------------------------- $ 8,769,880 ----------------------------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 6.4% $ 1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29 $ 1,025,625 1,500 New York City IDA, (Ohel Children's Home), 6.00%, 3/15/23 1,343,280 $ 140 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 $ 152,074 180 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 195,523 2,600 Westchester County IDA, (Children's Village), 5.375%, 3/15/19 2,607,332 ----------------------------------------------------------------------------------------------------------------------- $ 5,323,834 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 15.5% $ 230 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 215,901 485 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 457,947 1,250 Fulton County IDA, (Nathan Littauer Hospital), 6.00%, 11/1/18 1,204,300 400 Nassau County IDA, Civic Facility Revenue, (North Shore Health System), 6.25%, 11/1/21 436,860 3,200 New York City Health and Hospital Corp., 5.25%, 2/15/17 3,310,720 300 New York City Health and Hospital Corp., (Health System), 5.375%, 2/15/26 308,892 1,500 New York Dormitory Authority Revenue, (Lenox Hill Hospital), 5.50%, 7/1/30 1,510,545 2,000 New York Dormitory Authority, (Methodist Hospital), 5.25%, 7/1/33 2,032,280 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,164,400 2,105 Suffolk County IDA, Civic Facility, (Huntington Hospital), 6.00%, 11/1/22 2,230,584 ----------------------------------------------------------------------------------------------------------------------- $ 12,872,429 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 6.3% $ 1,500 New York City IDA, (American Airlines, Inc.-JFK International Airport), (AMT), 8.00%, 8/1/12 $ 1,232,190 775 Onandaga County IDA, Aero Syracuse Cargo, (AMT), 6.125%, 1/1/32 782,812 2,500 Onondaga County IDA, (Anheuser-Busch), (AMT), 6.25%, 12/1/34 2,673,850 550 Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15 556,655 ----------------------------------------------------------------------------------------------------------------------- $ 5,245,507 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 6.6% $ 1,000 Madison County IDA, (Colgate University), (MBIA), 5.00%, 7/1/39 $ 1,007,530 1,500 New York Dormitory Authority, (Barnard College), (AMBAC), 4.75%, 7/1/35 1,464,465 1,200 New York Dormitory Authority, (Cooper Union), (MBIA), 6.25%, 7/1/29 1,361,724
See notes to financial statements 24
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION (CONTINUED) $ 900 New York Dormitory Authority, New York University, (MBIA), Variable Rate, 23.275%, 7/1/27(1)(2) $ 1,629,018 ----------------------------------------------------------------------------------------------------------------------- $ 5,462,737 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 6.2% $ 1,500 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 $ 1,493,670 1,400 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 1,394,092 1,000 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.875%, 7/1/18 1,050,670 1,000 New York City, Trust for Cultural Resources, (Museum of History), Prerefunded to 7/1/09, (AMBAC), Variable Rate, 13.329%, 7/1/29(1)(2) 1,242,310 ----------------------------------------------------------------------------------------------------------------------- $ 5,180,742 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 2.6% $ 1,750 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(1)(2) $ 2,188,112 ----------------------------------------------------------------------------------------------------------------------- $ 2,188,112 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 9.2% $ 5,000 New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), (MBIA), 5.50%, 7/1/23(3) $ 5,669,150 2,000 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 1,964,660 ----------------------------------------------------------------------------------------------------------------------- $ 7,633,810 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 3.0% $ 1,175 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 8.111%, 7/1/28(2)(4) $ 1,222,893 1,190 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 10.286%, 7/1/28(1)(2) 1,262,757 ----------------------------------------------------------------------------------------------------------------------- $ 2,485,650 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.4% $ 2,325 Monroe County Airport Authority, (MBIA), (AMT), Variable Rate, 9.707%, 1/1/17(2)(4) $ 2,969,257 2,735 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), 5.625%, 4/1/29 2,831,628 1,750 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), Variable Rate, 9.215%, 4/1/29(2)(4) 1,873,637 1,750 Triborough Bridge and Tunnel Authority, (MBIA), 5.00%, 1/1/32 1,768,130 ----------------------------------------------------------------------------------------------------------------------- $ 9,442,652 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 2.6% $ 2,000 New York City Municipal Water Finance Authority, (FGIC), 5.50%, 6/15/32 $ 2,137,900 ----------------------------------------------------------------------------------------------------------------------- $ 2,137,900 ----------------------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 5.7% $ 4,385 New York Dormitory Authority, (Court Facility), 6.00%, 5/15/39 $ 4,740,010 ----------------------------------------------------------------------------------------------------------------------- $ 4,740,010 ----------------------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 3.5% $ 1,285 Albany Industrial Development Agency Civic Facility, (Charitable Leadership), 5.75%, 7/1/26 $ 1,313,296 1,250 Puerto Rico Infrastructure Financing Authority, Variable Rate, 12.834%, 10/1/23(1)(2) 1,552,463 ----------------------------------------------------------------------------------------------------------------------- $ 2,865,759 ----------------------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 3.0% $ 1,450 Mount Vernon IDA, (Wartburg Senior Housing, Inc.-Meadowview), 6.20%, 6/1/29 $ 1,457,221 1,000 Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19 1,042,960 ----------------------------------------------------------------------------------------------------------------------- $ 2,500,181 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 1.3% $ 1,040 New York State Local Government Assistance Corp., 5.00%, 4/1/21 $ 1,112,727 ----------------------------------------------------------------------------------------------------------------------- $ 1,112,727 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 14.6% $ 6,000 Metropolitan Transportation Authority of New York, 5.25%, 11/15/32 $ 6,161,580 1,000 Port Authority of New York and New Jersey, 5.25%, 7/15/34 1,026,930 1,300 Port Authority of New York and New Jersey, (AMT), Variable Rate, 8.046%, 6/15/33(2)(4) 1,177,059 1,800 Port Authority of New York and New Jersey, Variable Rate, 13.24%, 3/1/28(1) 2,237,328 1,550 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/42 1,534,361 ----------------------------------------------------------------------------------------------------------------------- $ 12,137,258 ----------------------------------------------------------------------------------------------------------------------- WATER AND SEWER -- 6.5% $ 1,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29 $ 1,549,305
See notes to financial statements 25
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- WATER AND SEWER (CONTINUED) $ 3,500 New York City Municipal Water Finance Authority, 5.75%, 6/15/29 $ 3,830,260 ----------------------------------------------------------------------------------------------------------------------- $ 5,379,565 TOTAL TAX-EXEMPT INVESTMENTS -- 150.7% (IDENTIFIED COST $119,035,497) $ 125,145,781 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.9% $ 2,407,395 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (53.6)% $ (44,509,201) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 83,043,975 -----------------------------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. 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 November 30, 2004, 27.6% 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 3.3% to 15.3% of total investments. (1) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $15,117,506 or 18.2% of the Trust's net assets. (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 November 30, 2004. See notes to financial statements 26 OHIO MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 151.5%
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 $ 381,335 200 Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 6.625%, 9/1/20 205,502 ----------------------------------------------------------------------------------------------------------------------- $ 586,837 ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 3.6% $ 1,500 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 8.02%, 10/1/29(1)(2) $ 1,524,720 ----------------------------------------------------------------------------------------------------------------------- $ 1,524,720 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 3.7% $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 524,820 1,000 Puerto Rico Electric Power Authority, 5.25%, 7/1/31 1,031,320 ----------------------------------------------------------------------------------------------------------------------- $ 1,556,140 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 2.7% $ 1,000 Delaware County, Prerefunded to 12/1/10, 6.00%, 12/1/25 $ 1,163,360 ----------------------------------------------------------------------------------------------------------------------- $ 1,163,360 ----------------------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 4.0% $ 1,530 Hamilton City School District, 5.625%, 12/1/24 $ 1,682,235 ----------------------------------------------------------------------------------------------------------------------- $ 1,682,235 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 22.0% $ 550 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 571,120 1,500 Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32 1,538,670 2,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 2,026,580 610 Highland County, (Joint Township Hospital District), 6.75%, 12/1/29 599,880 400 Mahoning County Hospital Facility, (Forum Health Obligation Group), 6.00%, 11/15/32 422,264 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,300,025 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,778,717 1,000 Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22 1,079,930 ----------------------------------------------------------------------------------------------------------------------- $ 9,317,186 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 18.0% $ 1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.70%, 12/1/19 $ 945,500 1,300 Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18 1,332,175 3,000 Moraine Solid Waste Disposal, (General Motors Corp.), (AMT), 5.65%, 7/1/24 3,021,090 2,250 Ohio Water Development Authority, (Anheuser-Busch), (AMT), 6.00%, 8/1/38 2,356,313 ----------------------------------------------------------------------------------------------------------------------- $ 7,655,078 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 10.1% $ 1,000 Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), 5.50%, 12/1/30 $ 1,070,370 1,500 University of Akron, (FGIC), Variable Rate, 9.52%, 1/1/29(1)(2) 1,906,860 1,250 University of Cincinnati, (FGIC), 5.25%, 6/1/24 1,321,775 ----------------------------------------------------------------------------------------------------------------------- $ 4,299,005 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.0% $ 2,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 714,220 3,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 1,003,680 ----------------------------------------------------------------------------------------------------------------------- $ 1,717,900 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 0.6% $ 245 Cuyahoga County Hospital, (MBIA), Escrowed to Maturity, 5.125%, 1/1/29(3) $ 248,371 ----------------------------------------------------------------------------------------------------------------------- $ 248,371 ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 17.9% $ 1,000 Cincinnati City School District, (Classroom Facilities Construction & Improvement), (FSA), 5.00%, 12/1/31 $ 1,016,310 1,000 Lima City School District, (AMBAC), 5.50%, 12/1/22 1,118,360 500 Lima City School District, (AMBAC), 6.00%, 12/1/22 579,405 1,000 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(2)(4) 1,250,350 400 Puerto Rico, (MBIA), Variable Rate, 12.675%, 7/1/20(2)(4) 586,776 2,860 Springfield City School District Clark County, (FGIC), 5.20%, 12/1/23 3,041,696 ----------------------------------------------------------------------------------------------------------------------- $ 7,592,897 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 6.6% $ 255 Cuyahoga County, (Cleveland Clinic), (MBIA), 5.125%, 1/1/29(3) $ 258,509
See notes to financial statements 27
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL (CONTINUED) $ 1,000 Hamilton County, (Cincinnati Childrens Hospital), (FGIC), 5.00%, 5/15/32 $ 1,009,740 1,500 Hamilton County, (Cincinnati Childrens Hospital), (FGIC), 5.125%, 5/15/28 1,542,195 ----------------------------------------------------------------------------------------------------------------------- $ 2,810,444 ----------------------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 8.0% $ 1,500 Cleveland, Certificates of Participation, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/22 $ 1,607,730 600 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate, 12.857%, 6/1/24(2)(4) 756,078 1,000 Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 1,009,700 ----------------------------------------------------------------------------------------------------------------------- $ 3,373,508 ----------------------------------------------------------------------------------------------------------------------- INSURED-SOLID WASTE -- 2.4% $ 1,000 Central Ohio Solid Waste Authority, (AMBAC), 5.00%, 12/1/25 $ 1,023,320 ----------------------------------------------------------------------------------------------------------------------- $ 1,023,320 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 12.3% $ 2,500 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 $ 2,518,825 2,000 Hamiliton County Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32 2,070,900 2,235 Hamilton County Sales Tax Revenue, (AMBAC), 0.00%, 12/1/28 636,483 ----------------------------------------------------------------------------------------------------------------------- $ 5,226,208 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 9.6% $ 750 Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31 $ 756,030 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 1,131,090 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26 1,123,190 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 11.238%, 7/1/28(2)(4) 1,061,380 ----------------------------------------------------------------------------------------------------------------------- $ 4,071,690 ----------------------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.2% $ 1,300 Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19 $ 1,376,076 ----------------------------------------------------------------------------------------------------------------------- $ 1,376,076 ----------------------------------------------------------------------------------------------------------------------- NURSING HOME -- 1.2% $ 610 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 $ 528,522 ----------------------------------------------------------------------------------------------------------------------- $ 528,522 ----------------------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 2.9% $ 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 12.834%, 10/1/23(2)(4) $ 1,241,970 ----------------------------------------------------------------------------------------------------------------------- $ 1,241,970 ----------------------------------------------------------------------------------------------------------------------- POOLED LOANS -- 7.5% $ 1,020 Ohio Economic Development, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22 $ 1,058,546 1,000 Rickenbacker Port Authority, Oasbo Expanded Asset Pooled Loan, 5.375%, 1/1/32 1,024,490 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 1,099,527 ----------------------------------------------------------------------------------------------------------------------- $ 3,182,563 ----------------------------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 5.3% $ 600 Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18 $ 625,386 1,415 Cuyahoga County, Economic Development, (Shaker Square), 6.75%, 12/1/30 1,621,052 ----------------------------------------------------------------------------------------------------------------------- $ 2,246,438 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 2.1% $ 875 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/34 $ 877,275 ----------------------------------------------------------------------------------------------------------------------- $ 877,275 ----------------------------------------------------------------------------------------------------------------------- WATER AND SEWER -- 2.4% $ 1,000 Ohio Water Development Authority, (Fresh Water Improvement), 5.00%, 12/1/28 $ 1,019,020 ----------------------------------------------------------------------------------------------------------------------- $ 1,019,020 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 151.5% (IDENTIFIED COST $60,607,891) $ 64,320,763 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.8% $ 1,622,786 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.3)% $ (23,500,000) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 42,443,549 -----------------------------------------------------------------------------------------------------------------------
See notes to financial statements 28 AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2004, 47.2% 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 4.7% to 17.2% of total investments. (1) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (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 November 30, 2004, the aggregate value of the securities is $8,328,134 or 19.6% of the Trust's net assets. (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 November 30, 2004 See notes to financial statements 29 PENNSYLVANIA MUNICIPAL INCOME TRUST as of November 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 150.5%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- COGENERATION -- 3.8% $ 470 Carbon County IDA, (Panther Creek Partners), (AMT), 6.65%, 5/1/10 $ 507,271 500 Pennsylvania EDA, (Northampton Generating), (AMT), 6.50%, 1/1/13 505,830 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 511,635 ----------------------------------------------------------------------------------------------------------------------- $ 1,524,736 ----------------------------------------------------------------------------------------------------------------------- EDUCATION -- 5.5% $ 1,500 Pennsylvania HEFA, (Drexel University), 6.00%, 5/1/29 $ 1,586,985 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 597,258 ----------------------------------------------------------------------------------------------------------------------- $ 2,184,243 ----------------------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 1.5% $ 600 York County IDA, Pollution Control, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20 $ 620,250 ----------------------------------------------------------------------------------------------------------------------- $ 620,250 ----------------------------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 1.1% $ 400 Delaware IDA, (Glen Riddle), (AMT), Prerefunded to 9/1/05 @ 103, 8.625%, 9/1/25 $ 430,028 ----------------------------------------------------------------------------------------------------------------------- $ 430,028 ----------------------------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 5.5% $ 600 Allegheny County IDA, (Residential Resources, Inc.), 6.50%, 9/1/21 $ 633,054 1,500 Chester County HEFA, (Devereux Foundation), 6.00%, 11/1/29 1,560,780 ----------------------------------------------------------------------------------------------------------------------- $ 2,193,834 ----------------------------------------------------------------------------------------------------------------------- HOSPITAL -- 9.9% $ 750 Lancaster County Hospital Authority, 5.50%, 3/15/26 $ 767,940 1,250 Lehigh County, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,262,075 500 Monroe County Hospital Authority, (Pocono Medical Center), 6.00%, 1/1/43 514,240 850 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 904,527 500 Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17 532,525 ----------------------------------------------------------------------------------------------------------------------- $ 3,981,307 ----------------------------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 6.5% $ 500 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 486,560 1,000 Pennsylvania EDA, (Proctor & Gamble Paper Products Co.), (AMT), 5.375%, 3/1/31 1,039,910 1,550 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 1,087,774 ----------------------------------------------------------------------------------------------------------------------- $ 2,614,244 ----------------------------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 25.7% $ 1,900 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 1,975,734 1,000 Northampton County HEFA, (Lafayette College), (MBIA), 5.00%, 11/1/27 1,010,150 1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29 1,021,640 2,000 Pennsylvania HEFA, (State System Higher Education), (FSA), 5.00%, 6/15/24 2,051,940 2,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(1) 2,020,380 600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 10.856%, 7/1/33(2)(3) 620,898 1,500 University of Pittsburgh, (MBIA), 5.00%, 6/1/21 1,573,125 ----------------------------------------------------------------------------------------------------------------------- $ 10,273,867 ----------------------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.0% $ 600 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 11.892%, 7/1/29(2)(3) $ 675,708 835 Puerto Rico Electric Power Authority, DRIVERS, (FSA), Variable Rate, 12.924%, 7/1/29(2)(3) 940,360 ----------------------------------------------------------------------------------------------------------------------- $ 1,616,068 ----------------------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 12.3% $ 650 Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09 @ 102, 6.00%, 11/1/29 $ 752,863 265 McKeesport Area School District, (FGIC), Escrowed to Maturity, 0.00%, 10/1/31 62,975 3,100 Pennsylvania Turnpike Commision, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27 3,113,454 2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 999,800 ----------------------------------------------------------------------------------------------------------------------- $ 4,929,092 ----------------------------------------------------------------------------------------------------------------------- INSURED-GAS UTILITIES -- 3.4% $ 1,325 Philadelphia Natural Gas Works, (FSA), Variable Rate, 8.01%, 7/1/28(4) $ 1,348,612 ----------------------------------------------------------------------------------------------------------------------- $ 1,348,612 -----------------------------------------------------------------------------------------------------------------------
See notes to financial statements 30
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 15.0% $ 1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 $ 626,358 735 McKeesport Area School District, (FGIC), 0.00%, 10/1/31 177,752 1,200 Philadelphia School District, (FGIC), 5.125%, 6/1/34 1,229,568 2,000 Philadelphia, (FSA), 5.00%, 3/15/28 2,027,540 580 Puerto Rico, (FSA), 5.125%, 7/1/30 596,049 1,000 Puerto Rico, (FSA), Variable Rate, 12.446%, 7/1/27(2)(3) 1,250,350 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 93,620 ----------------------------------------------------------------------------------------------------------------------- $ 6,001,237 ----------------------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 15.3% $ 1,000 Dauphin County General Authority, (Pinnacle Health System), (MBIA), 5.50%, 5/15/27 $ 1,050,830 500 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 501,400 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 1,536,945 3,000 Montgomery County HEFA, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28 3,020,790 ----------------------------------------------------------------------------------------------------------------------- $ 6,109,965 ----------------------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 4.1% $ 1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 1,025,820 595 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 10.286%, 7/1/28(2)(3) 631,378 ----------------------------------------------------------------------------------------------------------------------- $ 1,657,198 ----------------------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 7.5% $ 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 1,012,360 1,005 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 1,029,502 800 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 12.738%, 7/1/26(2)(3) 959,664 ----------------------------------------------------------------------------------------------------------------------- $ 3,001,526 ----------------------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 13.0% $ 500 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.00%, 12/1/19 $ 528,880 1,000 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.50%, 12/1/24 1,085,060 500 Delaware County IDA, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29 542,455 1,000 Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 1,011,370 $ 2,000 Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/31 $ 2,045,600 ----------------------------------------------------------------------------------------------------------------------- $ 5,213,365 ----------------------------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 1.5% $ 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 $ 592,410 ----------------------------------------------------------------------------------------------------------------------- $ 592,410 ----------------------------------------------------------------------------------------------------------------------- NURSING HOME -- 1.8% $ 375 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 369,806 335 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 334,595 ----------------------------------------------------------------------------------------------------------------------- $ 704,401 ----------------------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 7.5% $ 600 Bucks County IDA, (Pennswood), 6.00%, 10/1/27 $ 624,042 490 Cliff House Trust (AMT), 6.625%, 6/1/27 371,866 500 Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29 511,160 500 Lancaster County Hospital Authority, (Health Center), 5.875%, 6/1/31 520,045 925 Montgomery County HEFA, (Faulkeways at Gwynedd), 6.75%, 11/15/30 969,890 ----------------------------------------------------------------------------------------------------------------------- $ 2,997,003 ----------------------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.6% $ 1,200 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,209,948 280 Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09 289,775 500 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 501,160 250 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 258,745 ----------------------------------------------------------------------------------------------------------------------- $ 2,259,628 ----------------------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 150.5% (IDENTIFIED COST $57,276,057) $ 60,253,014 ----------------------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 5.7% $ 2,270,896 ----------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (56.2)% $ (22,501,047) ----------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 40,022,863 -----------------------------------------------------------------------------------------------------------------------
See notes to financial statements 31 AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2004, 66.6% 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 8.4% to 23.8% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at November 30, 2004. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2004, the aggregate value of the securities is $5,078,358 or 12.7% of the Trust's net assets. (4) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at November30, 2004. See notes to financial statements 32 EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES AS OF NOVEMBER 30, 2004
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments -- Identified cost $ 154,481,787 $ 92,788,361 $ 57,612,663 $ 44,738,401 Unrealized appreciation 9,189,763 4,613,013 3,045,333 3,226,695 ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENTS, AT VALUE $ 163,671,550 $ 97,401,374 $ 60,657,996 $ 47,965,096 ------------------------------------------------------------------------------------------------------------------------------------ Cash $ 915,586 $ 797,202 $ 268,571 $ 154,939 Receivable for investments sold 7,500 -- -- -- Interest receivable 2,535,241 1,193,703 1,218,690 767,634 Receivable for daily variation margin on open financial futures contracts 137,437 80,630 67,262 33,026 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ 167,267,314 $ 99,472,909 $ 62,212,519 $ 48,920,695 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to affiliate for Trustees' fees $ 1,199 $ 935 $ 220 $ 267 Accrued expenses 62,550 56,322 50,219 53,186 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $ 63,749 $ 57,257 $ 50,439 $ 53,453 ------------------------------------------------------------------------------------------------------------------------------------ Auction preferred shares at liquidation value plus cumulative unpaid dividends 59,010,992 35,504,864 21,500,534 17,504,078 ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS APPLICABLE TO COMMON SHARES $ 108,192,573 $ 63,910,788 $ 40,661,546 $ 31,363,164 ------------------------------------------------------------------------------------------------------------------------------------ SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 71,815 $ 42,502 $ 26,945 $ 21,105 Additional paid-in capital 106,462,788 63,144,849 39,886,312 31,360,888 Accumulated net realized loss (computed on the basis of identified cost) (8,689,675) (4,590,877) (2,774,493) (3,560,645) Accumulated undistributed net investment income 1,182,913 715,986 468,712 312,526 Net unrealized appreciation (computed on the basis of identified cost) 9,164,732 4,598,328 3,054,070 3,229,290 ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS APPLICABLE TO COMMON SHARES $ 108,192,573 $ 63,910,788 $ 40,661,546 $ 31,363,164 ------------------------------------------------------------------------------------------------------------------------------------ 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 4,250,223 2,694,545 2,110,515 ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.07 $ 15.04 $ 15.09 $ 14.86 ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 33
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 97,062,394 $ 119,035,497 $ 60,607,891 $ 57,276,057 Unrealized appreciation 6,515,120 6,110,284 3,712,872 2,976,957 ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 103,577,514 $ 125,145,781 $ 64,320,763 $ 60,253,014 ----------------------------------------------------------------------------------------------------------------------------------- Cash $ 552,474 $ -- $ 354,958 $ 59,595 Receivable for investments sold 5,000 -- 10,000 1,020,000 Interest receivable 2,113,542 2,410,041 1,275,339 1,198,162 Receivable for daily variation margin on open financial futures contracts 110,035 76,965 32,985 47,645 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 106,358,565 $ 127,632,787 $ 65,994,045 $ 62,578,416 ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Due to bank $ -- $ 9,226 $ -- $ -- Payable to affiliate for Trustees' fees 935 935 220 267 Accrued expenses 55,744 69,450 50,276 54,239 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 56,679 $ 79,611 $ 50,496 $ 54,506 ----------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 38,003,539 44,509,201 23,500,000 22,501,047 ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 68,298,347 $ 83,043,975 $ 42,443,549 $ 40,022,863 ----------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 46,118 $ 53,603 $ 28,222 $ 26,885 Additional paid-in capital 68,452,386 79,543,024 41,922,551 39,945,406 Accumulated net realized loss (computed on the basis of identified cost) (7,355,747) (3,802,712) (3,738,520) (3,532,715) Accumulated undistributed net investment income 625,325 1,120,981 510,369 615,007 Net unrealized appreciation (computed on the basis of identified cost) 6,530,265 6,129,079 3,720,927 2,968,280 ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 68,298,347 $ 83,043,975 $ 42,443,549 $ 40,022,863 ----------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 1,520 1,780 940 900 ----------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 4,611,790 5,360,320 2,822,184 2,688,521 ----------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.81 $ 15.49 $ 15.04 $ 14.89 -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 34 EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 FINANCIAL STATEMENTS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2004
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 9,679,137 $ 5,778,560 $ 3,581,006 $ 2,872,144 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 9,679,137 $ 5,778,560 $ 3,581,006 $ 2,872,144 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 1,176,810 $ 701,988 $ 434,546 $ 343,169 Administration fee 336,231 200,568 124,156 98,048 Trustees fees and expenses 7,703 5,958 1,455 1,446 Legal and accounting services 40,199 34,862 32,280 27,396 Printing and postage 16,366 12,489 9,430 7,355 Custodian fee 82,061 51,465 36,514 33,367 Transfer and dividend disbursing agent 108,318 68,547 42,474 40,055 Preferred shares remarketing agent fee 147,904 88,993 53,897 43,869 Miscellaneous 24,050 25,764 23,143 24,160 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 1,939,642 $ 1,190,634 $ 757,895 $ 618,865 ----------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 6,863 $ 5,329 $ 3,401 $ 2,088 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 6,863 $ 5,329 $ 3,401 $ 2,088 ----------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 1,932,779 $ 1,185,305 $ 754,494 $ 616,777 ----------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 7,746,358 $ 4,593,255 $ 2,826,512 $ 2,255,367 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 1,563,209 $ 91,623 $ 1,048,057 $ 74,668 Financial futures contracts (2,141,268) (1,344,999) (598,602) (676,136) ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ (578,059) $ (1,253,376) $ 449,455 $ (601,468) ----------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ (692,985) $ (424,400) $ (945,697) $ (1,603) Financial futures contracts (426,553) (241,632) (183,268) (100,563) ----------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ (1,119,538) $ (666,032) $ (1,128,965) $ (102,166) ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED LOSS $ (1,697,597) $ (1,919,408) $ (679,510) $ (703,634) ----------------------------------------------------------------------------------------------------------------------------------- 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 -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 35
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 6,225,950 $ 7,518,216 $ 3,844,152 $ 3,653,269 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 6,225,950 $ 7,518,216 $ 3,844,152 $ 3,653,269 ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 742,684 $ 896,211 $ 459,280 $ 438,866 Administration fee 212,196 256,060 131,223 125,390 Trustees fees and expenses 5,958 5,958 1,454 1,446 Legal and accounting services 36,971 30,066 33,468 27,396 Printing and postage 13,917 10,016 10,548 8,456 Custodian fee 59,666 64,166 38,703 37,376 Transfer and dividend disbursing agent 71,027 89,416 47,425 47,656 Preferred shares remarketing agent fee 95,259 111,553 58,751 56,404 Miscellaneous 24,920 26,651 23,370 26,160 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 1,262,598 $ 1,490,097 $ 804,222 $ 769,150 ----------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 4,606 $ 5,508 $ 3,201 $ 2,618 ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 4,606 $ 5,508 $ 3,201 $ 2,618 ----------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 1,257,992 $ 1,484,589 $ 801,021 $ 766,532 ----------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 4,967,958 $ 6,033,627 $ 3,043,131 $ 2,886,737 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 2,009,684 $ 3,399,958 $ (225,636) $ 379,582 Financial futures contracts (1,214,821) (1,197,855) (432,605) (725,604) ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ 794,863 $ 2,202,103 $ (658,241) $ (346,022) ----------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ (1,989,871) $ (3,822,519) $ 742,357 $ (309,259) Financial futures contracts (264,135) (142,401) (107,085) (157,066) ----------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ (2,254,006) $ (3,964,920) $ 635,272 $ (466,325) ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED LOSS $ (1,459,143) $ (1,762,817) $ (22,969) $ (812,347) ----------------------------------------------------------------------------------------------------------------------------------- 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 -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 36 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) on investment transactions and financial futures contracts (578,059) (1,253,376) 449,455 (601,468) Net change in unrealized appreciation (depreciation) on 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) ----------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 63,513 $ 100,028 $ 409,239 $ 200,473 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE 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 37
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) on investment transactions and financial futures contracts 794,863 2,202,103 (658,241) (346,022) Net change in unrealized appreciation (depreciation) on 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) ----------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 565,589 $ -- $ 215,222 $ 213,411 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE 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 38 FOR THE YEAR ENDED NOVEMBER 30, 2003
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ----------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 7,746,314 $ 4,645,253 $ 2,894,337 $ 2,284,352 Net realized gain (loss) on investment transactions and financial futures contracts (50,699) 321,597 475,279 (522,224) Net change in unrealized appreciation (depreciation) on investments and financial futures contracts 4,995,119 2,962,320 2,136,914 2,199,007 Distributions to preferred shareholders From net investment income (490,647) (321,534) (186,866) (150,383) ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 12,200,087 $ 7,607,636 $ 5,319,664 $ 3,810,752 ----------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (6,911,900) $ (4,215,934) $ (2,579,286) $ (2,053,986) ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (6,911,900) $ (4,215,934) $ (2,579,286) $ (2,053,986) ----------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ -- $ 208,467 $ 500,292 $ 142,090 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ -- $ 208,467 $ 500,292 $ 142,090 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 5,288,187 $ 3,600,169 $ 3,240,670 $ 1,898,856 ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 104,703,067 $ 62,302,243 $ 37,794,537 $ 30,064,372 ----------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 109,991,254 $ 65,902,412 $ 41,035,207 $ 31,963,228 ----------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 1,433,045 $ 896,297 $ 583,005 $ 421,148 -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 39 FOR THE YEAR ENDED NOVEMBER 30, 2003
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ----------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 5,105,052 $ 5,933,440 $ 3,041,093 $ 2,907,709 Net realized gain (loss) on investment transactions and financial futures contracts (484,005) 1,336,457 260,447 45,691 Net change in unrealized appreciation (depreciation) on investments and financial futures contracts 5,507,623 3,662,367 2,281,037 2,311,357 Distributions to preferred shareholders From net investment income (323,091) (363,142) (215,153) (214,431) ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,805,579 $ 10,569,122 $ 5,367,424 $ 5,050,326 ----------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (4,638,616) $ (5,495,212) $ (2,796,900) $ (2,517,299) ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (4,638,616) $ (5,495,212) $ (2,796,900) $ (2,517,299) ----------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 530,236 $ 81,456 $ 225,669 $ 109,497 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 530,236 $ 81,456 $ 225,669 $ 109,497 ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 5,697,199 $ 5,155,366 $ 2,796,193 $ 2,642,524 ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 63,803,251 $ 79,588,863 $ 39,507,345 $ 38,027,377 ----------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 69,500,450 $ 84,744,229 $ 42,303,538 $ 40,669,901 ----------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 944,142 $ 1,066,685 $ 579,928 $ 673,776 -----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 40 FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
CALIFORNIA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.320 $ 14.590 $ 14.410 $ 13.210 $ 11.630 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.079 $ 1.079 $ 1.069 $ 1.035 $ 1.008 Net realized and unrealized gain (loss) (0.227) 0.682 0.155 1.120 1.576 Distributions to preferred shareholders from net investment income (0.079) (0.068) (0.110) (0.222) (0.279) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.773 $ 1.693 $ 1.114 $ 1.933 $ 2.305 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.023) $ (0.963) $ (0.934) $ (0.733) $ (0.725) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.023) $ (0.963) $ (0.934) $ (0.733) $ (0.725) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.070 $ 15.320 $ 14.590 $ 14.410 $ 13.210 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.160 $ 14.950 $ 13.660 $ 14.320 $ 11.688 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 8.60% 17.06% 1.84% 29.65% 8.79% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 41
CALIFORNIA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ Net assets applicable to common shares, end of year (000's omitted) $ 108,193 $ 109,991 $ 104,703 $ 102,664 $ 94,049 Ratios (As a percentage of average net assets applicable to common shares): Expenses(4) 1.78% 1.78% 1.82% 1.83% 1.99% Expenses after custodian fee reduction(4) 1.77% 1.78% 1.80% 1.76% 1.92% Net investment income(4) 7.10% 7.17% 7.44% 7.32% 8.43% Portfolio Turnover 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 1.15% 1.15% 1.16% 1.15% 1.17% Expenses after custodian fee reduction 1.15% 1.15% 1.15% 1.11% 1.13% Net investment income 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 Asset coverage per preferred share(5) $ 70,849 $ 71,608 $ 69,366 $ 68,507 $ 64,862 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 42
FLORIDA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.530 $ 14.730 $ 14.340 $ 13.070 $ 11.770 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.082 $ 1.096 $ 1.103 $ 1.056 $ 1.028 Net realized and unrealized gain (loss) (0.450) 0.775 0.358 1.162 1.318 Distributions to preferred shareholders from net investment income (0.087) (0.076) (0.118) (0.243) (0.338) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.545 $ 1.795 $ 1.343 $ 1.975 $ 2.008 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.035) $ (0.995) $ (0.953) $ (0.705) $ (0.708) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.035) $ (0.995) $ (0.953) $ (0.705) $ (0.708) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.040 $ 15.530 $ 14.730 $ 14.340 $ 13.070 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.250 $ 15.455 $ 14.400 $ 13.380 $ 10.500 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 5.76% 14.67% 15.18% 34.91% 7.20% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 43
FLORIDA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 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) 1.84% 1.83% 1.87% 1.90% 1.99% Net expenses after custodian fee reduction(4) 1.83% 1.82% 1.86% 1.82% 1.91% Net investment income(4) 7.09% 7.20% 7.61% 7.46% 8.59% Portfolio Turnover 4% 15% 14% 24% 20% ---------------------------------------------------------------------------------------------------------------------------------- + The expenses of the Trust may reflect a voluntary 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 1.18% 1.18% 1.18% 1.19% 1.16% Net expenses after custodian fee reduction 1.18% 1.18% 1.18% 1.14% 1.12% Net investment income 4.58% 4.64% 4.82% 4.68% 5.05% + The expenses of the Trust may reflect a voluntary 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 Asset coverage per preferred share(5) $ 70,011 $ 71,412 $ 68,878 $ 67,695 $ 63,944 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 44
MASSACHUSETTS TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.380 $ 14.350 $ 14.110 $ 12.530 $ 11.470 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.054 $ 1.091 $ 1.065 $ 1.044 $ 1.008 Net realized and unrealized gain (loss) (0.251) 0.982 0.218 1.486 1.058 Distributions to preferred shareholders from net investment income (0.070) (0.070) (0.106) (0.227) (0.286) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.733 $ 2.003 $ 1.177 $ 2.303 $ 1.780 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.023) $ (0.973) $ (0.937) $ (0.723) $ (0.720) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.023) $ (0.973) $ (0.937) $ (0.723) $ (0.720) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.090 $ 15.380 $ 14.350 $ 14.110 $ 12.530 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 16.810 $ 15.400 $ 15.510 $ 14.370 $ 10.813 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 16.71% 5.91% 15.16% 40.54% 0.69% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 45
MASSACHUSETTS TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA++ Net assets applicable to common shares, end of year (000's omitted) $ 40,662 $ 41,035 $ 37,795 $ 36,634 $ 32,501 Ratios (As a percentage of average net assets applicable to common shares): Expenses(4) 1.87% 1.86% 1.97% 1.97% 2.17% Expenses after custodian fee reduction(4) 1.86% 1.86% 1.94% 1.88% 2.09% Net investment income(4) 6.97% 7.27% 7.55% 7.60% 8.80% Portfolio Turnover 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 1.22% 1.21% 1.24% 1.23% 1.26% Expenses after custodian fee reduction 1.22% 1.21% 1.22% 1.17% 1.21% Net investment income 4.55% 4.72% 4.77% 4.74% 5.10% Ratios (As a percentage of average total net assets): Expenses ---------------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 860 860 860 860 860 Asset coverage per preferred share(5) $ 72,281 $ 72,719 $ 68,951 $ 67,602 $ 62,797 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 46
MICHIGAN TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.240 $ 14.400 $ 14.490 $ 13.060 $ 11.840 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.072 $ 1.092 $ 1.085 $ 1.045 $ 0.996 Net realized and unrealized gain (loss) (0.334) 0.802 (0.109) 1.317 1.250 Distributions to preferred shareholders from net investment income (0.086) (0.072) (0.113) (0.242) (0.321) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.652 $ 1.822 $ 0.863 $ 2.120 $ 1.925 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.032) $ (0.982) $ (0.953) $ (0.690) $ (0.705) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.032) $ (0.982) $ (0.953) $ (0.690) $ (0.705) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.860 $ 15.240 $ 14.400 $ 14.490 $ 13.060 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 16.600 $ 15.635 $ 13.940 $ 13.000 $ 10.438 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 13.63% 19.82% 14.72% 31.69% 2.30% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 47
MICHIGAN TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 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) 1.96% 1.97% 2.00% 1.99% 2.18% Net expenses after custodian fee reduction(4) 1.96% 1.97% 1.99% 1.90% 2.09% Net investment income(4) 7.16% 7.31% 7.54% 7.36% 8.34% Portfolio Turnover 5% 8% 13% 33% 18% ---------------------------------------------------------------------------------------------------------------------------------- + The expenses of the Trust may reflect a voluntary 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 1.26% 1.26% 1.27% 1.25% 1.27% Net expenses after custodian fee reduction 1.26% 1.26% 1.26% 1.19% 1.22% Net investment income 4.60% 4.69% 4.76% 4.63% 4.90% + The expenses of the Trust may reflect a voluntary 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 Asset coverage per preferred share(5) $ 69,810 $ 70,664 $ 67,952 $ 68,163 $ 63,906 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 48
NEW JERSEY TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.190 $ 14.060 $ 13.880 $ 12.680 $ 11.720 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.082 $ 1.120 $ 1.098 $ 1.057 $ 1.012 Net realized and unrealized gain (loss) (0.313) 1.099 0.163 1.089 0.977 Distributions to preferred shareholders from net investment income (0.081) (0.071) (0.105) (0.234) (0.324) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.688 $ 2.148 $ 1.156 $ 1.912 $ 1.665 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.068) $ (1.018) $ (0.976) $ (0.712) $ (0.705) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.068) $ (1.018) $ (0.976) $ (0.712) $ (0.705) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.810 $ 15.190 $ 14.060 $ 13.880 $ 12.680 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.540 $ 15.415 $ 14.400 $ 13.340 $ 10.750 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 8.31% 14.75% 15.70% 31.34% 5.28% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 49
NEW JERSEY TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ Net assets applicable to common shares, end of year (000's omitted) $ 68,298 $ 69,500 $ 63,803 $ 62,237 $ 56,883 Ratios (As a percentage of average net assets applicable to common shares): Expenses(4) 1.85% 1.84% 1.89% 1.95% 2.08% Expenses after custodian fee reduction(4) 1.84% 1.84% 1.88% 1.90% 2.00% Net investment income(4) 7.28% 7.64% 7.80% 7.64% 8.64% Portfolio Turnover 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 1.19% 1.18% 1.19% 1.21% 1.21% Expenses after custodian fee reduction 1.18% 1.18% 1.18% 1.18% 1.16% Net investment income 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 Asset coverage per preferred share(5) $ 69,935 $ 70,724 $ 66,976 $ 65,951 $ 62,434 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 50
NEW YORK TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.810 $ 14.860 $ 14.280 $ 13.020 $ 11.800 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.126 $ 1.108 $ 1.114 $ 1.057 $ 1.002 Net realized and unrealized gain (loss) (0.332) 0.936 0.553 1.150 1.239 Distributions to preferred shareholders from net investment income (0.074) (0.068) (0.103) (0.220) (0.301) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.720 $ 1.976 $ 1.564 $ 1.987 $ 1.940 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.040) $ (1.026) $ (0.984) $ (0.727) $ (0.720) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.040) $ (1.026) $ (0.984) $ (0.727) $ (0.720) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.490 $ 15.810 $ 14.860 $ 14.280 $ 13.020 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.370 $ 15.460 $ 13.990 $ 14.050 $ 10.750 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 6.46% 18.34% 6.56% 38.30% 5.90% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 51
NEW YORK TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA + ++ Net assets applicable to common shares, end of $ 83,044 $ 84,744 $ 79,589 $ 75,658 $ 69,023 year (000's omitted) Ratios (As a percentage of average net assets applicable to common shares): Expenses(4) 1.78% 1.77% 1.86% 1.88% 2.03% Expenses after custodian fee reduction(4) 1.78% 1.77% 1.86% 1.86% 1.95% Net investment income(4) 7.23% 7.21% 7.64% 7.45% 8.33% Portfolio Turnover 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 1.16% 1.15% 1.18% 1.19% 1.20% Expenses after custodian fee reduction 1.16% 1.15% 1.18% 1.17% 1.15% Net investment income 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 Asset coverage per preferred share(5) $ 71,659 $ 72,603 $ 69,714 $ 67,506 $ 63,777 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 52
OHIO TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.070 $ 14.150 $ 14.070 $ 12.820 $ 11.910 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.081 $ 1.083 $ 1.107 $ 1.068 $ 1.028 Net realized and unrealized gain (loss) (0.011) 0.913 0.036 1.134 0.930 Distributions to preferred shareholders from net investment incom (0.091) (0.077) (0.109) (0.242) (0.335) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.979 $ 1.919 $ 1.034 $ 1.960 $ 1.623 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.009) $ (0.999) $ (0.954) $ (0.710) $ (0.713) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.009) $ (0.999) $ (0.954) $ (0.710) $ (0.713) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.040 $ 15.070 $ 14.150 $ 14.070 $ 12.820 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 16.750 $ 15.715 $ 14.730 $ 13.620 $ 11.375 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 13.96% 14.12% 15.59% 26.39% 7.55% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 53
OHIO TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ ---------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $ 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% 1.90% 1.96% 1.99% 2.08% Net expenses after custodian fee reduction(4) 1.90% 1.88% 1.87% 1.90% 2.01% Net investment income(4) 7.23% 7.37% 7.84% 7.69% 8.56% Portfolio Turnover 12% 23% 8% 26% 26% + The expenses of the Trust may reflect a voluntary 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 1.23% 1.21% 1.23% 1.24% 1.22% Net expenses after custodian fee reduction 1.22% 1.20% 1.17% 1.18% 1.18% Net investment income 4.64% 4.69% 4.91% 4.78% 5.02% + The expenses of the Trust may reflect a voluntary reduction of the investment advisor 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 Asset coverage per preferred share(5) $ 70,153 $ 70,007 $ 67,032 $ 66,569 $ 62,895 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. See notes to financial statements 54
PENNSYLVANIA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 15.210 $ 14.260 $ 14.160 $ 12.960 $ 11.840 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.076 $ 1.089 $ 1.059 $ 1.015 $ 1.013 Net realized and unrealized gain (loss) (0.301) 0.884 0.039 1.107 1.147 Distributions to preferred shareholders from net investment income (0.092) (0.080) (0.111) (0.244) (0.332) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.683 $ 1.893 $ 0.987 $ 1.878 $ 1.828 ---------------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.003) $ (0.943) $ (0.887) $ (0.678) $ (0.708) ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.003) $ (0.943) $ (0.887) $ (0.678) $ (0.708) ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.890 $ 15.210 $ 14.260 $ 14.160 $ 12.960 ---------------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.540 $ 15.980 $ 13.960 $ 12.750 $ 10.625 ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 4.07% 22.05% 16.77% 26.88% 5.29% ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 55
PENNSYLVANIA TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2004(1) 2003(1) 2002(1)(2) 2001(1) 2000(1) ---------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ ---------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $ 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) 1.91% 1.92% 1.95% 1.97% 1.95% Net expenses after custodian fee reduction(4) 1.91% 1.92% 1.95% 1.94% 1.86% Net investment income(4) 7.18% 7.35% 7.48% 7.26% 8.46% Portfolio Turnover 8% 6% 20% 34% 19% + The expenses of the Trust may reflect a voluntary 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 1.23% 1.23% 1.22% 1.23% 1.14% Net expenses after custodian fee reduction 1.22% 1.23% 1.22% 1.20% 1.09% Net investment income 4.61% 4.69% 4.68% 4.53% 4.96% + The expenses of the Trust may reflect a voluntary 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 Asset coverage per preferred share(5) $ 69,471 $ 70,193 $ 67,257 $ 66,920 $ 63,357 Involuntary liquidation preference per preferred share(6) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 Approximate market value per preferred share(6) $ 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) 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. (6) Plus accumulated and unpaid dividends. 56 EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 NOTESTO FINANCIAL STATEMENTS 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 are normally valued on the basis of valuations furnished by a pricing service. Taxable obligations, if any, for which price quotations are readily available are normally valued at the mean between the latest bid and asked prices. 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
57
FUND AMOUNT EXPIRES --------------------------------------------------------------------- New York $ 1,820,387 November 30, 2008 1,920,646 November 30, 2009 70,059 November 30, 2010 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, if any, are reported as a reduction of total expenses in the Statement of Operations. 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. Auction Preferred Shares issued and outstanding as of November 30, 2004 and dividend rate ranges for the year ended November 30, 2004 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE TRUST ISSUED AND OUTSTANDING RANGES -------------------------------------------------------------------------------- California 2,360 0.40% - 1.70% Florida 1,420 0.45% - 1.55% Massachusetts 860 0.36% - 1.51% Michigan 700 0.60% - 1.70%
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PREFERRED SHARES DIVIDENDS RATE TRUST ISSUED AND OUTSTANDING RANGES -------------------------------------------------------------------------------- New Jersey 1,520 0.40% - 1.70% New York 1,780 0.40% - 1.55% Ohio 940 0.45% - 1.55% Pennsylvania 900 0.45% - 1.70%
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 November 30, 2004 are listed below. For the year ended November 30, 2004, the amount of dividends each Trust paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:
DIVIDENDS PAID TO PREFERRED AVERAGE SHAREHOLDERS FROM APS APS NET INVESTMENT DIVIDEND DIVIDEND RATES INCOME FOR RATES FOR AS OF THE YEAR ENDED THE YEAR ENDED NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, TRUST 2004 2004 2004 -------------------------------------------------------------------------------- California 1.70% $ 568,421 0.97% Florida 1.00% 371,078 1.04% Massachusetts 0.90% 188,013 0.87% Michigan 1.70% 181,468 1.04% New Jersey 1.70% 373,643 0.99% New York 1.30% 396,309 0.88% Ohio 1.54% 255,482 1.08% Pennsylvania 1.70% 245,569 1.10%
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. The tax character of distributions paid for the years ended November 30, 2004 and November 30, 2003 was as follows:
YEAR ENDED 11/30/04 CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN ---------------------------------------------------------------------------------------- Distributions declared from: Tax-exempt income $ 7,910,955 $ 4,765,499 $ 2,929,902 $ 2,352,270 Ordinary income -- -- -- -- YEAR ENDED 11/30/03 ---------------------------------------------------------------------------------------- Distributions declared from: Tax-exempt income $ 7,402,547 $ 4,537,468 $ 2,766,152 $ 2,204,369 Ordinary income -- -- -- --
59
YEAR ENDED 11/30/04 NEW JERSEY NEW YORK OHIO PENNSYLVANIA ---------------------------------------------------------------------------------------- Distributions declared from: Tax-exempt income $ 5,276,507 $ 5,971,064 $ 3,094,707 $ 2,934,839 Ordinary income -- -- $ 666 -- YEAR ENDED 11/30/03 ---------------------------------------------------------------------------------------- Distributions declared from: Tax-exempt income $ 4,961,707 $ 5,858,354 $ 3,008,299 $ 2,731,730 Ordinary income -- -- $ 3,754 --
During the year ended November 30, 2004, the following amounts were reclassified due to differences between book and tax accounting for amortization and accretion on debt securities, market discount on disposal of securities, and capital losses:
CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN ---------------------------------------------------------------------------------------- Increase (decrease): Paid in capital -- -- -- $ (1) Accumulated net realized gain/(loss) on investments $ 85,535 $ 8,067 $ 10,903 $ 11,720 Accumulated undistributed income $ (85,535) $ (8,067) $ (10,903) $ (11,719) NEW JERSEY NEW YORK OHIO PENNSYLVANIA ---------------------------------------------------------------------------------------- Increase (decrease): Paid in capital -- -- $ (10) $ 1 Accumulated net realized gain/(loss) on investments $ 10,268 $ 8,267 $ 17,327 $ 10,666 Accumulated undistributed income $ (10,268) $ (8,267) $ (17,317) $ (10,667)
These changes had no effect on the net assets or net asset value per share of the Trusts. As of November 30, 2004, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN ---------------------------------------------------------------------------------------- Undistributed Income $ 1,193,905 $ 720,850 $ 469,246 $ 316,604 Capital loss carryforward $ (9,067,543) $ (4,641,172) $ (2,772,772) $ (3,600,665) Unrealized gain/(loss) $ 9,542,600 $ 4,648,623 $ 3,052,349 $ 3,269,310 Other temporary differences $ (10,992) $ (4,864) $ (534) $ (4,078) NEW JERSEY NEW YORK OHIO PENNSYLVANIA ----------------------------------------------------------------------------------------- Undistributed income $ 628,864 $ 1,130,182 $ 510,369 $ 616,054 Capital loss carryforward $ (7,351,010) $ (3,811,092) $ (3,790,295) $ (3,591,867) Unrealized gain/(loss) $ 6,525,528 $ 6,137,459 $ 3,772,702 $ 3,027,432 Other temporary differences $ (3,539) $ (9,201) -- $ (1,047)
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 year ended November 30, 2004, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $1,176,810, $701,988, $434,546, $343,169, $742,684, $896,211, $459,280 and $438,866, 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% of the average weekly gross assets of each Trust is paid to EVM for administering business affairs of each Trust. For the year ended November 30, 2004, the administrative fee amounted to $336,231, $200,568, $124,156, $98,048, $212,196, $256,060, $131,223 and $125,390, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. 60 During the year ended November 30, 2004, the Massachusetts Trust and the New Jersey Trust engaged in purchase and sale transactions with other Funds that also utilize EVM or Boston Management and Research, a wholly-owned subsidiary of EVM, as an investment adviser. The purchase and sale transactions complied with Rule 17a-7 under the Investment Company Act of 1940 and amounted to:
TRUSTS PURCHASES SALES --------------------------------------------------------- Massachusetts $ 205,320 $ 1,012,950 New Jersey $ 596,640 --
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 year ended November 30, 2004 were as follows: CALIFORNIA TRUST Purchases $ 27,746,726 Sales 31,434,311 FLORIDA TRUST Purchases $ 3,540,070 Sales 5,316,116 MASSACHUSETTS TRUST Purchases $ 23,738,161 Sales 24,505,520 MICHIGAN TRUST Purchases $ 2,257,121 Sales 3,122,401 NEW JERSEY TRUST Purchases $ 54,473,259 Sales 57,558,298 NEW YORK TRUST Purchases $ 39,810,500 Sales 43,226,110 OHIO TRUST Purchases $ 8,006,336 Sales 8,571,908 PENNSYLVANIA TRUST Purchases $ 4,778,657 Sales 6,533,626
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 November 30, 2004, as computed for Federal income tax purposes, were as follows: CALIFORNIA TRUST AGGREGATE COST $ 154,128,950 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 9,716,836 Gross unrealized depreciation (174,236) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 9,542,600 -------------------------------------------------------------------------------- FLORIDA TRUST AGGREGATE COST $ 92,752,751 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 5,240,041 Gross unrealized depreciation (591,418) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 4,648,623 -------------------------------------------------------------------------------- MASSACHUSETTS TRUST AGGREGATE COST $ 57,605,647 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 3,420,170 Gross unrealized depreciation (367,821) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,052,349 -------------------------------------------------------------------------------- MICHIGAN TRUST AGGREGATE COST $ 44,695,786 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 3,457,861 Gross unrealized depreciation (188,551) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,269,310 --------------------------------------------------------------------------------
61 NEW JERSEY TRUST AGGREGATE COST $ 97,051,986 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 6,697,441 Gross unrealized depreciation (171,913) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 6,525,528 -------------------------------------------------------------------------------- NEW YORK TRUST AGGREGATE COST $ 119,008,322 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 7,171,686 Gross unrealized depreciation (1,034,227) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 6,137,459 -------------------------------------------------------------------------------- OHIO TRUST AGGREGATE COST $ 60,548,061 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 4,157,974 Gross unrealized depreciation (385,272) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,772,702 -------------------------------------------------------------------------------- PENNSYLVANIA TRUST AGGREGATE COST $ 57,225,582 -------------------------------------------------------------------------------- Gross unrealized appreciation $ 3,673,069 Gross unrealized depreciation (645,637) -------------------------------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,027,432 --------------------------------------------------------------------------------
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 ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 4,201 -- ------------------------------------------------------------------------ NET INCREASE 4,201 -- ------------------------------------------------------------------------ FLORIDA TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 6,514 13,428 ------------------------------------------------------------------------ NET INCREASE 6,514 13,428 ------------------------------------------------------------------------ MASSACHUSETTS TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 26,699 33,291 ------------------------------------------------------------------------ NET INCREASE 26,699 33,291 ------------------------------------------------------------------------ MICHIGAN TRUST ------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 13,221 9,339 ------------------------------------------------------------------------ NET INCREASE 13,221 9,339 ------------------------------------------------------------------------ NEW JERSEY TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 37,840 36,133 ------------------------------------------------------------------------ NET INCREASE 37,840 36,133 ------------------------------------------------------------------------ NEW YORK TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan -- 5,262 ------------------------------------------------------------------------ NET INCREASE -- 5,262 ------------------------------------------------------------------------ OHIO TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 14,182 15,227 ------------------------------------------------------------------------ NET INCREASE 14,182 15,227 ------------------------------------------------------------------------
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PENNSYLVANIA TRUST ------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------- 2004 2003 ------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 13,939 7,289 ------------------------------------------------------------------------ NET INCREASE 13,939 7,289 ------------------------------------------------------------------------
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 November 30, 2004 is as follows: FUTURES CONTRACTS
NET UNREALIZED EXPIRATION AGGREGATE APPRECIATION TRUST DATE(S) CONTRACTS POSITION COST VALUE (DEPRECIATION) --------------------------------------------------------------------------------------------------------------- California 3/05 375 U.S. Treasury Bond Short $ (41,271,844) $ (41,296,875) $ (25,031) Florida 3/05 220 U.S. Treasury Bond Short $ (24,212,815) $ (24,227,500) $ (14,685) Massachusetts 3/05 150 U.S. Treasury Bond Short $ (16,527,487) $ (16,518,750) $ 8,737 Michigan 3/05 91 U.S. Treasury Bond Short $ (10,012,583) $ (10,021,375) $ (8,792) 3/05 12 U.S. Treasury Note Short $ (1,340,387) $ (1,329,000) $ 11,387 New Jersey 3/05 260 U.S. Treasury Bond Short $ (28,632,500) $ (28,617,355) $ 15,145 New York 3/05 210 U.S. Treasury Bond Short $ (23,145,045) $ (23,126,250) $ 18,795 Ohio 3/05 90 U.S. Treasury Bond Short $ (9,919,305) $ (9,911,250) $ 8,055 Pennsylvania 3/05 130 U.S. Treasury Bond Short $ (14,307,573) $ (14,316,250) $ (8,677)
At November 30, 2004, 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 the 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. At November 30, 2004, New York Trust had payments due to IBT pursuant to the foregoing arrangement of $9,226. 63 EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Trustees of Eaton Vance Municipal Income Trusts and Shareholders 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: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, 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 (the Trusts) (constituting the Eaton Vance Municipal Income Trusts) as of November 30, 2004, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities held as of November 30, 2004 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position 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 as of November 30, 2004, the results of their operations, the changes in their net assets and their financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts January 18, 2005 64 EATON VANCE MUNICIPAL INCOME TRUSTS as of November 30, 2004 FEDERAL TAX INFORMATION (Unaudited) The Form 1099-DIV you receive in January 2005 will show the tax status of all distributions paid to your account in calendar 2004. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Trust. As required by the Internal Revenue Code regulations, shareholders must be notified within 60 days of the Trust's fiscal year end regarding exempt-interest dividends. EXEMPT-INTEREST DIVIDENDS -- The Trusts designate the following amounts of dividends from net investment income as an exempt-interest dividend. California Trust 100.00% Florida Trust 100.00% Massachusetts Trust 100.00% Michigan Trust 100.00% New Jersey Trust 100.00% New York Trust 100.00% Ohio Trust 100.00% Pennsylvania Trust 100.00%
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 November 30, 2004 our records indicate that there are 64, 48, 59, 33, 77, 64, 59 and 68 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 3,000, 2,100, 1,400, 1,200, 2,300, 2,800, 1,600 and 1,500 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 MANAGEMENT AND ORGANIZATION FUND MANAGEMENT. The Trustees of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Florida Municipal Income Trust (FEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO), and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts' affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The "noninterested Trustees" consist of those Trustees who are not "interested persons" of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Trusts' principal underwriter and a wholly-owned subsidiary of EVM.
NUMBER OF TERM OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE James B. Hawkes Vice President Until 2007. 3 years. Chairman, President and 193 Director of EVC 11/9/41 and Trustee Trustee since 1998. Chief Executive Officer of BMR, EVC, EVM and EV; Director of EV; Vice President and Director of EVD. Trustee and/or officer of 193 registered investment companies in the Eaton Vance Fund Complex. Mr. Hawkes is an interested person because of his positions with BMR, EVM, EVC and EV, which are affiliates of the Trusts. NONINTERESTED TRUSTEE(S) Samuel L. Hayes, III Trustee Until 2007. 3 years. Jacob H. Schiff Professor of 193 Director of Tiffany & 2/23/35 Trustee since 1998. Investment Banking Emeritus, Co. (specialty retailer) Harvard University Graduate and Telect, Inc. School of Business (telecommunication Administration. services company) William H. Park Trustee Until 2005. Trustee President and Chief 193 None 9/19/47 since 2003. Executive Officer, Prizm Capital Management, LLC (investment management firm) (since 2002). Executive Vice President and Chief Financial Officer, United Asset Management Corporation (a holding company owning institutional investment management firms) (1982-2001). Ronald A. Pearlman Trustee Until 2006. Trustee Professor of Law, Georgetown 193 None 7/10/40 since 2003. University Law Center (since 1999). Tax Partner Covington & Burling, Washington, DC (1991-2000). Norton H. Reamer Trustee Until 2005. 3 years. President, Chief Executive 193 None 9/21/35 Trustee since 1998. Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) (since October 2003). President, Unicorn Corporation (an investment and financial advisory services company) (since September 2000). Formerly, Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (2000-2003). Formerly, Advisory Director of Berkshire Capital Corporation (investment banking firm) (2002-2003). Formerly Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds) (1980-2000).
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NUMBER OF TERM OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ------------------------------------------------------------------------------------------------------------------------------------ NONINTERESTED TRUSTEE(S) (CONTINUED) Lynn A. Stout Trustee Until 2005. 3 years. Professor of Law, University 193 None 9/14/57 Trustee since 1998. of California at Los Angeles School of Law (since July 2001). Formerly, Professor of Law, Georgetown University Law Center. TERM OF POSITION(S) OFFICE AND NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS ------------------------------------------------------------------------------------------------------------------------------------ PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES Thomas J. Fetter President Since 1998 Vice President of EVM and BMR. Officer of 124 8/20/43 registered investment companies managed by EVM or BMR. William H. Ahern, Jr. Vice President of EMI Since 2000 Vice President of EVM and BMR. Officer of 78 7/28/59 registered investment companies managed by EVM or BMR. Cynthia J. Clemson Vice President Since 1998 for CEV and Vice President of EVM and BMR. Officer of 84 3/2/63 FEV; Since 2000 for registered investment companies managed by EVM or BMR. EVP; Since 2004 for MMV, EMI, EVJ, EVY and EVO Robert B. MacIntosh Vice President Since 1998 Vice President of EVM and BMR. Officer of 124 1/22/57 registered investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 1998 Vice President, Secretary and Chief Legal Officer of 10/10/40 BMR, EVM, EVD, EV and EVC. Officer of 193 registered investment companies managed by EVM or BMR. James L. O'Connor Treasurer Since 1998 Vice President of BMR, EVM and EVD. Officer of 115 4/1/45 registered investment companies managed by EVM or BMR. Paul M. O'Neil Chief Compliance Since 2004 Vice President of EVM and BMR. Officer of 193 7/11/53 Officer registered investment companies managed by EVM or BMR.
(1) Includes both master and feeder funds in a master-feeder structure. 69 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 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DELOITTE & TOUCHE LLP 200 BERKELEY STREET BOSTON, MA 02116-5022 EATON VANCE MUNICIPAL INCOME TRUSTS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 147-1/05 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------ Audit Fees $ 20,909 $ 28,263 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------- Total $ 40,709 $ 37,963 =========================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 CALIFORNIA MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 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: January 18, 2005 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2005 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 16,583 $ 23,216 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 36,383 $ 32,916 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 FLORIDA MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 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: January 18, 2005 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2005 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 15,759 $ 20,435 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 35,559 $ 30,135 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 MASSACHUSETTS MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 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: January 18, 2005 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2005 ITEM 2. CODE OF ETHICS [[NOTE: REGISTRANT MUST DISCLOSE HERE IF THERE HAS BEEN AN AMENDMENT TO THE CODE. REGISTRANT MUST ALSO DISCLOSE IF THERE HAVE BEEN ANY EXPLICIT OR IMPLICIT WAIVERS OF THE CODE UNDER THIS ITEM AS WELL.]] 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 [The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 15,759 $ 20,435 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 35,559 $ 30,135 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858 $ 350,713
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] 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. Not required in this filing. 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 period 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: January 18, 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: January 18, 2005 ---------------- By: /s/ Thomas J. Fettter Thomas J. Fetter President Date: January 18, 2005 ---------------- 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 16,583 $ 23,216 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 36,383 $ 32,916 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 NEW JERSEY MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 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: January 18, 2005 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2005 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 16,583 $ 25,379 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 36,383 $ 35,079 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 NEW YORK MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2004 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: January 18, 2004 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2004 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 15,759 $ 20,435 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 35,559 $ 30,135 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858.37 $ 350,713.16
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 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. Not Applicable. 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 period 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 OHIO MUNICIPAL INCOME TRUST By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 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: January 18, 2005 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 18, 2005 ITEM 2. CODE OF ETHICS [[NOTE: REGISTRANT MUST DISCLOSE HERE IF THERE HAS BEEN AN AMENDMENT TO THE CODE. REGISTRANT MUST ALSO DISCLOSE IF THERE HAVE BEEN ANY EXPLICIT OR IMPLICIT WAIVERS OF THE CODE UNDER THIS ITEM AS WELL.]] 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 The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended November 30, 2003 and November 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ Audit Fees $ 15,759 $ 20,435 Audit-Related Fees(1) 14,000 3,600 Tax Fees(2) 5,800 6,100 All Other Fees(3) 0 0 ------------------------------- Total $ 35,559 $ 30,135 ===============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 11/30/03 11/30/04 ------------------------------------------------------------------ REGISTRANT $ 19,800 $ 9,700 EATON VANCE(1) $ 479,858 $ 350,713
(1)Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund 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 and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), 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 Policy includes 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 the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] 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. Not required in this filing. 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 period 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 PENNSYLANIA MUNICIPAL INCOME TRUST By: ---------------------------- Thomas J. Fetter President Date: January 18, 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: --------------------- James L. O'Connor Treasurer Date: January 18, 2005 ---------------- By: -------------------------------- Thomas J. Fetter President Date: January 18, 2005 ----------------