-----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, CWTMowztyaejDZ1s7v/u0wq0jnq4ZTRFYBKBHzfoGsZX7LZAhyFfSqC+KjMcIGuA 5alGZNy50PyOyWocB5FJ3A== 0000912057-02-029671.txt : 20020802 0000912057-02-029671.hdr.sgml : 20020802 20020802165756 ACCESSION NUMBER: 0000912057-02-029671 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020531 FILED AS OF DATE: 20020802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE FLORIDA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074684 IRS NUMBER: 046880056 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09143 FILM NUMBER: 02718614 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074691 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09155 FILM NUMBER: 02718615 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074692 IRS NUMBER: 046880057 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09157 FILM NUMBER: 02718616 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074687 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09151 FILM NUMBER: 02718617 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE OHIO MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074686 IRS NUMBER: 046880052 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09149 FILM NUMBER: 02718618 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE NEW YORK MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074685 IRS NUMBER: 046880051 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09145 FILM NUMBER: 02718619 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074690 IRS NUMBER: 046880055 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09147 FILM NUMBER: 02718620 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001074688 IRS NUMBER: 046880054 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09153 FILM NUMBER: 02718621 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 N-30D 1 a2084115zn-30d.txt N-30D [EATON VANCE(R) LOGO] [GRAPHIC] SEMIANNUAL REPORT MAY 31, 2002 EATON VANCE MUNICIPAL INCOME TRUSTS CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN NEW JERSEY NEW YORK OHIO PENNSYLVANIA EATON VANCE MUNICIPAL INCOME TRUSTS as of May 31, 2002 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President Of the many variables confronting the municipal bond investor, few are as crucial to performance as maintaining good call protection. Most municipal bonds include call provisions, which outline the terms under which the bond issuer can redeem the bond prior to its stated maturity date. While these provisions increase the issuer's financial flexibility, they create an ongoing challenge for municipal bond investors. CALL PROTECTION IS CRITICAL TO DELIVERING A CONSISTENT DIVIDEND... As most investors know, fund dividends are subject to changes in the prevailing interest rate level. As rates decline, fund dividends understandably reflect those fluctuations. However, call provisions permit bond issuers to refinance their outstanding debt, under specific terms and timing, in much the same way a homeowner refinances a mortgage. Not surprisingly, these calls can be disruptive for investors, who may be forced to re-invest the proceeds of a called bond at lower rates. Therefore, prudent investors strive to maintain adequate call protection in an effort to insulate the portfolio from these untimely disruptions and thereby provide a more predictable income stream. AMPLE CALL PROTECTION ENHANCES THE POTENTIAL FOR CAPITAL APPRECIATION... Price performance is another compelling reason to maintain adequate call protection. As most investors know, bond prices rise as interest rates decline. That is, bond investors will pay more for a bond as interest rates fall below the bond's existing coupon. Because it responds to declining rates, such a bond is said to have "positive convexity." However, investors will NOT pay as much for a bond - even if rates are falling - if that bond is likely to be called. As a bond approaches the point where it is likely to be called, it tends to trade nearer its call price, usually par or a modest premium. As a result, this tends to impede the callable bond's upside performance. In effect, the callable bond has lost its positive convexity and is now said to have "negative convexity," meaning it will be significantly less responsive to declining interest rates. [CHART] The chart above demonstrates this relationship. Note that as yields decline to point Y - the point where investors start to anticipate an imminent call - the price performance of the callable bond tends to "roll-off," and thus lag that of the non-callable bond. While it is difficult to pinpoint precisely when this "roll-off" will occur, bonds with ample call protection are generally considered less susceptible to this phenomenon than bonds with waning call protection. CALL PROTECTION IS A MAJOR ADVANTAGE OF MUNICIPAL BOND MUTUAL FUNDS... While call features can have a profound influence on income and price performance, these nuances may be overlooked by the individual investor, a fact that can put the individual at a serious disadvantage. At Eaton Vance, call provisions remain a prime strategic consideration for our fund managers and analysts. We monitor our portfolios and individual bonds and make periodic adjustments to update call protection, as necessary. Together with diversification, in-depth research and professional management, we believe that continuously updated call protection represents yet another major advantage for the mutual fund investor. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President July 10, 2002 2 MARKET RECAP While the recession of 2001 proved shallow and of short duration, the economy has struggled in the first half of 2002 to generate a recovery of any significance. Companies have remained reticent to resume capital spending and have managed inventories very conservatively. Similarly, while the technology sector has been plagued by continuing layoffs, even employers in healthy industries have been slow to hire new workers. Finally, while consumer confidence has improved significantly from the dual shocks of recession and the events of September 11, recent reports suggest that Americans are increasingly resigned to a slow-paced recovery. GROSS DOMESTIC PRODUCT REBOUNDED IN THE FOURTH QUARTER OF 2001 AND THE FIRST QUARTER OF 2002... At first blush, the economy appeared to have rebounded strongly in the first quarter of 2002, with GDP rising 5.8%, following a 1.7% increase in the fourth quarter of 2001. But a closer look revealed that the recovery was somewhat illusory. The reported level of consumer spending appeared to be artificially inflated, the result of post-holiday discounting and widespread sales incentives by auto companies and department store chains. In addition, many manufacturers increased production in the first quarter in anticipation of a rise in demand that has yet to materialize fully. DESPITE HAVING ENDED ITS INTEREST RATE CUTS, THE FEDERAL RESERVE EXPECTS A GRADUAL RECOVERY ... The Federal Reserve, which had signaled late in 2001 that its next policy move would likely be to raise rates, has since suggested a less hawkish stance. That ambiguity has been reflected in the bond market, whose prices move in the opposite direction of interest rates. For example, 10-year Treasury bond yields, which had fallen to 4.25% on November 30, 2001, rose to 5.40% by late March, as investors anticipated a rebounding economy. However, with data increasingly suggesting a sluggish recovery at best, rates fell back to 5.00% by May 31, sparking another modest rally in the bond market. Municipal bond yields were nearly 94% of Treasury yields [CHART] 30-Year AAA-rated 5.27% General Obligation (GO) Bonds* Taxable equivalent yield 8.58% in 38.6% tax bracket
[CHART] 30-Year Treasury bond 5.61%
Principal and interest payments of Treasury securities are guaranteed by the U.S. government. * GO yields are a compilation of a representative variety of general obligations and are not necessarily representative of the Trusts' yield. Statistics as of May 31, 2002. Past performance is no guarantee of future result. Source: Bloomberg, L.P. Like the Treasury market, the municipal market has responded well to the sluggish recovery. Municipal bonds have also benefited from the disappointing performance of the stock market and a less-than-robust outlook for equities in the coming year. Finally, municipals have received an additional boost from efforts within Congress and a number of state legislatures to roll back tax cuts. With the possibility of higher tax rates, municipal bonds have added appeal for investors. Against this backdrop, the municipal bond market has continued to register solidly positive returns. The Lehman Brothers Municipal Bond Index - a broad-based, unmanaged index of municipal bonds - posted a total return of 2.56% for the six months ended May 31, 2002.* DESPITE GLOBAL CONCERNS, THE NEAR-TERM OUTLOOK FOR BONDS REMAINS FAVORABLE... To be sure, there remain challenges on the horizon, especially the troubling events in the Middle East and South Asia, as well as the ongoing war on terrorism. Energy prices - which are highly leveraged to geopolitical events - and the recent weakness of the U.S. dollar are major wild-cards with respect to inflation. Nonetheless, inflation has been kept under control by productivity gains, low wage pressures and continuing competitiveness within industry. Together, these trends have created a favorable environment for bonds, and we believe that municipal bonds can continue to play a valuable role in the fixed-income portion of investors' portfolios. *It is not possible to invest directly in an Index. 3 EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST As of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - California appears to be recovering from last year's recession, evidenced by a modest uptrend in technology sales. The relatively strong agricultural and construction sectors have provided an economic buffer amid the recent economic downtrend. The state's May 2002 jobless rate was 6.3%, up from 5.1% a year ago. - - The Trust's largest sector weighting at May 31, 2002 was special tax revenue bonds. Many California communities have issued these bonds in recent years to meet the growing infrastructure needs that have accompanied rapid growth. - - Insured* transportation bonds constituted a major investment for the Trust. The state continuously upgrades its port, highway and airport facilities to meet its growing economic needs. The Trust's holdings included issues for Bay Area Regional Transport, Port of Oakland and San Francisco Airport. - - Insured general obligations (GOs)* were a significant commitment for the Trust. In a weak economy, an uncertain revenue outlook has raised the specter of budget deficits for the state and many California cities and towns. As a result, the insured* GO sector has become increasingly attractive to municipal investors. - - The Trust made structural changes to adjust to shifting market conditions. Management maintained a well-diversified coupon allocation, balancing higher-income housing and utility issues with interest-rate-sensitive, low- and zero-coupon issues for appreciation potential. TRUST STATISTICS(1) - - Number of Issues: 78 - - Effective Maturity: 19.6 years - - Average Rating: AA- - - Average Call: 9.6 years - - Average Dollar Price: $90.55 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 3.51% for the six months ended May 31, 2002. That return was the result of an increase in share price from $14.32 on November 30, 2001 to $14.34 on May 31, 2002, and the reinvestment of $0.461 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 0.93% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.41 on November 30, 2001 to $14.07 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.34, the Trust had a market yield of 6.55% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.76%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 56.9% Non-Rated 16.6% A 11.7% BBB 8.1% AA 6.7%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 26.18% Life of Trust (1/29/99) 4.48
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 9.73% Life of Trust (1/29/99) 3.89
5 LARGEST CATEGORIES(1) [CHART] Special Tax Revenue 21.6% Insured - Transportation* 21.6% Insured - General Obligations* 18.4% Insured - Water & Sewer* 16.0% Hospital 15.7%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 44.31% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 4 EATON VANCE FLORIDA MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - Florida's tourism sector continued to recover from the effects of September 11, although resort occupancy remained below the levels of last year. Meanwhile, the construction sector has been hindered by stubbornly high commercial vacancy rates. The state's jobless rate was 5.1% in May 2002, up from 4.5% a year ago. - - The Trust took advantage of attractive opportunities in insured* special tax revenue bonds, its largest sector weighting at May 31, 2002. Strong demand for housing has fueled development in Florida, with many newer communities issuing Development District bonds. Management focused on well-positioned communities with sound underlying finances. - - Insured* water and sewer bonds represented a major investment. As a result of rapidly growing populations, many Florida communities have been faced with the need to upgrade their water infrastructure. Increased issuance of bonds to finance these projects has provided the Trust with some compelling opportunities. - - Insured* transportation bonds played a major role in the Trust. Investments spanned a broad geographical range across the state, including prominent airport, turnpike and highway authorities. - - The Trust made structural changes to adjust to shifting market conditions. Management maintained a well-diversified coupon allocation, balancing higher-income housing and utility issues with interest-rate-sensitive, low- and zero-coupon issues for appreciation potential. TRUST STATISTICS(1) - - Number of Issues: 66 - - Effective Maturity: 20.1 years - - Average Rating: AA - - Average Call: 7.5 years - - Average Dollar Price: $97.76 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 8.13% for the six months ended May 31, 2002. That return was the result of an increase in share price from $13.38 on November 30, 2001 to $13.98 on May 31, 2002, and the reinvestment of $0.466 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 2.84% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.34 on November 30, 2001 to $14.25 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.98, the Trust had a market yield of 6.89% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.22%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 65.0% Non-Rated 17.1% AA 11.1% A 3.7% BBB 2.5% BB 0.6%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 27.56% Life of Trust (1/29/99) 3.78
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 10.61% Life of Trust (1/29/99) 4.37
5 LARGEST CATEGORIES(1) [CHART] Insured - Special Tax Revenue* 26.7% Insured - Transportation* 22.6% Insured - Water & Sewer* 21.6% Special Tax Revenue 11.5% Insured - Electric Utilities* 11.1%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal income and state intangibles tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 38.60% combined federal and state intangibles tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 5 EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT DISCUSSION - - Economic growth prospects in Massachusetts have improved somewhat in the past six months, although the slump in the technology sector has been more severe than expected. Nonetheless, joblessness in Massachusetts remained below the national rate. The state's May 2002 unemployment rate was 4.4%, well above the 3.5% rate of a year ago. - - In a period characterized by light trading activity, education bonds remained among the Trust's largest sector weightings. The Trust was able to take advantage of several new offerings during the period, including issues for Mt. Holyoke College and Belmont Hill School. - - The Trust added selectively to some recovering hospital credits. One such issue was for Caritas Christi Health Care System, which operates six hospitals in eastern Massachusetts, offering acute care, as well as specialties in cancer care, gastroenterology, cardiology, diabetes, neurology and hospice care. - - Puerto Rico bonds have played a role in management's efforts to maintain a broad diversification within the Trust's investments. The Trust's Puerto Rico holdings included issues that financed infrastructure projects, electric utilities and highway construction. - - In a changing interest rate environment, management continued to fine-tune the Trust's coupon structure. Management was able to take advantage of an increase in retail demand to make these adjustments. TRUST STATISTICS(1) - - Number of Issues: 59 - - Effective Maturity: 21.4 years - - Average Rating: AA- - - Average Call: 7.6 years - - Average Dollar Price: $94.61 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 5.69% for the six months ended May 31, 2002. That return was the result of an increase in share price from $14.37 on November 30, 2001 to $14.70 on May 31, 2002, and the reinvestment of $0.462 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 1.27% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.11 on November 30, 2001 to $13.83 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.70, the Trust had a market yield of 6.39% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 10.99%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 52.3% A 17.2% BBB 16.2% Non-Rated 7.5% AA 5.7% BB 1.1%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 28.94% Life of Trust (1/29/99) 5.25
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 10.55% Life of Trust (1/29/99) 3.34
5 LARGEST CATEGORIES(1) [CHART] Education 30.8% Insured - Education* 22.0% Hospital 20.4% Health Care - Miscellaneous 11.0% Insured - Transportation* 10.7%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 41.85% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 6 EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT DISCUSSION - - The Michigan economy reflected a weak manufacturing sector and still-cautious consumer spending. Automakers initiated selected plant closings due to slow demand, although there were some late signs of improvement in business conditions. The state's May 2002 jobless rate rose to 6.2%, well above last year's 5.1% rate. - - Hospital bonds represented the Trust's largest sector weighting at May 31. In a very competitive Michigan hospital market, management focused on a diversified range of institutions throughout the state with sound financial structures, good management and strong market share within their communities. - - Insured* general obligations were a major investment for the Trust, providing a high-quality investment in an uncertain climate. The Trust's investments were focused on school district bonds, which enjoyed fairly stable revenues, an attractive characteristic in a weak economy. - - Management took advantage of the Trust's flexibility to include some opportunities in Puerto Rico bonds. The Trust's Puerto Rico holdings included lease revenue bonds, infrastructure financing, port authorities, highways, transportation and industrial development revenue bonds. - - Management adjusted the Trust's coupon structure to reflect the dramatic decline in interest rates. Management also continued to monitor call protection, eliminating issues with unfavorable call features in favor of bonds with longer-dated call provisions. TRUST STATISTICS(1) - - Number of Issues: 53 - - Effective Maturity: 20.4 years - - Average Rating: AA - - Average Call: 8.2 years - - Average Dollar Price: $94.96 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 13.51% for the six months ended May 31, 2002. That return was the result of an increase in share price from $13.00 on November 30, 2001 to $14.26 on May 31, 2002, and the reinvestment of $0.470 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 1.41% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.49 on November 30, 2001 to $14.20 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.26, the Trust had a market yield of 6.73% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.43%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 57.6% A 16.4% Non-Rated 11.0% BBB 7.9% AA 6.0% BB 1.1%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 26.38% Life of Trust (1/29/99) 4.33
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 9.60% Life of Trust (1/29/99) 4.20
5 LARGEST CATEGORIES(1) [CHART] Hospital 40.5% Insured - General Obligations* 28.1% General Obligations 16.4% Insured - Special Tax Revenue* 13.4% Industrial Development Revenue 10.5%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal, and local state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 41.12% combined federal and state income tax rate. Income may also be subject to single business tax and city income tax. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 7 EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT DISCUSSION - - While uncertainty marked the period, New Jersey saw employment gains in the construction, retail and service sectors. The strong pace of residential, commercial and hotel-casino development is expected to provide continued momentum through 2002. The state's May 2002 jobless rate was 5.4%, well above the 4.1% rate of a year ago. - - Insured* transportation bonds remained the Trust's largest sector weightings at May 31, 2002. However, the Trust slightly pared its holdings of Port Authority of New York/New Jersey bonds. While still a strong credit and a prominent state issuer, the aftermath of the events of September 11 have clouded the short-term business outlook for the area's port operations. - - As part of management's ongoing diversification efforts, the Trust added several new issues during the period. New purchases included bonds for Old Bridge Township Board of Education and Middlesex Water Co. These issues represented bonds with good defensive characteristics from issuers that, while well-respected, rarely come to market. - - The Trust sold some hospital issues in favor of newly-issued bonds of less competition-plagued institutions. Among the Trust's new purchases were bonds for Palisades Medical Center and Atlantic City Medical Center. - - In a changing interest rate environment, management continued to fine-tune the Trust's coupon structure. Management was able to take advantage of an increase in retail demand to make these adjustments. TRUST STATISTICS(1) - - Number of Issues: 59 - - Effective Maturity: 14.2 years - - Average Rating: AA- - - Average Call: 7.8 years - - Average Dollar Price: $101.09 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 12.16% for the six months ended May 31, 2002. That return was the result of an increase in share price from $13.34 on November 30, 2001 to $14.45 on May 31, 2002, and the reinvestment of $0.478 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 4.58% for the six months ended May 31, 2002. That return was the result of an increase in net asset value from $13.88 on November 30, 2001 to $14.02 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.45, the Trust had a market yield of 6.81% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.85%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 53.4% Non-Rated 15.6% BBB 11.7% AA 8.2% A 7.8% BB 3.3%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 32.25% Life of Trust (1/29/99) 4.78
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 10.39% Life of Trust (1/29/99) 3.83
5 LARGEST CATEGORIES(1) [CHART] Insured - Transportation* 28.5% Hospital 21.6% Industrial Development Revenue 15.7% Transportation 15.5% Insured - Education* 12.2%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 42.51% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 8 EATON VANCE NEW YORK MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - - The recession of 2001 cost the New York economy jobs across all sectors, losses aggravated by the events of September 11. Even the financial service sector, which has been a primary engine of job growth in recent years, was characterized by selected layoffs. The state's May 2002 jobless rate was 6.1%, up from 4.6% a year ago. - - Insured* transportation bonds once again represented the Trust's largest sector weighting at May 31, 2002. The New York Thruway Authority and the Metropolitan Transportation Authority are among the state's most frequent and well-regarded issuers. - - Education bonds played a major role in the Trust's investments. The Trust's investments included some of the state's prominent colleges, including Cornell University, Polytechnic University, and Rockefeller University, institutions that enjoy exceptionally strong applicant demand. - - Management remained selective within the hospital sector, selling less competitive issues into market strength in favor of recovering credits. Management emphasized insured* bonds, which offered good quality and geographical diversity throughout the state. - - Among the Trust's largest holdings was the New York City Transitional Finance Authority. The Authority's bonds are secured primarily by City personal income taxes and ensure that the City's future capital needs are met, funding essential capital projects in the areas of education, transportation and the environment. TRUST STATISTICS(1) - - Number of Issues: 59 - - Effective Maturity: 15.5 years - - Average Rating: AA- - - Average Call: 8.5 years - - Average Dollar Price: $102.04 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 7.67% for the six months ended May 31, 2002. That return was the result of an increase in share price from $14.05 on November 30, 2001 to $14.62 on May 31, 2002, and the reinvestment of $0.482 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 4.05% for the six months ended May 31, 2002. That return was the result of an increase in net asset value from $14.28 on November 30, 2001 to $14.36 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.62, the Trust had a market yield of 6.75% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.80%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 45.1% A 18.5% AA 17.8% Non-Rated 12.8% BBB 5.3% BB 0.5%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 25.90% Life of Trust (1/29/99) 5.15
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 10.13% Life of Trust (1/29/99) 4.59
5 LARGEST CATEGORIES(1) [CHART] Insured - Transportation* 27.4% Education 15.7% Insured - Hospital* 15.4% Hospital 12.4% Electric Utilities 11.4%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 42.81% combined federal and state income tax rate. New York City residents may be subject to New York City personal income tax. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 9 EATON VANCE OHIO MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - - Ohio's economy has turned in a mixed performance in recent months. The manufacturing, retail and financial services sectors have each reported uneven growth, while the auto, trucking and shipping areas have registered significant improvement. The state's May 2002 jobless rate was 5.8%, up from 4.2% a year ago. - - Hospital bonds were the Trust's largest sector weighting at May 31, 2002. While the Ohio hospital market remained intensely competitive, the Trust focused on well-positioned institutions and diversified among county and local issuers throughout the state. - - Industrial development revenue bonds (IDRs) remained a significant focus of the Trust's investment strategy. While the Trust's IDR investments included a representative of the state's large auto industry, Ford Motor Co., investments also included a non-cyclical, consumer beverage producer, Anheuser-Busch. - - Insured* general obligations (GOs) constituted a large Trust investment. In an uncertain economic environment, many states and municipalities have experienced an uncertain revenue outlook. Therefore, insured GOs represented a dependable revenue stream as well as an added element of quality. - - Management adjusted the Trust's coupon structure to reflect the dramatic decline in interest rates. Management also continued to update call protection, eliminating issues with unfavorable call features in favor of bonds with longer-dated call provisions. TRUST STATISTICS(1) - - Number of Issues: 48 - - Effective Maturity: 16.6 years - - Average Rating: A+ - - Average Call: 9.5 years - - Average Dollar Price: $97.63 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 10.89% for the six months ended May 31, 2002. That return was the result of an increase in share price from $13.62 on November 30, 2001 to $14.60 on May 31, 2002, and the reinvestment of $0.465 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 2.71% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.07 on November 30, 2001 to $13.97 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.60, the Trust had a market yield of 6.58% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.59%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 41.4% A 19.4% Non-Rated 14.1% AA 12.4% BBB 11.1% BB 1.6%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 23.60% Life of Trust (1/29/99) 4.94
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 10.05% Life of Trust (1/29/99) 3.57
5 LARGEST CATEGORIES(1) [CHART] Hospital 20.4% Insured - Special Tax Revenue* 17.6% Industrial Development Revenue 17.6% Insured - General Obligations* 16.1% Insured - Education* 11.5%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 43.21% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 10 EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST as of May 31, 2002 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - The Pennsylvania economy has been marked by slow growth, a slight improvement from last year's recession. The manufacturing sector has benefited from somewhat stronger demand for durable goods. Residential construction remained fairly robust, while the commercial segment lagged. The state's May 2002 jobless rate was 5.7%, a jump from 4.6% a year ago. - - Insured* education bonds were the Trust's largest sector weighting at May 31, 2002. The Trust's investments included issues that financed projects for some of Pennsylvania's most celebrated universities, including Temple University and Bryn Mawr College. - - Insured* hospital bonds remained a significant focus of the Trust, with a focus on leading institutions, like Abington Memorial Hospital, one of Pennsylvania's renowned teaching hospitals. Abington maintains affiliations with the Commonwealth's leading medical schools and offers care specialties in obstetrics, internal medicine, family medicine, surgery and dentistry. - - In a slow economy, the Trust maintained an exposure to essential services bonds, including water and sewer, transportation and utilities. Because the revenues for these issues are based on tolls and fees, they are considered less subject to economic fluctuations. - - Management continued its efforts to adjust coupons and call features as part of an ongoing commitment to protect against untimely calls and improve the overall structure of the Trust. TRUST STATISTICS(1) - - Number of Issues: 60 - - Effective Maturity: 18.7 years - - Average Rating: AA - - Average Call: 7.3 years - - Average Dollar Price: $96.63 THE TRUST PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 9.82% for the six months ended May 31, 2002. That return was the result of an increase in share price from $12.75 on November 30, 2001 to $13.56 on May 31, 2002, and the reinvestment of $0.431 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 2.16% for the six months ended May 31, 2002. That return was the result of a decrease in net asset value from $14.16 on November 30, 2001 to $14.01 on May 31, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.56, the Trust had a market yield of 6.60% at May 31, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.06%.(4) RATING DISTRIBUTION(1) By Total Investments [CHART] AAA 66.7% BBB 10.8% Non-Rated 9.2% A 9.0% BB 2.3% AA 2.0%
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 VARY. TRUST INFORMATION AS OF MAY 31, 2002 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURN (BY MARKET VALUE, AMERICAN STOCK EXCHANGE) One Year 23.57% Life of Trust (1/29/99) 2.70
AVERAGE ANNUAL TOTAL RETURN (AT NET ASSET VALUE) One Year 9.29% Life of Trust (1/29/99) 3.71
5 LARGEST CATEGORIES(1) [CHART] Insured - Education* 25.5% Insured - Hospital* 16.9% Insured - Water & Sewer* 16.0% Insured - Transportation* 15.3% Insured - General Obligations* 13.2%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. (2) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 40.32% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 11 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 155.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Education -- 9.8% - ---------------------------------------------------------------------------- $ 1,000 California Educational Facilities Authority, (Dominican University), 5.75%, 12/1/30 $ 1,009,700 500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 482,975 1,850 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 1,848,649 4,000 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 3,987,920 2,500 California Educational Facilities Authority, (University of Southern California), 5.50%, 10/1/27 2,582,725 - ---------------------------------------------------------------------------- $ 9,911,969 - ---------------------------------------------------------------------------- Hospital -- 15.7% - ---------------------------------------------------------------------------- $ 2,000 California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 6.25%, 12/1/34 $ 2,111,320 750 California Infrastructure and Economic Development, (Kaiser Hospital), 5.50%, 8/1/31 739,747 1,650 California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32 1,627,840 1,750 California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29 1,636,827 1,500 California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28 1,489,365 1,500 Duarte, COP, (City of Hope), 5.25%, 4/1/24 1,406,385 1,000 Stockton Health Facilities Authority, (Dameron Hospital), 5.70%, 12/1/14 1,024,550 2,000 Tahoe Forest Hospital District, 5.85%, 7/1/22 1,935,460 2,000 Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31 1,972,900 2,000 Washington Township, Health Care District, 5.25%, 7/1/29 1,914,980 - ---------------------------------------------------------------------------- $ 15,859,374 - ---------------------------------------------------------------------------- Housing -- 9.6% - ---------------------------------------------------------------------------- $ 1,750 California Statewide Communities Development Authority, (Chesapeake Bay Apartments), 6.00%, 6/1/32 $ 1,549,572 1,000 California Statewide Communities Development Authority, (Corporate Fund for Housing), 6.50%, 12/1/29 978,710 500 California Statewide Communities Development Authority, (Corporate Fund for Housing), 7.25%, 12/1/34 501,455 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Housing (continued) - ---------------------------------------------------------------------------- $ 1,750 California Statewide Communities Development Authority, (Nantucket Bay Apartments), 6.00%, 6/1/32 $ 1,529,780 1,700 California Statewide Communities Development Authority, (Oaks at Sunset Apartments), 6.00%, 6/1/36 1,478,592 796 Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29 769,342 450 Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29 431,770 2,765 Monterey County Housing Authority, Multifamily, (Parkside Manor Apartments), 5.00%, 1/1/29 2,426,288 - ---------------------------------------------------------------------------- $ 9,665,509 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 1.3% - ---------------------------------------------------------------------------- $ 1,250 California Pollution Control Financing Authority, (Mobil Oil Corp.), (AMT), 5.50%, 12/1/29 $ 1,282,575 - ---------------------------------------------------------------------------- $ 1,282,575 - ---------------------------------------------------------------------------- Insured-Education -- 6.6% - ---------------------------------------------------------------------------- $ 3,770 California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23 $ 3,748,209 3,000 California University, (AMBAC), 5.00%, 11/1/33 2,923,350 - ---------------------------------------------------------------------------- $ 6,671,559 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 12.2% - ---------------------------------------------------------------------------- $ 3,250 California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31 $ 3,267,193 2,500 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16 2,557,625 5,650 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(2)(3) 5,783,792 665 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(3)(4) 688,621 - ---------------------------------------------------------------------------- $ 12,297,231 - ---------------------------------------------------------------------------- Insured-General Obligations -- 18.4% - ---------------------------------------------------------------------------- $ 3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,582,932 1,650 California RITES, (AMBAC), Variable Rate, 5/1/26(2)(3) 1,868,345
SEE NOTES TO FINANCIAL STATEMENTS 12 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-General Obligations (continued) - ---------------------------------------------------------------------------- $ 6,425 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/20 $ 2,429,742 3,000 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/21 1,063,410 3,750 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 3,828,638 5,000 Murrieta Valley Unified School District, (FGIC), 0.00%, 9/1/20 1,879,100 9,635 San Ramon Valley Unified School District, (FGIC), 0.00%, 7/1/18(1) 4,196,621 4,500 Ukiah Unified School District, (FGIC), 0.00%, 8/1/20 1,701,765 - ---------------------------------------------------------------------------- $ 18,550,553 - ---------------------------------------------------------------------------- Insured-Hospital -- 4.6% - ---------------------------------------------------------------------------- $ 3,200 California Statewide Communities Development Authority, (Children's Hospital Los Angeles), (MBIA), 5.25%, 8/15/29 $ 3,205,536 1,245 California Statewide Communities Development Authority, (Sutter Health) Residual Certificates, (FSA), Variable Rate, 8/15/27(3)(4) 1,444,947 - ---------------------------------------------------------------------------- $ 4,650,483 - ---------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 6.7% - ---------------------------------------------------------------------------- $11,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/28 $ 2,646,955 9,000 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17 4,135,320 - ---------------------------------------------------------------------------- $ 6,782,275 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 3.4% - ---------------------------------------------------------------------------- $ 250 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(2)(3) $ 246,593 525 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 514,264 2,500 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(3)(4) 2,601,325 - ---------------------------------------------------------------------------- $ 3,362,182 - ---------------------------------------------------------------------------- Insured-Transportation -- 21.6% - ---------------------------------------------------------------------------- $ 5,130 Foothills/Eastern Transportation Corridor Agency, (FSA), 0.00%, 1/1/26 $ 1,402,593 2,500 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 2,509,750 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Transportation (continued) - ---------------------------------------------------------------------------- $ 2,300 Port Oakland, CA, (MBIA), (AMT), 5.375%, 11/1/25 $ 2,329,348 2,515 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(3)(4) 2,463,568 2,000 Puerto Rico Highway and Transportation Authority, (FSA), 4.75%, 7/1/38 1,867,820 5,000 San Francisco City and County Airports, (International Airport), (FGIC), (AMT), 5.25%, 5/1/30 4,981,600 6,000 San Francisco, (Bay Area Rapid Transportation District), (FGIC), 5.50%, 7/1/34 6,181,500 - ---------------------------------------------------------------------------- $ 21,736,179 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 16.0% - ---------------------------------------------------------------------------- $ 5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 4,936,750 6,250 East Bay Municipal Utilities District Water System, (MBIA), 5.00%, 6/1/38 6,052,438 4,000 Metropolitan Water District, (Southern California Waterworks), (MBIA), Variable Rate, 7/1/27(3)(4) 3,665,320 4,850 Santa Rosa Wastewater, (AMBAC), 0.00%, 9/1/23(5) 1,498,262 - ---------------------------------------------------------------------------- $ 16,152,770 - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 6.7% - ---------------------------------------------------------------------------- $ 4,000 Sacramento City, Financing Authority, 5.40%, 11/1/20 $ 4,213,200 2,500 San Diego County, Certificates of Participation, 5.375%, 10/1/41 2,494,925 - ---------------------------------------------------------------------------- $ 6,708,125 - ---------------------------------------------------------------------------- Special Tax Revenue -- 21.6% - ---------------------------------------------------------------------------- $ 1,500 Bonita Canyon Public Facilities Financing Authority, 5.375%, 9/1/28 $ 1,401,060 1,000 Brentwood Infrastructure Financing Authority, 6.00%, 9/1/29 1,012,680 1,750 Capistrano Unified School District, 5.75%, 9/1/29 1,704,045 1,750 Corona, Public Financing Authority, 5.80%, 9/1/20 1,727,530 1,000 Corona-Norco Unified School District Public Financing Authority, 6.125%, 9/1/31 981,080 1,590 Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 1,571,620 750 Irvine, Improvement Bond Act of 1915, 5.50%, 9/2/22 722,025 1,460 Lincoln Public Financing Authority, Improvement Bond Act of 1915 (Twelve Bridges), 6.20%, 9/2/25 1,485,623 600 Manteca Unified School District, 5.80%, 9/1/24 585,660
SEE NOTES TO FINANCIAL STATEMENTS 13 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Special Tax Revenue (continued) - ---------------------------------------------------------------------------- $ 2,465 Oakland Joint Powers Financing Authority, 5.40%, 9/2/18 $ 2,534,686 995 Oakland Joint Powers Financing Authority, 5.50%, 9/2/24 1,007,398 700 Rancho Cucamonga Public Financing Authority, 6.00%, 9/2/20 711,095 1,245 Roseville Special Tax, 6.30%, 9/1/25 1,266,924 1,325 San Pablo Redevelopment Agency, 5.65%, 12/1/23 1,335,560 1,500 Santa Margarita Water District, 6.20%, 9/1/20 1,546,770 250 Santaluz Community Facilities District No. 2, 6.10%, 9/1/21 253,360 500 Santaluz Community Facilities District No. 2, 6.20%, 9/1/30 506,430 500 Turlock Public Financing Authority, 5.45%, 9/1/24 477,095 1,000 Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 974,790 - ---------------------------------------------------------------------------- $ 21,805,431 - ---------------------------------------------------------------------------- Transportation -- 1.0% - ---------------------------------------------------------------------------- $ 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 $ 1,040,645 - ---------------------------------------------------------------------------- $ 1,040,645 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 155.2% (identified cost $154,731,913) $156,476,860 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.3% $ 3,364,989 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (58.5)% $(59,000,000) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $100,841,849 - ----------------------------------------------------------------------------
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, 2002, 57.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 6.1% to 21.7% 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 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (4) Security has been issued as a leveraged inverse floater bond. (5) When-issued security. SEE NOTES TO FINANCIAL STATEMENTS 14 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 156.8%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Education -- 1.7% - ---------------------------------------------------------------------------- $1,000 Volusia County Educational Facilities Authority, (Embry Riddle Aeronautical), 5.75%, 10/15/29 $ 1,004,870 - ---------------------------------------------------------------------------- $ 1,004,870 - ---------------------------------------------------------------------------- Electric Utilities -- 3.2% - ---------------------------------------------------------------------------- $2,000 Jacksonville Electric Authority, Variable Rate, 10/1/32(1)(2) $ 1,902,040 - ---------------------------------------------------------------------------- $ 1,902,040 - ---------------------------------------------------------------------------- Escrowed / Prerefunded -- 7.4% - ---------------------------------------------------------------------------- $ 365 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 375,074 2,500 Escambia County, Health Facilities Authority, (Charity Obligation Group), Prerefunded to 11/1/10, 5.00%, 11/1/28 2,660,300 1,250 Tampa Bay Water Utility System, (FGIC), Prerefunded to 10/1/11, 5.75%, 10/1/29 1,415,275 - ---------------------------------------------------------------------------- $ 4,450,649 - ---------------------------------------------------------------------------- General Obligations -- 6.1% - ---------------------------------------------------------------------------- $1,250 Florida, Variable Rate, 7/1/27(1)(2) $ 1,189,850 2,650 Florida Board of Education, 4.75%, 6/1/28 2,464,632 - ---------------------------------------------------------------------------- $ 3,654,482 - ---------------------------------------------------------------------------- Health Care-Miscellaneous -- 0.8% - ---------------------------------------------------------------------------- $ 500 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 509,780 - ---------------------------------------------------------------------------- $ 509,780 - ---------------------------------------------------------------------------- Hospital -- 7.8% - ---------------------------------------------------------------------------- $2,250 Highlands County Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/28 $ 2,065,117 1,250 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 1,235,862 1,400 West Orange Health Care District, 5.80%, 2/1/31 1,405,208 - ---------------------------------------------------------------------------- $ 4,706,187 - ---------------------------------------------------------------------------- Housing -- 4.0% - ---------------------------------------------------------------------------- $1,750 Escambia County Housing Finance Authority, SFM, (Multi-County Program), (AMT), 5.50%, 10/1/31 $ 1,747,322 500 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20 496,780 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Housing (continued) - ---------------------------------------------------------------------------- $ 165 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 9.50%, 8/15/05 $ 164,639 - ---------------------------------------------------------------------------- $ 2,408,741 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 2.3% - ---------------------------------------------------------------------------- $ 940 Broward County IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19 $ 871,615 650 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 535,684 - ---------------------------------------------------------------------------- $ 1,407,299 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 11.1% - ---------------------------------------------------------------------------- $1,600 Burke County Development Authority (Georgia Power Co.), (MBIA), 5.45%, 5/1/34 $ 1,602,368 1,100 Guam Power Authority, (MBIA), 5.125%, 10/1/29 1,099,923 2,750 Jupiter Island, Utility System, (South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 2,682,570 1,250 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 1,279,600 - ---------------------------------------------------------------------------- $ 6,664,461 - ---------------------------------------------------------------------------- Insured-General Obligations -- 3.7% - ---------------------------------------------------------------------------- $2,500 Florida Board of Education, (MBIA), 4.50%, 6/1/28 $ 2,230,475 - ---------------------------------------------------------------------------- $ 2,230,475 - ---------------------------------------------------------------------------- Insured-Hospital -- 7.7% - ---------------------------------------------------------------------------- $1,000 Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC), 5.25%, 11/15/37 $ 1,001,580 1,350 Miami Dade County Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,335,123 2,500 Tampa, (Catholic Health System), (MBIA), 4.75%, 11/15/28 2,304,525 - ---------------------------------------------------------------------------- $ 4,641,228 - ---------------------------------------------------------------------------- Insured-Housing -- 1.8% - ---------------------------------------------------------------------------- $1,100 Broward County Housing Finance Authority, Multifamily Housing, (Venice Homes Apartments), (FSA), (AMT), 5.70%, 1/1/32 $ 1,089,385 - ---------------------------------------------------------------------------- $ 1,089,385 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 26.7% - ---------------------------------------------------------------------------- $1,470 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(3) $ 1,325,999
SEE NOTES TO FINANCIAL STATEMENTS 15 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Special Tax Revenue (continued) - ---------------------------------------------------------------------------- $3,000 Jacksonville Capital Improvement, (Stadium), (AMBAC), 4.75%, 10/1/25 $ 2,824,350 2,250 Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30 2,188,395 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,714,138 4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 3,709,280 1,395 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 1,344,752 1,000 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/30 989,600 440 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 431,002 1,500 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 1,560,795 - ---------------------------------------------------------------------------- $ 16,088,311 - ---------------------------------------------------------------------------- Insured-Transportation -- 22.6% - ---------------------------------------------------------------------------- $2,250 Florida Ports Financing Commission, (FGIC), 5.50%, 10/1/29 $ 2,260,418 4,500 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27 4,031,010 1,500 Greater Orlando Aviation Authority, (FGIC), (AMT), Variable Rate, 10/1/18(2)(3) 1,537,440 500 Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25 516,915 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.50%, 1/1/37 941,330 1,000 Orlando and Orange County Expressway Authority, (FGIC), 5.00%, 7/1/28 976,180 2,000 Puerto Rico Highway and Transportation Authority, (MBIA), 5.50%, 7/1/36 2,097,860 1,165 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/26(2)(3) 1,263,839 - ---------------------------------------------------------------------------- $ 13,624,992 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 21.6% - ---------------------------------------------------------------------------- $1,500 Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30 $ 1,523,910 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 983,030 1,250 Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28 1,219,350 4,000 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 3,918,840 2,000 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 1,739,340 3,900 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 3,633,201 - ---------------------------------------------------------------------------- $ 13,017,671 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Nursing Home -- 3.9% - ---------------------------------------------------------------------------- $ 750 Alachua County Health Facilities Authority, (Beverly Enterprises Inc.), 6.75%, 4/1/10 $ 788,220 850 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 748,629 265 Orange County Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24 228,165 735 Orange County Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34 618,561 - ---------------------------------------------------------------------------- $ 2,383,575 - ---------------------------------------------------------------------------- Other Revenue -- 1.2% - ---------------------------------------------------------------------------- $ 750 Capital Trust Agency, (Seminole Tribe Convention), 10.00%, 10/1/33 $ 752,588 - ---------------------------------------------------------------------------- $ 752,588 - ---------------------------------------------------------------------------- Senior Living / Life Care -- 2.2% - ---------------------------------------------------------------------------- $1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,320,990 - ---------------------------------------------------------------------------- $ 1,320,990 - ---------------------------------------------------------------------------- Special Tax Revenue -- 11.5% - ---------------------------------------------------------------------------- $ 595 Fleming Island Plantation Community Development District, 6.30%, 2/1/05 $ 599,498 900 Heritage Springs Community Development District, 6.75%, 5/1/21 910,179 950 Longleaf Community Development District, 6.65%, 5/1/20 848,341 775 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 806,620 1,000 Northern Palm Beach County Improvement District, (Water Control and Improvement), 6.00%, 8/1/25 998,040 500 Stoneybrook West Community Development District, 7.00%, 5/1/32 507,730 950 University Square Community Development District, 6.75%, 5/1/20 971,290 500 Vista Lakes Community Development District, 7.20%, 5/1/32 514,035 760 Waterlefe Community Development District, 6.95%, 5/1/31 766,703 - ---------------------------------------------------------------------------- $ 6,922,436 - ---------------------------------------------------------------------------- Transportation -- 1.1% - ---------------------------------------------------------------------------- $ 650 Lee County Airport, 6.00%, 10/1/29 $ 687,765 - ---------------------------------------------------------------------------- $ 687,765 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 16 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Water and Sewer -- 8.4% - ---------------------------------------------------------------------------- $2,000 Jacksonville, Water and Sewer, 5.375%, 10/1/29 $ 2,007,700 3,000 Seminole County, Water and Sewer, 5.375%, 10/1/22 3,064,410 - ---------------------------------------------------------------------------- $ 5,072,110 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 156.8% (identified cost $94,151,933) $ 94,540,035 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.1% $ 1,241,165 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (58.9)% $(35,502,915) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 60,278,285 - ----------------------------------------------------------------------------
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 economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2002, 62.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 7.0% to 24.6% 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 securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 17 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 158.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Education -- 30.8% - ---------------------------------------------------------------------------- $ 500 Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31 $ 475,295 2,500 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 2,315,050 1,000 Massachusetts Development Finance Agency, (Clark University), 5.00%, 7/1/28 929,820 500 Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31 500,515 1,000 Massachusetts Development Finance Agency, (Suffolk University), 5.85%, 7/1/29 998,730 1,500 Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29 1,546,860 1,000 Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29 958,530 2,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 2,346,775 200 Massachusetts HEFA, (Wellesley College), 5.125%, 7/1/39 195,288 500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 492,525 400 Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28 384,976 - ---------------------------------------------------------------------------- $ 11,144,364 - ---------------------------------------------------------------------------- Electric Utilities -- 1.7% - ---------------------------------------------------------------------------- $ 600 Massachusetts IFA, (Devens Electric System), 6.00%, 12/1/30 $ 600,882 - ---------------------------------------------------------------------------- $ 600,882 - ---------------------------------------------------------------------------- Escrowed / Prerefunded -- 4.9% - ---------------------------------------------------------------------------- $1,450 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20 $ 544,924 3,720 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/22 1,226,335 - ---------------------------------------------------------------------------- $ 1,771,259 - ---------------------------------------------------------------------------- Health Care-Miscellaneous -- 11.0% - ---------------------------------------------------------------------------- $ 500 Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37 $ 516,680 700 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 5.75%, 2/1/29 645,855 1,000 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20 1,053,050 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Health Care-Miscellaneous (continued) - ---------------------------------------------------------------------------- $ 600 Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29 $ 540,174 600 Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31 601,950 700 Massachusetts HEFA, (Learning Center for Deaf Children), 6.125%, 7/1/29 625,247 - ---------------------------------------------------------------------------- $ 3,982,956 - ---------------------------------------------------------------------------- Hospital -- 20.4% - ---------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Baystate Medical Center), 5.75%, 7/1/33(1) $ 992,800 400 Massachusetts HEFA, (Berkshire Health System), 6.25%, 10/1/31 400,860 500 Massachusetts HEFA, (Caritas Christi), 6.25%, 7/1/22 500,325 175 Massachusetts HEFA, (Central New England Health Systems), 6.30%, 8/1/18 158,373 1,000 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.25%, 7/15/18 873,470 125 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.375%, 7/15/28 104,289 1,375 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 1,320,275 2,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 1,987,660 1,000 Massachusetts HEFA, (Winchester Hospital), 6.75%, 7/1/30 1,030,350 - ---------------------------------------------------------------------------- $ 7,368,402 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 2.1% - ---------------------------------------------------------------------------- $ 750 Massachusetts IFA, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15 $ 772,410 - ---------------------------------------------------------------------------- $ 772,410 - ---------------------------------------------------------------------------- Insured-Education -- 22.0% - ---------------------------------------------------------------------------- $ 850 Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 10/1/27(2)(3) $ 834,607 2,350 Massachusetts HEFA, (Brandeis University), (MBIA), 4.75%, 10/1/28 2,170,296 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 967,380 500 Massachusetts HEFA, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31 500,510 1,000 Massachusetts IFA, (Merrimack College), (MBIA), 5.00%, 7/1/27 971,830
SEE NOTES TO FINANCIAL STATEMENTS 18 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Education (continued) - ---------------------------------------------------------------------------- $2,700 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28(4) $ 2,499,039 - ---------------------------------------------------------------------------- $ 7,943,662 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 2.1% - ---------------------------------------------------------------------------- $ 750 Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29 $ 758,880 - ---------------------------------------------------------------------------- $ 758,880 - ---------------------------------------------------------------------------- Insured-General Obligations -- 6.2% - ---------------------------------------------------------------------------- $ 500 Plymouth, (MBIA), 5.25%, 10/15/20 $ 515,505 1,715 Westfield, (FGIC), 5.00%, 5/1/20 1,727,605 - ---------------------------------------------------------------------------- $ 2,243,110 - ---------------------------------------------------------------------------- Insured-Hospital -- 9.6% - ---------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 939,020 2,000 Massachusetts HEFA, (Southcoast Health System), (MBIA), 4.75%, 7/1/27 1,814,780 750 Massachusetts HEFA, (UMass Medical Center), (AMBAC), 5.00%, 7/1/28 717,038 - ---------------------------------------------------------------------------- $ 3,470,838 - ---------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 8.8% - ---------------------------------------------------------------------------- $1,250 Massachusetts Port Authority, (Delta Airlines), (AMBAC), (AMT), 5.00%, 1/1/27 $ 1,184,775 1,000 Massachusetts Port Authority, (US Airways), (FGIC), (AMT), 5.00%, 7/1/28 939,680 1,000 Massachusetts Port Authority, (US Airways), (MBIA), (AMT), 6.00%, 9/1/21 1,056,800 - ---------------------------------------------------------------------------- $ 3,181,255 - ---------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 2.2% - ---------------------------------------------------------------------------- $ 800 Plymouth County, (Plymouth County Correctional Facility), (AMBAC), 5.00%, 4/1/22 $ 795,464 - ---------------------------------------------------------------------------- $ 795,464 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 6.8% - ---------------------------------------------------------------------------- $ 800 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(2)(3) $ 789,096 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Special Tax Revenue (continued) - ---------------------------------------------------------------------------- $ 735 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(5) $ 719,969 900 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(5) 936,477 - ---------------------------------------------------------------------------- $ 2,445,542 - ---------------------------------------------------------------------------- Insured-Transportation -- 10.7% - ---------------------------------------------------------------------------- $1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(2)(5) $ 906,400 2,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.25%, 1/1/29 2,000,460 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(5) 979,550 - ---------------------------------------------------------------------------- $ 3,886,410 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 3.9% - ---------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, (FGIC), 4.75%, 2/1/26 $ 1,394,145 - ---------------------------------------------------------------------------- $ 1,394,145 - ---------------------------------------------------------------------------- Miscellaneous -- 0.9% - ---------------------------------------------------------------------------- $ 300 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(2)(5) $ 336,783 - ---------------------------------------------------------------------------- $ 336,783 - ---------------------------------------------------------------------------- Nursing Home -- 2.9% - ---------------------------------------------------------------------------- $ 545 Massachusetts Development Finance Agency, (Odd Fellows Home of Massachusetts), 6.25%, 1/1/15 $ 501,307 600 Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29 562,230 - ---------------------------------------------------------------------------- $ 1,063,537 - ---------------------------------------------------------------------------- Senior Living / Life Care -- 3.5% - ---------------------------------------------------------------------------- $1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,281,450 - ---------------------------------------------------------------------------- $ 1,281,450 - ---------------------------------------------------------------------------- Transportation -- 3.5% - ---------------------------------------------------------------------------- $1,350 Massachusetts Bay Transportation Authority, Variable Rate, 3/1/27(2)(3) $ 1,261,602 - ---------------------------------------------------------------------------- $ 1,261,602 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 19 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Water and Sewer -- 4.2% - ---------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, PCR, 5.375%, 8/1/27 $ 1,520,760 - ---------------------------------------------------------------------------- $ 1,520,760 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 158.2% (identified cost $56,471,331) $ 57,223,711 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 1.3% $ 456,188 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (59.5)% $(21,502,588) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 36,177,311 - ----------------------------------------------------------------------------
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 economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2002, 44.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 4.6% to 24.0% of total investments. (1) When-issued security. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as an inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover when- issued securities. (5) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 20 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 156.1%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Electric Utilities -- 3.3% - ---------------------------------------------------------------------------- $1,000 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 979,750 - ---------------------------------------------------------------------------- $ 979,750 - ---------------------------------------------------------------------------- General Obligations -- 16.4% - ---------------------------------------------------------------------------- $ 500 East Grand Rapids Public Schools, 5.00%, 5/1/25 $ 486,350 500 Garden City School District, 5.00%, 5/1/26 485,380 5,335 Grand Rapids and Kent County Joint Building Authority, 0.00%, 12/1/29 1,146,545 1,000 Manistee Area Public Schools, 5.00%, 5/1/24 977,180 1,000 White Cloud Public Schools, 5.125%, 5/1/31 979,280 800 Woodhaven Brownstown School District, 5.125%, 5/1/32 782,832 - ---------------------------------------------------------------------------- $ 4,857,567 - ---------------------------------------------------------------------------- Health Care-Miscellaneous -- 1.3% - ---------------------------------------------------------------------------- $ 400 Pittsfield Township EDC, (Arbor Hospice), 7.875%, 8/15/27 $ 385,956 - ---------------------------------------------------------------------------- $ 385,956 - ---------------------------------------------------------------------------- Hospital -- 40.5% - ---------------------------------------------------------------------------- $ 500 Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 $ 499,975 1,000 Dickinson County Healthcare Systems, 5.80%, 11/1/24 921,230 1,000 Flint Hospital Building Authority, (Hurley Medical Center), 5.375%, 7/1/20 874,370 345 John Tolfree Health System Corp., 6.00%, 9/15/23 339,670 500 Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/31 493,225 500 Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 460,120 1,000 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 952,700 2,275 Michigan Health Facilities Authority, (McLaren Obligated Group), 4.50%, 10/15/21 1,904,266 750 Michigan Hospital Finance Authority, (Ascension Health Care), 6.125%, 11/15/26 784,687 1,000 Michigan Hospital Finance Authority, (Henry Ford Health), 5.25%, 11/15/20 967,280 750 Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 710,977 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Hospital (continued) - ---------------------------------------------------------------------------- $ 750 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 $ 726,270 750 Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 771,592 750 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.25%, 1/1/20 741,067 800 Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 842,568 - ---------------------------------------------------------------------------- $ 11,989,997 - ---------------------------------------------------------------------------- Housing -- 3.4% - ---------------------------------------------------------------------------- $1,000 Multifamily Housing, (AMT), 6.00%, 11/1/33 $ 1,002,640 - ---------------------------------------------------------------------------- $ 1,002,640 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 10.5% - ---------------------------------------------------------------------------- $1,000 Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 $ 973,340 800 Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16 804,456 800 Michigan Strategic Fund, (S.D. Warren), (AMT), 7.375%, 1/15/22 808,112 625 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 515,081 - ---------------------------------------------------------------------------- $ 3,100,989 - ---------------------------------------------------------------------------- Insured-Education -- 1.6% - ---------------------------------------------------------------------------- $ 500 Central Michigan University, (FGIC), 5.00%, 10/1/27 $ 484,195 - ---------------------------------------------------------------------------- $ 484,195 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 3.4% - ---------------------------------------------------------------------------- $1,000 Michigan Strategic Fund, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 $ 1,012,390 - ---------------------------------------------------------------------------- $ 1,012,390 - ---------------------------------------------------------------------------- Insured-General Obligations -- 28.1% - ---------------------------------------------------------------------------- $1,000 Central Montcalm Public Schools, (MBIA), 6.00%, 5/1/29 $ 1,061,720 1,250 Detroit School District, (FGIC), 4.75%, 5/1/28 1,146,262 950 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 881,819 2,000 Fenton Area Public Schools, (FGIC), 5.00%, 5/1/24 1,954,360 1,250 Lincoln Park School District, (FGIC), 5.00%, 5/1/26 1,213,450
SEE NOTES TO FINANCIAL STATEMENTS 21 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-General Obligations (continued) - ---------------------------------------------------------------------------- $2,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 $ 2,057,820 - ---------------------------------------------------------------------------- $ 8,315,431 - ---------------------------------------------------------------------------- Insured-Hospital -- 8.9% - ---------------------------------------------------------------------------- $ 150 Lenawee County Hospital Finance, (Lenawee Health Alliance), (AMBAC), 5.00%, 7/1/28 $ 143,001 500 Michigan Health Facilities Authority, (Detroit Medical Group), (AMBAC), 5.25%, 8/15/27 493,220 1,000 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 980,660 1,000 Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 1,011,320 - ---------------------------------------------------------------------------- $ 2,628,201 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 13.4% - ---------------------------------------------------------------------------- $1,100 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 1,015,113 600 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) 591,822 455 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 445,695 700 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 728,371 1,250 Wayne Charter County, (Airport Hotel-Detroit Metroplitan Airport), (MBIA), 5.00%, 12/1/30 1,196,063 - ---------------------------------------------------------------------------- $ 3,977,064 - ---------------------------------------------------------------------------- Insured-Student Loan -- 3.3% - ---------------------------------------------------------------------------- $1,000 Michigan Higher Education Student Loan Authority Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(4) $ 989,710 - ---------------------------------------------------------------------------- $ 989,710 - ---------------------------------------------------------------------------- Insured-Transportation -- 10.4% - ---------------------------------------------------------------------------- $ 670 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) $ 656,299 600 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/26(2)(3) 650,904 2,000 Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 12/1/28(1)(2) 1,773,760 - ---------------------------------------------------------------------------- $ 3,080,963 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 8.5% - ---------------------------------------------------------------------------- $1,750 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,684,795 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Water and Sewer (continued) - ---------------------------------------------------------------------------- $ 900 Grand Rapids Sanitary Sewer System, (FGIC), 4.75%, 1/1/28 $ 824,004 - ---------------------------------------------------------------------------- $ 2,508,799 - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 0.8% - ---------------------------------------------------------------------------- $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 245,563 - ---------------------------------------------------------------------------- $ 245,563 - ---------------------------------------------------------------------------- Transportation -- 2.3% - ---------------------------------------------------------------------------- $ 750 Kent County Airport Facility, Variable Rate, 1/1/25(1)(2) $ 678,758 - ---------------------------------------------------------------------------- $ 678,758 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 156.1% (identified cost $45,867,935) $ 46,237,973 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.0% $ 886,679 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (59.1)% $(17,501,437) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 29,623,215 - ----------------------------------------------------------------------------
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 economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2002, 49.7% 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 6.0% to 20.7% 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. (3) Security has been issued as a leveraged inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 22 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 156.8%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 5.4% - ---------------------------------------------------------------------------- $2,290 New Jersey EDA, (Vineland Cogeneration), (AMT), 7.875%, 6/1/19 $ 2,357,555 1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 1,031,610 - ---------------------------------------------------------------------------- $ 3,389,165 - ---------------------------------------------------------------------------- Education -- 8.8% - ---------------------------------------------------------------------------- $1,500 New Jersey Educational Facilities Authority, (Bloomfield College), 6.85%, 7/1/30 $ 1,570,245 3,935 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/20 3,967,385 - ---------------------------------------------------------------------------- $ 5,537,630 - ---------------------------------------------------------------------------- Electric Utilities -- 1.5% - ---------------------------------------------------------------------------- $1,000 Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31 $ 977,610 - ---------------------------------------------------------------------------- $ 977,610 - ---------------------------------------------------------------------------- Escrowed / Prerefunded -- 2.3% - ---------------------------------------------------------------------------- $1,250 New Jersey EDA, (Kapkowski Mall), Prerefunded to 5/15/14, 6.375%, 4/1/31 $ 1,479,512 - ---------------------------------------------------------------------------- $ 1,479,512 - ---------------------------------------------------------------------------- Hospital -- 21.6% - ---------------------------------------------------------------------------- $1,000 New Jersey EDA, (Victoria Health), 5.20%, 12/20/36 $ 994,250 1,035 New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25 1,049,573 550 New Jersey Health Care Facilities Financing Authority, (Burdette Tomlin Memorial Hospital), 5.50%, 7/1/29 547,288 1,950 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27 1,590,459 1,000 New Jersey Health Care Facilities Financing Authority, (Deborah Heart and Lung Center), 6.30%, 7/1/23 1,007,400 2,000 New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34 2,051,760 750 New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 6.50%, 7/1/21 757,972 2,000 New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31 2,059,120 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Hospital (continued) - ---------------------------------------------------------------------------- $1,000 New Jersey Health Care Facilities Financing Authority, (Saint Peters University Hospital), (AMT), 6.875%, 7/1/20 $ 1,049,780 1,900 New Jersey Health Care Facilities Financing Authority, (St. Elizabeth Hospital), 6.00%, 7/1/20 1,881,285 600 New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30 647,466 - ---------------------------------------------------------------------------- $ 13,636,353 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 15.7% - ---------------------------------------------------------------------------- $1,000 Gloucester County, Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29 $ 1,086,700 650 Middlesex County Pollution Control Financing Authority, (Amerada Hess Corp.), 6.875%, 12/1/22 660,978 1,000 New Jersey EDA, (American Airlines), (AMT), 7.10%, 11/1/31 888,890 1,000 New Jersey EDA, (Anheuser-Busch), (AMT), 5.85%, 12/1/30 1,023,700 2,500 New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29 2,177,700 3,700 New Jersey EDA, (The Seeing Eye, Inc.), 6.20%, 12/1/24 4,064,820 - ---------------------------------------------------------------------------- $ 9,902,788 - ---------------------------------------------------------------------------- Insured-Education -- 12.2% - ---------------------------------------------------------------------------- $1,000 New Jersey Educational Facilities Authority, (Jersey City University), (AMBAC), 5.00%, 7/1/32 $ 986,170 1,000 New Jersey Educational Facilities Authority, (NJ Institute of Technology), (MBIA), 4.75%, 7/1/31 943,010 975 New Jersey Educational Facilities Authority, (Ramapo College), (AMBAC), 4.625%, 7/1/28 903,133 1,750 New Jersey Educational Facilities Authority, (Ramapo College), (MBIA), 5.75%, 7/1/29 1,849,085 1,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(1)(2) 1,543,824 1,500 University Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 1,480,620 - ---------------------------------------------------------------------------- $ 7,705,842 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 2.0% - ---------------------------------------------------------------------------- $1,250 Vineland, (Electric Utility), (MBIA), (AMT), 5.25%, 5/15/26 $ 1,255,725 - ---------------------------------------------------------------------------- $ 1,255,725 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 23 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-General Obligations -- 8.5% - ---------------------------------------------------------------------------- $1,555 Colts Neck Township Board of Education, (FSA), 5.00%, 2/1/26 $ 1,568,046 1,000 Montgomery Township Board of Education, (MBIA), 5.00%, 8/1/25 1,002,900 500 Montgomery Township Board of Education, (MBIA), 5.00%, 4/1/27 500,675 1,000 Old Bridge Township Board of Education, (MBIA), 5.00%, 7/15/26 1,001,760 1,230 West Deptford Township, (FGIC), 5.50%, 9/1/24 1,284,157 - ---------------------------------------------------------------------------- $ 5,357,538 - ---------------------------------------------------------------------------- Insured-Hospital -- 4.6% - ---------------------------------------------------------------------------- $3,255 New Jersey Health Care Facilities, (Virtua Health), (FSA), 4.50%, 7/1/28 $ 2,929,402 - ---------------------------------------------------------------------------- $ 2,929,402 - ---------------------------------------------------------------------------- Insured-Housing -- 5.6% - ---------------------------------------------------------------------------- $2,905 New Jersey Housing and Mortgage Finance Agency, (MBIA), (AMT), 5.90%, 10/1/29 $ 2,989,506 520 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing, (FSA), 5.75%, 5/1/25 541,778 - ---------------------------------------------------------------------------- $ 3,531,284 - ---------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 2.8% - ---------------------------------------------------------------------------- $1,580 New Jersey EDA, (FSA), Variable Rate, 5/1/17(1)(3) $ 1,744,968 - ---------------------------------------------------------------------------- $ 1,744,968 - ---------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 5.4% - ---------------------------------------------------------------------------- $3,660 New Brunswick Housing Authority, (Rutgers University), (FGIC), 4.625%, 7/1/24 $ 3,444,463 - ---------------------------------------------------------------------------- $ 3,444,463 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 5.9% - ---------------------------------------------------------------------------- $3,945 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 9/1/20 $ 3,735,284 - ---------------------------------------------------------------------------- $ 3,735,284 - ---------------------------------------------------------------------------- Insured-Transportation -- 28.5% - ---------------------------------------------------------------------------- $4,000 Delaware River and Bay Authority, (AMBAC), 5.75%, 1/1/29 $ 4,252,480 1,000 Delaware River Port Authority, (FSA), 5.625%, 1/1/26 1,048,960 3,250 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 3,436,778 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Transportation (continued) - ---------------------------------------------------------------------------- $ 800 New Jersey Transportation Trust Fund Authority, (MBIA), 5.00%, 12/15/21 $ 802,696 1,500 New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate, 1/1/30(1)(2) 1,647,525 1,200 Port Authority of New York and New Jersey, (AMBAC), 4.75%, 1/15/26 1,141,848 4,000 Port Authority of New York and New Jersey, (JFK International Terminal), (MBIA), (AMT), 5.75%, 12/1/25 4,126,240 1,630 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(1)(2) 1,596,667 - ---------------------------------------------------------------------------- $ 18,053,194 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 4.0% - ---------------------------------------------------------------------------- $1,500 Bordentown Sewer Authority, (FGIC), 5.375%, 12/1/20 $ 1,554,855 1,000 New Jersey Economic Development Authority Water Facilities, (Middlesex Water Co.), (AMBAC), (AMT), 5.10%, 1/1/32 990,150 - ---------------------------------------------------------------------------- $ 2,545,005 - ---------------------------------------------------------------------------- Life Care -- 1.6% - ---------------------------------------------------------------------------- $1,100 New Jersey EDA, (United Methodist Homes), 5.75%, 7/1/29 $ 991,595 - ---------------------------------------------------------------------------- $ 991,595 - ---------------------------------------------------------------------------- Miscellaneous -- 1.8% - ---------------------------------------------------------------------------- $1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(1)(2) $ 1,122,610 - ---------------------------------------------------------------------------- $ 1,122,610 - ---------------------------------------------------------------------------- Nursing Home -- 1.6% - ---------------------------------------------------------------------------- $1,000 New Jersey EDA, (Masonic Charity Foundation), 5.50%, 6/1/31 $ 1,017,760 - ---------------------------------------------------------------------------- $ 1,017,760 - ---------------------------------------------------------------------------- Other Revenue -- 1.5% - ---------------------------------------------------------------------------- $1,000 New Jersey EDA, (Glimcher Properties REIT), (AMT), 6.00%, 11/1/28 $ 968,060 - ---------------------------------------------------------------------------- $ 968,060 - ---------------------------------------------------------------------------- Transportation -- 15.5% - ---------------------------------------------------------------------------- $4,000 New Jersey Highway Authority, (Garden State Parkway), 5.625%, 1/1/30 $ 4,197,720
SEE NOTES TO FINANCIAL STATEMENTS 24 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Transportation (continued) - ---------------------------------------------------------------------------- $1,500 New Jersey Transportation Trust Fund Authority, Variable Rate, 6/15/17(1)(3) $ 1,548,855 2,550 Port Authority of New York and New Jersey, 4.75%, 8/1/33 2,346,128 1,600 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) 1,696,096 - ---------------------------------------------------------------------------- $ 9,788,799 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 156.8% (identified cost $95,720,558) $ 99,114,587 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.3% $ 2,097,027 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (60.1)% $(38,000,000) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 63,211,614 - ----------------------------------------------------------------------------
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, 2002, 50.8% 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 6.3% to 21.6% of total investments. (1) 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. (2) Security has been issued as a leveraged inverse floater bond. (3) Security has been issued as an inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 25 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 154.7%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 2.7% - ---------------------------------------------------------------------------- $1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,031,610 1,150 Suffolk County IDA, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23 1,062,692 - ---------------------------------------------------------------------------- $ 2,094,302 - ---------------------------------------------------------------------------- Education -- 15.7% - ---------------------------------------------------------------------------- $1,500 New York City IDA, (Polytechnic University), 6.125%, 11/1/30 $ 1,532,340 500 New York Dormitory Authority, (City University), 5.25%, 7/1/31 495,925 4,275 New York Dormitory Authority, (Rockefeller University), 4.75%, 7/1/37 3,931,204 3,500 New York Dormitory Authority, (State University Educational Facilities), 4.75%, 5/15/28 3,192,455 2,500 Tompkins County IDA, (Cornell University), 5.75%, 7/1/30 2,855,850 - ---------------------------------------------------------------------------- $ 12,007,774 - ---------------------------------------------------------------------------- Electric Utilities -- 11.4% - ---------------------------------------------------------------------------- $2,000 Long Island Power Authority, 5.50%, 12/1/23 $ 2,031,660 1,000 Long Island Power Authority, 5.50%, 12/1/29 1,010,980 1,655 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 1,640,353 4,100 New York Power Authority, 5.25%, 11/15/40 4,049,775 - ---------------------------------------------------------------------------- $ 8,732,768 - ---------------------------------------------------------------------------- General Obligations -- 8.4% - ---------------------------------------------------------------------------- $4,935 New York City, 6.00%, 8/1/16 $ 5,196,506 1,250 New York Environmental Facility Corp., 5.00%, 6/15/27 1,221,175 - ---------------------------------------------------------------------------- $ 6,417,681 - ---------------------------------------------------------------------------- Health Care-Miscellaneous -- 6.5% - ---------------------------------------------------------------------------- $1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29 $ 1,005,475 1,500 New York City IDA, (Ohel Children's Home), 6.00%, 8/15/22 1,316,715 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Health Care-Miscellaneous (continued) - ---------------------------------------------------------------------------- $2,600 Westchester County IDA, (Children's Village), 5.375%, 3/15/19 $ 2,637,960 - ---------------------------------------------------------------------------- $ 4,960,150 - ---------------------------------------------------------------------------- Hospital -- 12.4% - ---------------------------------------------------------------------------- $ 250 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 231,242 500 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 445,330 1,250 Fulton County IDA, (Nathan Littauer Hospital), 6.00%, 11/1/18 1,096,987 400 Nassau County, IDA, Civic Facility Revenue, (North Shore Health System), 6.25%, 11/1/21 392,184 3,200 New York City Health and Hospital Corp., 5.25%, 2/15/17 3,200,736 1,500 New York Dormitory Authority Revenue, (Lenox Hill Hospital), 5.50%, 7/1/30 1,500,495 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,098,312 1,500 Yonkers, IDA, (Johns Riverside Hospital), 7.125%, 7/1/31 1,567,305 - ---------------------------------------------------------------------------- $ 9,532,591 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 4.8% - ---------------------------------------------------------------------------- $ 500 Onandaga County IDA, (AMT), 6.125%, 1/1/32 $ 495,650 2,500 Onondaga County IDA, (Anheuser-Busch), (AMT), 6.25%, 12/1/34 2,657,325 550 Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15 566,940 - ---------------------------------------------------------------------------- $ 3,719,915 - ---------------------------------------------------------------------------- Insured-Education -- 8.2% - ---------------------------------------------------------------------------- $1,200 New York Dormitory Authority, (Cooper Union), (MBIA), 6.25%, 7/1/29 $ 1,313,088 4,500 New York Dormitory Authority, (New York University), (MBIA), 5.75%, 7/1/27 4,943,655 - ---------------------------------------------------------------------------- $ 6,256,743 - ---------------------------------------------------------------------------- Insured-Hospital -- 15.4% - ---------------------------------------------------------------------------- $5,000 New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), (MBIA), 5.50%, 7/1/23 $ 5,333,400 1,465 New York Dormitory Authority, (Mental Health Services Facility Improvements), (FSA), 5.25%, 8/15/30 1,455,272
SEE NOTES TO FINANCIAL STATEMENTS 26 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Hospital (continued) - ---------------------------------------------------------------------------- $5,500 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 $ 5,037,780 - ---------------------------------------------------------------------------- $ 11,826,452 - ---------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 1.3% - ---------------------------------------------------------------------------- $1,000 New York Dormitory Authority, (Department Health), (MBIA), 5.50%, 7/1/25 $ 1,016,210 - ---------------------------------------------------------------------------- $ 1,016,210 - ---------------------------------------------------------------------------- Insured-Miscellaneous -- 2.3% - ---------------------------------------------------------------------------- $1,580 New York City, Trust for Cultural Resources, (AMBAC), Variable Rate, 7/1/29(1)(2) $ 1,747,670 - ---------------------------------------------------------------------------- $ 1,747,670 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 7.1% - ---------------------------------------------------------------------------- $1,250 New York Local Government Assistance Corp., (AMBAC), 6.00%, 4/1/24 $ 1,337,662 1,175 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) 1,158,985 1,190 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 1,165,665 1,750 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 1,820,928 - ---------------------------------------------------------------------------- $ 5,483,240 - ---------------------------------------------------------------------------- Insured-Transportation -- 27.4% - ---------------------------------------------------------------------------- $1,500 Metropolitan Transportation Authority of New York, (FGIC), 4.75%, 7/1/26 $ 1,434,615 1,400 Metropolitan Transportation Authority of New York, (FGIC), 4.75%, 7/1/26 1,338,974 1,000 Metropolitan Transportation Authority of New York, (FGIC), 4.875%, 7/1/18 1,017,340 4,005 Metropolitan Transportation Authority of New York, (FSA), 5.25%, 4/1/23 4,085,541 2,325 Monroe County Airport Authority, (MBIA), (AMT), Variable Rate, 1/1/17(1)(2) 2,798,277 3,750 New York Thruway Authority, (Highway and Bridge), (AMBAC), 5.125%, 4/1/20 3,773,775 2,735 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), 5.625%, 4/1/29 2,817,241 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Transportation (continued) - ---------------------------------------------------------------------------- $1,750 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), Variable Rate, 4/1/29(1)(2) $ 1,855,263 1,885 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) 1,846,452 - ---------------------------------------------------------------------------- $ 20,967,478 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 2.7% - ---------------------------------------------------------------------------- $2,000 New York City Municipal Water Finance Authority, (FGIC), 5.50%, 6/15/32 $ 2,044,900 - ---------------------------------------------------------------------------- $ 2,044,900 - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 6.1% - ---------------------------------------------------------------------------- $4,385 New York Dormitory Authority, (Court Facility), 6.00%, 5/15/39 $ 4,667,920 - ---------------------------------------------------------------------------- $ 4,667,920 - ---------------------------------------------------------------------------- Miscellaneous -- 3.2% - ---------------------------------------------------------------------------- $1,750 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(2)(3) $ 1,966,563 495 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 506,425 - ---------------------------------------------------------------------------- $ 2,472,988 - ---------------------------------------------------------------------------- Senior Living / Life Care -- 2.8% - ---------------------------------------------------------------------------- $1,250 Mount Vernon IDA, (Wartburg Senior Housing, Inc. - Meadowview), 6.20%, 6/1/29 $ 1,092,775 1,000 Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19 1,046,500 - ---------------------------------------------------------------------------- $ 2,139,275 - ---------------------------------------------------------------------------- Special Tax Revenue -- 7.0% - ---------------------------------------------------------------------------- $2,000 New York City Transitional Finance Authority, 6.00%, 11/15/29 $ 2,152,260 3,000 New York City Transitional Finance Authority, 6.00%, 8/15/29 3,212,610 - ---------------------------------------------------------------------------- $ 5,364,870 - ---------------------------------------------------------------------------- Transportation -- 2.5% - ---------------------------------------------------------------------------- $1,800 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(3) $ 1,908,108 - ---------------------------------------------------------------------------- $ 1,908,108 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 27 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Water and Sewer -- 6.8% - ---------------------------------------------------------------------------- $1,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29 $ 1,492,455 3,500 New York City Municipal Water Finance Authority, 5.75%, 6/15/29 3,690,015 - ---------------------------------------------------------------------------- $ 5,182,470 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 154.7% (identified cost $114,485,267) $118,543,505 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.4% $ 2,576,463 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (58.1)% $(44,501,826) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 76,618,142 - ----------------------------------------------------------------------------
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 risk associated with such economic developments, at May 31, 2002, 41.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 4.9% to 16.9% 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. (3) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 28 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 157.1%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 0.9% - ---------------------------------------------------------------------------- $ 400 Ohio Water Development Authority, Solid Waste Disposal, (Bay Shore Power), (AMT), 5.875%, 9/1/20 $ 362,176 - ---------------------------------------------------------------------------- $ 362,176 - ---------------------------------------------------------------------------- Education -- 3.6% - ---------------------------------------------------------------------------- $1,500 Ohio Higher Educational Facilities, (Oberlin College), Variable Rate, 10/1/27(1)(2) $ 1,402,590 - ---------------------------------------------------------------------------- $ 1,402,590 - ---------------------------------------------------------------------------- Electric Utilities -- 5.8% - ---------------------------------------------------------------------------- $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 506,760 1,750 Ohio Water Development Authority, Pollution Control Facilities, (Cleveland Electric), (AMT), 6.10%, 8/1/20 1,752,135 - ---------------------------------------------------------------------------- $ 2,258,895 - ---------------------------------------------------------------------------- General Obligations -- 6.9% - ---------------------------------------------------------------------------- $1,000 Delaware County, 6.00%, 12/1/25 $ 1,084,170 1,530 Hamilton City School District, 5.625%, 12/1/24 1,591,797 - ---------------------------------------------------------------------------- $ 2,675,967 - ---------------------------------------------------------------------------- Hospital -- 20.4% - ---------------------------------------------------------------------------- $1,500 Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32 $ 1,480,545 2,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 1,930,020 635 Highland County, (Joint Township Hospital District), 6.75%, 12/1/29 583,317 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,220,987 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,654,135 1,000 Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22 1,047,210 - ---------------------------------------------------------------------------- $ 7,916,214 - ---------------------------------------------------------------------------- Housing -- 2.6% - ---------------------------------------------------------------------------- $1,000 Multifamily Housing, (Tyler's Creek), (AMT), 6.00%, 11/1/33 $ 1,002,640 - ---------------------------------------------------------------------------- $ 1,002,640 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 17.6% - ---------------------------------------------------------------------------- $1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.70%, 12/1/19 $ 1,001,662 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Industrial Development Revenue (continued) - ---------------------------------------------------------------------------- $1,300 Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18 $ 967,551 2,500 Ohio Enviromental Facilities, (Ford Motor Co.), (AMT), 5.95%, 9/1/29 2,547,250 2,250 Ohio Water Development Authority, (Anheuser-Busch), (AMT), 6.00%, 8/1/29 2,331,180 - ---------------------------------------------------------------------------- $ 6,847,643 - ---------------------------------------------------------------------------- Insured-Certificates of Participation -- 3.9% - ---------------------------------------------------------------------------- $1,500 Cleveland, Certificates of Participation, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/22 $ 1,516,080 - ---------------------------------------------------------------------------- $ 1,516,080 - ---------------------------------------------------------------------------- Insured-Education -- 11.5% - ---------------------------------------------------------------------------- $1,000 Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), 5.50%, 12/1/30 $ 1,026,410 2,000 University of Akron, (FGIC), Variable Rate, 1/1/29(1)(2) 2,199,980 1,250 University of Cincinnati, (FGIC), 5.25%, 6/1/24 1,260,162 - ---------------------------------------------------------------------------- $ 4,486,552 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 3.7% - ---------------------------------------------------------------------------- $2,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 591,240 3,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 838,590 - ---------------------------------------------------------------------------- $ 1,429,830 - ---------------------------------------------------------------------------- Insured-General Obligations -- 16.1% - ---------------------------------------------------------------------------- $1,000 Lima City School District, (AMBAC), 5.50%, 12/1/22 $ 1,041,710 500 Lima City School District, (AMBAC), 6.00%, 12/1/22 547,240 1,900 South-Western City School District, Franklin and Pickway Counties, (AMBAC), 4.75%, 12/1/26 1,773,593 2,860 Springfield City School District Clark County, (FGIC), 5.20%, 12/1/23 2,878,476 - ---------------------------------------------------------------------------- $ 6,241,019 - ---------------------------------------------------------------------------- Insured-Hospital -- 2.8% - ---------------------------------------------------------------------------- $ 500 Cuyahoga County, (Cleveland Clinic), (MBIA), 5.125%, 1/1/29 $ 490,020 665 Hamilton County, (Childrens Hospital Medical Center), (MBIA), 4.75%, 5/15/28 610,916 - ---------------------------------------------------------------------------- $ 1,100,936 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 29 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 17.6% - ---------------------------------------------------------------------------- $2,500 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 $ 2,353,400 2,000 Hamiliton County Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32 2,002,180 875 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) 863,074 615 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 602,423 1,000 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 1,040,530 - ---------------------------------------------------------------------------- $ 6,861,607 - ---------------------------------------------------------------------------- Insured-Transportation -- 11.3% - ---------------------------------------------------------------------------- $1,325 Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31 $ 1,279,036 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 1,066,370 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26 1,065,300 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) 979,550 - ---------------------------------------------------------------------------- $ 4,390,256 - ---------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 3.4% - ---------------------------------------------------------------------------- $1,300 Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19 $ 1,322,464 - ---------------------------------------------------------------------------- $ 1,322,464 - ---------------------------------------------------------------------------- Miscellaneous -- 2.9% - ---------------------------------------------------------------------------- $1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(2)(3) $ 1,123,750 - ---------------------------------------------------------------------------- $ 1,123,750 - ---------------------------------------------------------------------------- Nursing Home -- 5.3% - ---------------------------------------------------------------------------- $1,755 Cuyahoga County, Health Care Facilities, (Benjamin Rose Institute), 5.50%, 12/1/28 $ 1,520,707 650 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 557,499 - ---------------------------------------------------------------------------- $ 2,078,206 - ---------------------------------------------------------------------------- Pooled Loans -- 5.1% - ---------------------------------------------------------------------------- $1,000 Rickenbacker Port Authority, Oasbo Expanded Asset Pooled Loan, 5.375%, 1/1/32 $ 978,210 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 990,407 - ---------------------------------------------------------------------------- $ 1,968,617 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Senior Living / Life Care -- 2.2% - ---------------------------------------------------------------------------- $1,000 Summit County Healthcare Facilities, (Village at Saint Edward), 5.75%, 12/1/25 $ 853,820 - ---------------------------------------------------------------------------- $ 853,820 - ---------------------------------------------------------------------------- Solid Waste -- 8.0% - ---------------------------------------------------------------------------- $3,000 Moraine Solid Waste Disposal, (General Motors Corp.), (AMT), 5.65%, 7/1/24 $ 3,113,670 - ---------------------------------------------------------------------------- $ 3,113,670 - ---------------------------------------------------------------------------- Special Tax Revenue -- 5.5% - ---------------------------------------------------------------------------- $ 600 Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18 $ 590,508 1,425 Cuyahoga County, Economic Development, (Shaker Square), 6.75%, 12/1/30 1,548,918 - ---------------------------------------------------------------------------- $ 2,139,426 - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 157.1% (identified cost $60,693,088) $ 61,092,358 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.3% $ 1,296,282 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (60.4)% $(23,502,992) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 38,885,648 - ----------------------------------------------------------------------------
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 municipali- ties. 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, 2002, 42.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 3.8% to 21.7% 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. (3) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 30 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 154.1%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Cogeneration -- 4.2% - ---------------------------------------------------------------------------- $ 500 Carbon County IDA, (Panther Creek Partners), (AMT), 6.65%, 5/1/10 $ 533,175 500 Pennsylvania EDA, (Northampton Generating), (AMT), 6.50%, 1/1/13 506,395 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 520,700 - ---------------------------------------------------------------------------- $ 1,560,270 - ---------------------------------------------------------------------------- Education -- 10.2% - ---------------------------------------------------------------------------- $1,500 Pennsylvania HEFA, (Drexel University), 6.00%, 5/1/29 $ 1,554,360 1,300 Pennsylvania HEFA, (University of Pennsylvania), 4.625%, 7/15/30 1,148,719 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 561,456 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 545,388 - ---------------------------------------------------------------------------- $ 3,809,923 - ---------------------------------------------------------------------------- Electric Utilities -- 1.5% - ---------------------------------------------------------------------------- $ 600 York County, IDA, Pollution Control, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20 $ 577,356 - ---------------------------------------------------------------------------- $ 577,356 - ---------------------------------------------------------------------------- Escrowed / Prerefunded -- 5.3% - ---------------------------------------------------------------------------- $1,000 Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09 @ 102, 6.00%, 11/1/29 $ 1,156,470 2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 815,860 - ---------------------------------------------------------------------------- $ 1,972,330 - ---------------------------------------------------------------------------- Health Care-Miscellaneous -- 5.6% - ---------------------------------------------------------------------------- $ 600 Allegheny County, IDA, (Residential Resources, Inc.), 6.50%, 9/1/21 $ 583,260 1,500 Chester County HEFA, (Devereux Foundation), 6.00%, 11/1/29 1,519,170 - ---------------------------------------------------------------------------- $ 2,102,430 - ---------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Hospital -- 5.2% - ---------------------------------------------------------------------------- $ 550 Allegheny County Hospital Development Authority, (West Pennsylvania Allegheny Health System), 9.25%, 11/15/30 $ 589,990 850 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 851,470 500 Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17(1) 501,090 - ---------------------------------------------------------------------------- $ 1,942,550 - ---------------------------------------------------------------------------- Industrial Development Revenue -- 7.6% - ---------------------------------------------------------------------------- $ 500 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 463,810 1,000 Pennsylvania, IDA, (Sun Co.), (AMT), 7.60%, 12/1/24 1,068,920 1,550 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 1,298,450 - ---------------------------------------------------------------------------- $ 2,831,180 - ---------------------------------------------------------------------------- Insured-Education -- 25.5% - ---------------------------------------------------------------------------- $ 900 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 900,099 1,000 Northampton County HEFA, (Lafayette College), (MBIA), 5.00%, 11/1/27 968,090 1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29 985,490 2,000 Pennsylvania HEFA, (State System Higher Education), (FSA), 5.00%, 6/15/24 1,959,400 2,750 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(2) 2,649,542 600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(3)(4) 578,934 1,500 University of Pittsburgh, (MBIA), 5.00%, 6/1/21 1,486,380 - ---------------------------------------------------------------------------- $ 9,527,935 - ---------------------------------------------------------------------------- Insured-Electric Utilities -- 2.8% - ---------------------------------------------------------------------------- $1,000 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(3)(4) $ 1,035,520 - ---------------------------------------------------------------------------- $ 1,035,520 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 31 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Gas Utilities -- 3.3% - ---------------------------------------------------------------------------- $1,325 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(5) $ 1,232,449 - ---------------------------------------------------------------------------- $ 1,232,449 - ---------------------------------------------------------------------------- Insured-General Obligations -- 13.2% - ---------------------------------------------------------------------------- $1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 $ 504,193 1,000 McKeesport Area School District, (FGIC), 0.00%, 10/1/31 192,810 2,000 Philadelphia General Obligation, (FSA), 5.00%, 3/15/28 1,931,540 1,125 Philadelphia School District, (FSA), 5.50%, 2/1/31 1,149,019 1,150 Philadelphia School District, (MBIA), 4.75%, 4/1/27 1,060,013 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 75,233 - ---------------------------------------------------------------------------- $ 4,912,808 - ---------------------------------------------------------------------------- Insured-Hospital -- 16.9% - ---------------------------------------------------------------------------- $1,000 Dauphin County General Authority, (Pinnacle Health System), (MBIA), 5.50%, 5/15/27 $ 1,009,220 1,000 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 929,810 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 1,488,150 3,000 Montgomery County HEFA, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28 2,872,950 - ---------------------------------------------------------------------------- $ 6,300,130 - ---------------------------------------------------------------------------- Insured-Special Tax Revenue -- 7.0% - ---------------------------------------------------------------------------- $1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 979,840 595 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 582,832 1,000 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(3)(4) 1,040,530 - ---------------------------------------------------------------------------- $ 2,603,202 - ---------------------------------------------------------------------------- Insured-Transportation -- 15.3% - ---------------------------------------------------------------------------- $1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 967,690 3,100 Pennsylvania Turnpike Commision Oil Franchise, (AMBAC), 4.75%, 12/1/27 2,867,531 1,005 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 1,005,231 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Insured-Transportation (continued) - ---------------------------------------------------------------------------- $ 800 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/26(3)(4) $ 867,872 - ---------------------------------------------------------------------------- $ 5,708,324 - ---------------------------------------------------------------------------- Insured-Water and Sewer -- 16.0% - ---------------------------------------------------------------------------- $ 500 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.00%, 12/1/19 $ 504,135 1,000 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.50%, 12/1/24 1,034,270 500 Delaware County IDA, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29 526,745 1,000 Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 958,520 3,000 Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/31 2,946,270 - ---------------------------------------------------------------------------- $ 5,969,940 - ---------------------------------------------------------------------------- Nursing Home -- 2.3% - ---------------------------------------------------------------------------- $ 500 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 485,975 400 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 379,264 - ---------------------------------------------------------------------------- $ 865,239 - ---------------------------------------------------------------------------- Senior Living / Life Care -- 9.1% - ---------------------------------------------------------------------------- $ 600 Bucks County, IDA, (Pennswood), 6.00%, 10/1/27 $ 601,164 490 Cliff House Trust (AMT), 6.625%, 6/1/27 447,542 500 Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29 471,945 400 Delaware IDA, (Glen Riddle), (AMT), 8.625%, 9/1/25 425,480 500 Lancaster County Hospital Authority, (Health Center), 5.875%, 6/1/31 498,000 925 Montgomery County HEFA, (Faulkeways at Gwynedd), 6.75%, 11/15/30 960,206 - ---------------------------------------------------------------------------- $ 3,404,337 - ---------------------------------------------------------------------------- Transportation -- 3.1% - ---------------------------------------------------------------------------- $ 445 Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09 $ 437,942 500 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 485,765 250 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 250,460 - ---------------------------------------------------------------------------- $ 1,174,167 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 32 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2002 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ---------------------------------------------------------------------------- Total Tax-Exempt Investments -- 154.1% (identified cost $57,000,376) $ 57,530,090 - ---------------------------------------------------------------------------- Other Assets, Less Liabilities -- 6.2% $ 2,310,780 - ---------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (60.3)% $(22,503,326) - ---------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 37,337,544 - ----------------------------------------------------------------------------
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, 2002, 68.2% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 6.0% to 24.5% of total investments. (1) When-issued security. (2) Security (or a portion thereof) has been segregated to cover when- issued securities. (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. (4) Security has been issued as a leveraged inverse floater bond. (5) Security has been issued as an inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 33 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 2002
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ---------------------------------------------------------------------------------------------------- Assets - ---------------------------------------------------------------------------------------------------- Investments -- Identified cost $154,731,913 $94,151,933 $56,471,331 $45,867,935 Unrealized appreciation 1,744,947 388,102 752,380 370,038 - ---------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $156,476,860 $94,540,035 $57,223,711 $46,237,973 - ---------------------------------------------------------------------------------------------------- Cash $ 734,279 $ -- $ 360,488 $ 218,510 Receivable for investments sold 1,473,580 25,000 -- -- Interest receivable 2,674,502 1,300,641 1,123,052 696,213 Receivable for daily variation margin on open financial futures contracts -- -- -- 6,413 Prepaid expenses 2,121 1,857 1,702 1,356 - ---------------------------------------------------------------------------------------------------- TOTAL ASSETS $161,361,342 $95,867,533 $58,708,953 $47,160,465 - ---------------------------------------------------------------------------------------------------- Liabilities - ---------------------------------------------------------------------------------------------------- Payable for when-issued securities $ 1,469,792 $ -- $ 994,557 $ -- Due to bank -- 45,815 -- -- Payable to affiliate for Trustees' fees 1,648 1,207 338 385 Accrued expenses 48,053 39,311 34,159 35,428 - ---------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 1,519,493 $ 86,333 $ 1,029,054 $ 35,813 - ---------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 59,000,000 $35,502,915 $21,502,588 $17,501,437 - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $100,841,849 $60,278,285 $36,177,311 $29,623,215 - ---------------------------------------------------------------------------------------------------- Sources of Net Assets - ---------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 71,690 $ 42,303 $ 26,155 $ 20,866 Additional paid-in capital 106,282,547 62,836,553 38,696,338 30,997,719 Accumulated net realized loss (computed on the basis of identified cost) (8,533,181) (3,761,159) (3,766,968) (2,102,324) Accumulated undistributed net investment income 1,275,846 772,486 469,406 350,784 Net unrealized appreciation (computed on the basis of identified cost) 1,744,947 388,102 752,380 356,170 - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $100,841,849 $60,278,285 $36,177,311 $29,623,215 - ---------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) - ---------------------------------------------------------------------------------------------------- 2,360 1,420 860 700 - ---------------------------------------------------------------------------------------------------- Common Shares Outstanding - ---------------------------------------------------------------------------------------------------- 7,169,046 4,230,281 2,615,487 2,086,572 - ---------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.07 $ 14.25 $ 13.83 $ 14.20 - ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 34 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 2002
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------- Assets - ------------------------------------------------------------------------------------------------- Investments -- Identified cost $ 95,720,558 $114,485,267 $60,693,088 $57,000,376 Unrealized appreciation 3,394,029 4,058,238 399,270 529,714 - ------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 99,114,587 $118,543,505 $61,092,358 $57,530,090 - ------------------------------------------------------------------------------------------------- Cash $ -- $ 372,447 $ 27,560 $ 298,204 Receivable for investments sold -- -- -- 1,467,337 Interest receivable 2,159,285 2,263,785 1,294,818 1,077,738 Prepaid expenses 1,875 1,414 1,722 1,405 - ------------------------------------------------------------------------------------------------- TOTAL ASSETS $101,275,747 $121,181,151 $62,416,458 $60,374,774 - ------------------------------------------------------------------------------------------------- Liabilities - ------------------------------------------------------------------------------------------------- Payable for when-issued securities $ -- $ -- $ -- $ 496,965 Due to bank 24,719 -- -- -- Payable to affiliate for Trustees' fees 1,242 463 338 385 Accrued expenses 38,172 60,720 27,480 36,554 - ------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 64,133 $ 61,183 $ 27,818 $ 533,904 - ------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 38,000,000 $ 44,501,826 $23,502,992 $22,503,326 - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 63,211,614 $ 76,618,142 $38,885,648 $37,337,544 - ------------------------------------------------------------------------------------------------- Sources of Net Assets - ------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 45,079 $ 53,373 $ 27,839 $ 26,654 Additional paid-in capital 66,932,837 79,197,149 41,349,926 39,594,653 Accumulated net realized loss (computed on the basis of identified cost) (7,970,149) (7,662,684) (3,441,433) (3,302,135) Accumulated undistributed net investment income 809,818 972,066 550,046 488,658 Net unrealized appreciation (computed on the basis of identified cost) 3,394,029 4,058,238 399,270 529,714 - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 63,211,614 $ 76,618,142 $38,885,648 $37,337,544 - ------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) - ------------------------------------------------------------------------------------------------- 1,520 1,780 940 900 - ------------------------------------------------------------------------------------------------- Common Shares Outstanding - ------------------------------------------------------------------------------------------------- 4,507,870 5,337,253 2,783,947 2,665,368 - ------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.02 $ 14.36 $ 13.97 $ 14.01 - -------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 35 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MAY 31, 2002
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ---------------------------------------------------------------------------------------------------- Investment Income - ---------------------------------------------------------------------------------------------------- Interest $ 4,716,427 $2,879,734 $1,728,591 $1,421,124 - ---------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 4,716,427 $2,879,734 $1,728,591 $1,421,124 - ---------------------------------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------------------------------- Investment adviser fee $ 556,297 $ 331,973 $ 199,781 $ 163,949 Administration fee 159,132 94,850 57,081 46,842 Trustees fees and expenses 4,880 3,642 1,001 1,046 Legal and accounting services 21,690 18,749 17,403 20,490 Printing and postage 10,040 6,972 5,237 4,076 Custodian fee 39,103 28,395 20,429 14,297 Transfer and dividend disbursing agent 54,118 35,760 23,251 21,993 Preferred shares remarketing agent fee 74,442 44,253 26,801 21,815 Miscellaneous 16,939 14,123 13,840 17,762 - ---------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 936,641 $ 578,717 $ 364,824 $ 312,270 - ---------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 10,178 $ 7,566 $ 6,618 $ 1,815 - ---------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 10,178 $ 7,566 $ 6,618 $ 1,815 - ---------------------------------------------------------------------------------------------------- NET EXPENSES $ 926,463 $ 571,151 $ 358,206 $ 310,455 - ---------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,789,964 $2,308,583 $1,370,385 $1,110,669 - ---------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) - ---------------------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 41,965 $ 267,292 $ (362,325) $ (37,833) Financial futures contracts -- -- -- (71,977) - ---------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ 41,965 $ 267,292 $ (362,325) $ (109,810) - ---------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $(2,558,164) $ (731,693) $ (379,512) $ (492,852) Financial futures contracts -- -- -- (13,868) - ---------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $(2,558,164) $ (731,693) $ (379,512) $ (506,720) - ---------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED LOSS $(2,516,199) $ (464,401) $ (741,837) $ (616,530) - ---------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (410,648) $ (254,404) $ (146,675) $ (122,531) - ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 863,117 $1,589,778 $ 481,873 $ 371,608 - ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 36 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MAY 31, 2002
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------ Investment Income - ------------------------------------------------------------------------------------------------ Interest $3,041,293 $3,647,228 $1,897,701 $1,777,159 - ------------------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME $3,041,293 $3,647,228 $1,897,701 $1,777,159 - ------------------------------------------------------------------------------------------------ Expenses - ------------------------------------------------------------------------------------------------ Investment adviser fee $ 348,546 $ 417,561 $ 217,484 $ 207,153 Administration fee 99,585 119,303 62,138 59,186 Trustees fees and expenses 3,678 3,694 1,001 1,047 Legal and accounting services 18,181 26,756 17,403 20,490 Printing and postage 7,483 14,528 5,595 3,686 Custodian fee 22,299 26,237 17,809 14,337 Transfer and dividend disbursing agent 36,984 42,672 25,183 25,861 Preferred shares remarketing agent fee 47,946 55,472 29,295 28,048 Miscellaneous 13,858 17,757 13,637 17,782 - ------------------------------------------------------------------------------------------------ TOTAL EXPENSES $ 598,560 $ 723,980 $ 389,545 $ 377,590 - ------------------------------------------------------------------------------------------------ Deduct -- Reduction of custodian fee $ 3,612 $ 2,476 $ 17,809 $ -- - ------------------------------------------------------------------------------------------------ TOTAL EXPENSE REDUCTIONS $ 3,612 $ 2,476 $ 17,809 $ -- - ------------------------------------------------------------------------------------------------ NET EXPENSES $ 594,948 $ 721,504 $ 371,736 $ 377,590 - ------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME $2,446,345 $2,925,724 $1,525,965 $1,399,569 - ------------------------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) - ------------------------------------------------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $ (92,562) $ (19,103) $ 48,501 $ (55,850) Financial futures contracts -- 466,275 128,531 -- - ------------------------------------------------------------------------------------------------ NET REALIZED GAIN (LOSS) $ (92,562) $ 447,172 $ 177,032 $ (55,850) - ------------------------------------------------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 707,753 $ (96,395) $ (527,311) $ (463,854) Financial futures contracts -- 11,682 1,752 -- - ------------------------------------------------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 707,753 $ (84,713) $ (525,559) $ (463,854) - ------------------------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN (LOSS) $ 615,191 $ 362,459 $ (348,527) $ (519,704) - ------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (257,897) $ (293,146) $ (162,658) $ (146,987) - ------------------------------------------------------------------------------------------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $2,803,639 $2,995,037 $1,014,780 $ 732,878 - ------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 37 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 2002
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 3,789,964 $ 2,308,583 $ 1,370,385 $ 1,110,669 Net realized gain (loss) 41,965 267,292 (362,325) (109,810) Net change in unrealized appreciation (depreciation) (2,558,164) (731,693) (379,512) (506,720) Distributions to preferred shareholders (410,648) (254,404) (146,675) (122,531) - ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 863,117 $ 1,589,778 $ 481,873 $ 371,608 - ------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (3,293,448) $(1,970,224) $(1,201,915) $ (980,042) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (3,293,448) $(1,970,224) $(1,201,915) $ (980,042) - ------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 608,304 $ 12,879 $ 263,311 $ 19,114 - ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 608,304 $ 12,879 $ 263,311 $ 19,114 - ------------------------------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS $ (1,822,027) $ (367,567) $ (456,731) $ (589,320) - ------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - ------------------------------------------------------------------------------------------------------- At beginning of period $102,663,876 $60,645,852 $36,634,042 $30,212,535 - ------------------------------------------------------------------------------------------------------- AT END OF PERIOD $100,841,849 $60,278,285 $36,177,311 $29,623,215 - ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares - ------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 1,275,846 $ 772,486 $ 469,406 $ 350,784 - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 38 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 2002
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ---------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 2,446,345 $ 2,925,724 $ 1,525,965 $ 1,399,569 Net realized gain (loss) (92,562) 447,172 177,032 (55,850) Net change in unrealized appreciation (depreciation) 707,753 (84,713) (525,559) (463,854) Distributions to preferred shareholders (257,897) (293,146) (162,658) (146,987) ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,803,639 $ 2,995,037 $ 1,014,780 $ 732,878 ---------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $(2,147,179) $(2,558,550) $(1,290,971) $(1,147,727) ---------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(2,147,179) $(2,558,550) $(1,290,971) $(1,147,727) ---------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 318,010 $ 523,487 $ 90,057 $ 28,940 ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 318,010 $ 523,487 $ 90,057 $ 28,940 ---------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ 974,470 $ 959,974 $ (186,134) $ (385,909) ---------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ---------------------------------------------------------------------------------------------------- At beginning of period $62,237,144 $75,658,168 $39,071,782 $37,723,453 ---------------------------------------------------------------------------------------------------- AT END OF PERIOD $63,211,614 $76,618,142 $38,885,648 $37,337,544 ---------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares ---------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 809,818 $ 972,066 $ 550,046 $ 488,658 ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 39 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2001
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 7,364,360 $ 4,465,905 $ 2,707,346 $ 2,178,520 Net realized gain (loss) 102,909 (161,211) (40,199) (174,384) Net change in unrealized appreciation (depreciation) 7,836,170 5,055,444 3,894,058 2,918,529 Distributions to preferred shareholders (1,567,858) (1,028,884) (588,917) (503,893) ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 13,735,581 $ 8,331,254 $ 5,972,288 $ 4,418,772 ------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (5,217,933) $(2,981,696) $(1,875,647) $(1,438,786) ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (5,217,933) $(2,981,696) $(1,875,647) $(1,438,786) ------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 96,991 $ -- $ 36,650 $ -- ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 96,991 $ -- $ 36,650 $ -- ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 8,614,639 $ 5,349,558 $ 4,133,291 $ 2,979,986 ------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ------------------------------------------------------------------------------------------------------- At beginning of year $ 94,049,237 $55,296,294 $32,500,751 $27,232,549 ------------------------------------------------------------------------------------------------------- AT END OF YEAR $102,663,876 $60,645,852 $36,634,042 $30,212,535 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares ------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 1,076,089 $ 670,926 $ 420,466 $ 321,450 -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 40 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2001
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ---------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 4,739,657 $ 5,601,189 $ 2,965,898 $ 2,702,669 Net realized loss (264,215) (150,448) (899,351) (844,978) Net change in unrealized appreciation (depreciation) 5,115,881 6,204,491 4,032,368 3,803,331 Distributions to preferred shareholders (1,043,586) (1,166,588) (668,416) (645,908) ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 8,547,737 $10,488,644 $ 5,430,499 $ 5,015,114 ---------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $(3,193,115) $(3,853,043) $(1,972,027) $(1,805,679) ---------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(3,193,115) $(3,853,043) $(1,972,027) $(1,805,679) ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 5,354,622 $ 6,635,601 $ 3,458,472 $ 3,209,435 ---------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ---------------------------------------------------------------------------------------------------- At beginning of year $56,882,522 $69,022,567 $35,613,310 $34,514,018 ---------------------------------------------------------------------------------------------------- AT END OF YEAR $62,237,144 $75,658,168 $39,071,782 $37,723,453 ---------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares ---------------------------------------------------------------------------------------------------- AT END OF YEAR $ 741,327 $ 862,531 $ 451,336 $ 359,226 ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 41 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
CALIFORNIA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.410 $13.210 $11.630 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.530 $ 1.035 $ 1.008 $ 0.773 Net realized and unrealized gain (loss) (0.352) 1.120 1.576 (3.322) Distributions to preferred shareholders (0.052) (0.222) (0.279) (0.186) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.121 $ 1.933 $ 2.305 $(2.735) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.461) $(0.733) $(0.725) $(0.510) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.461) $(0.733) $(0.725) $(0.510) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.040) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.085) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.070 $14.410 $13.210 $11.630 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.340 $14.320 $11.688 $11.438 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 3.51% 29.65% 8.79% (20.70)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 42 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
CALIFORNIA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $100,842 $102,664 $94,049 $82,333 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.88%(6) 1.83% 1.99% 1.66%(6) Net expenses after custodian fee reduction(5) 1.86%(6) 1.76% 1.92% 1.60%(6) Net investment income(5) 7.62%(6) 7.32% 8.43% 6.83%(6) Portfolio Turnover 5% 47% 29% 146% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.85%(6) Expenses after custodian fee reduction(5) 1.79%(6) Net investment income(5) 6.64%(6) Net investment income per share $ 0.752 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.18%(6) 1.15% 1.17% 1.06%(6) Net expenses after custodian fee reduction 1.17%(6) 1.11% 1.13% 1.02%(6) Net investment income 4.79%(6) 4.62% 4.97% 4.37%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.18%(6) Expenses after custodian fee reduction 1.14%(6) Net investment income 4.25%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 2,360 2,360 2,360 2,360 Asset coverage per preferred share(7) $ 67,730 $ 68,507 $64,862 $59,892 Involuntary liquidation preference per preferred share(8) $ 25,000 $ 25,000 $25,000 $25,000 Approximate market value per preferred share(8) $ 25,000 $ 25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.006, increase net realized and unrealized losses per share by $0.006, increase the ratio of net investment income to average net assets applicable to common shares from 7.54% to 7.62% and increase the ratio of net investment income to average total net assets from 4.74% to 4.79%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 43 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
FLORIDA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.340 $13.070 $11.770 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.546 $ 1.056 $ 1.028 $ 0.779 Net realized and unrealized gain (loss) (0.110) 1.162 1.318 (3.180) Distributions to preferred shareholders (0.060) (0.243) (0.338) (0.200) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.376 $ 1.975 $ 2.008 $(2.601) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.466) $(0.705) $(0.708) $(0.502) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.466) $(0.705) $(0.708) $(0.502) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.042) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.085) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.250 $14.340 $13.070 $11.770 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $13.980 $13.380 $10.500 $10.438 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 8.13% 34.91% 7.20% (27.62)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 44 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
FLORIDA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $60,278 $60,646 $55,296 $49,715 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.95%(6) 1.90% 1.99% 1.74%(6) Net expenses after custodian fee reduction(5) 1.92%(6) 1.82% 1.91% 1.68%(6) Net investment income(5) 7.77%(6) 7.46% 8.59% 6.89%(6) Portfolio Turnover 5% 24% 20% 101% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.07% 1.88%(6) Expenses after custodian fee reduction(5) 1.99% 1.82%(6) Net investment income(5) 8.51% 6.75%(6) Net investment income per share $ 1.018 $ 0.763 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.22%(6) 1.19% 1.16% 1.11%(6) Net expenses after custodian fee reduction 1.20%(6) 1.14% 1.12% 1.07%(6) Net investment income 4.87%(6) 4.68% 5.05% 4.39%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.20% 1.20%(6) Expenses after custodian fee reduction 1.16% 1.16%(6) Net investment income 5.01% 4.30%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,420 1,420 1,420 1,420 Asset coverage per preferred share(7) $67,452 $67,695 $63,944 $60,023 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001, increase the ratio of net investment income to average net assets applicable to common shares from 7.75% to 7.77%, and increase the ratio of net investment income to average total net assets from 4.86% to 4.87%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 45 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MASSACHUSETTS TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.110 $12.530 $11.470 $ 15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.526 $ 1.044 $ 1.008 $ 0.779 Net realized and unrealized gain (loss) (0.288) 1.486 1.058 (3.479) Distributions to preferred shareholders (0.056) (0.227) (0.286) (0.192) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.182 $ 2.303 $ 1.780 $ (2.892) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.462) $(0.723) $(0.720) $ (0.510) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.462) $(0.723) $(0.720) $ (0.510) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ (0.043) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ (0.085) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $13.830 $14.110 $12.530 $ 11.470 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.700 $14.370 $10.813 $ 11.438 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 5.69% 40.54% 0.69% (20.68)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 46 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MASSACHUSETTS TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $36,177 $36,634 $32,501 $29,458 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 2.05%(6) 1.97% 2.17% 1.98%(6) Net expenses after custodian fee reduction(5) 2.01%(6) 1.88% 2.09% 1.91%(6) Net investment income(5) 7.69%(6) 7.60% 8.80% 6.93%(6) Portfolio Turnover 4% 13% 32% 111% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.01%(6) Expenses after custodian fee reduction(5) 1.94%(6) Net investment income(5) 6.90%(6) Net investment income per share $ 0.776 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.28%(6) 1.23% 1.26% 1.26%(6) Net expenses after custodian fee reduction 1.26%(6) 1.17% 1.21% 1.21%(6) Net investment income 4.80%(6) 4.74% 5.10% 4.41%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.28%(6) Expenses after custodian fee reduction 1.23%(6) Net investment income 4.39%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 860 860 860 860 Asset coverage per preferred share(7) $67,070 $67,602 $62,797 $59,256 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.003, increase net realized and unrealized losses per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.65% to 7.69% and increase the ratio of net investment income to average total net assets from 4.78% to 4.80%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 47 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MICHIGAN TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.490 $13.060 $11.840 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.533 $ 1.045 $ 0.996 $ 0.771 Net realized and unrealized gain (loss) (0.294) 1.317 1.250 (3.111) Distributions to preferred shareholders (0.059) (0.242) (0.321) (0.191) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.180 $ 2.120 $ 1.925 $(2.531) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.470) $(0.690) $(0.705) $(0.500) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.470) $(0.690) $(0.705) $(0.500) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.044) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.085) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.200 $14.490 $13.060 $11.840 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.260 $13.000 $10.438 $10.875 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 13.51% 31.69% 2.30% (24.66)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 48 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MICHIGAN TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $29,623 $30,213 $27,233 $24,691 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 2.12%(6) 1.99% 2.18% 1.78%(6) Net expenses after custodian fee reduction(5) 2.11%(6) 1.90% 2.09% 1.71%(6) Net investment income(5) 7.56%(6) 7.36% 8.34% 6.77%(6) Portfolio Turnover 4% 33% 18% 90% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.21% 2.06%(6) Expenses after custodian fee reduction(5) 2.12% 1.99%(6) Net investment income(5) 8.31% 6.49%(6) Net investment income per share $ 0.992 $ 0.738 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.34%(6) 1.25% 1.27% 1.14%(6) Net expenses after custodian fee reduction 1.33%(6) 1.19% 1.22% 1.09%(6) Net investment income 4.74%(6) 4.63% 4.90% 4.33%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.29% 1.32%(6) Expenses after custodian fee reduction 1.24% 1.27%(6) Net investment income 4.88% 4.15%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 700 700 700 700 Asset coverage per preferred share(7) $67,321 $68,163 $63,906 $60,283 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.003, increase net realized and unrealized losses per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.52% to 7.56% and increase the ratio of net investment income to average total net assets from 4.72% to 4.74%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 49 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW JERSEY TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $13.880 $12.680 $11.720 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.544 $ 1.057 $ 1.012 $ 0.778 Net realized and unrealized gain (loss) 0.131 1.089 0.977 (3.235) Distributions to preferred shareholders (0.057) (0.234) (0.324) (0.195) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.618 $ 1.912 $ 1.665 $(2.652) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.478) $(0.712) $(0.705) $(0.500) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.478) $(0.712) $(0.705) $(0.500) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.042) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.086) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.020 $13.880 $12.680 $11.720 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.450 $13.340 $10.750 $10.875 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 12.16% 31.34% 5.28% (24.64)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 50 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW JERSEY TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $63,212 $62,237 $56,883 $52,490 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.94%(6) 1.95% 2.08% 1.67%(6) Net expenses after custodian fee reduction(5) 1.93%(6) 1.90% 2.00% 1.61%(6) Net investment income(5) 7.93%(6) 7.64% 8.64% 6.83%(6) Portfolio Turnover 10% 35% 54% 114% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.85%(6) Expenses after custodian fee reduction(5) 1.79%(6) Net investment income(5) 6.65%(6) Net investment income per share $ 0.757 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.20%(6) 1.21% 1.21% 1.07%(6) Net expenses after custodian fee reduction 1.19%(6) 1.18% 1.16% 1.03%(6) Net investment income 4.91%(6) 4.74% 5.01% 4.35%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.18%(6) Expenses after custodian fee reduction 1.14%(6) Net investment income 4.24%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,520 1,520 1,520 1,520 Asset coverage per preferred share(7) $66,587 $65,951 $62,434 $59,538 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.001, decrease net realized and unrealized gains per share by $0.001, increase the ratio of net investment income to average net assets applicable to common shares from 7.91% to 7.93% and increase the ratio of net investment income to average total net assets from 4.90% to 4.91%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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 anualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 51 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW YORK TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.280 $13.020 $11.800 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.550 $ 1.057 $ 1.002 $ 0.781 Net realized and unrealized gain (loss) 0.067 1.150 1.239 (3.153) Distributions to preferred shareholders (0.055) (0.220) (0.301) (0.191) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.562 $ 1.987 $ 1.940 $(2.563) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.482) $(0.727) $(0.720) $(0.510) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.482) $(0.727) $(0.720) $(0.510) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.041) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.086) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.360 $14.280 $13.020 $11.800 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.620 $14.050 $10.750 $10.813 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 7.67% 38.30% 5.90% (25.00)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 52 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW YORK TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $76,618 $75,658 $69,023 $62,327 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.94%(6) 1.88% 2.03% 1.65%(6) Net expenses after custodian fee reduction(5) 1.93%(6) 1.86% 1.95% 1.59%(6) Net investment income(5) 7.81%(6) 7.45% 8.33% 6.86%(6) Portfolio Turnover 1% 21% 36% 139% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.86%(6) Expenses after custodian fee reduction(5) 1.80%(6) Net investment income(5) 6.65%(6) Net investment income per share $ 0.757 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.22%(6) 1.19% 1.20% 1.05%(6) Net expenses after custodian fee reduction 1.21%(6) 1.17% 1.15% 1.01%(6) Net investment income 4.90%(6) 4.68% 4.91% 4.38%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.18%(6) Expenses after custodian fee reduction 1.14%(6) Net investment income 4.25%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,780 1,780 1,780 1,780 Asset coverage per preferred share(7) $68,045 $67,506 $63,777 $60,026 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.001, decrease net realized and unrealized gains per share by $0.001, increase the ratio of net investment income to average net assets applicable to common shares from 7.79% to 7.81% and increase the ratio of net investment income to average total net assets from 4.89% to 4.90%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 53 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
OHIO TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.070 $12.820 $11.910 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.549 $ 1.068 $ 1.028 $ 0.772 Net realized and unrealized gain (loss) (0.125) 1.134 0.930 (3.035) Distributions to preferred shareholders (0.059) (0.242) (0.335) (0.197) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.365 $ 1.960 $ 1.623 $(2.460) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.465) $(0.710) $(0.713) $(0.502) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.465) $(0.710) $(0.713) $(0.502) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.043) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.085) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $13.970 $14.070 $12.820 $11.910 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $14.600 $13.620 $11.375 $11.250 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 10.89% 26.39% 7.55% (22.06)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 54 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
OHIO TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $38,886 $39,072 $35,613 $33,049 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 2.03%(6) 1.99% 2.08% 1.84%(6) Net expenses after custodian fee reduction(5) 1.94%(6) 1.90% 2.01% 1.77%(6) Net investment income(5) 7.97%(6) 7.69% 8.56% 6.74%(6) Portfolio Turnover 5% 26% 26% 136% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.16% 1.96%(6) Expenses after custodian fee reduction(5) 2.09% 1.89%(6) Net investment income(5) 8.48% 6.62%(6) Net investment income per share $ 1.018 $ 0.758 - ------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.26%(6) 1.24% 1.22% 1.17%(6) Net expenses after custodian fee reduction 1.20%(6) 1.18% 1.18% 1.13%(6) Net investment income 4.94%(6) 4.78% 5.02% 4.31%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.26% 1.25%(6) Expenses after custodian fee reduction 1.22% 1.21%(6) Net investment income 4.98% 4.23%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 940 940 940 940 Asset coverage per preferred share(7) $66,371 $66,569 $62,895 $60,158 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.94% to 7.97% and increase the ratio of net investment income to average total net assets from 4.93% to 4.94%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 55 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
PENNSYLVANIA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.160 $12.960 $11.840 $15.000 - ------------------------------------------------------------------------------------------------------- Income (loss) from operations - ------------------------------------------------------------------------------------------------------- Net investment income $ 0.525 $ 1.015 $ 1.013 $ 0.780 Net realized and unrealized gain (loss) (0.189) 1.107 1.147 (3.108) Distributions to preferred shareholders (0.055) (0.244) (0.332) (0.201) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.281 $ 1.878 $ 1.828 $(2.529) - ------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - ------------------------------------------------------------------------------------------------------- From net investment income $(0.431) $(0.678) $(0.708) $(0.502) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.431) $(0.678) $(0.708) $(0.502) - ------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $(0.043) - ------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $(0.086) - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $14.010 $14.160 $12.960 $11.840 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $13.560 $12.750 $10.625 $10.750 - ------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 9.82% 26.88% 5.29% (25.50)% - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 56 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
PENNSYLVANIA TRUST --------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2002 ------------------------------------------------ (UNAUDITED)(1)(2) 2001(2) 2000(2) 1999(2)(3) - ------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - ------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $37,338 $37,723 $34,514 $31,543 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 2.05%(6) 1.97% 1.95% 1.77%(6) Net expenses after custodian fee reduction(5) 2.05%(6) 1.94% 1.86% 1.70%(6) Net investment income(5) 7.62%(6) 7.26% 8.46% 6.85%(6) Portfolio Turnover 12% 34% 19% 79% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.14% 1.98%(6) Expenses after custodian fee reduction(5) 2.05% 1.91%(6) Net investment income(5) 8.27% 6.64%(6) Net investment income per share $ 0.990 $ 0.756 - ------------------------------------------------------------------------------------------------------- The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.28%(6) 1.23% 1.14% 1.13%(6) Net expenses after custodian fee reduction 1.28%(6) 1.20% 1.09% 1.08%(6) Net investment income 4.73%(6) 4.53% 4.96% 4.37%(6) + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.25% 1.26%(6) Expenses after custodian fee reduction 1.20% 1.21%(6) Net investment income 4.85% 4.24%(6) - ------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 900 900 Asset coverage per preferred share(7) $66,490 $66,920 $63,357 $60,050 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 - -------------------------------------------------------------------------------------------------------
(1) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended May 31, 2002 was to increase net investment income per share by $0.003, increase net realized and unrealized losses per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.57% to 7.62%, and increase the ratio of net investment income to average total net assets from 4.70% to 4.73%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) 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. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Trust's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 57 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust), and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (individually referred to as the Trust or collectively the Trusts) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Trusts were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated December 10, 1998. Each Trust's investment objective is to achieve current income exempt from regular federal income taxes and taxes in its specified state. Each Trust seeks to achieve its objective by investing primarily in investment grade municipal obligations issued by its specified state. The following is a summary of significant accounting policies consistently followed by each Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A Investment Valuation -- Municipal bonds are normally valued on the basis of valuations furnished by a pricing service. 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 fair 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, the Trust instructs the custodian to segregate assets in a separate account, with a current value at least equal to the amount of its purchase commitments. C Income -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or discount. Effective December 1, 2001, the Trusts adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on fixed-income securities using the interest method of amortization. Prior to December 1, 2001, the Trusts amortized premiums on fixed-income securities using the proportional method of amortization. The cumulative effect of this accounting change had no impact on the Trusts' net assets, but resulted in the following reclassification of the components of net assets as of November 30, 2001, based on securities held by the Trusts as of that date:
DECREASE IN NET INCREASE IN COST OF UNREALIZED TRUST SECURITIES APPRECIATION ------------------------------------------------------------------------------ California $113,889 $(113,889) Florida 17,605 (17,605) Massachusetts 27,145 (27,145) Michigan 21,238 (21,238) New Jersey 27,222 (27,222) New York 35,507 (35,507) Ohio 26,374 (26,374) Pennsylvania 24,577 (24,577)
The effect of this change for the six months ended May 31, 2002 was to increase net investment income, increase (decrease) net realized gain (loss), and decrease net unrealized appreciation by the following amounts:
NET INVESTMENT NET REALIZED NET UNREALIZED TRUST INCOME GAIN (LOSS) APPRECIATION -------------------------------------------------------------------------------------- California $42,003 $(4,432) $(37,571) Florida 4,455 (4,135) (320) Massachusetts 6,555 (13) (6,542) Michigan 5,284 (1,322) (3,962) New Jersey 6,680 (1,940) (4,740) New York 7,767 (46) (7,721) Ohio 4,684 (4,632) (52) Pennsylvania 9,466 (64) (9,402)
The statement of changes in net assets and financial highlights for the prior periods have not been restated to reflect these changes. 58 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D D Federal Taxes -- Each Trust's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary. At November 30, 2001, the Trusts, for federal income tax purposes, had capital loss carryovers which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryovers of each Trust are as follows:
TRUST AMOUNT EXPIRES ----------------------------------------------------------------------- California $6,335,695 November 30, 2007 2,239,451 November 30, 2008 Florida 2,089,704 November 30, 2007 1,777,536 November 30, 2008 160,909 November 30, 2009 Massachusetts 1,625,192 November 30, 2007 1,739,252 November 30, 2008 39,627 November 30, 2009 Michigan 1,193,621 November 30, 2007 624,509 November 30, 2008 165,469 November 30, 2009 New Jersey 4,426,695 November 30, 2007 3,178,038 November 30, 2008 262,308 November 30, 2009 New York 6,127,495 November 30, 2007 1,920,646 November 30, 2008 70,059 November 30, 2009 Ohio 2,126,380 November 30, 2007 643,577 November 30, 2008 850,745 November 30, 2009 Pennsylvania 1,594,189 November 30, 2007 807,118 November 30, 2008 844,973 November 30, 2009
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 Financial Futures Contracts -- Upon the entering of a financial futures contract, a Trust is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Trust (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Trust. A Trust's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. F Options on Financial Futures Contracts -- Upon the purchase of a put option on a financial futures contract by a Trust, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Trust will realize a loss in the amount of the cost of the option. When a Trust enters into a closing sale transaction, a Trust will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Trust exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid. G Use of Estimates -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian of the Trusts. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Trust maintains with IBT. All significant credit balances used to reduce the Trusts' custodian fees are reported as a reduction of total expenses in the Statement of Operations. I Interim Financial Statements -- The interim financial statements relating to May 31, 2002 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Trusts' management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 59 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 2 Auction Preferred Shares (APS) - ------------------------------------------- Each Trust issued Auction Preferred Shares on March 1, 1999 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every seven days thereafter by an auction. Auction Preferred Shares issued and outstanding as of May 31, 2002 and annualized dividend rate ranges for the six months ended May 31, 2002 are as indicated below:
PREFERRED SHARES ANNUALIZED DIVIDEND TRUST ISSUED AND OUTSTANDING RATE RANGES ------------------------------------------------------------------------------------- California 2,360 1.13% - 1.80% Florida 1,420 1.25% - 1.80% Massachusetts 860 0.95% - 1.70% Michigan 700 1.00% - 1.75% New Jersey 1,520 0.99% - 1.70% New York 1,780 0.85% - 1.85% Ohio 940 0.72% - 1.70% Pennsylvania 900 0.78% - 1.70%
The APS are redeemable at the option of each Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if any Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS shall remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the Common Shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in each Trust's By-Laws and the Investment Company Act of 1940. Each Trust pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction. In accordance with the provisions of EITF D-98, "Classification and Measurement of Redeemable Securities", effective for the current period, each Trust has reclassified its APS Shares outside of permanent equity in the net assets section of the statement of assets and liabilities. In addition, distributions to APS shareholders are now classified as a component of the "Net increase in net assets from operations" on the statement of operations and statement of changes in net assets, and as a component of the "Total income (loss) from operations" in the financial highlights. Prior year amounts presented have been restated to conform to this period's presentation. This change has no impact on the net assets applicable to common shares of each Trust. 3 Distributions to Shareholders - ------------------------------------------- Each Trust intends to make monthly distributions of net investment income, after payment of any dividends on any outstanding Auction Preferred Shares. Distributions are recorded on the ex-dividend date. Distributions 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 annualized dividend rate for the Auction Preferred Shares on May 31, 2002 was 1.55%, 1.50%, 1.45%, 1.50%, 1.50%, 1.50%, 1.55%, and 1.35%, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. For the six months ended May 31, 2002, the amount of dividends each Trust paid to Auction Preferred shareholders and average annualized APS dividend rates for such period were as follows:
AVERAGE APS DIVIDENDS PAID TO ANNUALIZED DIVIDEND TRUST PREFERRED SHAREHOLDERS RATE ------------------------------------------------------------------------------------- California $410,648 1.38% Florida 254,404 1.44% Massachusetts 146,675 1.38% Michigan 122,531 1.40% New Jersey 257,897 1.34% New York 293,146 1.33% Ohio 162,658 1.39% Pennsylvania 146,987 1.31%
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 60 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D compensation for investment advisory services rendered to each Trust. Except for Trustees of each Trust who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Trust out of such investment adviser fee. For the six months ended May 31, 2002, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $556,297, $331,973, $199,781, $163,949, $348,546, $417,561, $217,484, and $207,153, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. EVM also serves as the administrator of each Trust. An administration fee, computed at the annual rate of 0.20% of the average weekly gross assets of each Trust is paid to EVM for administering business affairs of each Trust. For the six months ended May 31, 2002, the administration fee amounted to $159,132, $94,850, $57,081, $46,842, $99,585, $119,303, $62,138, and $59,186, 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 six months ended May 31, 2002, no significant amounts have been deferred. Certain officers and one Trustee of each Trust are officers of the above organization. 5 Investments - ------------------------------------------- Purchases and sales of investments, other than U.S. Government securities and short-term obligations for the six months ended May 31, 2002 were as follows:
CALIFORNIA TRUST ----------------------------------------------------- Purchases $ 8,390,774 Sales 8,502,119 FLORIDA TRUST ----------------------------------------------------- Purchases $ 4,709,270 Sales 4,468,762 MASSACHUSETTS TRUST ----------------------------------------------------- Purchases $ 3,467,445 Sales 2,466,372 MICHIGAN TRUST ----------------------------------------------------- Purchases $ 1,815,557 Sales 3,187,690 NEW JERSEY TRUST ----------------------------------------------------- Purchases $10,774,459 Sales 10,195,149 NEW YORK TRUST ----------------------------------------------------- Purchases $ 2,193,585 Sales 1,275,968 OHIO TRUST ----------------------------------------------------- Purchases $ 3,018,398 Sales 3,383,865 PENNSYLVANIA TRUST ----------------------------------------------------- Purchases $ 7,094,254 Sales 8,517,544
6 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at May 31, 2002, as computed for Federal income tax purposes, were as follows:
CALIFORNIA TRUST ------------------------------------------------------ AGGREGATE COST $154,580,453 ------------------------------------------------------ Gross unrealized appreciation $ 3,982,790 Gross unrealized depreciation (2,086,383) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,896,407 ------------------------------------------------------ FLORIDA TRUST ------------------------------------------------------ AGGREGATE COST $ 94,130,193 ------------------------------------------------------ Gross unrealized appreciation $ 2,112,358 Gross unrealized depreciation (1,702,516) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 409,842 ------------------------------------------------------
61 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
MASSACHUSETTS TRUST ------------------------------------------------------ AGGREGATE COST $ 56,437,644 ------------------------------------------------------ Gross unrealized appreciation $ 1,879,011 Gross unrealized depreciation (1,092,944) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 786,067 ------------------------------------------------------ MICHIGAN TRUST ------------------------------------------------------ AGGREGATE COST $ 45,842,735 ------------------------------------------------------ Gross unrealized appreciation $ 1,181,030 Gross unrealized depreciation (785,792) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 395,238 ------------------------------------------------------ NEW JERSEY TRUST ------------------------------------------------------ AGGREGATE COST $ 95,688,596 ------------------------------------------------------ Gross unrealized appreciation $ 4,421,089 Gross unrealized depreciation (995,098) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 3,425,991 ------------------------------------------------------ NEW YORK TRUST ------------------------------------------------------ AGGREGATE COST $114,442,039 ------------------------------------------------------ Gross unrealized appreciation $ 5,379,897 Gross unrealized depreciation (1,278,431) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 4,101,466 ------------------------------------------------------ OHIO TRUST ------------------------------------------------------ AGGREGATE COST $ 60,662,082 ------------------------------------------------------ Gross unrealized appreciation $ 1,770,113 Gross unrealized depreciation (1,339,837) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 430,276 ------------------------------------------------------ PENNSYLVANIA TRUST ------------------------------------------------------ AGGREGATE COST $ 56,966,397 ------------------------------------------------------ Gross unrealized appreciation $ 1,375,303 Gross unrealized depreciation (811,610) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 563,693 ------------------------------------------------------
7 Shares of Beneficial Interest - ------------------------------------------- Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:
CALIFORNIA TRUST ----------------------------------- SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ----------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 44,002 6,639 ----------------------------------------------------------------------------- NET INCREASE 44,002 6,639 ----------------------------------------------------------------------------- FLORIDA TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 926 -- ------------------------------------------------------------------------------ NET INCREASE 926 -- ------------------------------------------------------------------------------ MASSACHUSETTS TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 18,645 2,587 ------------------------------------------------------------------------------ NET INCREASE 18,645 2,587 ------------------------------------------------------------------------------ MICHIGAN TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 1,375 -- ------------------------------------------------------------------------------ NET INCREASE 1,375 -- ------------------------------------------------------------------------------ NEW JERSEY TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 23,158 -- ------------------------------------------------------------------------------ NET INCREASE 23,158 -- ------------------------------------------------------------------------------
62 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
NEW YORK TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 37,331 -- ------------------------------------------------------------------------------ NET INCREASE 37,331 -- ------------------------------------------------------------------------------ OHIO TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 6,523 -- ------------------------------------------------------------------------------ NET INCREASE 6,523 -- ------------------------------------------------------------------------------ PENNSYLVANIA TRUST ------------------------------------ SIX MONTHS ENDED MAY 31, 2002 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2001 ------------------------------------------------------------------------------ Shares issued pursuant to the Trust's dividend reinvestment plan 2,125 -- ------------------------------------------------------------------------------ NET INCREASE 2,125 -- ------------------------------------------------------------------------------
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, 2002 is as follows:
EXPIRATION NET UNREALIZED TRUST DATE CONTRACTS POSITION DEPRECIATION ---------------------------------------------------------------------------------------------------- Michigan 9/02 47 US Treasury Bond Short $(13,868)
At May 31, 2002, the Trust had sufficient cash and/or securities to cover margin requirements on open future contracts. 9 Annual Meeting of Shareholders - ------------------------------------------- Each Trust held its Annual Meeting of Shareholders on March 22, 2002. The following action was taken by the shareholders of each Trust: ITEM 1: The election of Norton H. Reamer, Lynn A. Stout and Jack L. Treynor as Trustees of the Trust for a three-year term expiring in 2005. Mr. Reamer was designated the Nominee to be elected solely by APS shareholders:
NOMINEE FOR TRUSTEE NOMINEE FOR TRUSTEE NOMINEE FOR TRUSTEE ELECTED BY APS ELECTED BY ALL ELECTED BY ALL SHAREHOLDERS SHAREHOLDERS SHAREHOLDERS TRUST NORTON H. REAMER LYNN A. STOUT JACK L. TREYNOR ------------------------------------------------------------------------------------------------------- California For 2,320 7,019,882 7,021,250 Withheld 0 52,765 51,397 Florida For 1,326 3,901,758 3,899,258 Withheld 2 43,880 46,380 Massachusetts For 847 2,370,793 2,366,809 Withheld 13 13,231 17,215 Michigan For 700 1,982,805 1,980,937 Withheld 0 49,206 51,074 New Jersey For 1,350 4,306,155 4,304,413 Withheld 14 51,489 53,231 New York For 1,609 5,169,185 5,168,570 Withheld 41 41,891 42,506 Ohio For 893 2,312,845 2,313,045 Withheld 47 17,121 16,921 Pennsylvania For 798 2,484,015 2,488,193 Withheld 102 31,763 27,585
Also serving as Trustees are Jessica M. Bibliowicz, Donald R. Dwight, Samuel L. Hayes and James B. Hawkes. 63 DIVIDEND REINVESTMENT PLAN Each Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the same Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested. If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Trust's transfer agent, PFPC Inc., or you will not be able to participate. The Plan Agent's service fee for handling distributions will be paid by each Trust. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases. Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds. If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent. Any inquires regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710. 64 APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan. The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan. ------------------------------------------------------ Please print exact name on account ------------------------------------------------------ Shareholder signature Date ------------------------------------------------------ Shareholder signature Date Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY. THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS: Eaton Vance Municipal Income Trusts c/o PFPC Inc. P.O. Box 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, nondiversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of May 31, 2002, our records indicate that there are 73, 51, 69, 38, 70, 63, 60 and 58 registered shareholders for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively, and approximately 2,600, 1,800, 1,100, 1,000, 1,900, 2,300 1,400 and 1,300 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call: Eaton Vance Distributors, Inc. The Eaton Vance Building 255 State Street Boston, MA 02109 1-800-225-6265 AMERICAN STOCK EXCHANGE SYMBOLS California Trust CEV Florida Trust FEV Massachusetts Trust MMV Michigan Trust EMI New Jersey Trust EVJ New York Trust EVY Ohio Trust EVO Pennsylvania Trust EVP
65 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2002 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 Cynthia J. Clemson Vice President and Portfolio Manager of California, Florida and Pennsylvania Municipal Income Trusts William H. Ahern, Jr. Vice President and Portfolio Manager of Michigan Municipal Income Trust 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 President, Unicorn Corporation Chairman, Hellman, Jordan Management Co., Inc. Advisory Director of Berkshire Capital Corporation Lynn A. Stout Professor of Law, UCLA School of Law Jack L. Treynor Investment Adviser and Consultant 66 INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE MUNICIPAL INCOME TRUSTS EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT PFPC, INC. Attn: Eaton Vance Municipal Income Trusts P.O. Box 8030 Boston, MA 02266-8030 (800) 331-1710 EATON VANCE FUNDS EATON VANCE MANAGEMENT PRIVACY NOTICE The Eaton Vance organization is committed to ensuring your financial privacy. This notice is being sent to comply with privacy regulations of the Securities and Exchange Commission. Each of the above financial institutions has in effect the following policy with respect to nonpublic personal information about its customers: - - Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. - - None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). - - Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. For more information about Eaton Vance's privacy policies, call: 1-800-262-1122 EATON VANCE MUNICIPAL INCOME TRUSTS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 147-7/02 CE-MUNISRC -----END PRIVACY-ENHANCED MESSAGE-----