-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WmHBXITjWyEEAAo/VAvByiBZzSJTf5wcC5yKmTL4ugRnv/3gYUPyOUlOFYUpZZhI vV1RMm8Q4Iv1cNUqO1ydBA== 0001047469-99-029328.txt : 19990809 0001047469-99-029328.hdr.sgml : 19990809 ACCESSION NUMBER: 0001047469-99-029328 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE FLORIDA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074684 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 046880056 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-09143 FILM NUMBER: 99675590 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 N-30D 1 N-30D [LOGO] EDUCATION [EDUCATION SIGN GRAPHIC] Semiannual Report May 31, 1999 [HIGHWAY AT NIGHT GRAPHIC] ----------------------- EATON VANCE MUNICIPAL INCOME TRUSTS ----------------------- California Florida Massachusetts Michigan New Jersey New York Ohio Pennsylvania [BROOKLYN BRIDGE GRAPHIC] EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS - -------------------------------------------------------------------------------- [PHOTO] Thomas J. Fetter President We welcome the shareholders of Eaton Vance Municipal Income Trusts with this initial shareholder report. The Trusts began operations in late January, with the investment objective of producing current income exempt from regular federal income tax and from state and local taxes, where applicable. A series of global economic crises late in 1998 precipitated a flight to quality, increasing demand for U.S. Treasury securities. Amid the rush to Treasuries, the ratio of Treasury yields to municipal yields reached a new high. At one point municipal yields actually EQUALLED Treasury yields. As investors realized the extraordinary value in municipals, those ratios narrowed significantly. But at May 31, municipals continued to represent an excellent bargain, especially considering their tax-exempt status. While the Federal Reserve remains vigilant over inflation, the long-term outlook for bonds remains positive... In the wake of strong economic figures, the bond market encountered some turbulence in the first half of 1999. Meanwhile, the Federal Reserve continued to monitor inflation closely. At its Open Market Committee meeting in late June, the Federal Reserve raised the target for its Federal Funds rate - a key barometer of short-term interest rates - by 25 basis points (.25%). The move indicates that the Fed remains intent on keeping inflation from gathering steam. Despite recent robust economic activity, there is no sign of a pick-up in inflation on the horizon. Global competition remains fierce, while technology continues to fuel increases in productivity. And budget surpluses have now replaced the deficits that weighed on the nation's economy for a generation. These trends suggest that the longer-term outlook for bonds remains quite positive. After years of strong stock market performance, it may be time to allocate more assets to municipal bonds... Following another strong year in the stock market, it may make good sense to review one's asset allocations. 1998 marked the fourth consecutive year of 20%-plus returns - an unprecedented run in the equity markets and well above the market's 10% historical returns. As a result, many investors may find themselves over-weighted in equities. We believe that it is worthwhile for investors to regularly review their asset allocations, making adjustments consistent with their investment goals. That may be especially true now, in the wake of recent stock market performance. Eaton Vance Municipal Income Trusts offer tax-exempt income, flexibility, and liquidity... Eaton Vance Municipal Income Trusts are designed to deliver tax-exempt income together with the flexibility of a closed-end fund and the liquidity afforded by trading on the American Stock Exchange. We believe that municipal bonds remain an excellent fixed-income alternative and a good way to diversify one's investment portfolio and lower one's tax burden. Eaton Vance Municipal Income Trusts will continue to seek promising opportunities for their tax-conscious shareholders. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President July 12, 1999 2 EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Cynthia J. Clemson Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - The California economy enjoyed 3% job growth in 1998, with southern California registering especially strong momentum. Orange and Los Angeles Counties led the way, with strong progress in non-durable manufacturing. The state's unemployment rate was 5.6% in April, down from 5.9% a year earlier. - - The construction sector remained a primary source of new jobs. Reversing the out-migration seen earlier in the decade, California registered a 1.5% rise in population in 1998. The increased demand for housing resulted in an average of 11,500 monthly residential construction permits, a 25% rise from a year ago. - - The Los Angeles area has witnessed a surge in the financial services sector. Job gains in brokerage, finance, and real estate management have more than offset job losses in commercial banking. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -9.21% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $13.50 on May 31, 1999, and the reinvestment of $0.128 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -3.90% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.30 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.50 the Trust had a market yield of 5.67% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 5.6% discount to its underlying net asset value. MANAGEMENT DISCUSSION - - Insured* bonds constituted a significant portion of the Trust's holdings at May 31. To get fully invested in a timely and prudent manner, the Trust purchased a higher percentage of insured paper than it ultimately expects to carry. Management anticipates that the number of insured holdings should diminish in time, as other attractive, higher-yielding opportunities come to market. - - Call protection is an important investment criterion for the Trust, providing a measure of protection against untimely calls and helping to maintain dividend levels. Call protection has become especially important in the past year as the pace of bond calls has quickened. - - Education bonds have played a leading role in the Trust's initial months of operation, including bonds issued by colleges, universities, and secondary schools. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 6.0% BBB 8.2% A 14.5% AA 6.1% AAA 65.2% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -9.21% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -3.90% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 50 Average Maturity 27.4 Yrs. Effective Maturity 26.1 Yrs. Average Rating AA+ Average Call 10.3 Yrs. Average Dollar Price $93.93 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 3 EATON VANCE FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Cynthia J. Clemson Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - Florida's economy continued to grow in late 1998 and early 1999. Favorable conditions fueling the economic expansion included personal income and expenditure increases, low overall price levels and interest rates, and high consumer confidence. Florida's consumer confidence level, a leading indicator of consumer spending, almost fully regained the decline posted in April. - - Florida is currently one of the nation's strongest job markets. Recent data show that the seasonally adjusted unemployment rate for April, at 4.2%, outpaced the nation's by 0.1%. According to the most recent comparative state figures, Florida remained the top state for over-the-year percentage job growth. Services, the state's largest industry, grew 5.6% from April 1998 to April 1999, adding the highest number of new jobs. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -4.60% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $14.188 on May 31, 1999, and the reinvestment of $0.126 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -4.11% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.26 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.188 the Trust had a market yield of 5.31% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 0.5% discount to its underlying net asset value. MANAGEMENT DISCUSSION - - Insured* bonds constituted a significant portion of the Trust's holdings at May 31. To get fully invested in a timely and prudent manner, the Trust purchased a higher percentage of insured paper than it ultimately expects to carry. Management anticipates that the number of insured holdings should diminish in time, as other attractive, higher-yielding opportunities come to market. - - Call protection is an important investment criterion, providing a measure of protection against untimely calls and helping to maintain dividend levels. Call protection has become especially important in the past year as the pace of bond calls has quickened. - - Hospitals were well-represented in the Trust. A series of restructurings and mergers has transformed the hospital sector in recent years. Surviving institutions have emerged more financially sound and better equipped to operate in a more competitive environment. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 5.1% BBB 5.0% A 8.7% AA 17.5% AAA 63.7% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -4.60% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -4.11% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 45 Average Maturity 29.0 Yrs. Effective Maturity 28.5 Yrs. Average Rating AA+ Average Call 10.4 Yrs. Average Dollar Price $95.23 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 4 - -------------------------------------------------------------------------------- EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Robert B. MacIntosh Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - The Massachusetts economy continued its strong momentum in the first half of 1999. The May unemployment rate was 2.9%, down from 3.2% a year earlier, and well below the national rate for the 50th consecutive month. Financial services, technology, and retail trade were again among the largest sources of new job creation. - - The construction sector added significantly to employment in the Commonwealth. Residential and commercial building has been aided by a strong housing market and large commercial projects like Boston's Central Artery and Seaport projects. - - Massachusetts tax revenues continued to reflect the strong state economy in the first half of 1999, according to the Department of Revenue and Taxation. Tax revenue growth was especially strong in calendar year 1998, rising 9.7%, led by a 13.0% increase in individual income tax collections. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -6.27% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $13.938 on May 31, 1999, and the reinvestment of $0.128 per share in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -4.17% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.25 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.938 the Trust had a market yield of 5.49% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 2.2% discount to its underlying net asset value. MANAGEMENT DISCUSSION - - Education bonds have played a leading role in the Trust's initial months of operation, including bonds issued by colleges, universities, and secondary schools. Among the Trust's education investments was a rare 60-year maturity bond issued by Boston University. The bond carries a 5.45% coupon and offers an extraordinary thirty years of call protection. - - Insured* bonds constituted a significant portion of the Trust's holdings at May 31. Following a sharp market rally in mid-January, these bonds afforded the Trust excellent quality and liquidity while we searched for buying opportunities among non-rated and lower investment grade issues. - - Hospital bonds were well-represented in the Trust. A series of restructurings and mergers has transformed the Massachusetts hospital sector in recent years. Surviving institutions have emerged more financially sound and better equipped to operate in a more competitive environment. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 5.5% BBB 12.5% A 10.9% AA 15.5% AAA 55.7% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -6.27% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -4.17% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 40 Average Maturity 30.8 Yrs. Effective Maturity 26.0 Yrs. Average Rating AA Average Call 10.6 Yrs. Average Dollar Price $94.74 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 5 - -------------------------------------------------------------------------------- EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Timothy T. Browse Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - The Michigan economy grew by 4.5% in the first quarter of 1999. Factors contributing to growth were increases over the previous quarter in personal spending and private domestic investment. Trade figures were off, however, with exports falling 7.7% and imports rising 11.1%. - - Michigan's unemployment rate as of April 1999 was 3.9%, a slight decrease from March's 4.0% level and below the 4.3% rate for the nation. Employment gains were recorded in construction, trade contracting, and services, while manufacturing and durable goods saw the biggest job losses. - - Vital to the Michigan economy, overall motor vehicle sales rose 7.9% from March 1998 to March 1999. Compared with February 1999, auto and light truck sales were down, but heavy truck sales were up. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -1.67% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $14.625 on May 31, 1999, and the reinvestment of $0.125 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -3.52% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.35 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.625 the Trust had a market yield of 5.13% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 1.9% premium to its underlying net asset value. MANAGEMENT DISCUSSION - - Insured* bonds constituted a significant portion of the Trust's holdings at May 31. To get close to fully invested in a timely and prudent manner, the Trust purchased a higher percentage of insured paper than it ultimately expects to carry. Management anticipates that the number of insured holdings should diminish in time, as other attractive, higher-yielding opportunities come to market. - - Michigan offers an abundance of insured school district bonds. These bonds are attractive because of their high quality, structure, and liquidity. Our research and Trust management team will also be seeking out non-rated investment opportunities as they become available. - - Call protection is an important investment criterion for the Trust, providing a measure of protection against untimely calls and helping to maintain dividend levels. Call protection has become especially important in the past year as the decline in interest rates has resulted in a quickening of bond calls. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 6.5% BBB 5.9% A 4.7% AA 8.1% AAA 74.8% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -1.67% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -3.52% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 42 Average Maturity 26.5 Yrs. Effective Maturity 25.3 Yrs. Average Rating AA+ Average Call 8.8 Yrs. Average Dollar Price $95.39 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 6 - -------------------------------------------------------------------------------- EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Robert B. MacIntosh Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - Having achieved job growth of 2.1% in 1998, New Jersey carried strong momentum through the first half of 1999. In May, the state's jobless rate fell to 4.5%. Job gains were dominated by the state's core growth sectors-technology, finance, health care and entertainment. - - While foreign trade still contributes less to New Jersey's gross state product than to the average state, exports by state businesses are on the rise. A recent survey indicated that 32% of New Jersey manufacturers participate in foreign trade. State exports are expected to exceed the national rate in coming years. - - Infrastructure improvements have become increasingly important to New Jersey's burgeoning entertainment industry. Expansions at Newark International Airport have contributed to an increase in tourist traffic, while transportation improvements have encouraged hotel and casino expansions in Atlantic City. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -2.51% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $14.50 on May 31, 1999, and the reinvestment of $0.125 per share in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -3.05% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.42 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.50 the Trust had a market yield of 5.17% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 0.6% premium to its underlying net asset value. MANAGEMENT DISCUSSION - - In its initial months of operation, the Trust maintained a large exposure to insured* bonds, 51.3% of total investments at May 31. With municipal bonds having staged a significant rally in January, management preferred the quality provided by insured bonds. As interest rates have trended higher in recent months, the Trust has reduced its insured weighting to take advantage of attractive yields among non-rated and uninsured issues. - - The Trust remained very selective in the hospital sector. As a result of the Allegheny Health System default in neighboring Pennsylvania, New Jersey's hospital bonds traded unevenly, with high-quality and insured* issues reaching overvalued status while triple B-rated and non-rated issues traded lower. - - Transportation bonds were also a relatively large weighting within the Trust. New Jersey Transit Authority and New York/New Jersey Port Authority are well-regarded names that have tended to trade well, even in a difficult market environment. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 6.4% BBB 15.3% A 4.6% AA 9.6% AAA 64.1% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -2.51% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -3.05% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 44 Average Maturity 26.0 Yrs. Effective Maturity 24.8 Yrs. Average Rating AA Average Call 10.0 Yrs. Average Dollar Price $95.95 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 7 - -------------------------------------------------------------------------------- EATON VANCE NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Thomas J. Fetter Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - Recovering from last year's tumult in the financial markets, the New York economy has continued to post strong economic gains. The state's unemployment rate declined to 5.0% in May from 5.7% a year earlier. However, the state's job growth continued to lag behind the nation's, rising 2.0% versus 2.6% for the nation as a whole. - - Upstate New York posted its strongest job growth in nearly a decade. Local economies in Rochester, Albany, Utica, and Syracuse generated fresh momentum, offsetting losses in government with gains in the service sector and modest gains in manufacturing. - - New York City's film industry continued to expand in the past year. A record 221 feature films were shot in the city last year, making the industry the second largest generator of new jobs. The industry pumped $2.57 billion into the local economy, according to CRAIN'S NEW YORK BUSINESS. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -6.67% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $13.875 on May 31, 1999, and the reinvestment of $0.128 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -3.48% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.35 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.875 the Trust had a market yield of 5.51% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 3.3% discount to its underlying net asset value. MANAGEMENT DISCUSSION - - The Trust maintained high quality - with an average quality rating of A+ at May 31 - and good geographic and sector diversification. Management sought to add value among lower investment-grade bonds, including issues for Long Island Power Authority and New York State Urban Development Corp. - - Education bonds were among the Trust's largest holdings at May 31. Included in the Trust's New York Dormitory Authority holdings were issues that financed housing, classrooms, and administrative facilities for New York University, Rockefeller University and State University of New York. - - Call protection is an important investment criterion for the Trust, providing a measure of protection against untimely calls and helping to maintain dividend levels. Call protection has become especially important in the past year as the pace of bond calls has quickened. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 7.7% BBB 14.1% A 31.7% AA 13.8% AAA 32.8% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -6.67% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -3.48% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 36 Average Maturity 26.9 Yrs. Effective Maturity 24.7 Yrs. Average Rating A+ Average Call 10.2 Yrs. Average Dollar Price $97.61 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 8 - -------------------------------------------------------------------------------- EATON VANCE OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Thomas J. Fetter Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - Ohio's economy made more progress in early 1999, posting solid employment gains. While the strong U.S. dollar made foreign manufacturers more competitive, U.S. consumers showed a continued appetite for autos and electronics. With nearly 190,000 new jobs created in the past year, Ohio's May jobless rate fell to 4.2%. - - The Ohio labor market continued to demonstrate strength in the first half of 1999. The state reported strong gains in service industries, especially in business and health care, according to the state's Bureau of Employment Services. The strength in these sectors more than offset losses elsewhere. - - Ohio's manufacturing sector rebounded in the first half of the year. The industrial sector showed signs of recovery, with autos, ship building and industrial equipment leading the way. Steel producers saw orders rebound somewhat despite fierce price competition from foreign producers. The auto sector enjoyed continued strong demand, especially in the truck segment. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -0.82% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $14.75 on May 31, 1999, and the reinvestment of $0.126 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -2.97% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.43 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.75 the Trust had a market yield of 5.11% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 2.2% premium to its underlying net asset value. MANAGEMENT DISCUSSION - - Insured* bonds played a significant role in the Trust's initial months of operation. Insured general obligations were in ample supply, providing quality and excellent liquidity as the Trust waited for the market to settle in late January. - - As in other states, Ohio's hospital market has become increasingly difficult in recent years, reflecting changing Medicare reimbursement rules and an increased focus on cost containment. The Trust's hospital investments have focused on those institutions that are well-positioned for the newly competitive environment. - - The Trust identified some promising situations among selected non-rated bonds. While maintaining its strict investment criterion, management found good value among hospital, utility and industrial development bonds. In addition to adding attractive yield opportunities, these issues contributed to the the Trust's broad diversification. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 8.5% BB 3.2% BBB 11.1% A 4.7% AA 22.2% AAA 50.4% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -0.82% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -2.97% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 36 Average Maturity 26.3 Yrs. Effective Maturity 23.7 Yrs. Average Rating AA- Average Call 9.7 Yrs. Average Dollar Price $97.42 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 9 - -------------------------------------------------------------------------------- EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Timothy T. Browse Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- THE ECONOMY - - Pennsylvania's unemployment rate was 4.2% for April 1999, down from 4.4% in March and 4.5% six months earlier. Personal income increased in the fourth quarter of 1998 by 0.9%, versus the national average of 1.5%. Per capita income posted a 4.4% increase from 1997, ranking 16th in the U.S. - - The state has had particular success in the area of high-tech job creation: A report released in June ranked Pennsylvania eighth in the nation in high-tech workers. Technology exports were also on the rise, totalling $6.8 billion in 1998. - - Establishing itself as a leader in community economic development, Pennsylvania has instituted a program of tax abatement for distressed urban and rural areas in the state. This program encourages tax-free private and residential investment in areas dubbed "Opportunity Zones," with a goal of fostering higher employment and business revenue. THE TRUST - -------------------------------------------------------------------------------- PERFORMANCE FOR THE YEAR-TO-DATE - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of -5.86% for the period from its inception on January 29, 1999 through May 31, 1999. That return was the result of a decrease in share price from $15.00 on January 29, 1999 to $14.00 on May 31, 1999, and the reinvestment of $0.126 in regular monthly dividends. - - Based on net asset value, the Trust had a total return of -3.38% for the period ended May 31, 1999. That return was the result of a decrease in net asset value from $15.00 on January 29, 1999 to $14.37 on May 31, 1999, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.00 the Trust had a market yield of 5.38% at May 31, 1999.(1) - - At May 31, the Trust's share price on the American Stock Exchange traded at a 2.6% discount to its underlying net asset value. MANAGEMENT DISCUSSION - - Insured* bonds constituted a significant portion of the Trust's holdings at May 31. To get close to fully invested in a timely and prudent manner, the Trust purchased a higher percentage of insured paper than it ultimately expects to carry. Management anticipates that the number of insured holdings should diminish in time, as other attractive, higher-yielding opportunities come to market. - - As in other states, the Pennsylvania hospital market has become increasingly difficult in recent years, reflecting changing Medicare reimbursement rules and an increased focus on cost containment. The Trust's hospital investments have focused on those institutions that are well-positioned for the newly competitive environment. - - Call protection is an important investment criterion for the Trust, providing a measure of protection against untimely calls and helping to maintain dividend levels. Call protection has become especially important in the past year as the decline in interest rates has resulted in a quickening of bond calls. RATING DISTRIBUTION(2) - -------------------------------------------------------------------------------- BY TOTAL INVESTMENTS NR 3.0% BBB 9.0% A 4.8% AA 7.4% AAA 75.8% - -------------------------------------------------------------------------------- Shares of the Trust 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 change. - -------------------------------------------------------------------------------- TRUST INFORMATION AS OF MAY 31, 1999 PERFORMANCE(3) - -------------------------------------------------------------------------------- Cumulative Total Return (at market value, American Stock Exchange) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -5.86% Cumulative Total Return (at net asset value) - -------------------------------------------------------------------------------- Life of Trust (1/29/99) -3.38% TRUST OVERVIEW(2) - -------------------------------------------------------------------------------- Number of Issues 45 Average Maturity 26.9 Yrs. Effective Maturity 25.3 Yrs. Average Rating AA+ Average Call 9.2 Yrs. Average Dollar Price $94.34 (1) 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. (2) Rating Distribution is determined by dividing the total market value of the holdings by the total investments of the Trust. Ratings Distribution and Trust Overview are subject to change. (3) Returns are historical and are calculated by determining the percentage change in net asset value or share price with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with this investment due to changes in market conditions. Past performance is no guarantee of future results. Investment return and market price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 10 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Certificates of Participation -- 2.9% - ---------------------------------------------------------------------------- $5,000 California Statewide Communities Development Authority, (Children's Hospital of Los Angeles), 5.25%, 8/15/29 $ 4,863,050 - ---------------------------------------------------------------------------- $ 4,863,050 - ---------------------------------------------------------------------------- Education -- 10.6% - ---------------------------------------------------------------------------- $3,000 California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 11/1/29 $ 2,888,760 3,770 California Educational Facilities Authority, (College and University), 5.10%, 4/1/23 3,650,981 2,500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 2,399,950 4,350 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 4,245,165 4,500 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 4,423,680 - ---------------------------------------------------------------------------- $ 17,608,536 - ---------------------------------------------------------------------------- Electric Utilities -- 1.7% - ---------------------------------------------------------------------------- $2,975 Guam Power Authority, 5.125%, 10/1/29(1) $ 2,859,778 - ---------------------------------------------------------------------------- $ 2,859,778 - ---------------------------------------------------------------------------- General Obligations -- 3.3% - ---------------------------------------------------------------------------- $2,000 Capistrano, Unified School District, 5.75%, 9/1/29 $ 1,989,840 3,625 Puerto Rico, Variable Rate, 7/1/27(2)(3) 3,437,878 - ---------------------------------------------------------------------------- $ 5,427,718 - ---------------------------------------------------------------------------- Hospital -- 2.4% - ---------------------------------------------------------------------------- $1,000 Stockton HFA, (Dameron Hospital), 5.70%, 12/1/14 $ 1,011,020 3,000 Washington Township, Health Care District, 5.25%, 7/1/29 2,905,110 - ---------------------------------------------------------------------------- $ 3,916,130 - ---------------------------------------------------------------------------- Housing -- 1.6% - ---------------------------------------------------------------------------- $2,765 Monterey County Housing Authority, Multifamily, (Parkside Manor Apartments), 5.00%, 1/1/29 $ 2,598,492 - ---------------------------------------------------------------------------- $ 2,598,492 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Industrial Development Revenue -- 1.2% - ---------------------------------------------------------------------------- $2,000 Los Angeles Communities Development Authority, (United Airlines, Inc.), (AMT), 5.625%, 10/1/34 $ 2,041,020 - ---------------------------------------------------------------------------- $ 2,041,020 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 4.4% - ---------------------------------------------------------------------------- $7,500 Santa Clara, Electric Revenue, (AMBAC), 5.00%, 7/1/27 $ 7,241,774 - ---------------------------------------------------------------------------- $ 7,241,774 - ---------------------------------------------------------------------------- Insured-General Obligations -- 8.8% - ---------------------------------------------------------------------------- $3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,352,508 3,000 California State, (FGIC), 5.00%, 2/1/23 2,916,630 5,500 Los Angeles Unified School District, (FGIC), 5.383%, 7/1/21 5,352,710 5,000 Temple City Unified School District, (FGIC), 5.00%, 8/1/23 4,859,550 - ---------------------------------------------------------------------------- $ 14,481,398 - ---------------------------------------------------------------------------- Insured-Hospital -- 7.2% - ---------------------------------------------------------------------------- $3,500 California Health Facilities Authority, (Kaiser Permanente), (FSA), 5.00%, 6/1/18 $ 3,405,815 7,500 California Health Facilities Authority, (Little Company of Mary Health Services), (AMBAC), 4.50%, 10/1/28 6,626,625 1,870 California Health Facilities Authority, (Residual Certificates), (MBIA), Variable Rate, 8/15/28 1,892,328 - ---------------------------------------------------------------------------- $ 11,924,768 - ---------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 5.5% - ---------------------------------------------------------------------------- $4,900 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/25 $ 1,214,955 4,000 Contra Costa County, Public Financing Authority, (MBIA), 5.00%, 6/1/28 3,860,520 4,400 San Diego (Convention Center Expansion Financing), (AMBAC), 4.75%, 4/1/28 4,083,904 - ---------------------------------------------------------------------------- $ 9,159,379 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 7.2% - ---------------------------------------------------------------------------- $7,000 Capistrano, Unified School District, (Las Flores), (MBIA), 5.00%, 9/1/23 $ 6,803,020 5,000 Pasadena, (Community Facilities District North 1), (FSA), 5.25%, 12/1/25 5,022,050 - ---------------------------------------------------------------------------- $ 11,825,070 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 11 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Transportation -- 9.1% - ---------------------------------------------------------------------------- $3,500 Alameda Transportation Corridor Authority, (MBIA), 4.75%, 1/1/25 $ 3,258,640 5,130 Foothill/Eastern Transportation Corridor Agency, (FSA), 0.00%, 1/1/26 1,248,693 5,500 San Francisco (Bay Area Rapid Transportation District), (AMBAC), 5.00%, 7/1/28 5,315,695 4,000 San Francisco City and County Airports Commission, (International Airport), (FSA), 4.75%, 5/1/29(4) 3,708,200 6,000 San Joaquin Hills Transportation Corridor Agency, (Toll Road Bonds), (MBIA), 0.00%, 1/15/25(4) 1,540,020 - ---------------------------------------------------------------------------- $ 15,071,248 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 13.8% - ---------------------------------------------------------------------------- $5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 4,842,600 4,000 East Bay Municipal Utilities District, Wastewater Treatment System, (FGIC), 5.00%, 6/1/26 3,864,880 5,250 Los Angeles Wastewater Treatment System, (FGIC), 5.00%, 6/1/28 5,066,933 2,000 San Diego County Water Authority, (FGIC), 4.75%, 5/1/28 1,856,200 7,500 San Diego Public Facilities Financing Authority, (FGIC), 5.00%, 5/15/29 7,234,725 - ---------------------------------------------------------------------------- $ 22,865,338 - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 7.2% - ---------------------------------------------------------------------------- $4,000 Duarte, COPS, 5.25%, 4/1/24 $ 3,891,520 4,000 Sacramento City Financing Authority, 5.40%, 11/1/20 4,089,440 3,750 San Mateo County Joint Powers Financing Authority, Variable Rate, 7/15/29(2)(3) 3,483,825 500 Turlock Public Financing Authority, 5.45%, 9/1/24 483,130 - ---------------------------------------------------------------------------- $ 11,947,915 - ---------------------------------------------------------------------------- Special Tax Revenue -- 2.8% - ---------------------------------------------------------------------------- $ 900 Brentwood Infrastructure Financing Authority, 5.625%, 9/2/29 $ 874,449 2,000 Corona California Public Financing Authority, 5.80%, 9/1/20(1) 2,004,360 750 Irvine (Improvement Bond Act of 1915), 5.50%, 9/2/22 733,095 750 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 710,685 250 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(2)(3) 236,895 - ---------------------------------------------------------------------------- $ 4,559,484 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Transportation -- 5.9% - ---------------------------------------------------------------------------- $3,750 Los Angeles County Metropolitan Transportation Authority, Variable Rate, 7/1/28(2)(3) $ 3,209,400 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 1,094,348 2,000 Puerto Rico Highway and Transportation Authority, 4.75%, 7/1/38 1,836,100 3,770 Puerto Rico Highway and Transportation Authority, 6.597%, 7/1/28 3,572,377 - ---------------------------------------------------------------------------- $ 9,712,225 - ---------------------------------------------------------------------------- Water and Sewer -- 4.4% - ---------------------------------------------------------------------------- $7,500 Metropolitan Water District, (Southern California Waterworks), 5.00%, 7/1/26(4) $ 7,245,974 - ---------------------------------------------------------------------------- $ 7,245,974 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $169,344,199) $165,349,297 - ----------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 56.0% of securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution ranged from 8.8% to 19.7% of total investments. (1) When-issued security. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $10,367,998 or 6.5% of the Trust's net assets. (4) Security (or a portion thereof) has been segregated to cover when-issued securities. SEE NOTES TO FINANCIAL STATEMENTS 12 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Electric Utilities -- 5.8% - --------------------------------------------------------------------------- $2,000 Burke County, GA, (Georgia Power Co.), (AMT), 5.45%, 5/1/34 $ 1,943,680 1,700 Guam Power Authority, 5.125%, 10/1/29(1) 1,634,159 2,000 Jacksonville Electric Authority, Variable Rate, 10/1/32(2)(3) 1,884,320 - --------------------------------------------------------------------------- $ 5,462,159 - --------------------------------------------------------------------------- General Obligations -- 9.0% - --------------------------------------------------------------------------- $1,000 Capistrano, CA, Unified School District, 5.75%, 9/1/29 $ 994,920 3,000 Florida Board of Education, 4.75%, 6/1/28 2,754,840 1,250 Florida State, Variable Rate, 7/1/27(2)(3) 1,160,400 3,000 Puerto Rico Public Improvement, 5.00%, 7/1/28 1,438,918 2,250 Puerto Rico, Variable Rate, 7/1/27(2)(3) 2,133,855 - --------------------------------------------------------------------------- $ 8,482,933 - --------------------------------------------------------------------------- Health Care-Miscellaneous -- 0.6% - --------------------------------------------------------------------------- $ 500 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 535,005 - --------------------------------------------------------------------------- $ 535,005 - --------------------------------------------------------------------------- Hospital -- 12.4% - --------------------------------------------------------------------------- $2,500 Escambia County Health Facilities Authority, (Charity Obligation Group), 5.00%, 11/1/28 $ 2,386,950 3,000 Highlands County Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/28 2,878,470 2,000 Maricopa County, AZ, IDA, (Mayo Clinic), 5.25%, 11/15/37 1,949,980 985 Metropolitan Government of Nashville and Davidson County, TN, (Charity Obligated Group), 5.125%, 11/1/27 939,641 2,000 Missouri HEFA, (BJC Health System), 5.00%, 5/15/38 1,853,620 1,750 Palm Beach County Health Facilities Authority, (Boca Raton Hospital), 5.00%, 12/1/23 1,674,943 - --------------------------------------------------------------------------- $ 11,683,604 - --------------------------------------------------------------------------- Industrial Development Revenue -- 1.7% - --------------------------------------------------------------------------- $1,500 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 $ 1,608,795 - --------------------------------------------------------------------------- $ 1,608,795 - --------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-Cogeneration -- 4.6% - --------------------------------------------------------------------------- $4,500 Tampa Solid Waste System, (McKay Bay Refuse to Energy), (AMT), (AMBAC), 5.00%, 10/1/21 $ 4,309,920 - --------------------------------------------------------------------------- $ 4,309,920 - --------------------------------------------------------------------------- Insured-Electric Utilities -- 6.1% - --------------------------------------------------------------------------- $2,000 Lakeland, (Electric and Water), (MBIA), 5.00%, 10/1/36 $ 1,916,800 4,000 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 3,894,680 - --------------------------------------------------------------------------- $ 5,811,480 - --------------------------------------------------------------------------- Insured-General Obligations -- 2.3% - --------------------------------------------------------------------------- $2,500 Florida State Board of Education, (Capital Outlay), (MBIA), 4.50%, 6/1/28 $ 2,207,050 - --------------------------------------------------------------------------- $ 2,207,050 - --------------------------------------------------------------------------- Insured-Hospital -- 2.4% - --------------------------------------------------------------------------- $2,500 Tampa, (Catholic Health System), (MBIA), 4.75%, 11/15/28 $ 2,273,600 - --------------------------------------------------------------------------- $ 2,273,600 - --------------------------------------------------------------------------- Insured-Special Tax Revenue -- 18.6% - --------------------------------------------------------------------------- $4,000 Jacksonville Capital Improvement Revenue, (Stadium), (AMBAC), 4.75%, 10/1/25 $ 3,708,000 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,697,924 4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 3,673,760 3,000 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 2,869,380 2,890 Village Center Community Development District, (MBIA), 4.75%, 11/1/22 2,698,249 3,000 Village Center Community Development District, (MBIA), 5.00%, 10/1/23 2,903,400 - --------------------------------------------------------------------------- $ 17,550,713 - --------------------------------------------------------------------------- Insured-Transportation -- 2.3% - --------------------------------------------------------------------------- $2,500 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27(4) $ 2,221,000 - --------------------------------------------------------------------------- $ 2,221,000 - ---------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 13 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-Utilities -- 3.1% - --------------------------------------------------------------------------- $3,000 Jupiter Island, Utility System,(South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 $ 2,890,320 - --------------------------------------------------------------------------- $ 2,890,320 - --------------------------------------------------------------------------- Insured-Water and Sewer -- 19.2% - --------------------------------------------------------------------------- $2,500 Cocoa, Water and Sewer, (FGIC), 4.50%, 10/1/22(4) $ 2,244,575 2,000 Englewood Water District Utility, (FSA), 4.75%, 10/1/23 1,862,040 3,000 Miami-Dade County, (Stormwater Utility), (AMBAC), 5.00%, 4/1/24 2,902,410 4,500 Miami-Dade County, (Water and Sewer), (FGIC), 5.00%, 10/1/29 4,333,185 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 967,940 2,000 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(2)(3) 1,698,200 4,500 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 4,155,345 - --------------------------------------------------------------------------- $ 18,163,695 - --------------------------------------------------------------------------- Pooled Loans -- 1.1% - --------------------------------------------------------------------------- $1,000 Muni Mae Tax Revenue Exempt Bond, (AMT), Variable Rate, 6/30/49(3) $ 999,970 - --------------------------------------------------------------------------- $ 999,970 - --------------------------------------------------------------------------- Senior Living / Life Care -- 2.2% - --------------------------------------------------------------------------- $1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,470,420 600 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 593,934 - --------------------------------------------------------------------------- $ 2,064,354 - --------------------------------------------------------------------------- Special Tax Revenue -- 6.6% - --------------------------------------------------------------------------- $2,200 Dade County Special Obligation, Variable Rate, 10/1/35(2) $ 2,011,768 1,000 Longleaf Community, Development District, 6.65%, 5/1/20 992,680 600 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 636,918 2,000 Orlando Capital Improvement, 5.00%, 10/1/18 1,959,800 625 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 592,238 - --------------------------------------------------------------------------- $ 6,193,404 - --------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Transportation -- 2.0% - --------------------------------------------------------------------------- $2,000 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/36 $ 1,929,660 - --------------------------------------------------------------------------- $ 1,929,660 - --------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $96,963,378) $94,387,662 - ---------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. 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 the economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 58.7% 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 financial institutions ranged from 3.0% to 27.1% of total investments. (1) When-issued security. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $7,876,745 or 8.2% of the Trust's net assets. (4) Security (or a portion thereof) has been segregated to cover when-issued securities. SEE NOTES TO FINANCIAL STATEMENTS 14 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 99.3%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Education -- 23.0% - --------------------------------------------------------------------------- $2,750 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 $ 2,699,895 1,000 Massachusetts Development Finance Agency, (Clark University), 5.00%, 7/1/28 938,120 1,250 Massachusetts Development Finance Agency, (Eastern Nazarene College), 5.625%, 4/1/29 1,215,913 2,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 2,307,225 2,500 Massachusetts HEFA, (Wellesley College), 5.125%, 7/1/39 2,397,450 2,500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 2,468,950 1,000 Massachusetts IFA, (Concord Academy), 5.50%, 9/1/27 978,160 - --------------------------------------------------------------------------- $ 13,005,713 - --------------------------------------------------------------------------- Electric Utilities -- 1.2% - --------------------------------------------------------------------------- $ 720 Guam Power Authority, 5.125%, 10/1/29(1) $ 692,113 - --------------------------------------------------------------------------- $ 692,113 - --------------------------------------------------------------------------- General Obligations -- 2.1% - --------------------------------------------------------------------------- $1,250 Puerto Rico, Variable Rate, 7/1/27(2)(3) $ 1,185,475 - --------------------------------------------------------------------------- $ 1,185,475 - --------------------------------------------------------------------------- Health Care-Miscellaneous -- 1.2% - --------------------------------------------------------------------------- $ 700 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 5.75%, 2/1/29 $ 689,164 - --------------------------------------------------------------------------- $ 689,164 - --------------------------------------------------------------------------- Hospital -- 8.2% - --------------------------------------------------------------------------- $1,400 Massachusetts HEFA, (Caritas Christi Obligation Group), 5.625%, 7/1/20(4) $ 1,380,372 500 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.25%, 7/15/18 475,635 100 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.375%, 7/15/28 94,722 2,800 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 2,687,524 - --------------------------------------------------------------------------- $ 4,638,253 - --------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-Education -- 23.0% - --------------------------------------------------------------------------- $1,500 Massachusetts Development Finance Agency, (Brooks School), (MBIA), 5.00%, 7/1/29 $ 1,429,365 2,500 Massachusetts HEFA, (Brandeis University), (MBIA), 4.75%, 10/1/28 2,287,625 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 954,180 850 Massachusetts HEFA, Residual Certificates, (Berklee College of Music), (MBIA), Variable Rate, 10/1/27(2)(3) 801,516 1,000 Massachusetts IFA, (College of the Holy Cross), (MBIA), 5.00%, 9/1/23 963,850 3,000 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28 2,747,460 2,000 Massachusetts IFA, (Western New England College), (AMBAC), 5.00%, 7/1/28 1,907,140 2,000 Massachusetts IFA, (WGBH), (AMBAC), 5.00%, 3/1/28 1,907,520 - --------------------------------------------------------------------------- $ 12,998,656 - --------------------------------------------------------------------------- Insured-Hospital -- 11.9% - --------------------------------------------------------------------------- $1,500 Massachusetts HEFA, (Catholic Health East), (AMBAC), 5.00%, 11/15/28(5) $ 1,417,245 500 Massachusetts HEFA, (Hallmark Health), (FSA), 5.00%, 7/1/27 472,955 1,000 Massachusetts HEFA, (Harvard Pilgrim), (FSA), 5.00%, 7/1/28 945,090 2,500 Massachusetts HEFA, (Southcoast Health System), (MBIA), 4.75%, 7/1/27 2,261,300 1,700 Massachusetts HEFA, (UMass Memorial), (AMBAC), 5.00%, 7/1/28 1,606,653 - --------------------------------------------------------------------------- $ 6,703,243 - --------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 4.7% - --------------------------------------------------------------------------- $2,750 Plymouth Country, (Plymouth County Correctional Facility), (AMBAC), 5.00%, 4/1/22 $ 2,646,545 - --------------------------------------------------------------------------- $ 2,646,545 - --------------------------------------------------------------------------- Insured-Transportation -- 5.3% - --------------------------------------------------------------------------- $3,200 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37(5) $ 3,006,976 - --------------------------------------------------------------------------- $ 3,006,976 - ---------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 15 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-Water and Sewer -- 2.5% - --------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, (FGIC), 4.75%, 2/1/26 $ 1,377,795 - --------------------------------------------------------------------------- $ 1,377,795 - --------------------------------------------------------------------------- Senior Living / Life Care -- 2.6% - --------------------------------------------------------------------------- $1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,469,025 - --------------------------------------------------------------------------- $ 1,469,025 - --------------------------------------------------------------------------- Special Tax Revenue -- 3.1% - --------------------------------------------------------------------------- $1,050 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 $ 994,959 800 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(2)(3) 758,064 - --------------------------------------------------------------------------- $ 1,753,023 - --------------------------------------------------------------------------- Transportation -- 10.5% - --------------------------------------------------------------------------- $1,350 Massachusetts Bay Transportation Authority, Variable Rate, 3/1/27(2)(3) $ 1,227,096 1,000 Massachusetts Port Authority, 5.00%, 7/1/23 962,690 1,500 Massachusetts Port Authority, 5.00%, 7/1/28 1,421,865 1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, Variable Rate, 1/1/39 902,957 1,500 Puerto Rico Highway and Transportation Authority, 6.597%, 7/1/28 1,421,370 - --------------------------------------------------------------------------- $ 5,935,978 - --------------------------------------------------------------------------- Total Tax-Exempt Investments (identified cost $57,490,052) $56,101,959 - --------------------------------------------------------------------------- COMMON STOCKS -- 0.7%
SECURITY SHARES VALUE - --------------------------------------------------------------------------- Investment Companies -- 0.7% - --------------------------------------------------------------------------- Nuveen Massachusetts Premium Income Municipal Fund 13,000 $ 208,813 Van Kampen Massachusetts Value Municipal Income 14,500 212,969 Trust - --------------------------------------------------------------------------- $ 421,782 - --------------------------------------------------------------------------- Total Common Stocks (identified cost $433,537) $ 421,782 - --------------------------------------------------------------------------- Total Investments -- 100.0% (identified cost $57,923,589) $56,523,741 - ---------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. 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 the economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 47.3% 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 financial institutions ranged from 2.4% to 25.6% of total investments. (1) When-issued security. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $3,972,151 or 6.9% of the Trust's net assets. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (5) Security (or a portion thereof) has been segregated to cover when-issued securities. SEE NOTES TO FINANCIAL STATEMENTS 16 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Electric Utilities -- 1.1% - --------------------------------------------------------------------------- $ 500 Guam Power Authority, 5.25%, 10/1/13 $ 500,365 - --------------------------------------------------------------------------- $ 500,365 - --------------------------------------------------------------------------- General Obligations -- 4.0% - --------------------------------------------------------------------------- $1,000 Michigan State Building Authority Revenue, 4.75%, 10/15/21 $ 930,210 1,000 Puerto Rico, Variable Rate, 7/1/27(1)(2) 948,380 - --------------------------------------------------------------------------- $ 1,878,590 - --------------------------------------------------------------------------- Hospital -- 14.4% - --------------------------------------------------------------------------- $1,000 Dickinson County Healthcare Systems, 5.80%, 11/1/24 $ 997,320 1,000 Flint Hospital Building Authority, (Hurley Medical Center), 5.375%, 7/1/20 938,210 1,000 Michigan Health Facilities Authority, (Charity Obligated Group), 5.125%, 11/1/29(3) 944,150 2,000 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 1,929,320 2,275 Michigan Health Facilities Authority, (McLaren Obligated Group), 4.50%, 10/15/21 1,946,172 - --------------------------------------------------------------------------- $ 6,755,172 - --------------------------------------------------------------------------- Industrial Development Revenue -- 3.4% - --------------------------------------------------------------------------- $ 500 Michigan Strategic Fund, (S.D. Warren Co.), (AMT), 7.375%, 1/15/22 $ 546,820 1,000 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 1,056,360 - --------------------------------------------------------------------------- $ 1,603,180 - --------------------------------------------------------------------------- Insured-Education -- 7.7% - --------------------------------------------------------------------------- $1,000 Central Michigan University, (FGIC), 5.00%, 10/1/23 $ 965,130 1,250 Central Michigan University, (FGIC), 5.00%, 10/1/27 1,197,875 1,000 Ferris State University, (AMBAC), 5.00%, 10/1/23 965,130 500 Ferris State University, (AMBAC), 5.00%, 10/1/28 478,835 - --------------------------------------------------------------------------- $ 3,606,970 - --------------------------------------------------------------------------- Insured-General Obligations -- 48.4% - --------------------------------------------------------------------------- $2,000 Byron Center Public Schools, (FSA), 5.00%, 5/1/24 $ 1,926,820 2,000 Ceder Springs Public School, (FSA), 5.00%, 5/1/24 1,926,820 1,100 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 1,009,866 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-General Obligations (continued) - --------------------------------------------------------------------------- $2,500 Detroit School District, (FGIC), 4.75%, 5/1/28 $ 2,302,799 1,250 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 1,156,138 300 Fowlerville Community Schools, (FSA), 4.75%, 5/1/19 282,120 2,000 Greenville Public Schools, (FSA), 5.00%, 5/1/24 1,926,820 2,000 Hamilton Community School District, (FGIC), 5.00%, 5/1/24 1,926,820 1,000 Haslett Public School District, (FSA), 4.75%, 5/1/26 919,420 1,000 Holton Public Schools, (FGIC), 5.00%, 5/1/28 957,960 1,000 Lincoln Consolidated School District, (FSA), 5.00%, 5/1/28(3) 957,960 2,250 Lincoln Park School District, (FGIC), 5.00%, 5/1/26 2,158,357 1,000 Memphis Community Schools, (FGIC), 5.25%, 5/1/29(4) 991,750 1,000 Michigan State Trunk Line, (MBIA), 5.00%, 11/1/26 958,930 340 Portage Public Schools, (FSA), 4.50%, 5/1/17 313,014 2,000 Three Rivers Community Schools, (FSA), 5.00%, 5/1/23 1,930,920 1,000 Ypsilanti School District, (FGIC), 5.375%, 5/1/26 1,007,650 - --------------------------------------------------------------------------- $ 22,654,164 - --------------------------------------------------------------------------- Insured-Hospital -- 6.1% - --------------------------------------------------------------------------- $1,500 Lenawee County Hospital Finance, (Lenawee Health Alliance), (AMBAC), 5.00%, 7/1/28 $ 1,417,635 1,500 Michigan Health Facilities Authority, (Detroit Medical Group), (AMBAC), 5.25%, 8/15/27 1,457,955 - --------------------------------------------------------------------------- $ 2,875,590 - --------------------------------------------------------------------------- Insured-Housing -- 2.7% - --------------------------------------------------------------------------- $1,250 Michigan State Housing Development Authority, (MBIA), 5.30%, 10/1/37(3) $ 1,237,750 - --------------------------------------------------------------------------- $ 1,237,750 - --------------------------------------------------------------------------- Insured-Water and Sewer -- 3.0% - --------------------------------------------------------------------------- $1,500 Grand Rapids Sanitary Sewer System, (FGIC), 4.75%, 1/1/28 $ 1,382,250 - --------------------------------------------------------------------------- $ 1,382,250 - --------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 0.5% - --------------------------------------------------------------------------- $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 253,895 - --------------------------------------------------------------------------- $ 253,895 - ---------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 17 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Special Tax Revenue -- 2.5% - --------------------------------------------------------------------------- $ 650 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 $ 615,927 600 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(1)(2) 568,548 - --------------------------------------------------------------------------- $ 1,184,475 - --------------------------------------------------------------------------- Transportation -- 6.2% - --------------------------------------------------------------------------- $ 750 Kent County Airport Facility, Variable Rate, 1/1/25(1)(2) $ 696,240 250 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/36 241,208 1,000 Puerto Rico Highway and Transportation Authority, 6.597%, 7/1/28 947,580 1,175 Wayne Charter County Airport, Variable Rate, 12/1/28(1)(2) 1,032,120 - --------------------------------------------------------------------------- $ 2,917,148 - --------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $47,920,400) $46,849,549 - ---------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. 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 the economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 67.8% 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 financial institutions ranged from 9.2% to 27.5% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $3,245,288 or 6.9% of the Trust's net assets. (3) Security (or a portion thereof) has been segregated to cover when-issued securities. (4) When-issued security. SEE NOTES TO FINANCIAL STATEMENTS 18 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 98.6%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 2.5% - ---------------------------------------------------------------------------- $2,400 New Jersey EDA, (Vineland Cogeneration), (AMT), 7.875%, 6/1/19 $ 2,579,856 - ---------------------------------------------------------------------------- $ 2,579,856 - ---------------------------------------------------------------------------- Education -- 5.6% - ---------------------------------------------------------------------------- $4,310 New Jersey Educational Facilities Authority, (Institute of Advanced Studies), 5.00%, 7/1/28 $ 4,235,178 1,500 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/29 1,471,320 - ---------------------------------------------------------------------------- $ 5,706,498 - ---------------------------------------------------------------------------- Electric Utilities -- 6.4% - ---------------------------------------------------------------------------- $2,000 Guam Power Authority, 5.125%, 10/1/29(1) $ 1,922,540 4,800 Puerto Rico Electric Power Authority, 5.00%, 7/1/28 4,604,543 - ---------------------------------------------------------------------------- $ 6,527,083 - ---------------------------------------------------------------------------- General Obligations -- 4.6% - ---------------------------------------------------------------------------- $2,750 New Jersey State, 4.50%, 2/1/19 $ 2,535,170 2,250 Puerto Rico, Variable Rate, 7/1/27(2)(3) 2,133,855 - ---------------------------------------------------------------------------- $ 4,669,025 - ---------------------------------------------------------------------------- Hospital -- 5.4% - ---------------------------------------------------------------------------- $2,250 New Jersey Health Care Facilities, (Capital Health System), 5.25%, 7/1/27 $ 2,064,780 1,665 New Jersey Health Care Facilities, (St. Barnabas Health), Variable Rate, 7/1/28(2)(3) 1,429,669 2,000 New Jersey Health Care Facilities, (St. Elizabeth Hospital), 6.00%, 7/1/20(4) 2,071,840 - ---------------------------------------------------------------------------- $ 5,566,289 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 3.9% - ---------------------------------------------------------------------------- $2,100 New Jersey EDA, (Continental Airlines), (AMT), 5.50%, 4/1/28 $ 2,081,520 1,750 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 1,876,928 - ---------------------------------------------------------------------------- $ 3,958,448 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Economic Development Revenue -- 2.4% - ---------------------------------------------------------------------------- $2,520 Essex County Improvement Authority, (Performing Arts Center), (MBIA), 5.00%, 9/1/18 $ 2,512,087 - ---------------------------------------------------------------------------- $ 2,512,087 - ---------------------------------------------------------------------------- Insured-Education -- 8.9% - ---------------------------------------------------------------------------- $5,000 New Brunswick Housing Authority, (Rutgers University), (FGIC), 4.625%, 7/1/24 $ 4,635,699 2,375 New Jersey Higher Education Assistance, (MBIA), (AMT), 5.25%, 6/1/18 2,383,384 2,230 New Jersey State Educational Facilities Authority, (Ramapo College), (AMBAC), 4.625%, 7/1/28 2,052,782 - ---------------------------------------------------------------------------- $ 9,071,865 - ---------------------------------------------------------------------------- Insured-General Obligations -- 8.9% - ---------------------------------------------------------------------------- $1,200 Manalapan-Englishtown, (FGIC), 5.00%, 12/1/19 $ 1,196,184 1,000 Moorestown Township School District, (FGIC), 5.00%, 1/1/28 985,440 1,250 Plainfield Board of Education, (FSA), 5.00%, 8/1/20 1,242,650 1,500 Sparta Township School District, (MBIA), 5.00%, 9/1/26 1,468,185 1,265 Wall Township School District, (FSA), 4.50%, 7/15/19 1,173,869 2,235 Wall Township School District, (FSA), 4.50%, 7/15/20 2,064,023 1,000 Wall Township School District, (FSA), 4.75%, 7/15/23 953,010 - ---------------------------------------------------------------------------- $ 9,083,361 - ---------------------------------------------------------------------------- Insured-Hospital -- 8.7% - ---------------------------------------------------------------------------- $2,410 New Jersey Health Care Facilities, (CentraState Medical Center), (AMBAC), 4.50%, 7/1/28 $ 2,136,947 4,750 New Jersey Health Care Facilities, (Virtua Health Issue), (FSA), 4.50%, 7/1/28 4,218,238 2,775 New Jersey Health Care Finance Revenue, (St. Barnabas Health), (MBIA), 4.75%, 7/1/28 2,578,863 - ---------------------------------------------------------------------------- $ 8,934,048 - ---------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 4.4% - ---------------------------------------------------------------------------- $4,750 New Jersey EDA, (Educational Testing Service), (MBIA), 4.75%, 5/15/25(5) $ 4,476,258 - ---------------------------------------------------------------------------- $ 4,476,258 - ---------------------------------------------------------------------------- Insured-Solid Waste -- 0.9% - ---------------------------------------------------------------------------- $1,000 Plainsfield Utilities Authority, Solid Waste Revenue, (FSA), 4.75%, 12/15/23 $ 947,930 - ---------------------------------------------------------------------------- $ 947,930 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 19 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 6.9% - ---------------------------------------------------------------------------- $4,500 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 9/1/20 $ 4,121,685 3,200 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 3/1/24 2,908,480 - ---------------------------------------------------------------------------- $ 7,030,165 - ---------------------------------------------------------------------------- Insured-Transportation -- 9.3% - ---------------------------------------------------------------------------- $2,000 Delaware River Port Authority, (MBIA), 5.00%, 1/1/26 $ 1,958,140 5,900 New Jersey State Transportation Authority, (FSA), 4.50%, 6/15/19 5,462,160 2,125 South Jersey Transportation Authority, (AMBAC), 5.00%, 11/1/29 2,071,408 - ---------------------------------------------------------------------------- $ 9,491,708 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 0.9% - ---------------------------------------------------------------------------- $1,000 Plainfield, Municipal Utilities Authority, Sewer Revenue, (FSA), 4.75%, 12/15/23 $ 947,930 - ---------------------------------------------------------------------------- $ 947,930 - ---------------------------------------------------------------------------- Special Tax Revenue -- 2.3% - ---------------------------------------------------------------------------- $1,375 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 $ 1,302,923 1,125 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(2)(3) 1,066,028 - ---------------------------------------------------------------------------- $ 2,368,951 - ---------------------------------------------------------------------------- Transportation -- 13.8% - ---------------------------------------------------------------------------- $2,750 New Jersey State Highway Authority, Garden State Parkway, 6.00%, 1/1/19 $ 3,088,993 1,500 New Jersey State Transportation Authority, Variable Rate, 6/15/17(2)(3) 1,470,060 6,000 Port Authority of New York and New Jersey, 4.75%, 8/1/33 5,529,839 1,600 Port Authority of New York and New Jersey, 8.94%, 3/1/28 1,771,744 2,450 Puerto Rico Highway and Transportation Authority, 6.597%, 7/1/28 2,321,571 - ---------------------------------------------------------------------------- $ 14,182,207 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Utilities-Electrical and Gas -- 2.8% - ---------------------------------------------------------------------------- $3,000 New Jersey EDA, (Natural Gas Facilities Revenue), 5.25%, 11/1/33(4) $ 2,900,280 - ---------------------------------------------------------------------------- $ 2,900,280 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments (identified cost $102,978,527) $100,953,989 - ---------------------------------------------------------------------------- COMMON STOCKS -- 1.4%
SECURITY SHARES VALUE - ----------------------------------------------------------------------------- Investment Companies -- 1.4% - ----------------------------------------------------------------------------- Nuveen New Jersey Investment Quality Municipal Fund 40,300 $ 649,838 Van Kampen Trust for Investment Grade New Jersey 47,300 798,188 Municipals Fund - ----------------------------------------------------------------------------- $ 1,448,026 - ----------------------------------------------------------------------------- Total Common Stocks (identified cost $1,536,054) $ 1,448,026 - ----------------------------------------------------------------------------- Total Investments -- 100.0% (identified cost $104,514,581) $102,402,015 - -----------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 51.3% 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 financial institution ranged from 6.1% to 21.9% of total investments. (1) When-issued security. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $6,099,612 or 6.0% of the Trust's net assets. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (5) Security (or a portion thereof) has been segregated to cover when-issued securities. SEE NOTES TO FINANCIAL STATEMENTS 20 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 2.6% - ---------------------------------------------------------------------------- $2,500 New York IDA, (Brooklyn Navy Yard $ 2,563,675 Cogeneration), 5.75%, 10/1/36 650 Suffolk County IDA, (Nissequogue 652,841 Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23(1) - ---------------------------------------------------------------------------- $ 3,216,516 - ---------------------------------------------------------------------------- Education -- 9.1% - ---------------------------------------------------------------------------- $2,500 New York State Dormitory Authority, $ 2,273,925 (Rockefeller University), 4.75%, 7/1/37 2,750 New York State Dormitory Authority, 2,641,980 (Rockefeller University), 5.00%, 7/1/28 7,100 New York State Dormitory Authority, 6,442,327 (State University Educational Facilities), 4.75%, /15/28(1) - ---------------------------------------------------------------------------- $ 11,358,232 - ---------------------------------------------------------------------------- Electric Utilities -- 8.5% - ---------------------------------------------------------------------------- $6,305 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 $ 6,201,346 4,400 Long Island Power Authority, Electric System Revenue, 5.50%, 12/1/29 4,451,964 - ---------------------------------------------------------------------------- $ 10,653,310 - ---------------------------------------------------------------------------- General Obligations -- 7.9% - ---------------------------------------------------------------------------- $7,870 New York City, 5.00%, 3/15/29 $ 7,422,196 2,625 Puerto Rico, Variable Rate, 7/1/27(2)(3) 2,489,498 - ---------------------------------------------------------------------------- $ 9,911,694 - ---------------------------------------------------------------------------- Hospital -- 6.3% - ---------------------------------------------------------------------------- $3,500 New York City, Health and Hospital Corp., 5.25%, 2/15/17 $ 3,432,485 3,400 New York State Dormitory Authority, (Department of Health), 5.00%, 7/1/18 3,248,802 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,224,950 - ---------------------------------------------------------------------------- $ 7,906,237 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 7.1% - ---------------------------------------------------------------------------- $ 250 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 249,213 500 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 492,800 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Industrial Development Revenue (continued) - ---------------------------------------------------------------------------- $1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29(4) $ 1,211,938 3,600 New York City IDA, (American Airlines, Inc.), (AMT), 5.40%, 7/1/20 3,620,160 3,400 New York IDA, (British Airways PLC), (AMT), 5.25%, 12/1/32 3,305,990 - ---------------------------------------------------------------------------- $ 8,880,101 - ---------------------------------------------------------------------------- Insured-Education -- 10.6% - ---------------------------------------------------------------------------- $3,500 New York State Dormitory Authority, (City University), (AMBAC), 5.00%, 7/1/23 $ 3,374,035 2,610 New York State Dormitory Authority, (Hamilton College), (MBIA), 4.75%, 7/1/20 2,455,723 6,875 New York State Dormitory Authority, (New York University), (MBIA), 5.75%, 7/1/27 7,499,868 - ---------------------------------------------------------------------------- $ 13,329,626 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 2.7% - ---------------------------------------------------------------------------- $3,400 New York State Energy Research and Development Authority, (Niagara Mohawk Power), (AMBAC), 5.15%, 11/1/25 $ 3,334,890 - ---------------------------------------------------------------------------- $ 3,334,890 - ---------------------------------------------------------------------------- Insured-Hospital -- 4.3% - ---------------------------------------------------------------------------- $5,750 New York State Dormitory Authority, (New York Presbyterian Hospital), (AMBAC), 4.75%, 8/1/27 $ 5,325,190 - ---------------------------------------------------------------------------- $ 5,325,190 - ---------------------------------------------------------------------------- Insured-Transportation -- 12.4% - ---------------------------------------------------------------------------- $1,500 Metropolitan Transportation Authority of New York, (FGIC), 4.75%, 7/1/26 $ 1,383,015 1,400 Metropolitan Transportation Authority of New York, (FGIC), 4.75%, 7/1/26 1,290,814 1,000 Metropolitan Transportation Authority of New York, (FGIC), 4.875%, 7/1/18 962,670 6,380 Metropolitan Transportation Authority of New York, (FSA), 5.25%, 4/1/23(4) 6,375,215 5,500 Triborough Bridge and Tunnel Authority, (MBIA), 5.25%, 1/1/28(1) 5,495,655 - ---------------------------------------------------------------------------- $ 15,507,369 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 21 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 3.8% - ---------------------------------------------------------------------------- $5,000 New York State Urban Development Corp., (Capital Facilities), 5.00%, 1/1/20 $ 4,756,000 - ---------------------------------------------------------------------------- $ 4,756,000 - ---------------------------------------------------------------------------- Special Tax Revenue -- 4.9% - ---------------------------------------------------------------------------- $3,400 New York State LGAC, 5.375%, 4/1/19 $ 3,433,388 1,700 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 1,610,886 1,175 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(2)(3) 1,113,407 - ---------------------------------------------------------------------------- $ 6,157,681 - ---------------------------------------------------------------------------- Transportation -- 13.1% - ---------------------------------------------------------------------------- $2,250 New York State Thruway Authority, 5.00%, 1/1/25(5) $ 11,729,497 1,800 Port Authority of New York and New Jersey, 8.94%, 3/1/28 1,993,212 2,825 Puerto Rico Highway and Transportation Authority, Variable Rate, 7/1/28 2,676,914 - ---------------------------------------------------------------------------- $ 16,399,623 - ---------------------------------------------------------------------------- Water and Sewer -- 6.7% - ---------------------------------------------------------------------------- $1,000 New York City Municipal Water Finance Authority, 5.00%, 6/15/27 $ 951,520 7,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29(5) 7,404,824 - ---------------------------------------------------------------------------- $ 8,356,344 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $127,699,276) $125,092,813 - ----------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. 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 the risk associated with such economic developments, at May 31, 1999, 30.0% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institution ranged from 2.9% to 12.4% of total investments. (1) Security (or a portion thereof) has been segregated to cover when-issued securities. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1993. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $3,602,905 or 3.0% of the Trust's net assets. (4) When-issued security. (5) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 22 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Education -- 2.2% - --------------------------------------------------------------------------- $1,500 Ohio State Higher Educational Facilities, (Oberlin College), Variable Rate, 10/1/29(1)(2) $ 1,371,270 - --------------------------------------------------------------------------- $ 1,371,270 - --------------------------------------------------------------------------- Electric Utilities -- 3.7% - --------------------------------------------------------------------------- $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 503,900 1,105 Guam Power Authority, 5.125%, 10/1/29(3) 1,062,203 750 Ohio State Water Development Authority, Pollution Control Facilities, (Cleveland Electric), (AMT), 6.10%, 8/1/20 767,325 - --------------------------------------------------------------------------- $ 2,333,428 - --------------------------------------------------------------------------- General Obligations -- 6.6% - --------------------------------------------------------------------------- $1,750 Chagrin Falls, (Village School District), 5.375%, 12/1/22 $ 1,770,773 1,000 Gahanna-Jefferson Public Schools, 4.75%, 12/1/21 929,180 1,500 Puerto Rico, Variable Rate, 7/1/27(1)(2) 1,422,570 - --------------------------------------------------------------------------- $ 4,122,523 - --------------------------------------------------------------------------- Hospital -- 20.2% - --------------------------------------------------------------------------- $3,250 Cuyahoga County Health Care Facilities, (Cleveland Health Clinic), 5.125%, 1/1/29(4) $ 3,120,845 1,755 Cuyahoga County, Health Care Facilities, (Benjamin Rose Institute), 5.50%, 12/1/28(4) 1,712,476 5,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 4,848,599 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,219,725 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,696,433 - --------------------------------------------------------------------------- $ 12,598,078 - --------------------------------------------------------------------------- Housing -- 6.2% - --------------------------------------------------------------------------- $1,750 Ohio HFA (GNMA COLL), 5.25%, 9/1/30 $ 1,738,415 1,000 Ohio HFA (GNMA COLL), (AMT), 6.375%, 3/1/25 1,062,120 1,000 Ohio HFA (GNMA COLL), (AMT), 6.70%, 3/1/25 1,062,980 - --------------------------------------------------------------------------- $ 3,863,515 - --------------------------------------------------------------------------- Industrial Development Revenue -- 8.6% - --------------------------------------------------------------------------- $1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.375%, 9/15/27 $ 1,205,888 1,000 Dayton Special Facilities Revenue, (Emery Airline Freight), 5.625%, 2/1/18 1,001,900 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Industrial Development Revenue (continued) - --------------------------------------------------------------------------- $1,300 Ohio State Environmental Improvement, (USX Corp.), 5.625%, 5/1/29 $ 1,301,053 750 Ohio State Solid Waste Disposal, (USG Corp.), 5.65%, 3/1/33 748,245 1,100 Ohio State Solid Waste Disposal, (USG Corp.), (AMT), 5.60%, 8/1/32 1,089,264 - --------------------------------------------------------------------------- $ 5,346,350 - --------------------------------------------------------------------------- Insured-Education -- 6.5% - --------------------------------------------------------------------------- $4,000 Ohio University, General Receipts, (Athens), (FSA), 5.25%, 12/1/19(5) $ 4,020,840 - --------------------------------------------------------------------------- $ 4,020,840 - --------------------------------------------------------------------------- Insured-General Obligations -- 19.7% - --------------------------------------------------------------------------- $2,170 Reynoldsburg Capital Facilities, (FGIC), 4.75%, 12/1/23 $ 2,062,086 4,250 South-Western City School District, Franklin and Pickway Counties, (AMBAC), 4.75%, 12/1/26 3,933,800 6,335 Southwest Licking, (FGIC), 5.15%, 12/1/26(5) 6,266,011 - --------------------------------------------------------------------------- $ 12,261,897 - --------------------------------------------------------------------------- Insured-Hospital -- 2.8% - --------------------------------------------------------------------------- $1,915 Hamilton County, (Childrens Hospital Medical Center), (MBIA), 4.75%, 5/15/28 $ 1,742,803 - --------------------------------------------------------------------------- $ 1,742,803 - --------------------------------------------------------------------------- Insured-Water and Sewer -- 10.0% - --------------------------------------------------------------------------- $1,535 Butler County Sewer System Revenue, (FGIC), 5.10%, 12/1/19 $ 1,518,637 4,000 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 3,729,120 1,000 Lebanon Mortgage Sewer System, (AMBAC), 5.35%, 12/1/24 1,003,830 - --------------------------------------------------------------------------- $ 6,251,587 - --------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 2.8% - --------------------------------------------------------------------------- $1,730 Ohio State Building Authority, (Juvenile Correctional Facility), 5.125%, 10/1/18 $ 1,717,302 - --------------------------------------------------------------------------- $ 1,717,302 - --------------------------------------------------------------------------- Senior Living / Life Care -- 1.9% - --------------------------------------------------------------------------- $1,200 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 $ 1,194,648 - --------------------------------------------------------------------------- $ 1,194,648 - ---------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 23 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Solid Waste -- 0.6% - --------------------------------------------------------------------------- $ 400 Ohio State Water Development Authority, Solid Waste Disposal Revenue, (Bay Shore Power), (AMT), 5.875%, 9/1/20 $ 406,148 - --------------------------------------------------------------------------- $ 406,148 - --------------------------------------------------------------------------- Special Tax Revenue -- 2.7% - --------------------------------------------------------------------------- $ 875 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 $ 829,133 875 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28(1)(2) 829,133 - --------------------------------------------------------------------------- $ 1,658,266 - --------------------------------------------------------------------------- Transportation -- 4.0% - --------------------------------------------------------------------------- $1,500 Puerto Rico Highway and Transportation Authority, 6.597%, 7/1/28 $ 1,421,370 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 1,088,714 - --------------------------------------------------------------------------- $ 2,510,084 - --------------------------------------------------------------------------- Utilities -- 1.5% - --------------------------------------------------------------------------- $1,000 Ohio State Air Quality Development Authority, Variable Rate, 5/1/26(1)(2) $ 944,160 - --------------------------------------------------------------------------- $ 944,160 - --------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $63,518,064) $62,342,899 - ---------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 38.9% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institution ranged from 6.4% to 15.8% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $4,567,133 or 7.2% of the Trust's net assets. (3) When-issued security. (4) Security (or a portion thereof) has been segregated to cover when-issued securities. (5) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 24 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 100.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Certificates of Participation -- 0.8% - --------------------------------------------------------------------------- $ 500 Cliff House Trust (AMT), 6.625%, 6/1/27 $ 500,000 - --------------------------------------------------------------------------- $ 500,000 - --------------------------------------------------------------------------- Cogeneration -- 0.9% - --------------------------------------------------------------------------- $ 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 $ 555,290 - --------------------------------------------------------------------------- $ 555,290 - --------------------------------------------------------------------------- Education -- 5.5% - --------------------------------------------------------------------------- $3,000 Pennsylvania HEFA, (University of Pennsylvania), 4.625%, 7/15/30 $ 2,669,790 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 591,288 - --------------------------------------------------------------------------- $ 3,261,078 - --------------------------------------------------------------------------- Electric Utilities -- 1.9% - --------------------------------------------------------------------------- $1,200 Puerto Rico Electric Power Authority, 5.00%, 7/1/28 $ 1,151,136 - --------------------------------------------------------------------------- $ 1,151,136 - --------------------------------------------------------------------------- Escrowed / Prerefunded -- 1.2% - --------------------------------------------------------------------------- $2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 $ 705,760 - --------------------------------------------------------------------------- $ 705,760 - --------------------------------------------------------------------------- Gas Utilities -- 2.0% - --------------------------------------------------------------------------- $1,325 Philadelphia Natural Gas Works, Variable Rate, 7/1/28(1) $ 1,213,329 - --------------------------------------------------------------------------- $ 1,213,329 - --------------------------------------------------------------------------- General Obligations -- 5.4% - --------------------------------------------------------------------------- $1,000 Puerto Rico, 4.50%, 7/1/23 $ 892,440 1,000 Puerto Rico, 4.75%, 7/1/23 928,820 1,500 Puerto Rico, Variable Rate, 7/1/27(1)(2) 1,422,570 - --------------------------------------------------------------------------- $ 3,243,830 - --------------------------------------------------------------------------- Hospital -- 2.0% - --------------------------------------------------------------------------- $1,100 Montgomery County HEFA, (Montgomery Hospital), 6.375%, 7/1/07 $ 1,170,235 - --------------------------------------------------------------------------- $ 1,170,235 - --------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Housing -- 3.0% - --------------------------------------------------------------------------- $1,700 Pennsylvania HFA, Single Family, (AMT), 5.85%, 10/1/27 $ 1,768,459 - --------------------------------------------------------------------------- $ 1,768,459 - --------------------------------------------------------------------------- Industrial Development Revenue -- 5.9% - --------------------------------------------------------------------------- $1,000 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 1,044,130 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 569,544 1,800 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23(3) 1,901,448 - --------------------------------------------------------------------------- $ 3,515,122 - --------------------------------------------------------------------------- Insured-Education -- 17.7% - --------------------------------------------------------------------------- $1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29(4) $ 974,410 500 Pennsylvania HEFA, (Drexel University), (MBIA), 4.80%, 5/1/28 464,245 3,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(3) 2,872,109 1,700 Pennsylvania HEFA, (Thomas Jefferson University), (AMBAC), 5.00%, 7/1/19 1,656,803 1,750 University of Pittsburgh, (FGIC), 5.125%, 6/1/22 1,716,383 3,000 Washington County Authority, (Girard College), (MBIA), 5.00%, 5/15/28 2,873,849 - --------------------------------------------------------------------------- $ 10,557,799 - --------------------------------------------------------------------------- Insured-General Obligations -- 15.1% - --------------------------------------------------------------------------- $ 500 Butler School District, (FGIC), 4.75%, 10/1/22 $ 464,965 1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 450,647 1,000 McGuffey School District, (AMBAC), 4.75%, 8/1/28 920,800 1,850 Philadelphia School District, (MBIA), 4.75%, 4/1/27 1,701,390 3,000 Philadelphia, (FSA), 5.00%, 3/15/28 2,873,999 1,000 Ridley School District, (FGIC), 5.00%, 11/15/29 957,060 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 66,828 1,700 Spring Ford School District, (FGIC), 4.75%, 3/1/25 1,572,670 - --------------------------------------------------------------------------- $ 9,008,359 - --------------------------------------------------------------------------- Insured-Hospital -- 23.0% - --------------------------------------------------------------------------- $3,000 Beaver County, Hospital Authority, (Valley Health Systems, Inc.), (AMBAC), 5.00%, 5/15/28 $ 2,835,660 1,000 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 919,900
SEE NOTES TO FINANCIAL STATEMENTS 25 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 1999 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Insured-Hospital (continued) - --------------------------------------------------------------------------- $2,250 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 $ 2,188,553 1,250 Montgomery County HEFA, (Pottstown Healthcare Corp.), (FSA), 5.00%, 1/1/27 1,182,913 1,000 Pennsylvania HEFA, (UPMC Health System), (FSA), 5.00%, 8/1/29 944,240 3,000 Sharon Health System Authority, (Sharon Regional Health System), (MBIA), 5.00%, 12/1/28 2,834,430 3,000 South Fork Municipal Authority, (Conemaugh Valley Memorial Hospital), (MBIA), 5.00%, 7/1/28 2,835,270 - --------------------------------------------------------------------------- $ 13,740,966 - --------------------------------------------------------------------------- Insured-Miscellaneous -- 4.1% - --------------------------------------------------------------------------- $2,450 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 $ 2,415,333 - --------------------------------------------------------------------------- $ 2,415,333 - --------------------------------------------------------------------------- Insured-Special Tax Revenue -- 2.4% - --------------------------------------------------------------------------- $ 500 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 478,450 1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 959,560 - --------------------------------------------------------------------------- $ 1,438,010 - --------------------------------------------------------------------------- Insured-Transportation -- 1.9% - --------------------------------------------------------------------------- $1,350 Southeastern Pennsylvania Transit Authority, (FGIC), Variable Rate, 2/1/29(1)(2) $ 1,134,378 - --------------------------------------------------------------------------- $ 1,134,378 - --------------------------------------------------------------------------- Insured-Water and Sewer -- 1.6% - --------------------------------------------------------------------------- $1,000 Pittsburgh Water and Sewer Authority, (FSA), 5.10%, 9/1/24 $ 974,970 - --------------------------------------------------------------------------- $ 974,970 - --------------------------------------------------------------------------- Nursing Home -- 2.0% - --------------------------------------------------------------------------- $ 500 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 499,565 685 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 671,293 - --------------------------------------------------------------------------- $ 1,170,858 - --------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - --------------------------------------------------------------------------- Special Tax Revenue -- 3.6% - --------------------------------------------------------------------------- $1,550 Pennsylvania Turnpike Commission Oil Franchise, Variable Rate, 12/1/27(1)(2) $ 1,307,115 850 Puerto Rico Infrastructure Financing Authority, Variable Rate, 7/1/28 805,443 - --------------------------------------------------------------------------- $ 2,112,558 - --------------------------------------------------------------------------- Total Tax-Exempt Investments -- 100.0% (identified cost $60,942,791) $59,637,470 - ---------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 1999, 67.0% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institution ranged from 11.0% to 26.6% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 1999, the value of these securities amounted to $3,864,063 or 6.4% of the Trust's net assets. (3) Security (or a portion thereof) has been segregated to cover when-issued securities. (4) When-issued security. SEE NOTES TO FINANCIAL STATEMENTS 26 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 1999
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - --------------------------------------------------------------------------------------------------------------------- Assets - --------------------------------------------------------------------------------------------------------------------- Investments -- Identified cost $169,344,199 $ 96,963,378 $57,923,589 $47,920,400 Unrealized depreciation (3,994,902) (2,575,716) (1,399,848) (1,070,851) - --------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $165,349,297 $ 94,387,662 $56,523,741 $46,849,549 - --------------------------------------------------------------------------------------------------------------------- Cash $ 848,820 $ 295,231 $ 370,983 $ 128,887 Receivable for investments sold -- 1,469,997 1,681,446 1,893,523 Dividends and interest receivable 2,536,346 1,137,869 906,628 482,867 Receivable from the Investment Adviser 6,970 685 685 685 Prepaid expenses 8,049 6,049 6,049 6,049 - --------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $168,749,482 $ 97,297,493 $59,489,532 $49,361,560 - --------------------------------------------------------------------------------------------------------------------- Liabilities - --------------------------------------------------------------------------------------------------------------------- Payable for investments purchased $ 4,127,400 $ -- $ 962,582 $ 986,850 Payable for when-issued securities 4,888,414 1,650,522 699,045 994,657 Payable for daily variation margin on financial futures contracts -- -- 3,781 -- Payable to affiliate for Trustees' fees 2,507 2,507 2,013 1,940 Other accrued expenses 60,486 48,334 49,545 34,899 - --------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 9,078,807 $ 1,701,363 $ 1,716,966 $ 2,018,346 - --------------------------------------------------------------------------------------------------------------------- NET ASSETS $159,670,675 $ 95,596,130 $57,772,566 $47,343,214 - --------------------------------------------------------------------------------------------------------------------- Sources of Net Assets - --------------------------------------------------------------------------------------------------------------------- Auction Preferred Shares, $0.01 par value, unlimited number of shares authorized $ 59,000,000 $ 35,500,000 $21,500,000 $17,500,000 Common Shares, $0.01 par value; unlimited number of shares authorized 70,384 42,124 25,437 20,797 Additional paid-in capital 104,628,717 62,612,398 37,803,941 30,908,789 Accumulated net realized loss from investment transactions (489,449) (244,472) (355,115) (168,793) Undistributed net investment income 455,925 261,796 187,217 153,272 Unrealized depreciation of investments (3,994,902) (2,575,716) (1,388,914) (1,070,851) - --------------------------------------------------------------------------------------------------------------------- NET ASSETS $159,670,675 $ 95,596,130 $57,772,566 $47,343,214 - --------------------------------------------------------------------------------------------------------------------- Net assets applicable to preferred shareholders -- Auction Preferred Shares at liquidation value $ 59,000,000 $ 35,500,000 $21,500,000 $17,500,000 Cumulative undeclared dividends 4,026 15,803 13,192 7,790 - --------------------------------------------------------------------------------------------------------------------- TOTAL $ 59,004,026 $ 35,515,803 $21,513,192 $17,507,790 - --------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shareholders $100,666,649 $ 60,080,327 $36,259,374 $29,835,424 - --------------------------------------------------------------------------------------------------------------------- TOTAL $159,670,675 $ 95,596,130 $57,772,566 $47,343,214 - --------------------------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding ($25,000 per share liquidation preference) - --------------------------------------------------------------------------------------------------------------------- 2,360 1,420 860 700 - --------------------------------------------------------------------------------------------------------------------- Common Shares Outstanding - --------------------------------------------------------------------------------------------------------------------- 7,038,421 4,212,397 2,543,743 2,079,718 - --------------------------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share - --------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.30 $ 14.26 $ 14.25 $ 14.35 - ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 27 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 1999
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------------------------ Assets - ------------------------------------------------------------------------------------------------------------------ Investments -- Identified cost $104,514,581 $127,699,276 $ 63,518,064 $60,942,791 Unrealized depreciation (2,112,566) (2,606,463) (1,175,165) (1,305,321) - ------------------------------------------------------------------------------------------------------------------ INVESTMENTS, AT VALUE $102,402,015 $125,092,813 $ 62,342,899 $59,637,470 - ------------------------------------------------------------------------------------------------------------------ Cash $ 2,143,943 $ 267,638 $ 1,427,074 $ 31,502 Receivable for investments sold -- 1,506,616 -- 2,665,571 Dividends and interest receivable 1,905,970 2,191,730 824,105 998,795 Receivable from the Investment Adviser 685 685 685 685 Prepaid expenses 6,048 5,921 6,115 6,049 - ------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $106,458,661 $129,065,403 $ 64,600,878 $63,340,072 - ------------------------------------------------------------------------------------------------------------------ Liabilities - ------------------------------------------------------------------------------------------------------------------ Payable for investments purchased $ 2,066,648 $ 1,463,013 $ -- $ 1,657,976 Payable for when-issued securities 1,941,791 7,586,925 1,072,840 978,226 Payable for daily variation margin on financial futures contracts 12,375 33,250 18,500 -- Payable to affiliate for Trustees' fees 3,019 813 1,963 1,940 Other accrued expenses 47,839 44,670 31,574 39,285 - ------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $ 4,071,672 $ 9,128,671 $ 1,124,877 $ 2,677,427 - ------------------------------------------------------------------------------------------------------------------ NET ASSETS $102,386,989 $119,936,732 $ 63,476,001 $60,662,645 - ------------------------------------------------------------------------------------------------------------------ Sources of Net Assets - ------------------------------------------------------------------------------------------------------------------ Auction Preferred Shares, $0.01 par value, unlimited number of shares authorized $ 38,000,000 $ 44,500,000 $ 23,500,000 $22,500,000 Common Shares, $0.01 par value; unlimited number of shares authorized 44,645 52,567 27,703 26,552 Additional paid-in capital 66,356,507 78,139,290 41,173,381 39,462,315 Accumulated net realized loss from investment transactions (229,058) (534,611) (267,410) (231,387) Undistributed net investment income 291,677 345,185 194,811 210,486 Unrealized depreciation of investments (2,076,782) (2,565,699) (1,152,484) (1,305,321) - ------------------------------------------------------------------------------------------------------------------ NET ASSETS $102,386,989 $119,936,732 $ 63,476,001 $60,662,645 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to preferred shareholders -- Auction Preferred Shares at liquidation value $ 38,000,000 $ 44,500,000 $ 23,500,000 $22,500,000 Cumulative undeclared dividends 3,433 15,845 12,360 14,022 - ------------------------------------------------------------------------------------------------------------------ TOTAL $ 38,003,433 $ 44,515,845 $ 23,512,360 $22,514,022 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to common shareholders $ 64,383,556 $ 75,420,887 $ 39,963,641 $38,148,623 - ------------------------------------------------------------------------------------------------------------------ TOTAL $102,386,989 $119,936,732 $ 63,476,001 $60,662,645 - ------------------------------------------------------------------------------------------------------------------ Auction Preferred Shares Issued and Outstanding ($25,000 per share liquidation preference) - ------------------------------------------------------------------------------------------------------------------ 1,520 1,780 940 900 - ------------------------------------------------------------------------------------------------------------------ Common Shares Outstanding - ------------------------------------------------------------------------------------------------------------------ 4,464,495 5,256,667 2,770,292 2,655,176 - ------------------------------------------------------------------------------------------------------------------ Net Asset Value Per Common Share - ------------------------------------------------------------------------------------------------------------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.42 $ 14.35 $ 14.43 $ 14.37 - ------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 28 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED MAY 31, 1999(1)
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - --------------------------------------------------------------------------------------------------------------------- Investment Income - --------------------------------------------------------------------------------------------------------------------- Interest $ 2,248,849 $ 1,396,094 $ 862,326 $ 678,526 Dividends -- -- 7,436 -- - --------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 2,248,849 $ 1,396,094 $ 869,762 $ 678,526 - --------------------------------------------------------------------------------------------------------------------- Expenses - --------------------------------------------------------------------------------------------------------------------- Investment adviser fee $ 337,883 $ 196,581 $ 122,501 $ 98,425 Administration fee 96,938 54,929 35,000 27,781 Trustees fees and expenses 2,507 2,507 2,013 1,940 Custodian fee 17,149 11,126 7,393 5,564 Organization expenses 36,786 22,544 25,000 17,776 Preferred shares remarketing agent fee 35,966 21,884 13,145 10,668 Transfer and dividend disbursing agent fees 30,580 18,318 11,394 8,150 Legal and accounting services 16,599 16,599 15,099 14,573 Printing and postage 14,785 14,092 10,066 10,065 Miscellaneous 8,684 8,112 8,594 8,471 - --------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 597,877 $ 366,692 $ 250,205 $ 203,413 - --------------------------------------------------------------------------------------------------------------------- Deduct -- Preliminary reduction of investment adviser fee $ 102,444 $ 685 $ 26,604 $ 50,729 Reduction of custodian fee 17,149 11,126 7,393 5,564 - --------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 119,593 $ 11,811 $ 33,997 $ 56,293 - --------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 478,284 $ 354,881 $ 216,208 $ 147,120 - --------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 1,770,565 $ 1,041,213 $ 653,554 $ 531,406 - --------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) - --------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ (489,449) $ (244,472) $ (355,115) $ (168,793) - --------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (489,449) $ (244,472) $ (355,115) $ (168,793) - --------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $(3,994,902) $ (2,575,716) $(1,399,848) $(1,070,851) Financial futures contracts -- -- 10,934 -- - --------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $(3,994,902) $ (2,575,716) $(1,388,914) $(1,070,851) - --------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED LOSS $(4,484,351) $ (2,820,188) $(1,744,029) $(1,239,644) - --------------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $(2,713,786) $ (1,778,975) $(1,090,475) $ (708,238) - ---------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. SEE NOTES TO FINANCIAL STATEMENTS 29 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED MAY 31, 1999(1)
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------------------------ Investment Income - ------------------------------------------------------------------------------------------------------------------ Interest $ 1,398,248 $ 1,715,655 $ 901,808 $ 891,912 Dividends 23,557 -- -- -- - ------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME $ 1,421,805 $ 1,715,655 $ 901,808 $ 891,912 - ------------------------------------------------------------------------------------------------------------------ Expenses - ------------------------------------------------------------------------------------------------------------------ Investment adviser fee $ 206,393 $ 248,873 $ 134,341 $ 125,646 Administration fee 60,427 71,107 38,269 35,964 Trustees fees and expenses 3,020 813 1,964 1,940 Custodian fee 10,748 12,215 7,523 6,842 Organization expenses 23,974 26,684 18,841 18,480 Preferred shares remarketing agent fee 23,164 27,126 13,843 13,716 Transfer and dividend disbursing agent fees 20,535 22,092 12,371 10,419 Legal and accounting services 17,112 15,030 14,727 14,573 Printing and postage 14,092 12,200 11,782 11,657 Miscellaneous 8,995 9,049 8,430 8,405 - ------------------------------------------------------------------------------------------------------------------ TOTAL EXPENSES $ 388,460 $ 445,189 $ 262,091 $ 247,642 - ------------------------------------------------------------------------------------------------------------------ Deduct -- Preliminary reduction of investment adviser fee $ 69,353 $ 33,638 $ 45,469 $ 42,035 Reduction of custodian fee 10,748 12,215 7,523 6,842 - ------------------------------------------------------------------------------------------------------------------ TOTAL EXPENSE REDUCTIONS $ 80,101 $ 45,853 $ 52,992 $ 48,877 - ------------------------------------------------------------------------------------------------------------------ NET EXPENSES $ 308,359 $ 399,336 $ 209,099 $ 198,765 - ------------------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME $ 1,113,446 $ 1,316,319 $ 692,709 $ 693,147 - ------------------------------------------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) - ------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $ (229,058) $ (534,611) $ (267,410) $ (231,387) - ------------------------------------------------------------------------------------------------------------------ NET REALIZED LOSS $ (229,058) $ (534,611) $ (267,410) $ (231,387) - ------------------------------------------------------------------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $(2,112,566) $(2,606,463) $ (1,175,165) $(1,305,321) Financial futures contracts 35,784 40,764 22,681 -- - ------------------------------------------------------------------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $(2,076,782) $(2,565,699) $ (1,152,484) $(1,305,321) - ------------------------------------------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED LOSS $(2,305,840) $(3,100,310) $ (1,419,894) $(1,536,708) - ------------------------------------------------------------------------------------------------------------------ NET DECREASE IN NET ASSETS FROM OPERATIONS $(1,192,394) $(1,783,991) $ (727,185) $ (843,561) - ------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. SEE NOTES TO FINANCIAL STATEMENTS 30 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED MAY 31, 1999(1)
Increase (Decrease) in Net Assets CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - --------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 1,770,565 $ 1,041,213 $ 653,554 $ 531,406 Net realized loss (489,449) (244,472) (355,115) (168,793) Net change in unrealized appreciation (depreciation) (3,994,902) (2,575,716) (1,388,914) (1,070,851) - --------------------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $ (2,713,786) $ (1,778,975) $(1,090,475) $ (708,238) - --------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders: Preferred Shareholders -- From net investment income $ (418,805) $ (251,524) $ (142,692) $ (118,454) Common Shareholders -- From net investment income (895,835) (527,893) (323,645) (259,680) - --------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,314,640) $ (779,417) $ (466,337) $ (378,134) - --------------------------------------------------------------------------------------------------------------------- Capital Share Transactions: Proceeds from sale of preferred shares $ 59,000,000 $ 35,500,000 $21,500,000 $17,500,000 Proceeds from sale of common shares 105,225,000 62,962,500 37,950,000 31,050,000 Reinvestment of distributions to shareholders 245,004 120,179 103,196 44,664 Offering costs and preferred shares underwriting discounts (870,903) (528,157) (323,818) (265,078) - --------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS $163,599,101 $ 98,054,522 $59,229,378 $48,329,586 - --------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $159,570,675 $ 95,496,130 $57,672,566 $47,243,214 - --------------------------------------------------------------------------------------------------------------------- Net Assets - --------------------------------------------------------------------------------------------------------------------- At beginning of period $ 100,000 $ 100,000 $ 100,000 $ 100,000 - --------------------------------------------------------------------------------------------------------------------- AT END OF PERIOD $159,670,675 $ 95,596,130 $57,772,566 $47,343,214 - --------------------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets - --------------------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 455,925 $ 261,796 $ 187,217 $ 153,272 - ---------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. SEE NOTES TO FINANCIAL STATEMENTS 31 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED MAY 31, 1999(1)
Increase (Decrease) in Net Assets NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------------------------ From operations -- Net investment income $ 1,113,446 $ 1,316,319 $ 692,709 $ 693,147 Net realized loss (229,058) (534,611) (267,410) (231,387) Net change in unrealized appreciation (depreciation) (2,076,782) (2,565,699) (1,152,484) (1,305,321) - ------------------------------------------------------------------------------------------------------------------ NET DECREASE IN NET ASSETS FROM OPERATIONS $ (1,192,394) $ (1,783,991) $ (727,185) $ (843,561) - ------------------------------------------------------------------------------------------------------------------ Distributions to Shareholders: Preferred Shareholders -- From net investment income $ (264,434) $ (300,909) $ (150,550) $ (149,769) Common Shareholders -- From net investment income (557,335) (670,225) (347,348) (332,892) - ------------------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (821,769) $ (971,134) $ (497,898) $ (482,661) - ------------------------------------------------------------------------------------------------------------------ Capital Share Transactions: Proceeds from sale of preferred shares $ 38,000,000 $ 44,500,000 $ 23,500,000 $22,500,000 Proceeds from sale of common shares 66,750,000 78,750,000 41,400,000 39,675,000 Reinvestment of distributions to shareholders 115,014 -- 53,398 51,413 Offering costs and preferred shares underwriting discounts (563,862) (658,143) (352,314) (337,546) - ------------------------------------------------------------------------------------------------------------------ NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS $104,301,152 $122,591,857 $ 64,601,084 $61,888,867 - ------------------------------------------------------------------------------------------------------------------ NET INCREASE IN NET ASSETS $102,286,989 $119,836,732 $ 63,376,001 $60,562,645 - ------------------------------------------------------------------------------------------------------------------ Net Assets - ------------------------------------------------------------------------------------------------------------------ At beginning of period $ 100,000 $ 100,000 $ 100,000 $ 100,000 - ------------------------------------------------------------------------------------------------------------------ AT END OF PERIOD $102,386,989 $119,936,732 $ 63,476,001 $60,662,645 - ------------------------------------------------------------------------------------------------------------------ Accumulated undistributed net investment income included in net assets - ------------------------------------------------------------------------------------------------------------------ AT END OF PERIOD $ 291,677 $ 345,185 $ 194,811 $ 210,486 - ------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. SEE NOTES TO FINANCIAL STATEMENTS 32 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
CALIFORNIA TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.260 Net realized and unrealized loss (0.643) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.383) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders-- From net investment income $ (0.061) Common Shareholders-- From net investment income $ (0.128) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.189) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.041) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.300 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 13.500 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (9.21)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $159,671 Ratios (As a percentage of average total net assets): Net expenses 1.01%(4) Net expenses after custodian fee reduction 0.98%(4) Net investment income 3.62%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.46%(4) Net expenses after custodian fee reduction(5) 1.41%(4) Net investment income(5) 5.21%(4) Portfolio Turnover 73% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.22%(4) Expenses after custodian fee reduction 1.19%(4) Net investment income 3.41%(4) Net investment income per share $ 0.240 Ratios (As a percentage of average common net assets): Expenses(5) 1.76%(4) Expenses after custodian fee reduction(5) 1.71%(4) Net investment income(5) 4.91%(4) Net investment income per share $ 0.250 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 33 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
FLORIDA TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.255 Net realized and unrealized loss (0.678) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.423) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders-- From net investment income $ (0.062) Common Shareholders-- From net investment income $ (0.126) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.188) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.042) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.260 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.188 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (4.60)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $ 95,596 Ratios (As a percentage of average total net assets): Net expenses 1.25%(4) Net expenses after custodian fee reduction 1.21%(4) Net investment income 3.56%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.80%(4) Net expenses after custodian fee reduction(5) 1.75%(4) Net investment income(5) 5.12%(4) Portfolio Turnover 52% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.25%(4) Expenses after custodian fee reduction 1.21%(4) Net investment income 3.56%(4) Net investment income per share $ 0.255 Ratios (As a percentage of average common net assets): Expenses(5) 1.80%(4) Expenses after custodian fee reduction(5) 1.75%(4) Net investment income(5) 5.12%(4) Net investment income per share $ 0.255 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 34 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
MASSACHUSETTS TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.265 Net realized and unrealized loss (0.701) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.436) - ----------------------------------------------------------------------------- Less distributions Preferred Shareholders-- From net investment income $ (0.055) Common Shareholders-- From net investment income $ (0.128) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.183) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.044) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.250 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 13.938 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (6.27)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $ 57,773 Ratios (As a percentage of average total net assets): Net expenses 1.27%(4) Net expenses after custodian fee reduction 1.22%(4) Net investment income 3.70%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.82%(4) Net expenses after custodian fee reduction(5) 1.76%(4) Net investment income(5) 5.33%(4) Portfolio Turnover 87% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.42%(4) Expenses after custodian fee reduction 1.37%(4) Net investment income 3.55%(4) Net investment income per share $ 0.254 Ratios (As a percentage of average common net assets): Expenses(5) 2.04%(4) Expenses after custodian fee reduction(5) 1.98%(4) Net investment income(5) 5.11%(4) Net investment income per share $ 0.254 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 35 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
MICHIGAN TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.264 Net realized and unrealized loss (0.598) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.334) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders-- From net investment income $ (0.059) Common Shareholders-- From net investment income $ (0.125) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.184) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.045) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.350 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.625 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (1.67)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $ 47,343 Ratios (As a percentage of average total net assets): Net expenses 1.06%(4) Net expenses after custodian fee reduction 1.02%(4) Net investment income 3.67%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.52%(4) Net expenses after custodian fee reduction(5) 1.46%(4) Net investment income(5) 5.29%(4) Portfolio Turnover 61% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.41%(4) Expenses after custodian fee reduction 1.37%(4) Net investment income 3.32%(4) Net investment income per share $ 0.239 Ratios (As a percentage of average common net assets): Expenses(5) 2.03%(4) Expenses after custodian fee reduction(5) 1.97%(4) Net investment income(5) 4.78%(4) Net investment income per share $ 0.239 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 36 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
NEW JERSEY TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.258 Net realized and unrealized loss (0.521) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.263) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders-- From net investment income $ (0.061) Common Shareholders-- From net investment income (0.125) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.186) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.043) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.088) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.420 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.500 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (2.51)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $102,387 Ratios (As a percentage of average total net assets): Net expenses 1.03%(4) Net expenses after custodian fee reduction 0.99%(4) Net investment income 3.57%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.48%(4) Net expenses after custodian fee reduction(5) 1.43%(4) Net investment income(5) 5.16%(4) Portfolio Turnover 50% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.25%(4) Expenses after custodian fee reduction 1.21%(4) Net investment income 3.35%(4) Net investment income per share $ 0.242 Ratios (As a percentage of average common net assets): Expenses(5) 1.80%(4) Expenses after custodian fee reduction(5) 1.75%(4) Net investment income(5) 4.84%(4) Net investment income per share $ 0.242 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 37 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
NEW YORK TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.258 Net realized and unrealized loss (0.592) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.334) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders-- From net investment income $ (0.059) Common Shareholders-- From net investment income (0.128) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.187) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.042) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.350 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 13.875 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (6.67)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $119,937 Ratios (As a percentage of average total net assets): Net expenses 1.12%(4) Net expenses after custodian fee reduction 1.09%(4) Net investment income 3.59%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.62%(4) Net expenses after custodian fee reduction(5) 1.57%(4) Net investment income(5) 5.17%(4) Portfolio Turnover 62% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.21%(4) Expenses after custodian fee reduction 1.18%(4) Net investment income 3.50%(4) Net investment income per share $ 0.242 Ratios (As a percentage of average common net assets): Expenses(5) 1.75%(4) Expenses after custodian fee reduction(5) 1.70%(4) Net investment income(5) 5.04%(4) Net investment income per share $ 0.252 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 38 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
OHIO TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.255 Net realized and unrealized loss (0.514) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.259) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders -- From net investment income $ (0.055) Common Shareholders -- From net investment income (0.126) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.181) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.043) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.430 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.750 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (0.82)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $ 63,476 Ratios (As a percentage of average total net assets): Net expenses 1.11%(4) Net expenses after custodian fee reduction 1.07%(4) Net investment income 3.55%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.59%(4) Net expenses after custodian fee reduction(5) 1.54%(4) Net investment income(5) 5.11%(4) Portfolio Turnover 79% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.34%(4) Expenses after custodian fee reduction 1.30%(4) Net investment income 3.32%(4) Net investment income per share $ 0.238 Ratios (As a percentage of average common net assets): Expenses(5) 1.93%(4) Expenses after custodian fee reduction(5) 1.88%(4) Net investment income(5) 4.77%(4) Net investment income per share $ 0.243 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 39 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIOD
PENNSYLVANIA TRUST ------------- PERIOD ENDED MAY 31, 1999 (UNAUDITED)(1)(2) - ----------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 15.000 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment income $ 0.269 Net realized and unrealized loss (0.584) - ----------------------------------------------------------------------------- TOTAL LOSS FROM OPERATIONS $ (0.315) - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- Preferred Shareholders -- From net investment income $ (0.058) Common Shareholders -- From net investment income (0.126) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (0.184) - ----------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ (0.044) - ----------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.087) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.370 - ----------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.000 - ----------------------------------------------------------------------------- TOTAL RETURN(3) (5.86)% - ----------------------------------------------------------------------------- Ratios/Supplemental Data+ - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $ 60,663 Ratios (As a percentage of average total net assets): Net expenses 1.11%(4) Net expenses after custodian fee reduction 1.07%(4) Net investment income 3.74%(4) Ratios (As a percentage of average common net assets): Net expenses(5) 1.60%(4) Net expenses after custodian fee reduction(5) 1.55%(4) Net investment income(5) 5.40%(4) Portfolio Turnover 49% - ----------------------------------------------------------------------------- + The expenses of the Trust reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: - ----------------------------------------------------------------------------- Ratios (As a percentage of average total net assets): Expenses 1.34%(4) Expenses after custodian fee reduction 1.30%(4) Net investment income 3.51%(4) Net investment income per share $ 0.252 Ratios (As a percentage of average common net assets): Expenses(5) 1.93%(4) Expenses after custodian fee reduction(5) 1.88%(4) Net investment income(5) 5.07%(4) Net investment income per share $ 0.253 - -----------------------------------------------------------------------------
(1) For the period from the start of business, January 29, 1999, to May 31, 1999. (2) Computed using average common shares outstanding. (3) Total return is calculated assuming a purchase at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Annualized. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average common net assets reflect the Trust's leveraged capital structure. SEE NOTES TO FINANCIAL STATEMENTS 40 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust), and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (individually referred to as the "Trust" or collectively the "Trusts") are registered under the Investment Company Act of 1940, as 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. The Trusts' investment objectives are to provide current income exempt from regular federal income taxes, and taxes in each Trust's 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 generally accepted accounting principles. A Investment Valuations -- 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 listed on the commodity exchanges are valued at closing settlement 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 unavailable 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, each 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 on long-term debt securities when required for federal income tax purposes. D Federal Income 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. 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. E Organization and Offering Costs -- Costs incurred by each Trust in connection with its organization have been expensed. Costs incurred by each Trust in connection with the offerings of the Common Shares and Preferred Shares were recorded as a reduction of capital paid in excess of par applicable to Common Shares. F 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. G 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. 41 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D H Use of Estimates -- The preparation of the financial statements in conformity with generally accepted accounting principles 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 revenue and expense during the reporting period. Actual results could differ from those estimates. I Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian of the Trusts. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balance each Trust maintains with IBT. All significant credit balances used to reduce each Trust's custodian fees are reflected as a reduction of operating expense on the Statements of Operations. J Interim Financial Statements -- The interim financial statements relating to May 31, 1999 and for the period then ended have not been audited by independent certified public accountants, but in the opinion of each Trust's management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Auction Preferred Shares (APS) - ------------------------------------------- Each Trust issued Auction Preferred Shares on March 1, 1999 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the Common Shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every 7 days thereafter by an auction. For the period ended May 31, 1999, Auction Preferred Shares issued and outstanding and dividend rate ranges are as indicated below:
PREFERRED SHARES DIVIDEND RATE TRUST ISSUED AND OUTSTANDING RANGES - ----------------------------------------------------------------------------------------- California Trust 2,360 2.60% - 3.25% Florida Trust 1,420 2.85% - 3.35% Massachusetts Trust 860 2.75% - 3.25% Michigan Trust 700 2.70% - 3.35% New Jersey Trust 1,520 2.00% - 3.40% New York Trust 1,780 2.30% - 3.30% Ohio Trust 940 1.97% - 3.30% Pennsylvania Trust 900 2.68% - 3.25%
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 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. 3 Distributions to Shareholders - ------------------------------------------- Each Trust intends to make monthly distributions of net investment income, after payment of any dividends on any outstanding Preferred Shares. Distributions are recorded on the ex-dividend date. 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 the Auction Preferred Shares on May 31, 1999 was 3.125%, 3.25%, 3.20, 3.25%, 3.30%, 3.25%, 3.20%, and 3.25%, respectively, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. For the period ended May 31, 1999, 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 AVERAGE APS TRUST PREFERRED SHAREHOLDERS DIVIDEND RATES - ----------------------------------------------------------------------------------- California Trust $418,805 2.91% Florida Trust 251,524 3.08% Massachusetts Trust 142,692 2.95% Michigan Trust 118,454 2.94% New Jersey Trust 264,434 2.85% New York Trust 300,909 2.90% Ohio Trust 150,550 2.82% Pennsylvania Trust 149,769 2.96%
42 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 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 the Trust who are not members of EVM's organization, officers and Trustees receive remuneration for their services to the Trust out of such investment adviser fee. For the period ended May 31, 1999, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $337,883, $196,581, $122,501, $98,425, $206,393, $248,873, $134,341, and $125,646, respectively, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. In order to enhance the net income of each Trust, EVM waived a portion of its investment advisory fee in the amount of $102,444, $685, $26,604, $50,729, $69,353, $33,638, $45,469, and $42,035, 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 period ended May 31, 1999, the administrative fee amounted to $96,938, $54,929, $35,000, $27,781, $60,427, $71,107, $38,269, and $35,964, respectively, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. Trustees of the Trusts that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the period ended May 31, 1999, no significant amounts have been deferred. Eaton Vance has agreed to bear all ordinary and organizational expenses of each Trust that exceed 5% (annualized) of average weekly net assets for each Trust's first fiscal year. Certain of the officers and one Trustee of each Trust are officers of EVM. 5 Investments - ------------------------------------------- Purchases and sales of investments, other than U.S. Government securities and short-term obligations for the period ended May 31, 1999 were as follows:
CALIFORNIA TRUST - ------------------------------------------------------- Purchases $ 263,483,084 Sales 93,712,454 FLORIDA TRUST - ------------------------------------------------------- Purchases $ 133,760,487 Sales 36,555,428 MASSACHUSETTS TRUST - ------------------------------------------------------- Purchases $ 96,756,234 Sales 38,483,274 MICHIGAN TRUST - ------------------------------------------------------- Purchases $ 69,578,895 Sales 21,491,621 NEW JERSEY TRUST - ------------------------------------------------------- Purchases $ 142,074,999 Sales 37,329,602 NEW YORK TRUST - ------------------------------------------------------- Purchases $ 182,407,321 Sales 54,174,659 OHIO TRUST - ------------------------------------------------------- Purchases $ 102,909,510 Sales 39,123,649 PENNSYLVANIA TRUST - ------------------------------------------------------- Purchases $ 83,302,411 Sales 22,136,374
43 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 6 Federal Income Tax Basis of Investments - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at May 31, 1999, as computed for Federal income tax purposes, were as follows:
CALIFORNIA TRUST - --------------------------------------------- IDENTIFIED COST $ 169,344,199 - --------------------------------------------- Gross unrealized appreciation $ 4,360 Gross unrealized depreciation (3,999,262) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (3,994,902) - --------------------------------------------- FLORIDA TRUST - --------------------------------------------- IDENTIFIED COST $ 96,963,378 - --------------------------------------------- Gross unrealized appreciation $ 15,444 Gross unrealized depreciation (2,591,160) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (2,575,716) - --------------------------------------------- MASSACHUSETTS TRUST - --------------------------------------------- IDENTIFIED COST $ 57,923,589 - --------------------------------------------- Gross unrealized appreciation $ 11,720 Gross unrealized depreciation (1,411,568) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (1,399,848) - --------------------------------------------- MICHIGAN TRUST - --------------------------------------------- IDENTIFIED COST $ 47,920,400 - --------------------------------------------- Gross unrealized appreciation $ 12,958 Gross unrealized depreciation (1,083,809) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (1,070,851) - --------------------------------------------- NEW JERSEY TRUST - --------------------------------------------- IDENTIFIED COST $ 104,514,581 - --------------------------------------------- Gross unrealized appreciation $ 54,173 Gross unrealized depreciation (2,166,739) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (2,112,566) - --------------------------------------------- NEW YORK TRUST - --------------------------------------------- IDENTIFIED COST $ 127,699,276 - --------------------------------------------- Gross unrealized appreciation $ 41,201 Gross unrealized depreciation (2,647,664) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (2,606,463) - --------------------------------------------- OHIO TRUST - --------------------------------------------- IDENTIFIED COST $ 63,518,064 - --------------------------------------------- Gross unrealized appreciation $ 22,573 Gross unrealized depreciation (1,197,738) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (1,175,165) - --------------------------------------------- PENNSYLVANIA TRUST - --------------------------------------------- IDENTIFIED COST $ 60,942,791 - --------------------------------------------- Gross unrealized appreciation $ 11,613 Gross unrealized depreciation (1,316,934) - --------------------------------------------- NET UNREALIZED DEPRECIATION $ (1,305,321) - ---------------------------------------------
44 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 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 shares of beneficial interest. Transactions in Common Shares were as follows:
CALIFORNIA TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 7,015,000 Shares issued pursuant to the Trust's dividend reinvestment plan 16,754 - ------------------------------------------------------------------ ENDING SHARES 7,031,754 - ------------------------------------------------------------------
FLORIDA TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 4,197,500 Shares issued pursuant to the Trust's dividend reinvestment plan 8,230 - ------------------------------------------------------------------ ENDING SHARES 4,205,730 - ------------------------------------------------------------------
MASSACHUSETTS TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 2,530,000 Shares issued pursuant to the Trust's dividend reinvestment plan 7,076 - ------------------------------------------------------------------ ENDING SHARES 2,537,076 - ------------------------------------------------------------------
MICHIGAN TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 2,070,000 Shares issued pursuant to the Trust's dividend reinvestment plan 3,052 - ------------------------------------------------------------------ ENDING SHARES 2,073,052 - ------------------------------------------------------------------
NEW JERSEY TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 4,450,000 Shares issued pursuant to the Trust's dividend reinvestment plan 7,828 - ------------------------------------------------------------------ ENDING SHARES 4,457,828 - ------------------------------------------------------------------
NEW YORK TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 5,250,000 Shares issued pursuant to the Trust's dividend reinvestment plan -- - ------------------------------------------------------------------ ENDING SHARES 5,250,000 - ------------------------------------------------------------------
OHIO TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 2,760,000 Shares issued pursuant to the Trust's dividend reinvestment plan 3,625 - ------------------------------------------------------------------ ENDING SHARES 2,763,625 - ------------------------------------------------------------------
PENNSYLVANIA TRUST ---------------------------------- PERIOD ENDED MAY 31, 1999(1) - ------------------------------------------------------------------ Sales 2,645,000 Shares issued pursuant to the Trust's dividend reinvestment plan 3,510 - ------------------------------------------------------------------ ENDING SHARES 2,648,510 - ------------------------------------------------------------------
(1) For the period from the start of business January 29, 1999, to May 31, 1999. 8 Financial Instruments - ------------------------------------------- Each Trust regularly trades in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at May 31, 1999, is as follows:
FUTURES CONTRACTS EXPIRATION NET UNREALIZED TRUST DATE CONTRACTS POSITION APPRECIATION - --------------------------------------------------------------------------------------------------- Massachusetts 6/99 11 U.S. Treasury Bonds Short $10,934 - --------------------------------------------------------------------------------------------------- New Jersey 6/99 36 Municipal Bonds Short 35,784 - --------------------------------------------------------------------------------------------------- New York 6/99 133 U.S. Treasury Bonds Short 40,764 - --------------------------------------------------------------------------------------------------- Ohio 6/99 74 U.S. Treasury Bonds Short 22,681 - ---------------------------------------------------------------------------------------------------
At May 31, 1999, each Trust had sufficient cash and/or securities to cover margin requirements on open futures contracts. 45 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 each 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, First Data Investor Services Group 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, First Data Investor Services Group, at 1-800-331-1710. 46 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 you 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 First Data Investor Services Group P.O. Box 8030 Boston, MA 02266-8030 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, non-diversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of May 31, 1999, our records indicate that there are 73, 58, 62, 39, 68, 53, 49, and 63 registered shareholders for the California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively and approximately 3,000, 2,500, 1,700, 1,500, 2,500, 2,900, 2,000, and 1,900 shareholders owning the Trust shares in "street" name, such as through brokers, banks, and financial intermediaries for the 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 our reports directly, which contain important information about the 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
47 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 1999 INVESTMENT MANAGEMENT EATON VANCE MUNICIPAL INCOME TRUSTS Officers Thomas J. Fetter President and Portfolio Manager of New York and Ohio Municipal Income Trusts James B. Hawkes Vice President and Trustee Robert B. MacIntosh Vice President and Portfolio Manager of Massachusetts and New Jersey Municipal Income Trusts Timothy T. Browse Vice President and Portfolio Manager of Michigan and Pennsylvania Municipal Income Trusts Cynthia J. Clemson Vice President and Portfolio Manager of California and Florida Municipal Income Trusts James L. O'Connor Treasurer Alan R. Dynner Secretary Trustees Jessica M. Bibliowicz President and Chief Executive Officer National Financial Partners Donald R. Dwight President, Dwight Partners, Inc. Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking Emeritus, Harvard University Graduate School of Business Administration Norton H. Reamer Chairman and Chief Executive Officer, United Asset Management Corporation Lynn A. Stout Professor of Law, Georgetown University Law Center Jack L. Treynor Investment Adviser and Consultant 48 THIS PAGE INTENTIONALLY LEFT BLANK INVESTMENT ADVISER AND ADMINISTRATOR 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 FIRST DATA INVESTOR SERVICES GROUP, INC. Attention: Eaton Vance Funds P.O. Box 5123 Westborough, MA 01581-5123 (800) 262-1122 EATON VANCE MUNICIPAL INCOME TRUSTS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 - -------------------------------------------------------------------------------- 2-2219-7/99 MUNISRC-7/99 -----END PRIVACY-ENHANCED MESSAGE-----