-----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, WNHCSUrhMu7mj9qAYMOLiusLvwlU22IJpbDyWsGQz3pwOPmzirKYgme/r5W0Gvqc 68CQere9XcZ8F8cgOSGDnQ== 0001047469-03-002857.txt : 20030128 0001047469-03-002857.hdr.sgml : 20030128 20030128131847 ACCESSION NUMBER: 0001047469-03-002857 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021130 FILED AS OF DATE: 20030128 EFFECTIVENESS DATE: 20030128 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: 03527426 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: 03527427 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 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: 03527428 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: 03527429 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: 03527430 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: 03527431 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: 03527432 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: 03527433 BUSINESS ADDRESS: STREET 1: C/O EATON VANCE STREET 2: 24 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 N-30D 1 a2100446zn-30d.txt N-30D [EATON VANCE(R) MUNICIPAL INVESTMENTS LOGO] ANNUAL REPORT NOVEMBER 30, 2002 [BRICK WALL] [EDUCATION] [HIGHWAY] EATON VANCE MUNICIPAL INCOME TRUSTS [BRIDGE] CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN NEW JERSEY NEW YORK OHIO PENNSYLVANIA IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS The Securities and Exchange Commission (SEC) permits mutual funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders. EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL ADVISER, OTHERWISE. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser. EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President Amid the dramatic interest rate decline of recent years, many bonds issued at relatively high interest rates from 1993-1998 have been pre-refunded by their issuers. As a result, escrowed bonds have played an increasingly prominent role in municipal bond portfolios. However, while these bonds are valued by professional investors, analysts and portfolio managers, many individual investors have little knowledge of why bonds are escrowed. As part of our continuing educational series, we thought it might be helpful to discuss the mechanics of escrowed bonds and their role in the municipal market. THE PROCESS OF ESCROWING MUNICIPAL BONDS TO MATURITY... In the escrowing process, an issuing jurisdiction essentially refinances original-issue debt with newer, usually lower-interest debt. The jurisdiction issues a "refunding bond," the proceeds of which are used to purchase specially-issued U.S. Treasury bonds - State and Local Government Series bonds, which are held in an irrevocable escrow account by a trustee bank. The principal and interest payments of these Treasury bonds exactly match the future principal and interest payments of the issuer's original bonds. The principal and interest from these U.S. Treasuries are directed solely to pay the interest and principal on the tax-exempt bonds for which the escrow account was established. Thus, the original bonds are now backed by U.S. Treasuries and are, therefore, deemed among the highest quality of all tax-exempt issues. BENEFITS FOR ISSUERS: LOWER INTEREST RATES AND ADDED FLEXIBILITY... When municipal bonds are escrowed, they are said to be "defeased." That means that the bonds are no longer governed by the original covenants and are no longer a direct obligation of the original issuer. The most common defeasance - "high-to-low" defeasance - is based on an economic rationale, in which an issuer seeks to take advantage of a significant decline in interest rates - much the same way homeowners refinance their mortgages. By refunding high-coupon bonds with lower-coupon debt, issuers are able to reduce their interest expenses and save taxpayers and ratepayers money. A second, less common procedure is "low-to-high" defeasance - in which relatively low-coupon bonds are refunded with higher-coupon bonds. This refunding is generally based on a pressing political or structural need, done primarily to effect a change in bond covenants. This change may provide more flexibility for issuers by broadening a project's mandate or redefining revenue sources. BENEFITS FOR INVESTORS: HIGHER QUALITY, SHORTER MATURITIES, ATTRACTIVE COUPONS... For investors, owning a bond that has been escrowed provides an immediate upgrade in quality - and often in price - because the bond is now backed by U.S. Treasuries. In addition, because the bond is likely to be called at its earliest call date, it will have a shorter effective maturity and, therefore, less volatility. Finally, in most cases, the bond continues to pay an above-average coupon. These characteristics can represent distinct advantages for investors. However compelling these benefits are, a portfolio manager still faces a key decision: whether to hold the bond with its attractive coupon and no credit risk - or - to sell the bond at its increased market value and redeploy the increased purchasing power at current interest rates. The investor must factor in market conditions, the interest rate outlook, the availability of bonds in the marketplace and call provisions. If the escrowed bond's original call provisions have been waived, that will dramatically improve the bond's trading characteristics. These decisions can have a profound effect upon performance. Moreover, the treatment of escrowed bonds is yet another area that demonstrates the value of professional management. We believe that familarity with bond covenants, trading patterns and in-depth analysis can provide investors a major advantage in municipal bond investing. Sincerely, /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President January 9, 2003 2 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 MARKET RECAP Having emerged from last year's recession, the U.S. economic recovery remained sluggish in 2002. Weak demand and the prospect of future military conflict in Iraq weighed heavily on the financial markets and proved a concern to individuals and businesses alike. Consumer spending held up surprisingly well through much of the year. However, on the business side, companies were slow to resume capital spending, a trend that took a toll on the key telecom, computer and semiconductor areas. Finally, a series of corporate scandals dealt a blow to investor confidence. In sum, 2002 was a difficult year for the economy and saw increased volatility in the financial markets. HELPED BY LOW INTEREST RATES AND SALES INCENTIVES, THE AUTO AND HOUSING SECTORS KEPT THE WEAK ECONOMY AFLOAT... For much of the year, record-low interest rates gave a major boost to consumer spending, which provided an underpinning for the broad economy. Low interest rates had a pronounced effect on the auto and housing sectors, helping to reduce inventories. However, by year-end, amid high personal debt levels and an increasing jobless rate, there were signs that U.S. consumers were beginning to tighten their belts, as evidenced by a disappointing holiday retail season. SEEKING TO JUMP-START THE ECONOMY, THE FEDERAL RESERVE AGAIN LOWERED INTEREST RATES... The nation's Gross Domestic Product followed a lackluster 1.3% growth rate in the second quarter with a stronger 4.0% rise in the third quarter, although some observers doubted the economy's staying power. Many companies continued to announce layoffs, pushing the unemployment rate to a nine-year high. Businesses - - which had pared costs sharply to weather the recession - remained reticent to spend on expansion plans, a key to a full recovery. In response, the Federal Reserve maintained its accommodative monetary policy, lowering its benchmark Federal funds rate to 1.25% in November, a move that provided further support for the bond market. Ten-year Treasury bond yields, which had risen to 5.40% in March in response to anecdotal signs of a recovery - fell back to 4.21% by November 30, as the Fed reaffirmed the weakness of the economy. Against that backdrop, the Lehman Brothers Municipal Bond Index - a broad-based, unmanaged index of municipal bonds - registered another impressive performance, posting a solid 6.32% total return for the year ended November 30, 2002.* [CHART] MUNICIPAL BOND YIELDS EXCEEDED TREASURY YIELDS 30-YEAR AAA-RATED GENERAL OBLIGATION (GO) BONDS* 5.11% TAXABLE EQUIVALENT YIELD IN 38.6% TAX BRACKET 8.32% 30-YEAR TREASURY BOND 5.04% PRINCIPAL AND INTEREST PAYMENTS OF TREASURY SECURITIES ARE GUARANTEED BY THE U.S. GOVERNMENT. *GO YIELDS ARE A COMPILATION OF A REPRESENTATIVE VARIETY OF GENERAL OBLIGATIONS AND ARE NOT NECESSARILY REPRESENTATIVE OF THE TRUSTS' YIELD. STATISTICS AS OF NOVEMBER 30, 2002. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SOURCE: BLOOMBERG, L.P.
The performance of municipal bonds was especially noteworthy when compared to other asset classes. With the stock market declining sharply for the third consecutive year, increasingly risk-averse investors found a measure of comfort in the fixed-income market. Municipal bonds have been among the leading asset classes in 2002. AMID CONTINUING GLOBAL AND ECONOMIC CONCERNS, WE BELIEVE THE OUTLOOK FOR BONDS IS FAVORABLE... We continue to feel that municipal bonds merit a place in a diversified investment portfolio. We believe they are attractive because, with the outlook for inflation relatively tame, the likelihood of a sharp spike in interest rates is fairly remote. Meanwhile, given the ongoing geopolitical concerns, the quality of municipal bonds is compelling. Finally, municipal bonds may find additional support from the fact that many states and municipalities have been forced to raise taxes in order to close budget deficits. The resulting higher taxes could well enhance the attractiveness of tax-favored investments. *It is not possible to invest directly in an Index. THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND. 3 EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - While California has seen some signs of recovery, the pace of job creation has been disappointing. Trade, personal services and government have been the prime sources of new jobs, while the technology sector has been less robust. California's jobless rate was 6.4% in November 2002, up from 6.1% a year ago. - - Insured* general obligations bonds represented the Trust's largest sector weighting at November 30, 2002. With the state and local communities reporting lower revenues, insured* bonds provided quality and an added measure of security in a difficult economic climate. - - Insured* transportation bonds were a significant investment focus, and included key airports, highways and port facilities. For example, the Port of Oakland owns and operates Oakland International Airport, serving more than 9.8 million passengers annually, as well as the nation's fourth busiest seaport facility. - - Special tax revenue bonds were among the Trust's largest sector weightings. These bonds are secured by the levy of special assessments - as opposed to property taxes - by local governments. The levies help defray costs on improvements or infrastructures that benefit local property owners. - - Insured* water and sewer bonds played a major role, including a large investment in East Bay Municipal Utilities District. EBMUD supplies water and wastewater treatment for parts of Alameda and Contra Costa counties on the eastern side of San Francisco Bay. TRUST STATISTICS(1) - - Number of Issues: 78 - - Effective Maturity: 14.7 years - - Average Rating: AA - - Average Call: 9.2 years - - Average Dollar Price: $92.17 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 1.84% for the year ended November 30, 2002. That return was the result of a decrease in share price from $14.32 on November 30, 2001, to $13.66 on November 30, 2002, and the reinvestment of $0.934 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 8.10% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.41 on November 30, 2001, to $14.59 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.66, the Trust had a market yield of 6.96% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 12.50%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 60.0% AA 6.7% A 12.5% BBB 8.0% NON-RATED 12.8%
SHARES OF THE TRUST ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL VARY. TRUST INFORMATION AS OF NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 1.84% Life of Trust (1/29/99) 3.45 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 8.10% Life of Trust (1/29/99) 5.24
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] INSURED - GENERAL OBLIGATIONS* 21.0% INSURED - TRANSPORTATION* 20.7% SPECIAL TAX REVENUE 20.1% INSURED - WATER & SEWER* 15.9% HOSPITAL 15.3%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - Florida's tourism sector regained some momentum in the wake of last year's post-September 11 travel concerns. Residential construction was robust, although commercial activity remained weak in response to lower business investment and expansion plans. Florida's jobless rate was 5.0% in November 2002, down from 5.6% a year ago. - - Insured* transportation bonds constituted the Trust's largest sector weighting at November 30, 2002. The Trust's investments spanned a wide range of projects, including port facilities, airports and highways, including Florida State Turnpike Authority. - - Insured* water and sewer bonds were a major focus of the Trust. These water utility issues are attractive to investors in a slow economy because they represent an essential service, a non-discretionary expenditure backed by water bill payments. - - Insured* special tax revenue bonds again represented a significant commitment. These bonds - backed by special assessments on local communities - were used to fund the building of infrastructure by communities coping with Florida's continuing fast population growth. - - Management remained very selective within the hospital sector. With this competitive industry facing the pressure of new reimbursement rules, the Trust focused on institutions with sound financial structures, good management and a solid market share. TRUST STATISTICS(1) - - Number of Issues: 69 - - Effective Maturity: 17.3 years - - Average Rating: AA - - Average Call: 7.3 years - - Average Dollar Price: $100.17 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 15.18% for the year ended November 30, 2002. That return was the result of an increase in share price from $13.38 on November 30, 2001, to $14.40 on November 30, 2002, and the reinvestment of $0.953 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 9.93% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.34 on November 30, 2001, to $14.73 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.40, the Trust had a market yield of 6.85% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.16%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 61.5% AA 9.0% A 9.4% BBB 2.4% NON-RATED 17.7%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 15.18% Life of Trust (1/29/99) 4.99 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 9.93% Life of Trust (1/29/99) 5.61
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] INSURED - TRANSPORTATION* 23.6% INSURED - WATER & SEWER* 21.5% INSURED - SPECIAL TAX REVENUE* 19.5% HOSPITAL 13.6% SPECIAL TAX REVENUE 12.1%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (2) A portion of the Trust's income may be subject to federal income tax and state intangibles tax/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 38.6% 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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT DISCUSSION - - The Massachusetts economy suffered job losses in the manufacturing, technology and financial services sectors in the past year. Lower capital spending has impacted technology-related companies, while a slumping stock market has hit the financial services sector. The November 2002 jobless rate was 5.0%, up from 4.4% a year ago. - - Education bonds remained the Trust's largest sector weighting at November 30, 2002. In addition to colleges and universities, the Trust held bonds of private secondary schools. Private schools have generally enjoyed strong enrollment despite the economic downturn. - - The Trust continued its efforts to upgrade its hospital investments. One such investment was an A- rated issue for Covenant Health Care System. Covenant manages a chain of hospital facilities in Maine, New Hampshire and Massachusetts and is well-positioned in its various markets. - - In the electric utilities sector, the Trust had a new Massachusetts IFA issue for Devens Electric System. The bonds helped finance the construction of electric infrastructure associated with the transition of Fort Devens in Ayer from a military complex to light industrial/commercial use. - - Management responded to the dramatic interest rate decline by adjusting the Trust's coupon structure. Management took advantage of strong retail demand, boosted by investors' need to replace bonds that had been called. TRUST STATISTICS(1) - - Number of Issues: 57 - - Effective Maturity: 19.0 years - - Average Rating: AA- - - Average Call: 7.1 years - - Average Dollar Price: $96.76 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 15.16% for the year ended November 30, 2002. That return was the result of an increase in share price from $14.37 on November 30, 2001, to $15.51 on November 30, 2002, and the reinvestment of $0.937 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 8.50% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.11 on November 30, 2001, to $14.35 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $15.51, the Trust had a market yield of 6.21% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 10.68%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 50.4% AA 5.8% A 18.8% BBB 16.3% BB 1.1% NON-RATED 7.6%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 15.16% Life of Trust (1/29/99) 6.91 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 8.50% Life of Trust (1/29/99) 4.77
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] EDUCATION 30.1% HOSPITAL 22.8% INSURED - EDUCATION* 21.7% INSURED - TRANSPORTATION* 10.8% HEALTH CARE - MISCELLANEOUS 8.8%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT DISCUSSION - - The Michigan economy has registered modest growth in the past year, reflected by a decline in the state's November jobless rate to 5.7% from 6.1% a year ago. Manufacturers have managed to pare down excess inventories that have constrained the sector. However, despite low interest rates, commercial construction has remained weak. - - Hospital bonds represented the Trust's largest sector weighting at November 30, 2002. In a very competitive Michigan hospital market, the Trust focused on well regarded institutions, such as McLaren Medical Center, believed to have sound financial structures, good management and a favorable demographic base. - - As part of management's focus on credit quality, the Trust maintained a large investment in insured* general obligations. Insured* bonds provided a measure of support in a weak economy, as well as added diversification among city and county issues. - - The Trust remained highly selective with respect to industrial development revenue bonds. The weak economy has been especially challenging for industrial companies. Therefore, management closely monitored issuers for their revenue outlook and underlying fundamentals. - - 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: 54 - - Effective Maturity: 16.7 years - - Average Rating: AA- - - Average Call: 7.9 years - - Average Dollar Price: $96.92 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 14.72% for the year ended November 30, 2002. That return was the result of an increase in share price from $13.00 on November 30, 2001, to $13.94 on November 30, 2002, and the reinvestment of $0.953 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 6.32% for the year ended November 30, 2002. That return was the result of a decrease in net asset value from $14.49 on November 30, 2001, to $14.40 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.94, the Trust had a market yield of 6.97% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.84%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 54.3% AA 6.1% A 15.9% AA 12.1% NON-RATED 11.6%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 14.72% Life of Trust (1/29/99) 4.04 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 6.32% Life of Trust (1/29/99) 4.93
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] HOSPITAL 40.3% INSURED - GENERAL OBLIGATION* 23.2% GENERAL OBLIGATIONS 16.6% INDUSTRIAL DEVELOPMENT REVENUE 11.1% INSURED - TRANSPORTATION* 10.8%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 41.12% 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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT DISCUSSION - - Economic activity in New Jersey has remained somewhat sluggish, with businesses slow to hire in an uncertain climate. One bright spot was in the construction sector, prompted by a brisk housing market and strong demand for industrial space. The state's November 2002 jobless rate was 5.6%, well above the 4.8% rate of a year ago. - - In a slow economy, the Trust remained selective with respect to economically-sensitive sectors. Insured* transportation bonds were the Trust's largest sector weighting at November 30, 2002. The Trust's investments included Port Authority of New York and New Jersey and the Delaware River Port Authority, another well-regarded issuer. - - In a diversification-driven move, management added Tobacco Settlement Finance Corp. bonds. Backed by the state's share of receipts from the 46-state Tobacco Master Settlement Agreement, the bonds represent an A rated security, a relative rarity in today's municipal market, and carry an attractive 6.0% coupon. - - The Trust took advantage of strong retail demand, selling 4.75%-5.00% coupons and recycling the proceeds into new issues, including one for Salem County Pollution Control Financing Authority. Recent trends have altered the climate for investor-owned utilities, necessitating especially intensive research by investors. - - Management continued its efforts to improve the Trust's call protection. With the sharp decline in interest rates in recent years, many bonds in the market are now approaching call dates. Accordingly, call protection has merited close attention. TRUST STATISTICS(1) - - Number of Issues: 61 - - Effective Maturity: 13.4 years - - Average Rating: AA- - - Average Call: 7.9 years - - Average Dollar Price: $102.17 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 15.70% for the year ended November 30, 2002. That return was the result of an increase in share price from $13.34 on November 30, 2001, to $14.40 on November 30, 2002, and the reinvestment of $0.976 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 8.56% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $13.88 on November 30, 2001, to $14.06 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.40, the Trust had a market yield of 7.00% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 12.18%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 54.1% AA 9.4% A 10.3% BBB 12.7% NON-RATED 13.5%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 15.70% Life of Trust (1/29/99) 4.99 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 8.56% Life of Trust (1/29/99) 4.34
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] INSURED - TRANSPORTATION* 28.6% HOSPITAL 20.7% INSURED - GENERAL OBLIGATIONS 16.6% TRANSPORTATION 15.7% INSURED - EDUCATION* 13.9%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - - New York's economy continued to recover from last year's recession, with some improvement in retail sales and manufacturing. However, the overall pace of activity remained soft. New York City's once-torrid real estate market has settled down considerably in the past year. The state's November 2002 jobless rate was 6.0%, up from 5.6% a year ago. - - With quality a prime strategic consideration for the Trust, insured* transportation bonds were the largest sector weighting at November 30, 2002. The New York Thruway Authority is among the state's most frequent and well-regarded issuers, and provides excellent liquidity and quality to the Trust. - - The hospital sector remained a major focus of the Trust, with investments in a diversified range of facilities throughout the state. Management emphasized competitive, financially sound institutions possessing a strong market share in their communities. - - In a weak economy, education and insured* education bonds played a significant role in the Trust. Investments included issues for some of the state's most celebrated universities, including Cornell University and Rockefeller University. - - As interest rates declined sharply, management continued to adjust the Trust's average coupon, while maintaining its efforts to upgrade call protection. With low interest rates prompting refundings, call protection has become increasingly important for municipal investors. TRUST STATISTICS(1) - - Number of Issues: 64 - - Effective Maturity: 12.5 years - - Average Rating: AA- - - Average Call: 8.2 years - - Average Dollar Price: $104.58 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 6.56% for the year ended November 30, 2002. That return was the result of a decrease in share price from $14.05 on November 30, 2001, to $13.99 on November 30, 2002, and the reinvestment of $0.984 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 11.36% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.28 on November 30, 2001, to $14.86 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.99, the Trust had a market yield of 7.31% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 12.78%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 41.8% AA 17.7% A 19.5% BBB 7.0% B 0.5% Non-Rated 13.5%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 6.56% Life of Trust (1/29/99) 4.19 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 11.36% Life of Trust (1/29/99) 5.84
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] INSURED - TRANSPORTATION* 18.4% HOSPITAL 13.7% ESCROWED/PREREFUNDED 12.6% EDUCATION 12.5% ELECTRIC UTILITIES 11.1%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - - Ohio's economy has given mixed signals in recent months. With the exception of automakers and auto parts manufacturers - which were boosted by sales incentives - the manufacturing sector remained hampered by continuing sluggish demand. The state's November 2002 jobless rate was 5.4%, up from 4.7% a year ago. - - Hospital bonds constituted the Trust's largest sector weighting at November 30, 2002. The Trust focused on institutions management deemed most competitive in a difficult industry climate, including Children's Hospital of Akron. Children's is one of the nation's largest pediatric facilities, featuring more than 30 areas of specialized medical care. - - In a weak revenue climate for states and municipalities, insured* general obligations (GOs) represented a major focus. A soft economy has produced an uncertain revenue outlook for many Ohio issuers. As a result, insured* GO's have commanded more attention from municipal bond investors. - - The Trust found opportunities in special tax revenue bonds. These bonds were used to fund the purchases of equipment and the building of infrastructure by Ohio communities, significantly enhancing their financial flexibility. - - Management remained very selective with respect to its industrial development revenue (IDR) holdings, paring its investments in the past year. The slow pace of recovery has created an uncertain revenue outlook for many cyclical IDR issuers. TRUST STATISTICS(1) - - Number of Issues: 50 - - Effective Maturity: 15.9 years - - Average Rating: A+ - - Average Call: 9.1 years - - Average Dollar Price: $98.72 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 15.59% for the year ended November 30, 2002. That return was the result of an increase in share price from $13.62 on November 30, 2001 to $14.73 on November 30, 2002, and the reinvestment of $0.954 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 7.49% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.07 on November 30, 2001 to $14.15 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.73, the Trust had a market yield of 6.77% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.92%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 39.6% AA 12.3% A 22.2% BBB 10.8% BB 1.5% NON-RATED 13.6%
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 NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 15.59% Life of Trust (1/29/99) 5.42 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 7.49% Life of Trust (1/29/99) 4.33
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] HOSPITAL 21.0% INSURED - GENERAL OBLIGATIONS* 17.3% INDUSTRIAL DEVELOPMENT REVENUE 16.3% INSURED - SPECIAL TAX REVENUE* 15.1% INSURED - EDUCATION* 11.6%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - - The weak economy has hit Pennsylvania's manufacturing sector, especially in the durable goods and electronics areas. However, the construction sector, spurred by low interest rates, has generated some new jobs. Pennsylvania's jobless rate was 5.6% in November 2002, up from the 5.0% pace of a year ago. - - In an uncertain economic climate, education and insured* education bonds were among the Trust's largest sector weightings at November 30, 2002. Institutions such as Bryn Mawr, the University of Pennsylvania and Lafayette College, whose applications for admission consistently exceed placement capacity, tended to enjoy stable tuition income, even as other sectors faced declining revenues. - - Insured* general obligations (GOs) were key holdings. In a period of revenue uncertainties, insured* bonds represented good relative value. High quality GOs provide a measure of protection in a poor credit environment. - - Insured* water and sewer bonds remained a significant investment. These water utility issues are attractive to investors in a slow economy because they represent an essential service, a non-discretionary expenditure backed by water bill payments. - - Management continued to maintain a well-diversified coupon allocation, balancing higher-income issues with interest-rate-sensitive, low- and zero-coupon issues for appreciation potential. TRUST STATISTICS(1) - - Number of Issues: 62 - - Effective Maturity: 14.2 years - - Average Rating: AA - - Average Call: 7.0 years - - Average Dollar Price: $98.52 THE TRUST PERFORMANCE FOR THE PAST YEAR - - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 16.77% for the year ended November 30, 2002. That return was the result of an increase in share price from $12.75 on November 30, 2001, to $13.96 on November 30, 2002, and the reinvestment of $0.887 in regular monthly dividends.(2) - - Based on net asset value, the Trust had a total return of 7.40% for the year ended November 30, 2002. That return was the result of an increase in net asset value from $14.16 on November 30, 2001, to $14.26 on November 30, 2002, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.96, the Trust had a market yield of 6.67% at November 30, 2002.(3) The Trust's market yield is equivalent to a taxable yield of 11.18%.(4) RATING DISTRIBUTION(1) BY TOTAL INVESTMENTS [CHART] AAA 68.6% AA 2.0% A 8.8% BBB 8.9% BB 1.5% NON-RATED 10.2%
SHARES OF THE TRUST ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL VARY. TRUST INFORMATION AS OF NOVEMBER 30, 2002
PERFORMANCE(5) - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) - -------------------------------------------------------------------------------- One Year 16.77% Life of Trust (1/29/99) 3.99 AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) - -------------------------------------------------------------------------------- One Year 7.40% Life of Trust (1/29/99) 4.57
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2002 was designated as an exempt interest dividend. 5 LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES [CHART] INSURED - EDUCATION* 23.7% INSURED - GENERAL OBLIGATIONS* 20.2% INSURED - WATER & SEWER* 16.1% INSURED - HOSPITAL* 15.6% INSURED - TRANSPORTATION* 15.6%
(1) Trust Statistics, Rating Distribution and 5 Largest Categories are subject to change. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (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 NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 153.8%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Education -- 9.6% - ------------------------------------------------------------------------- $ 1,000 California Educational Facilities Authority, (Dominican University), 5.75%, 12/1/30 $ 1,015,690 500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 494,505 1,850 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 1,872,588 4,000 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 4,033,080 2,500 California Educational Facilities Authority, (University of Southern California), 5.50%, 10/1/27 2,609,675 - ------------------------------------------------------------------------- $ 10,025,538 - ------------------------------------------------------------------------- Escrowed / Prerefunded -- 2.4% - ------------------------------------------------------------------------- $ 2,425 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, 0.00%, 1/1/20 $ 1,021,289 5,130 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, (FSA), 0.00%, 1/1/26 1,507,502 - ------------------------------------------------------------------------- $ 2,528,791 - ------------------------------------------------------------------------- Hospital -- 15.3% - ------------------------------------------------------------------------- $ 2,000 California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 6.25%, 12/1/34 $ 2,111,980 750 California Infrastructure and Economic Development, (Kaiser Hospital), 5.50%, 8/1/31 745,117 1,650 California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32 1,661,830 1,750 California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29 1,653,767 1,500 California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28 1,492,710 1,500 Duarte, COP, (City of Hope), 5.25%, 4/1/24 1,407,480 1,000 Stockton Health Facilities Authority, (Dameron Hospital), 5.70%, 12/1/14 1,031,170 2,000 Tahoe Forest Hospital District, 5.85%, 7/1/22 1,947,400 2,000 Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31 1,998,560 2,000 Washington Township, Health Care District, 5.25%, 7/1/29 1,981,500 - ------------------------------------------------------------------------- $ 16,031,514 - ------------------------------------------------------------------------- Housing -- 4.9% - ------------------------------------------------------------------------- $ 1,000 California Statewide Communities Development Authority, (Corporate Fund for Housing), 6.50%, 12/1/29 $ 975,180 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Housing (continued) - ------------------------------------------------------------------------- $ 500 California Statewide Communities Development Authority, (Corporate Fund for Housing), 7.25%, 12/1/34 $ 500,350 792 Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29 762,462 449 Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29 428,896 2,765 Monterey County Housing Authority, Multifamily, (Parkside Manor Apartments), 5.00%, 1/1/29 2,438,951 - ------------------------------------------------------------------------- $ 5,105,839 - ------------------------------------------------------------------------- Industrial Development Revenue -- 1.3% - ------------------------------------------------------------------------- $ 1,250 California Pollution Control Financing Authority, (Mobil Oil Corp.), (AMT), 5.50%, 12/1/29 $ 1,311,450 - ------------------------------------------------------------------------- $ 1,311,450 - ------------------------------------------------------------------------- Insured-Education -- 6.5% - ------------------------------------------------------------------------- $ 3,770 California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23 $ 3,797,483 3,000 California University, (AMBAC), 5.00%, 11/1/33 2,992,860 - ------------------------------------------------------------------------- $ 6,790,343 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 15.0% - ------------------------------------------------------------------------- $ 3,250 California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31 $ 3,311,750 2,500 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16 2,672,500 5,650 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 5,959,959 665 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(2)(3) 719,723 3,000 Sacramento Municipal Electric Utility District, (FSA), 5.00%, 8/15/28 3,003,210 - ------------------------------------------------------------------------- $ 15,667,142 - ------------------------------------------------------------------------- Insured-General Obligations -- 21.0% - ------------------------------------------------------------------------- $ 3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,653,961 1,650 California RITES, (AMBAC), Variable Rate, 5/1/26(1)(2) 1,917,696 6,425 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/20 2,555,736 3,000 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/21 1,114,290
SEE NOTES TO FINANCIAL STATEMENTS 12 CALIFORNIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-General Obligations (continued) - ------------------------------------------------------------------------- $ 3,750 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 $ 3,869,962 5,000 Murrieta Valley Unified School District, (FGIC), 0.00%, 9/1/20 1,976,850 2,500 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 2,713,675 9,635 San Ramon Valley Unified School District, (FGIC), 0.00%, 7/1/18 4,384,407 4,500 Ukiah Unified School District, (FGIC), 0.00%, 8/1/20 1,802,385 - ------------------------------------------------------------------------- $ 21,988,962 - ------------------------------------------------------------------------- Insured-Hospital -- 4.6% - ------------------------------------------------------------------------- $ 3,200 California Statewide Communities Development Authority, (Children's Hospital Los Angeles), (MBIA), 5.25%, 8/15/29 $ 3,265,888 1,245 California Statewide Communities Development Authority, (Sutter Health), Residual Certificates, (FSA), Variable Rate, 8/15/27(2)(3) 1,517,618 - ------------------------------------------------------------------------- $ 4,783,506 - ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 6.8% - ------------------------------------------------------------------------- $ 9,000 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17 $ 4,314,780 11,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/28 2,797,260 - ------------------------------------------------------------------------- $ 7,112,040 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 0.7% - ------------------------------------------------------------------------- $ 250 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) $ 252,645 525 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 533,332 - ------------------------------------------------------------------------- $ 785,977 - ------------------------------------------------------------------------- Insured-Transportation -- 20.7% - ------------------------------------------------------------------------- $ 2,500 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 $ 2,549,225 2,300 Port of Oakland, CA, (MBIA), (AMT), 5.375%, 11/1/25 2,342,297 2,515 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 2,557,277 1,750 Puerto Rico Highway and Transportation Authority, (FSA), 4.75%, 7/1/38 1,694,473 1,250 Puerto Rico Highway and Transportation Authority, (MBIA), 5.00%, 7/1/36 1,260,138 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Transportation (continued) - ------------------------------------------------------------------------- $ 5,000 San Francisco City and County Airports, (International Airport), (FGIC), (AMT), 5.25%, 5/1/30 $ 5,034,900 6,000 San Francisco, (Bay Area Rapid Transportation District), (FGIC), 5.50%, 7/1/34 6,229,800 - ------------------------------------------------------------------------- $ 21,668,110 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 15.9% - ------------------------------------------------------------------------- $ 5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 5,007,450 6,250 East Bay Municipal Utilities District Water System, (MBIA), 5.00%, 6/1/38 6,203,750 4,000 Metropolitan Water District, (Southern California Waterworks), (MBIA), Variable Rate, 7/1/27(2)(3) 3,915,520 4,850 Santa Rosa Wastewater, (AMBAC), 0.00%, 9/1/23 1,571,158 - ------------------------------------------------------------------------- $ 16,697,878 - ------------------------------------------------------------------------- Lease Revenue/Certificates of Participation -- 6.5% - ------------------------------------------------------------------------- $ 4,000 Sacramento City, Financing Authority, 5.40%, 11/1/20 $ 4,273,200 2,500 San Diego County, Certificates of Participation, 5.375%, 10/1/41 2,532,800 - ------------------------------------------------------------------------- $ 6,806,000 - ------------------------------------------------------------------------- Special Tax Revenue -- 20.1% - ------------------------------------------------------------------------- $ 1,500 Bonita Canyon Public Facilities Financing Authority, 5.375%, 9/1/28 $ 1,453,125 1,750 Capistrano Unified School District, 5.75%, 9/1/29 1,722,805 1,685 Corona, Public Financing Authority, 5.80%, 9/1/20 1,686,634 1,000 Corona-Norco Unified School District Public Financing Authority, 6.125%, 9/1/31 1,005,200 1,590 Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 1,599,890 750 Irvine, Improvement Bond Act of 1915, 5.50%, 9/2/22 738,833 1,435 Lincoln Public Financing Authority, Improvement Bond Act of 1915 (Twelve Bridges), 6.20%, 9/2/25 1,475,912 600 Manteca Unified School District, 5.80%, 9/1/24 601,440 2,465 Oakland Joint Powers Financing Authority, 5.40%, 9/2/18 2,577,429 995 Oakland Joint Powers Financing Authority, 5.50%, 9/2/24 1,017,218 700 Rancho Cucamonga Public Financing Authority, 6.00%, 9/2/20 719,348 1,245 Roseville Special Tax, 6.30%, 9/1/25 1,280,507 1,325 San Pablo Redevelopment Agency, 5.65%, 12/1/23 1,344,504 1,500 Santa Margarita Water District, 6.20%, 9/1/20 1,532,415
SEE NOTES TO FINANCIAL STATEMENTS 13 CALIFORNIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Special Tax Revenue (continued) - ------------------------------------------------------------------------- $ 250 Santaluz Community Facilities District No. 2, 6.10%, 9/1/21 $ 255,058 500 Santaluz Community Facilities District No. 2, 6.20%, 9/1/30 509,420 500 Turlock Public Financing Authority, 5.45%, 9/1/24 493,125 1,000 Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 1,004,890 - ------------------------------------------------------------------------- $ 21,017,753 - ------------------------------------------------------------------------- Transportation -- 1.0% - ------------------------------------------------------------------------- $ 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 $ 1,099,496 - ------------------------------------------------------------------------- $ 1,099,496 - ------------------------------------------------------------------------- Water and Sewer -- 1.5% - ------------------------------------------------------------------------- $ 1,600 California Department Water Resource Power Supply, 5.125%, 5/1/18 $ 1,608,928 - ------------------------------------------------------------------------- $ 1,608,928 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 153.8% (identified cost $155,740,116) $161,029,267 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.6% $ 2,673,800 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (56.4)% (59,000,000) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $104,703,067 - -------------------------------------------------------------------------
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 November 30, 2002, 60.2% 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 6.1% to 22.5% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 14 FLORIDA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 154.8%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Education -- 1.6% - ------------------------------------------------------------------------- $1,000 Volusia County Educational Facilities Authority, (Embry Riddle Aeronautical), 5.75%, 10/15/29 $ 1,018,620 - ------------------------------------------------------------------------- $ 1,018,620 - ------------------------------------------------------------------------- Electric Utilities -- 6.2% - ------------------------------------------------------------------------- $1,850 Hillsborough County, IDA, (Tampa Electric Co.), 5.50%, 10/1/23 $ 1,842,803 2,000 Jacksonville Electric Authority, Variable Rate, 10/1/32(1)(2) 2,016,340 - ------------------------------------------------------------------------- $ 3,859,143 - ------------------------------------------------------------------------- Escrowed / Prerefunded -- 7.7% - ------------------------------------------------------------------------- $ 650 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 680,764 2,500 Escambia County, Health Facilities Authority, (Charity Obligation Group), Prerefunded to 11/1/10, 5.00%, 11/1/28 2,703,250 1,250 Tampa Bay Water Utility System, (FGIC), Prerefunded to 10/1/11, 5.75%, 10/1/29 1,435,012 - ------------------------------------------------------------------------- $ 4,819,026 - ------------------------------------------------------------------------- General Obligations -- 2.6% - ------------------------------------------------------------------------- $1,250 Florida, Variable Rate, 7/1/27(1)(2) $ 1,248,862 350 Florida Board of Education, 4.75%, 6/1/28 336,392 - ------------------------------------------------------------------------- $ 1,585,254 - ------------------------------------------------------------------------- Health Care - Miscellaneous -- 0.8% - ------------------------------------------------------------------------- $ 500 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 509,280 - ------------------------------------------------------------------------- $ 509,280 - ------------------------------------------------------------------------- Hospital -- 13.6% - ------------------------------------------------------------------------- $2,250 Highlands County Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/28 $ 2,153,205 1,250 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 1,262,950 3,750 Lakeland Hospital System, (Lakeland Regional Health System), 5.50%, 11/15/32 3,671,737 1,400 West Orange Health Care District, 5.80%, 2/1/31 1,404,508 - ------------------------------------------------------------------------- $ 8,492,400 - ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Housing -- 3.9% - ------------------------------------------------------------------------- $1,740 Escambia County Housing Finance Authority, SFM, (Multi-County Program), (AMT), 5.50%, 10/1/31 $ 1,771,999 500 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20 513,635 130 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 9.50%, 8/15/05 129,658 - ------------------------------------------------------------------------- $ 2,415,292 - ------------------------------------------------------------------------- Industrial Development Revenue -- 1.8% - ------------------------------------------------------------------------- $ 940 Broward County IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19 $ 853,689 650 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 286,071 - ------------------------------------------------------------------------- $ 1,139,760 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 10.9% - ------------------------------------------------------------------------- $1,600 Burke County Development Authority (Georgia Power Co.), (MBIA), 5.45%, 5/1/34 $ 1,612,368 1,100 Guam Power Authority, (MBIA), 5.125%, 10/1/29 1,113,519 2,750 Jupiter Island, Utility System, (South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 2,748,240 1,250 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 1,318,575 - ------------------------------------------------------------------------- $ 6,792,702 - ------------------------------------------------------------------------- Insured-General Obligations -- 6.3% - ------------------------------------------------------------------------- $2,500 Florida Board of Education, (MBIA), 4.50%, 6/1/28 $ 2,313,475 1,500 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 1,628,205 - ------------------------------------------------------------------------- $ 3,941,680 - ------------------------------------------------------------------------- Insured-Hospital -- 5.7% - ------------------------------------------------------------------------- $1,000 Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC), 5.25%, 11/15/37 $ 1,013,210 1,350 Miami Dade County Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,359,139 1,250 Tampa, (Catholic Health System), (MBIA), 4.75%, 11/15/28 1,191,887 - ------------------------------------------------------------------------- $ 3,564,236 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 15 FLORIDA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Housing -- 1.8% - ------------------------------------------------------------------------- $1,100 Broward County Housing Finance Authority, Multifamily Housing, (Venice Homes Apartments), (FSA), (AMT), 5.70%, 1/1/32 $ 1,109,746 - ------------------------------------------------------------------------- $ 1,109,746 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 19.5% - ------------------------------------------------------------------------- $1,470 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(3) $ 1,454,197 2,250 Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30 2,244,802 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,731,263 4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 3,841,600 1,395 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 1,383,073 1,000 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/30 1,008,800 440 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 446,983 - ------------------------------------------------------------------------- $ 12,110,718 - ------------------------------------------------------------------------- Insured-Transportation -- 23.6% - ------------------------------------------------------------------------- $2,250 Florida Ports Financing Commission, (FGIC), 5.50%, 10/1/29 $ 2,304,383 4,200 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27 3,894,996 1,500 Greater Orlando Aviation Authority, (FGIC), (AMT), Variable Rate, 4/1/13(2)(3) 1,588,005 650 Lee County Airport, (FSA), 6.00%, 10/1/29 707,337 500 Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25 525,580 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.50%, 1/1/37 978,330 1,000 Miami-Dade County Expressway Authority, (FGIC), 5.125%, 7/1/29 1,009,760 1,000 Orlando and Orange County Expressway Authority, (FGIC), 5.00%, 7/1/28 999,670 1,250 Puerto Rico Highway and Transportation Authority, (MBIA), 5.50%, 7/1/36 1,342,888 1,165 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(2)(3) 1,339,016 - ------------------------------------------------------------------------- $ 14,689,965 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 21.5% - ------------------------------------------------------------------------- $1,500 Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30 $ 1,544,190 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 1,000,900 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Water and Sewer (continued) - ------------------------------------------------------------------------- $1,250 Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28 $ 1,249,200 4,000 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 4,008,000 2,000 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 1,858,960 3,900 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 3,756,987 - ------------------------------------------------------------------------- $ 13,418,237 - ------------------------------------------------------------------------- Nursing Home -- 3.7% - ------------------------------------------------------------------------- $ 750 Alachua County Health Facilities Authority, (Beverly Enterprises Inc.), 6.75%, 4/1/10 $ 775,170 850 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 756,033 265 Orange County Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24 198,750 735 Orange County Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34 551,397 - ------------------------------------------------------------------------- $ 2,281,350 - ------------------------------------------------------------------------- Other Revenue -- 1.2% - ------------------------------------------------------------------------- $ 750 Capital Trust Agency, (Seminole Tribe Convention), 10.00%, 10/1/33 $ 764,760 - ------------------------------------------------------------------------- $ 764,760 - ------------------------------------------------------------------------- Senior Living / Life Care -- 2.1% - ------------------------------------------------------------------------- $1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,330,230 - ------------------------------------------------------------------------- $ 1,330,230 - ------------------------------------------------------------------------- Special Tax Revenue -- 12.1% - ------------------------------------------------------------------------- $ 440 Fleming Island Plantation Community Development District, 6.30%, 2/1/05 $ 443,208 700 Heritage Harbour South Community Development District, (Capital Improvements), 5.40%, 11/1/08 692,818 900 Heritage Springs Community Development District, 6.75%, 5/1/21 916,029 950 Longleaf Community Development District, 6.65%, 5/1/20 848,854 775 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 811,286 1,000 Northern Palm Beach County Improvement District, (Water Control and Improvement), 6.00%, 8/1/25 1,012,460
SEE NOTES TO FINANCIAL STATEMENTS 16 FLORIDA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Special Tax Revenue (continued) - ------------------------------------------------------------------------- $ 500 Stoneybrook West Community Development District, 7.00%, 5/1/32 $ 519,100 950 University Square Community Development District, 6.75%, 5/1/20 993,634 470 Vista Lakes Community Development District, 7.20%, 5/1/32 490,469 760 Waterlefe Community Development District, 6.95%, 5/1/31 775,451 - ------------------------------------------------------------------------- $ 7,503,309 - ------------------------------------------------------------------------- Water and Sewer -- 8.2% - ------------------------------------------------------------------------- $2,000 Jacksonville, Water and Sewer, 5.375%, 10/1/29 $ 2,017,100 3,000 Seminole County, Water and Sewer, 5.375%, 10/1/22 3,094,590 - ------------------------------------------------------------------------- $ 5,111,690 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 154.8% (identified cost $94,155,358) $ 96,457,398 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.2% $ 1,349,347 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (57.0)% (35,504,502) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 62,302,243 - -------------------------------------------------------------------------
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 November 30, 2002, 59.9% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 7.8% to 23.1% 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 NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 153.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Education -- 30.1% - ------------------------------------------------------------------------- $ 500 Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31 $ 486,215 2,500 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 2,397,700 1,000 Massachusetts Development Finance Agency, (Clark University), 5.00%, 7/1/28 940,210 500 Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31 508,445 1,000 Massachusetts Development Finance Agency, (Suffolk University), 5.85%, 7/1/29 1,020,290 1,500 Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29 1,574,805 1,000 Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29 965,300 2,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 2,409,375 200 Massachusetts HEFA, (Wellesley College), 5.125%, 7/1/39 198,292 500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 500,845 400 Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28 388,692 - ------------------------------------------------------------------------- $ 11,390,169 - ------------------------------------------------------------------------- Electric Utilities -- 2.7% - ------------------------------------------------------------------------- $1,000 Massachusetts IFA, (Devens Electric System), 6.00%, 12/1/30 $ 1,007,460 - ------------------------------------------------------------------------- $ 1,007,460 - ------------------------------------------------------------------------- Escrowed / Prerefunded -- 4.9% - ------------------------------------------------------------------------- $1,450 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20 $ 571,068 3,720 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/22 1,285,148 - ------------------------------------------------------------------------- $ 1,856,216 - ------------------------------------------------------------------------- Health Care - Miscellaneous -- 8.8% - ------------------------------------------------------------------------- $ 500 Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37 $ 539,970 700 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 5.75%, 2/1/29 645,001 1,000 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20 1,053,770 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Health Care - Miscellaneous (continued) - ------------------------------------------------------------------------- $ 510 Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29 $ 461,616 700 Massachusetts HEFA, (Learning Center for Deaf Children), 6.125%, 7/1/29 632,002 - ------------------------------------------------------------------------- $ 3,332,359 - ------------------------------------------------------------------------- Hospital -- 22.8% - ------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Baystate Medical Center), 5.75%, 7/1/33 $ 1,009,110 400 Massachusetts HEFA, (Berkshire Health System), 6.25%, 10/1/31 402,932 500 Massachusetts HEFA, (Caritas Christi), 6.25%, 7/1/22 496,895 175 Massachusetts HEFA, (Central New England Health Systems), 6.30%, 8/1/18 168,005 1,100 Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31 1,121,802 1,000 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.25%, 7/15/18 919,600 125 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.375%, 7/15/28 109,664 1,375 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 1,356,506 2,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 1,995,820 1,000 Massachusetts HEFA, (Winchester Hospital), 6.75%, 7/1/30 1,033,100 - ------------------------------------------------------------------------- $ 8,613,434 - ------------------------------------------------------------------------- Industrial Development Revenue -- 2.0% - ------------------------------------------------------------------------- $ 750 Massachusetts IFA, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15 $ 771,000 - ------------------------------------------------------------------------- $ 771,000 - ------------------------------------------------------------------------- Insured-Education -- 21.7% - ------------------------------------------------------------------------- $ 850 Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 10/1/27(1)(2) $ 869,244 2,350 Massachusetts HEFA, (Brandeis University), (MBIA), 4.75%, 10/1/28 2,248,080 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 993,350 500 Massachusetts HEFA, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31 508,270 1,000 Massachusetts IFA, (Merrimack College), (MBIA), 5.00%, 7/1/27 995,750
SEE NOTES TO FINANCIAL STATEMENTS 18 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Education (continued) - ------------------------------------------------------------------------- $2,700 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28 $ 2,586,519 - ------------------------------------------------------------------------- $ 8,201,213 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 2.0% - ------------------------------------------------------------------------- $ 750 Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29 $ 770,573 - ------------------------------------------------------------------------- $ 770,573 - ------------------------------------------------------------------------- Insured-General Obligations -- 8.6% - ------------------------------------------------------------------------- $ 500 Plymouth, (MBIA), 5.25%, 10/15/20 $ 521,205 900 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 976,923 1,715 Westfield, (FGIC), 5.00%, 5/1/20 1,758,338 - ------------------------------------------------------------------------- $ 3,256,466 - ------------------------------------------------------------------------- Insured-Hospital -- 7.5% - ------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 958,190 2,000 Massachusetts HEFA, (Southcoast Health System), (MBIA), 4.75%, 7/1/27 1,887,200 - ------------------------------------------------------------------------- $ 2,845,390 - ------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 8.5% - ------------------------------------------------------------------------- $1,250 Massachusetts Port Authority, (Delta Airlines), (AMBAC), (AMT), 5.00%, 1/1/27 $ 1,201,713 1,000 Massachusetts Port Authority, (US Airways), (FGIC), (AMT), 5.00%, 7/1/28 964,700 1,000 Massachusetts Port Authority, (US Airways), (MBIA), (AMT), 6.00%, 9/1/21 1,032,080 - ------------------------------------------------------------------------- $ 3,198,493 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 4.1% - ------------------------------------------------------------------------- $ 800 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) $ 808,464 735 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 746,664 - ------------------------------------------------------------------------- $ 1,555,128 - ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Transportation -- 10.8% - ------------------------------------------------------------------------- $1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/27(2)(3) $ 1,028,500 2,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.25%, 1/1/29 2,025,360 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 1,016,810 - ------------------------------------------------------------------------- $ 4,070,670 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 3.8% - ------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, (FGIC), 4.75%, 2/1/26 $ 1,437,855 - ------------------------------------------------------------------------- $ 1,437,855 - ------------------------------------------------------------------------- Miscellaneous -- 1.0% - ------------------------------------------------------------------------- $ 300 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(2)(3) $ 361,935 - ------------------------------------------------------------------------- $ 361,935 - ------------------------------------------------------------------------- Nursing Home -- 2.8% - ------------------------------------------------------------------------- $ 545 Massachusetts Development Finance Agency, (Odd Fellows Home of Massachusetts), 6.25%, 1/1/15 $ 504,452 600 Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29 565,746 - ------------------------------------------------------------------------- $ 1,070,198 - ------------------------------------------------------------------------- Senior Living / Life Care -- 3.5% - ------------------------------------------------------------------------- $1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,309,635 - ------------------------------------------------------------------------- $ 1,309,635 - ------------------------------------------------------------------------- Transportation -- 3.5% - ------------------------------------------------------------------------- $1,350 Massachusetts Bay Transportation Authority, Variable Rate, 3/1/27(1)(2) $ 1,320,989 - ------------------------------------------------------------------------- $ 1,320,989 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 19 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Water and Sewer -- 4.1% - ------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, PCR, 5.375%, 8/1/27 $ 1,546,845 - ------------------------------------------------------------------------- $ 1,546,845 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 153.2% (identified cost $55,869,907) $ 57,916,028 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.7% $ 1,382,037 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (56.9)% (21,503,528) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 37,794,537 - -------------------------------------------------------------------------
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 November 30, 2002, 47.9% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 0.9% to 24.5% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 20 MICHIGAN MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 155.0%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Education -- 4.1% - ------------------------------------------------------------------------- $1,250 Michigan Higher Education Facility Authority, (Creative Studies), 5.90%, 12/1/27 $ 1,234,712 - ------------------------------------------------------------------------- $ 1,234,712 - ------------------------------------------------------------------------- Electric Utilities -- 3.3% - ------------------------------------------------------------------------- $1,000 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 995,030 - ------------------------------------------------------------------------- $ 995,030 - ------------------------------------------------------------------------- General Obligations -- 16.6% - ------------------------------------------------------------------------- $ 500 East Grand Rapids Public Schools, 5.00%, 5/1/25 $ 497,645 500 Garden City School District, 5.00%, 5/1/26 496,910 5,335 Grand Rapids and Kent County Joint Building Authority, 0.00%, 12/1/29 1,187,998 1,000 Manistee Area Public Schools, 5.00%, 5/1/24 996,700 1,000 White Cloud Public Schools, 5.125%, 5/1/31 1,002,870 800 Woodhaven Brownstown School District, 5.125%, 5/1/32 802,520 - ------------------------------------------------------------------------- $ 4,984,643 - ------------------------------------------------------------------------- Health Care - Miscellaneous -- 1.3% - ------------------------------------------------------------------------- $ 395 Pittsfield Township EDC, (Arbor Hospice), 7.875%, 8/15/27 $ 382,838 - ------------------------------------------------------------------------- $ 382,838 - ------------------------------------------------------------------------- Hospital -- 40.3% - ------------------------------------------------------------------------- $ 500 Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 $ 501,955 1,000 Flint Hospital Building Authority, (Hurley Medical Center), 5.375%, 7/1/20 882,850 345 John Tolfree Health System Corp., 6.00%, 9/15/23 337,275 500 Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/31 500,890 500 Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 464,420 1,000 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 947,030 750 Michigan Hospital Finance Authority, (Ascension Health Care), 6.125%, 11/15/26 788,002 1,000 Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27 931,090 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Hospital (continued) - ------------------------------------------------------------------------- $1,000 Michigan Hospital Finance Authority, (Henry Ford Health), 5.25%, 11/15/20 $ 972,230 2,275 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 1,958,138 750 Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 717,060 750 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 741,907 750 Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 782,572 750 Royal Oak, MI, Hospital Finance Authority, (William Beaumont Hospital), 5.25%, 1/1/20 749,543 800 Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 847,960 - ------------------------------------------------------------------------- $ 12,122,922 - ------------------------------------------------------------------------- Housing -- 3.4% - ------------------------------------------------------------------------- $1,000 Multifamily Housing, (AMT), 6.00%, 11/1/33 $ 1,013,300 - ------------------------------------------------------------------------- $ 1,013,300 - ------------------------------------------------------------------------- Industrial Development Revenue -- 11.1% - ------------------------------------------------------------------------- $ 500 Delta County EDC, (Mead Westvaco-Escanaba), 6.25%, 4/15/27 $ 493,795 1,000 Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 964,840 800 Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16 808,072 800 Michigan Strategic Fund, (S.D. Warren), (AMT), 7.375%, 1/15/22 805,552 625 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 275,069 - ------------------------------------------------------------------------- $ 3,347,328 - ------------------------------------------------------------------------- Insured-Education -- 1.6% - ------------------------------------------------------------------------- $ 500 Central Michigan University, (FGIC), 5.00%, 10/1/27 $ 496,310 - ------------------------------------------------------------------------- $ 496,310 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 5.1% - ------------------------------------------------------------------------- $ 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32(1) $ 499,610 1,000 Michigan Strategic Fund, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 1,028,170 - ------------------------------------------------------------------------- $ 1,527,780 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 21 MICHIGAN MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-General Obligations -- 23.2% - ------------------------------------------------------------------------- $1,000 Central Montcalm Public Schools, (MBIA), 6.00%, 5/1/29 $ 1,093,010 650 Detroit School District, (FGIC), 4.75%, 5/1/28(2) 616,168 450 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 432,279 2,000 Fenton Area Public Schools, (FGIC), 5.00%, 5/1/24 1,993,400 2,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 2,090,200 700 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(3)(4) 759,829 - ------------------------------------------------------------------------- $ 6,984,886 - ------------------------------------------------------------------------- Insured-Hospital -- 8.4% - ------------------------------------------------------------------------- $ 500 Michigan Health Facilities Authority, (Detroit Medical Group), (AMBAC), 5.25%, 8/15/27 $ 501,695 1,000 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,003,880 1,000 Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 1,027,080 - ------------------------------------------------------------------------- $ 2,532,655 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 10.2% - ------------------------------------------------------------------------- $ 800 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 763,176 600 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(3)(5) 606,348 455 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 462,221 1,250 Wayne Charter County, (Airport Hotel-Detroit Metroplitan Airport), (MBIA), 5.00%, 12/1/30 1,223,263 - ------------------------------------------------------------------------- $ 3,055,008 - ------------------------------------------------------------------------- Insured-Student Loan -- 3.3% - ------------------------------------------------------------------------- $1,000 Michigan Higher Education Student Loan Authority Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(6) $ 1,007,070 - ------------------------------------------------------------------------- $ 1,007,070 - ------------------------------------------------------------------------- Insured-Transportation -- 10.8% - ------------------------------------------------------------------------- $ 670 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(3)(4) $ 681,263 600 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(3)(4) 689,622 2,000 Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 12/1/28(3)(5) 1,872,800 - ------------------------------------------------------------------------- $ 3,243,685 - ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Water and Sewer -- 9.1% - ------------------------------------------------------------------------- $1,000 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,000,850 1,750 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 1,725,430 - ------------------------------------------------------------------------- $ 2,726,280 - ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 0.8% - ------------------------------------------------------------------------- $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 251,175 - ------------------------------------------------------------------------- $ 251,175 - ------------------------------------------------------------------------- Transportation -- 2.4% - ------------------------------------------------------------------------- $ 750 Kent County Airport Facility, Variable Rate, 1/1/25(3)(5) $ 709,845 - ------------------------------------------------------------------------- $ 709,845 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 155.0% (identified cost $45,511,396) $ 46,615,467 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.2% $ 951,042 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (58.2)% (17,502,137) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 30,064,372 - -------------------------------------------------------------------------
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 November 30, 2002, 46.3% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.1% to 19.6% 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. (6) 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 NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 154.7%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Cogeneration -- 1.6% - ------------------------------------------------------------------------- $1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,031,170 - ------------------------------------------------------------------------- $ 1,031,170 - ------------------------------------------------------------------------- Education -- 8.7% - ------------------------------------------------------------------------- $1,485 New Jersey Educational Facilities Authority, (Bloomfield College), 6.85%, 7/1/30 $ 1,571,323 3,935 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/20 4,005,673 - ------------------------------------------------------------------------- $ 5,576,996 - ------------------------------------------------------------------------- Electric Utilities -- 2.3% - ------------------------------------------------------------------------- $1,500 Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31 $ 1,443,930 - ------------------------------------------------------------------------- $ 1,443,930 - ------------------------------------------------------------------------- Escrowed / Prerefunded -- 2.4% - ------------------------------------------------------------------------- $1,250 New Jersey EDA, (Kapkowski Mall), Prerefunded to 5/15/14, 6.375%, 4/1/31 $ 1,500,975 - ------------------------------------------------------------------------- $ 1,500,975 - ------------------------------------------------------------------------- Hospital -- 20.7% - ------------------------------------------------------------------------- $1,035 New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25 $ 1,050,556 550 New Jersey Health Care Facilities Financing Authority, (Burdette Tomlin Memorial Hospital), 5.50%, 7/1/29 549,587 1,950 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27 1,624,603 1,000 New Jersey Health Care Facilities Financing Authority, (Deborah Heart and Lung Center), 6.30%, 7/1/23 1,007,120 2,000 New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34 2,057,240 750 New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 6.50%, 7/1/21 761,752 2,000 New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31 2,089,180 1,450 New Jersey Health Care Facilities Financing Authority, (Saint Peters University Hospital), (AMT), 6.875%, 7/1/20 1,555,531 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Hospital (continued) - ------------------------------------------------------------------------- $1,900 New Jersey Health Care Facilities Financing Authority, (St. Elizabeth Hospital), 6.00%, 7/1/20 $ 1,854,552 600 New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30 645,102 - ------------------------------------------------------------------------- $ 13,195,223 - ------------------------------------------------------------------------- Industrial Development Revenue -- 12.9% - ------------------------------------------------------------------------- $1,000 Gloucester County, Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29 $ 1,094,130 1,000 New Jersey EDA, (American Airlines), (AMT), 7.10%, 11/1/31 420,000 1,000 New Jersey EDA, (Anheuser-Busch), (AMT), 5.85%, 12/1/30 1,034,680 2,500 New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29 1,573,800 3,700 New Jersey EDA, (The Seeing Eye, Inc.), 6.20%, 12/1/24 4,083,098 - ------------------------------------------------------------------------- $ 8,205,708 - ------------------------------------------------------------------------- Insured-Education -- 13.9% - ------------------------------------------------------------------------- $2,000 New Jersey Economic Development Authority, (School Facility Construction), (MBIA), 4.75%, 6/15/25 $ 1,939,380 1,000 New Jersey Educational Facilities Authority, (Jersey City University), (AMBAC), 5.00%, 7/1/32 999,190 1,000 New Jersey Educational Facilities Authority, (NJ Institute of Technology), (MBIA), 4.75%, 7/1/31 961,410 1,750 New Jersey Educational Facilities Authority, (Ramapo College), (MBIA), 5.75%, 7/1/29 1,876,367 1,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(1)(2) 1,619,344 1,500 University Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 1,498,860 - ------------------------------------------------------------------------- $ 8,894,551 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 2.0% - ------------------------------------------------------------------------- $1,250 Vineland, (Electric Utility), (MBIA), (AMT), 5.25%, 5/15/26 $ 1,266,588 - ------------------------------------------------------------------------- $ 1,266,588 - ------------------------------------------------------------------------- Insured-General Obligations -- 16.6% - ------------------------------------------------------------------------- $2,200 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30 $ 2,200,792
SEE NOTES TO FINANCIAL STATEMENTS 23 NEW JERSEY MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-General Obligations (continued) - ------------------------------------------------------------------------- $1,000 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/31 $ 999,190 1,555 Colts Neck Township Board of Education, (FSA), 5.00%, 2/1/26 1,569,524 1,000 Montgomery Township Board of Education, (MBIA), 5.00%, 8/1/25 1,007,750 500 Montgomery Township Board of Education, (MBIA), 5.00%, 4/1/27 502,780 1,000 Old Bridge Township Board of Education, (MBIA), 5.00%, 7/15/26 1,005,860 2,000 Washington Township and Mercer County, NJ, Board of Education (FGIC), 5.00%, 1/1/26 2,004,980 1,230 West Deptford Township, (FGIC), 5.50%, 9/1/24 1,292,828 - ------------------------------------------------------------------------- $ 10,583,704 - ------------------------------------------------------------------------- Insured-Housing -- 2.8% - ------------------------------------------------------------------------- $1,410 New Jersey Housing and Mortgage Finance Agency, (MBIA), (AMT), 5.90%, 10/1/29 $ 1,460,605 300 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing, (FSA), 5.75%, 5/1/25 315,240 - ------------------------------------------------------------------------- $ 1,775,845 - ------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 2.8% - ------------------------------------------------------------------------- $1,580 New Jersey EDA, (FSA), Variable Rate, 5/1/17(1)(3) $ 1,774,861 - ------------------------------------------------------------------------- $ 1,774,861 - ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 0.7% - ------------------------------------------------------------------------- $ 450 New Brunswick Housing Authority, (Rutgers University), (FGIC), 4.625%, 7/1/24 $ 428,711 - ------------------------------------------------------------------------- $ 428,711 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 5.6% - ------------------------------------------------------------------------- $3,695 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 9/1/20 $ 3,569,740 - ------------------------------------------------------------------------- $ 3,569,740 - ------------------------------------------------------------------------- Insured-Transportation -- 28.6% - ------------------------------------------------------------------------- $4,000 Delaware River and Bay Authority, (AMBAC), 5.75%, 1/1/29 $ 4,303,120 1,000 Delaware River Port Authority, (FSA), 5.625%, 1/1/26 1,054,870 3,250 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 3,493,068 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Transportation (continued) - ------------------------------------------------------------------------- $ 800 New Jersey Transportation Trust Fund Authority, (MBIA), 5.00%, 12/15/21 $ 810,144 1,500 New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate, 1/1/30(1)(2) 1,685,835 1,100 Port Authority of New York and New Jersey, (AMBAC), 4.75%, 1/15/26 1,064,690 4,000 Port Authority of New York and New Jersey, (JFK International Terminal), (MBIA), (AMT), 5.75%, 12/1/25 4,164,280 1,630 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) 1,657,400 - ------------------------------------------------------------------------- $ 18,233,407 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 4.0% - ------------------------------------------------------------------------- $1,500 Bordentown Sewer Authority, (FGIC), 5.375%, 12/1/20 $ 1,573,530 1,000 New Jersey Economic Development Authority Water Facilities, (Middlesex Water Co.), (AMBAC), (AMT), 5.10%, 1/1/32 991,710 - ------------------------------------------------------------------------- $ 2,565,240 - ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 1.6% - ------------------------------------------------------------------------- $1,000 Burlington County Bridge Commission Lease Revenue, 5.25%, 8/15/20 $ 1,038,860 - ------------------------------------------------------------------------- $ 1,038,860 - ------------------------------------------------------------------------- Life Care -- 1.5% - ------------------------------------------------------------------------- $1,100 New Jersey EDA, (United Methodist Homes), 5.75%, 7/1/29 $ 984,093 - ------------------------------------------------------------------------- $ 984,093 - ------------------------------------------------------------------------- Nursing Home -- 3.2% - ------------------------------------------------------------------------- $1,000 New Jersey EDA, (Masonic Charity Foundation), 5.50%, 6/1/31 $ 1,030,990 1,000 New Jersey EDA, (Victoria Health), 5.20%, 12/20/36 1,010,330 - ------------------------------------------------------------------------- $ 2,041,320 - ------------------------------------------------------------------------- Other Revenue -- 7.1% - ------------------------------------------------------------------------- $1,000 New Jersey EDA, (Glimcher Properties REIT), (AMT), 6.00%, 11/1/28 $ 962,110 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(1)(2) 1,206,450
SEE NOTES TO FINANCIAL STATEMENTS 24 NEW JERSEY MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Other Revenue (continued) - ------------------------------------------------------------------------- $2,500 Tobacco Settlement Financing Corp., 6.00%, 6/1/37 $ 2,388,200 - ------------------------------------------------------------------------- $ 4,556,760 - ------------------------------------------------------------------------- Transportation -- 15.7% - ------------------------------------------------------------------------- $4,000 New Jersey Highway Authority, (Garden State Parkway), 5.625%, 1/1/30 $ 4,235,840 1,500 New Jersey Transportation Trust Fund Authority, Variable Rate, 6/15/17(1)(3) 1,583,295 2,550 Port Authority of New York and New Jersey, 4.75%, 8/1/33 2,410,286 1,600 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) 1,798,432 - ------------------------------------------------------------------------- $ 10,027,853 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 154.7% (identified cost $95,418,887) $ 98,695,535 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 4.9% $ 3,107,716 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (59.6)% (38,000,000) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 63,803,251 - -------------------------------------------------------------------------
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 November 30, 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 8.3% to 22.2% 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 NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 153.3%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Cogeneration -- 2.6% - ------------------------------------------------------------------------- $1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,031,170 1,150 Suffolk County IDA, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23 1,051,399 - ------------------------------------------------------------------------- $ 2,082,569 - ------------------------------------------------------------------------- Education -- 12.5% - ------------------------------------------------------------------------- $1,500 New York City IDA, (Polytechnic University), 6.125%, 11/1/30 $ 1,554,045 500 New York Dormitory Authority, (City University), 5.25%, 7/1/31 503,585 4,025 New York Dormitory Authority, (Rockefeller University), 4.75%, 7/1/37 3,820,127 1,285 New York Dormitory Authority, (University Educational Facilities), 4.75%, 5/15/28 1,209,211 2,500 Tompkins County IDA, (Cornell University), 5.75%, 7/1/30 2,893,900 - ------------------------------------------------------------------------- $ 9,980,868 - ------------------------------------------------------------------------- Electric Utilities -- 11.1% - ------------------------------------------------------------------------- $2,000 Long Island Power Authority, 5.50%, 12/1/23 $ 2,036,260 1,000 Long Island Power Authority, 5.50%, 12/1/29 1,010,790 1,655 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 1,653,875 4,100 New York Power Authority, 5.25%, 11/15/40 4,130,668 - ------------------------------------------------------------------------- $ 8,831,593 - ------------------------------------------------------------------------- Escrowed / Prerefunded -- 12.6% - ------------------------------------------------------------------------- $1,500 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 $ 1,466,280 1,400 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 1,368,528 1,000 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.875%, 7/1/18 1,015,620 4,005 Metropolitan Transportation Authority of New York, Prerefunded to 10/1/14, (FSA), 5.25%, 4/1/23 4,447,272 1,545 New York Dormitory Authority, (University Educational Facility), Prerefunded to 5/15/08, 4.75%, 5/15/28 1,693,783 - ------------------------------------------------------------------------- $ 9,991,483 - ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- General Obligations -- 6.7% - ------------------------------------------------------------------------- $4,935 New York City, 6.00%, 8/1/16 $ 5,317,709 - ------------------------------------------------------------------------- $ 5,317,709 - ------------------------------------------------------------------------- Health Care - Miscellaneous -- 6.8% - ------------------------------------------------------------------------- $1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29 $ 1,016,725 1,500 New York City IDA, (Ohel Children's Home), 6.00%, 3/15/23 1,330,065 225 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 234,585 230 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 239,798 2,600 Westchester County IDA, (Children's Village), 5.375%, 3/15/19 2,620,540 - ------------------------------------------------------------------------- $ 5,441,713 - ------------------------------------------------------------------------- Hospital -- 13.7% - ------------------------------------------------------------------------- $ 245 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 228,649 500 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 448,870 1,250 Fulton County IDA, (Nathan Littauer Hospital), 6.00%, 11/1/18 1,103,737 400 Nassau County, IDA, Civic Facility Revenue, (North Shore Health System), 6.25%, 11/1/21 394,956 3,200 New York City Health and Hospital Corp., 5.25%, 2/15/17 3,220,736 300 New York City Health and Hospital Corp., (Health System), 5.375%, 2/15/26 294,705 500 New York City Industrial Development Agency Civic, (Staten Island University Hospital), 6.45%, 7/1/32 494,685 1,500 New York Dormitory Authority Revenue, (Lenox Hill Hospital), 5.50%, 7/1/30 1,484,160 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,109,675 2,105 Suffolk County Industrial Development Agency Civic Facility, (Huntington Hospital), 6.00%, 11/1/22 2,135,522 - ------------------------------------------------------------------------- $ 10,915,695 - ------------------------------------------------------------------------- Industrial Development Revenue -- 5.9% - ------------------------------------------------------------------------- $1,500 New York City Industrial Development Agency, (American Airlines, Inc.-JFK International Airport), (AMT), 8.00%, 8/1/12 $ 967,740 500 Onandaga County IDA, (AMT), 6.125%, 1/1/32 503,330
SEE NOTES TO FINANCIAL STATEMENTS 26 NEW YORK MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Industrial Development Revenue (continued) - ------------------------------------------------------------------------- $2,500 Onondaga County IDA, (Anheuser-Busch), (AMT), 6.25%, 12/1/34 $ 2,653,225 550 Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15 548,262 - ------------------------------------------------------------------------- $ 4,672,557 - ------------------------------------------------------------------------- Insured-Education -- 8.1% - ------------------------------------------------------------------------- $1,200 New York Dormitory Authority, (Cooper Union), (MBIA), 6.25%, 7/1/29 $ 1,378,884 4,500 New York Dormitory Authority, (New York University), (MBIA), 5.75%, 7/1/27 5,041,575 - ------------------------------------------------------------------------- $ 6,420,459 - ------------------------------------------------------------------------- Insured-General Obligations -- 2.4% - ------------------------------------------------------------------------- $1,750 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(1)(2) $ 1,899,572 - ------------------------------------------------------------------------- $ 1,899,572 - ------------------------------------------------------------------------- Insured-Hospital -- 10.4% - ------------------------------------------------------------------------- $5,000 New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), (MBIA), 5.50%, 7/1/23 $ 5,403,000 3,000 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 2,855,400 - ------------------------------------------------------------------------- $ 8,258,400 - ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 1.3% - ------------------------------------------------------------------------- $1,000 New York Dormitory Authority, (Department Health), (MBIA), 5.50%, 7/1/25 $ 1,044,620 - ------------------------------------------------------------------------- $ 1,044,620 - ------------------------------------------------------------------------- Insured-Miscellaneous -- 2.3% - ------------------------------------------------------------------------- $1,580 New York City, Trust for Cultural Resources, (AMBAC), Variable Rate, 7/1/29(1)(3) $ 1,827,428 - ------------------------------------------------------------------------- $ 1,827,428 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 4.7% - ------------------------------------------------------------------------- $1,250 New York Local Government Assistance Corp., (AMBAC), 6.00%, 4/1/24 $ 1,352,838 1,175 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(3) 1,187,432 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Special Tax Revenue (continued) - ------------------------------------------------------------------------- $1,190 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) $ 1,208,885 - ------------------------------------------------------------------------- $ 3,749,155 - ------------------------------------------------------------------------- Insured-Transportation -- 18.4% - ------------------------------------------------------------------------- $2,325 Monroe County Airport Authority, (MBIA), (AMT), Variable Rate, 1/1/17(1)(3) $ 2,877,862 3,750 New York Thruway Authority, (Highway and Bridge), (AMBAC), 5.125%, 4/1/20 3,813,938 2,735 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), 5.625%, 4/1/29 2,844,427 1,750 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), Variable Rate, 4/1/29(1)(3) 1,890,018 1,300 Port Authority of New York and New Jersey, (FSA), 5.00%, 4/15/32 1,294,969 1,885 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) 1,916,687 - ------------------------------------------------------------------------- $ 14,637,901 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 2.6% - ------------------------------------------------------------------------- $2,000 New York City Municipal Water Finance Authority, (FGIC), 5.50%, 6/15/32 $ 2,087,040 - ------------------------------------------------------------------------- $ 2,087,040 - ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 5.8% - ------------------------------------------------------------------------- $4,385 New York Dormitory Authority, (Court Facility), 6.00%, 5/15/39 $ 4,658,799 - ------------------------------------------------------------------------- $ 4,658,799 - ------------------------------------------------------------------------- Miscellaneous -- 6.1% - ------------------------------------------------------------------------- $1,285 Albany Industrial Development Agency Civic Facility, (Charitable Leadership), 5.75%, 7/1/26 $ 1,285,026 1,500 Children's Trust Fund Public Relations Tobacco Settlement, 5.375%, 5/15/33 1,451,955 1,750 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(3) 2,111,288 - ------------------------------------------------------------------------- $ 4,848,269 - ------------------------------------------------------------------------- Senior Living / Life Care -- 2.7% - ------------------------------------------------------------------------- $1,250 Mount Vernon IDA, (Wartburg Senior Housing, Inc. - Meadowview), 6.20%, 6/1/29 $ 1,099,025
SEE NOTES TO FINANCIAL STATEMENTS 27 NEW YORK MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Senior Living / Life Care (continued) - ------------------------------------------------------------------------- $1,000 Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19 $ 1,050,210 - ------------------------------------------------------------------------- $ 2,149,235 - ------------------------------------------------------------------------- Special Tax Revenue -- 7.4% - ------------------------------------------------------------------------- $3,000 New York City Transitional Finance Authority, 6.00%, 8/15/29 $ 3,522,810 2,000 New York City Transitional Finance Authority, 6.00%, 11/15/29 2,343,400 - ------------------------------------------------------------------------- $ 5,866,210 - ------------------------------------------------------------------------- Transportation -- 2.5% - ------------------------------------------------------------------------- $1,800 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) $ 2,023,236 - ------------------------------------------------------------------------- $ 2,023,236 - ------------------------------------------------------------------------- Water and Sewer -- 6.7% - ------------------------------------------------------------------------- $1,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29 $ 1,514,670 3,500 New York City Municipal Water Finance Authority, 5.75%, 6/15/29 3,782,135 - ------------------------------------------------------------------------- $ 5,296,805 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 153.3% (identified cost $115,569,684) $122,001,316 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.6% $ 2,090,467 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (55.9)% (44,502,920) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 79,588,863 - -------------------------------------------------------------------------
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 November 30, 2002, 39.5% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 4.9% to 16.8% 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 28 OHIO MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 158.0%
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 $ 363,092 - ------------------------------------------------------------------------- $ 363,092 - ------------------------------------------------------------------------- Education -- 3.8% - ------------------------------------------------------------------------- $1,500 Ohio Higher Educational Facilities, (Oberlin College), Variable Rate, 10/1/29(1)(2) $ 1,488,825 - ------------------------------------------------------------------------- $ 1,488,825 - ------------------------------------------------------------------------- Electric Utilities -- 5.8% - ------------------------------------------------------------------------- $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 519,030 1,750 Ohio Water Development Authority, Pollution Control Facilities, (Cleveland Electric), (AMT), 6.10%, 8/1/20 1,768,900 - ------------------------------------------------------------------------- $ 2,287,930 - ------------------------------------------------------------------------- General Obligations -- 6.9% - ------------------------------------------------------------------------- $1,000 Delaware County, 6.00%, 12/1/25 $ 1,105,840 1,530 Hamilton City School District, 5.625%, 12/1/24 1,612,559 - ------------------------------------------------------------------------- $ 2,718,399 - ------------------------------------------------------------------------- Hospital -- 21.0% - ------------------------------------------------------------------------- $1,500 Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32 $ 1,499,850 2,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 1,931,680 625 Highland County, (Joint Township Hospital District), 6.75%, 12/1/29 578,494 400 Mahoning County Hospital Facility, (Forum Health Obligation Group), 6.00%, 11/15/32 388,888 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,230,612 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,644,667 1,000 Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22 1,042,890 - ------------------------------------------------------------------------- $ 8,317,081 - ------------------------------------------------------------------------- Housing -- 2.6% - ------------------------------------------------------------------------- $1,000 Multifamily Housing, (Tyler's Creek), (AMT), 6.00%, 11/1/33 $ 1,013,300 - ------------------------------------------------------------------------- $ 1,013,300 - ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Industrial Development Revenue -- 16.3% - ------------------------------------------------------------------------- $1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.70%, 12/1/19 $ 704,050 1,300 Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18 948,142 2,500 Ohio Enviromental Facilities, (Ford Motor Co.), (AMT), 5.95%, 9/1/29 2,444,125 2,250 Ohio Water Development Authority, (Anheuser-Busch), (AMT), 6.00%, 8/1/38 2,361,172 - ------------------------------------------------------------------------- $ 6,457,489 - ------------------------------------------------------------------------- Insured-Certificates of Participation -- 3.9% - ------------------------------------------------------------------------- $1,500 Cleveland, Certificates of Participation, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/22 $ 1,531,065 - ------------------------------------------------------------------------- $ 1,531,065 - ------------------------------------------------------------------------- Insured-Education -- 11.6% - ------------------------------------------------------------------------- $1,000 Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), 5.50%, 12/1/30 $ 1,042,890 2,000 University of Akron, (FGIC), Variable Rate, 1/1/29(1)(2) 2,277,980 1,250 University of Cincinnati, (FGIC), 5.25%, 6/1/24 1,282,450 - ------------------------------------------------------------------------- $ 4,603,320 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 3.8% - ------------------------------------------------------------------------- $2,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 615,060 3,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 872,940 - ------------------------------------------------------------------------- $ 1,488,000 - ------------------------------------------------------------------------- Insured-General Obligations -- 17.3% - ------------------------------------------------------------------------- $1,000 Lima City School District, (AMBAC), 5.50%, 12/1/22 $ 1,052,260 500 Lima City School District, (AMBAC), 6.00%, 12/1/22 550,375 1,000 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(2)(3) 1,085,470 1,250 South-Western City School District, Franklin and Pickway Counties, (AMBAC), 4.75%, 12/1/26 1,210,838 2,860 Springfield City School District Clark County, (FGIC), 5.20%, 12/1/23 2,927,896 - ------------------------------------------------------------------------- $ 6,826,839 - ------------------------------------------------------------------------- Insured-Hospital -- 1.3% - ------------------------------------------------------------------------- $ 500 Cuyahoga County, (Cleveland Clinic), (MBIA), 5.125%, 1/1/29 $ 501,630 - ------------------------------------------------------------------------- $ 501,630 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 29 OHIO MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 15.1% - ------------------------------------------------------------------------- $2,500 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 $ 2,431,800 2,000 Hamiliton County Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32 2,037,280 875 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) 884,258 615 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 624,760 - ------------------------------------------------------------------------- $ 5,978,098 - ------------------------------------------------------------------------- Insured-Transportation -- 11.4% - ------------------------------------------------------------------------- $1,325 Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31 $ 1,316,043 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 1,077,820 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26 1,078,930 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 1,016,810 - ------------------------------------------------------------------------- $ 4,489,603 - ------------------------------------------------------------------------- Lease Revenue/Certificates of Participation -- 3.4% - ------------------------------------------------------------------------- $1,300 Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19 $ 1,348,217 - ------------------------------------------------------------------------- $ 1,348,217 - ------------------------------------------------------------------------- Miscellaneous -- 4.9% - ------------------------------------------------------------------------- $ 750 Children's Trust Fund Public Relations Tobacco Settlement, 5.375%, 5/15/33 $ 725,977 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(2)(3) 1,206,450 - ------------------------------------------------------------------------- $ 1,932,427 - ------------------------------------------------------------------------- Nursing Home -- 5.3% - ------------------------------------------------------------------------- $1,755 Cuyahoga County, Health Care Facilities, (Benjamin Rose Institute), 5.50%, 12/1/28 $ 1,552,929 650 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 560,866 - ------------------------------------------------------------------------- $ 2,113,795 - ------------------------------------------------------------------------- Pooled Loans -- 7.6% - ------------------------------------------------------------------------- $1,020 Ohio Economic Development, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22(4) $ 1,021,999 1,000 Rickenbacker Port Authority, Oasbo Expanded Asset Pooled Loan, 5.375%, 1/1/32 991,230 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 993,278 - ------------------------------------------------------------------------- $ 3,006,507 - ------------------------------------------------------------------------- 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 $ 876,640 - ------------------------------------------------------------------------- $ 876,640 - ------------------------------------------------------------------------- Solid Waste -- 7.4% - ------------------------------------------------------------------------- $3,000 Moraine Solid Waste Disposal, (General Motors Corp.), (AMT), 5.65%, 7/1/24 $ 2,923,200 - ------------------------------------------------------------------------- $ 2,923,200 - ------------------------------------------------------------------------- Special Tax Revenue -- 5.5% - ------------------------------------------------------------------------- $ 600 Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18 $ 602,046 1,425 Cuyahoga County, Economic Development, (Shaker Square), 6.75%, 12/1/30(5) 1,569,752 - ------------------------------------------------------------------------- $ 2,171,798 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 158.0% (identified cost $61,632,637) $ 62,437,255 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 1.5% $ 573,177 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (59.5)% (23,503,087) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 39,507,345 - -------------------------------------------------------------------------
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 November 30, 2002, 40.7% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 3.8% to 15.9% 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. (4) When-issued security. (5) Security (or a portion thereof) has been segregated to cover when- issued securities. SEE NOTES TO FINANCIAL STATEMENTS 30 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 155.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Cogeneration -- 4.1% - ------------------------------------------------------------------------- $ 500 Carbon County IDA, (Panther Creek Partners), (AMT), 6.65%, 5/1/10 $ 524,175 500 Pennsylvania EDA, (Northampton Generating), (AMT), 6.50%, 1/1/13 505,730 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 517,960 - ------------------------------------------------------------------------- $ 1,547,865 - ------------------------------------------------------------------------- Education -- 8.9% - ------------------------------------------------------------------------- $1,500 Pennsylvania HEFA, (Drexel University), 6.00%, 5/1/29 $ 1,586,100 1,300 Pennsylvania HEFA, (University of Pennsylvania), 4.625%, 7/15/30 1,204,437 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 574,908 - ------------------------------------------------------------------------- $ 3,365,445 - ------------------------------------------------------------------------- Electric Utilities -- 1.5% - ------------------------------------------------------------------------- $ 600 York County, IDA, Pollution Control, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20 $ 575,406 - ------------------------------------------------------------------------- $ 575,406 - ------------------------------------------------------------------------- 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 $ 1,180,080 2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 850,900 - ------------------------------------------------------------------------- $ 2,030,980 - ------------------------------------------------------------------------- Health Care - Miscellaneous -- 5.6% - ------------------------------------------------------------------------- $ 600 Allegheny County, IDA, (Residential Resources, Inc.), 6.50%, 9/1/21 $ 586,590 1,500 Chester County HEFA, (Devereux Foundation), 6.00%, 11/1/29 1,522,080 - ------------------------------------------------------------------------- $ 2,108,670 - ------------------------------------------------------------------------- Hospital -- 5.2% - ------------------------------------------------------------------------- $ 550 Allegheny County Hospital Development Authority, (West Pennsylvania Allegheny Health System), 9.25%, 11/15/30 $ 600,534 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Hospital (continued) - ------------------------------------------------------------------------- $ 850 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 $ 867,578 500 Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17 508,875 - ------------------------------------------------------------------------- $ 1,976,987 - ------------------------------------------------------------------------- Industrial Development Revenue -- 5.8% - ------------------------------------------------------------------------- $ 500 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 451,550 1,000 Pennsylvania, IDA, (Sun Co.), (AMT), 7.60%, 12/1/24 1,057,970 1,550 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 682,186 - ------------------------------------------------------------------------- $ 2,191,706 - ------------------------------------------------------------------------- Insured-Education -- 23.7% - ------------------------------------------------------------------------- $ 900 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 917,721 1,000 Northampton County HEFA, (Lafayette College), (MBIA), 5.00%, 11/1/27 995,870 1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29 1,006,060 2,000 Pennsylvania HEFA, (State System Higher Education), (FSA), 5.00%, 6/15/24 1,998,640 2,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29 1,983,940 600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(1)(2) 607,254 1,500 University of Pittsburgh, (MBIA), 5.00%, 6/1/21 1,507,020 - ------------------------------------------------------------------------- $ 9,016,505 - ------------------------------------------------------------------------- Insured-Electric Utilities -- 5.2% - ------------------------------------------------------------------------- $1,000 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(1)(2) $ 1,082,290 835 Puerto Rico Electric Power Authority, DRIVERS, (FSA), Variable Rate, 7/1/29(1)(2) 903,712 - ------------------------------------------------------------------------- $ 1,986,002 - ------------------------------------------------------------------------- Insured-Gas Utilities -- 3.4% - ------------------------------------------------------------------------- $1,325 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(3) $ 1,305,231 - ------------------------------------------------------------------------- $ 1,305,231 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 31 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-General Obligations -- 20.2% - ------------------------------------------------------------------------- $1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 $ 530,947 1,000 McKeesport Area School District, (FGIC), 0.00%, 10/1/31 205,420 2,000 Philadelphia General Obligation, (FSA), 5.00%, 3/15/28 1,991,040 1,125 Philadelphia School District, (FSA), 5.50%, 2/1/31 1,170,517 1,150 Philadelphia School District, (MBIA), 4.75%, 4/1/27 1,100,975 1,500 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 1,520,940 1,000 Puerto Rico Infrastructure Financing Authority, (FSA), Variable Rate, 7/1/27(1)(2) 1,085,470 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 79,423 - ------------------------------------------------------------------------- $ 7,684,732 - ------------------------------------------------------------------------- Insured-Hospital -- 15.6% - ------------------------------------------------------------------------- $1,000 Dauphin County General Authority, (Pinnacle Health System), (MBIA), 5.50%, 5/15/27 $ 1,021,700 500 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 480,850 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 1,507,845 3,000 Montgomery County HEFA, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28 2,931,510 - ------------------------------------------------------------------------- $ 5,941,905 - ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 4.2% - ------------------------------------------------------------------------- $1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 999,280 595 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) 604,443 - ------------------------------------------------------------------------- $ 1,603,723 - ------------------------------------------------------------------------- Insured-Transportation -- 15.6% - ------------------------------------------------------------------------- $1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 994,850 3,100 Pennsylvania Turnpike Commision Oil Franchise, (AMBAC), 4.75%, 12/1/27 2,994,352 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Insured-Transportation (continued) - ------------------------------------------------------------------------- $1,005 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 $ 1,020,889 800 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(1)(2) 919,496 - ------------------------------------------------------------------------- $ 5,929,587 - ------------------------------------------------------------------------- Insured-Water and Sewer -- 16.1% - ------------------------------------------------------------------------- $ 500 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.00%, 12/1/19 $ 509,970 1,000 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.50%, 12/1/24 1,046,460 500 Delaware County IDA, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29 544,310 1,000 Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 991,650 3,000 Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/31 3,011,850 - ------------------------------------------------------------------------- $ 6,104,240 - ------------------------------------------------------------------------- Miscellaneous -- 1.4% - ------------------------------------------------------------------------- $ 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 $ 546,618 - ------------------------------------------------------------------------- $ 546,618 - ------------------------------------------------------------------------- Nursing Home -- 2.3% - ------------------------------------------------------------------------- $ 500 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 488,500 400 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 382,596 - ------------------------------------------------------------------------- $ 871,096 - ------------------------------------------------------------------------- Senior Living / Life Care -- 8.9% - ------------------------------------------------------------------------- $ 600 Bucks County, IDA, (Pennswood), 6.00%, 10/1/27 $ 603,030 490 Cliff House Trust (AMT), 6.625%, 6/1/27 430,872 500 Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29 476,840 400 Delaware IDA, (Glen Riddle), (AMT), 8.625%, 9/1/25 424,128 500 Lancaster County Hospital Authority, (Health Center), 5.875%, 6/1/31 500,515 925 Montgomery County HEFA, (Faulkeways at Gwynedd), 6.75%, 11/15/30 961,556 - ------------------------------------------------------------------------- $ 3,396,941 - -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 32 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2002 PORTFOLIO OF INVESTMENTS CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ------------------------------------------------------------------------- Transportation -- 2.9% - ------------------------------------------------------------------------- $ 395 Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09 $ 397,469 500 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 484,300 250 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 225,155 - ------------------------------------------------------------------------- $ 1,106,924 - ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 155.9% (identified cost $58,167,315) $ 59,290,563 - ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.3% $ 1,240,510 - ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends - -- (59.2)% (22,503,696) - ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 38,027,377 - -------------------------------------------------------------------------
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 November 30, 2003, 70.2% 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 6.1% to 23.6% 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 33 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES AS OF NOVEMBER 30, 2002
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ---------------------------------------------------------------------------------------------------- Assets - ---------------------------------------------------------------------------------------------------- Investments -- Identified cost $155,740,116 $94,155,358 $55,869,907 $45,511,396 Unrealized appreciation 5,289,151 2,302,040 2,046,121 1,104,071 - ---------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $161,029,267 $96,457,398 $57,916,028 $46,615,467 - ---------------------------------------------------------------------------------------------------- Cash $ 86,411 $ 120,241 $ 231,115 $ 750,049 Receivable for investments sold 5,850 -- -- -- Interest receivable 2,625,134 1,262,534 1,182,794 737,925 Prepaid expenses 465 267 166 125 - ---------------------------------------------------------------------------------------------------- TOTAL ASSETS $163,747,127 $97,840,440 $59,330,103 $48,103,566 - ---------------------------------------------------------------------------------------------------- Liabilities - ---------------------------------------------------------------------------------------------------- Payable for daily variation margin on open financial futures contracts $ -- $ -- $ -- $ 11,719 Payable for when-issued securities -- -- -- 500,000 Payable to affiliate for Trustees' fees 1,248 1,276 340 418 Accrued expenses 42,812 32,419 31,698 24,920 - ---------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 44,060 $ 33,695 $ 32,038 $ 537,057 - ---------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 59,000,000 $35,504,502 $21,503,528 $17,502,137 - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $104,703,067 $62,302,243 $37,794,537 $30,064,372 - ---------------------------------------------------------------------------------------------------- Sources of Net Assets - ---------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 71,773 $ 42,303 $ 26,346 $ 20,880 Additional paid-in capital 106,399,318 62,836,553 38,977,380 31,018,551 Accumulated net realized loss (computed on the basis of identified cost) (8,228,436) (3,676,174) (3,720,513) (2,459,032) Accumulated undistributed net investment income 1,171,261 797,521 465,203 351,524 Net unrealized appreciation (computed on the basis of identified cost) 5,289,151 2,302,040 2,046,121 1,132,449 - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $104,703,067 $62,302,243 $37,794,537 $30,064,372 - ---------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) - ---------------------------------------------------------------------------------------------------- 2,360 1,420 860 700 - ---------------------------------------------------------------------------------------------------- Common Shares Outstanding - ---------------------------------------------------------------------------------------------------- 7,177,287 4,230,281 2,634,555 2,087,955 - ---------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share - ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.59 $ 14.73 $ 14.35 $ 14.40 - ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 34 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES AS OF NOVEMBER 30, 2002
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------- Assets - ------------------------------------------------------------------------------------------------- Investments -- Identified cost $ 95,418,887 $115,569,684 $61,632,637 $58,167,315 Unrealized appreciation 3,276,648 6,431,632 804,618 1,123,248 - ------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 98,695,535 $122,001,316 $62,437,255 $59,290,563 - ------------------------------------------------------------------------------------------------- Cash $ 263,136 $ -- $ 294,478 $ 54,868 Receivable for investments sold 664,862 -- 10,000 -- Interest receivable 2,216,694 2,288,943 1,319,677 1,213,095 Prepaid expenses 288 364 189 158 - ------------------------------------------------------------------------------------------------- TOTAL ASSETS $101,840,515 $124,290,623 $64,061,599 $60,558,684 - ------------------------------------------------------------------------------------------------- Liabilities - ------------------------------------------------------------------------------------------------- Payable for when-issued securities $ -- $ -- $ 1,021,823 $ -- Due to bank -- 129,649 -- -- Payable to affiliate for Trustees' fees 1,276 535 340 418 Accrued expenses 35,988 68,656 29,004 27,193 - ------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 37,264 $ 198,840 $ 1,051,167 $ 27,611 - ------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 38,000,000 $ 44,502,920 $23,503,087 $22,503,696 - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 63,803,251 $ 79,588,863 $39,507,345 $38,027,377 - ------------------------------------------------------------------------------------------------- Sources of Net Assets - ------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 45,378 $ 53,551 $ 27,928 $ 26,673 Additional paid-in capital 67,357,303 79,461,619 41,481,965 39,622,709 Accumulated net realized loss (computed on the basis of identified cost) (7,683,173) (7,353,714) (3,365,045) (3,256,281) Accumulated undistributed net investment income 807,095 995,775 557,879 511,028 Net unrealized appreciation (computed on the basis of identified cost) 3,276,648 6,431,632 804,618 1,123,248 - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 63,803,251 $ 79,588,863 $39,507,345 $38,027,377 - ------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) - ------------------------------------------------------------------------------------------------- 1,520 1,780 940 900 - ------------------------------------------------------------------------------------------------- Common Shares Outstanding - ------------------------------------------------------------------------------------------------- 4,537,817 5,355,058 2,792,775 2,667,293 - ------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share - ------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.06 $ 14.86 $ 14.15 $ 14.26 - -------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 35 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2002
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ---------------------------------------------------------------------------------------------------- Investment Income - ---------------------------------------------------------------------------------------------------- Interest $9,506,330 $5,806,541 $3,499,744 $2,860,088 - ---------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $9,506,330 $5,806,541 $3,499,744 $2,860,088 - ---------------------------------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------------------------------- Investment adviser fee $1,134,478 $ 677,180 $ 408,622 $ 332,529 Administration fee 324,326 193,480 116,659 95,008 Trustees fees and expenses 8,308 7,539 2,024 2,099 Legal and accounting services 42,991 37,000 36,013 36,373 Printing and postage 15,455 10,517 9,513 7,084 Custodian fee 75,460 49,170 36,784 29,781 Transfer and dividend disbursing agent 104,305 66,802 42,136 35,029 Preferred shares remarketing agent fee 147,500 88,750 53,750 43,749 Miscellaneous 21,930 19,237 18,330 18,090 - ---------------------------------------------------------------------------------------------------- TOTAL EXPENSES $1,874,753 $1,149,675 $ 723,831 $ 599,742 - ---------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 20,468 $ 8,456 $ 9,449 $ 3,225 - ---------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 20,468 $ 8,456 $ 9,449 $ 3,225 - ---------------------------------------------------------------------------------------------------- NET EXPENSES $1,854,285 $1,141,219 $ 714,382 $ 596,517 - ---------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $7,652,045 $4,665,322 $2,785,362 $2,263,571 - ---------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) - ---------------------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 146,938 $ 325,679 $ (356,291) $ (78,660) Financial futures contracts -- -- -- (419,416) - ---------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ 146,938 $ 325,679 $ (356,291) $ (498,076) - ---------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 986,040 $1,182,245 $ 914,229 $ 241,181 Financial futures contracts -- -- -- 28,378 - ---------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 986,040 $1,182,245 $ 914,229 $ 269,559 - ---------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) $1,132,978 $1,507,924 $ 557,938 $ (228,517) - ---------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (786,832) $ (497,248) $ (277,880) $ (235,098) - ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $7,998,191 $5,675,998 $3,065,420 $1,799,956 - ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 36 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2002
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ------------------------------------------------------------------------------------------------ Investment Income - ------------------------------------------------------------------------------------------------ Interest $6,145,906 $7,392,696 $3,818,613 $3,560,460 - ------------------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME $6,145,906 $7,392,696 $3,818,613 $3,560,460 - ------------------------------------------------------------------------------------------------ Expenses - ------------------------------------------------------------------------------------------------ Investment adviser fee $ 709,900 $ 855,410 $ 439,611 $ 421,749 Administration fee 202,829 244,403 125,603 120,500 Trustees fees and expenses 7,539 7,593 2,023 2,099 Legal and accounting services 36,992 38,594 36,939 36,418 Printing and postage 13,118 34,353 9,832 8,300 Custodian fee 50,233 51,632 34,992 29,940 Transfer and dividend disbursing agent 68,495 76,008 46,486 43,555 Preferred shares remarketing agent fee 94,999 111,248 58,750 56,250 Miscellaneous 18,659 29,977 17,566 18,599 - ------------------------------------------------------------------------------------------------ TOTAL EXPENSES $1,202,764 $1,449,218 $ 771,802 $ 737,410 - ------------------------------------------------------------------------------------------------ Deduct -- Reduction of custodian fee $ 6,995 $ -- $ 34,992 $ -- - ------------------------------------------------------------------------------------------------ TOTAL EXPENSE REDUCTIONS $ 6,995 $ -- $ 34,992 $ -- - ------------------------------------------------------------------------------------------------ NET EXPENSES $1,195,769 $1,449,218 $ 736,810 $ 737,410 - ------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME $4,950,137 $5,943,478 $3,081,803 $2,823,050 - ------------------------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) - ------------------------------------------------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $ 148,253 $ 239,399 $ 97,450 $ (43,963) Financial futures contracts -- 466,275 114,353 -- - ------------------------------------------------------------------------------------------------ NET REALIZED GAIN (LOSS) $ 148,253 $ 705,674 $ 211,803 $ (43,963) - ------------------------------------------------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 590,372 $2,276,999 $ (121,963) $ 129,353 Financial futures contracts -- 11,682 1,752 -- - ------------------------------------------------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 590,372 $2,288,681 $ (120,211) $ 129,353 - ------------------------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN $ 738,625 $2,994,355 $ 91,592 $ 85,390 - ------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (473,418) $ (548,692) $ (304,430) $ (296,919) - ------------------------------------------------------------------------------------------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $5,215,344 $8,389,141 $2,868,965 $2,611,521 - ------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 37 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2002
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST - ------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 7,652,045 $ 4,665,322 $ 2,785,362 $ 2,263,571 Net realized gain (loss) 146,938 325,679 (356,291) (498,076) Net change in unrealized appreciation (depreciation) 986,040 1,182,245 914,229 269,559 Distributions to preferred shareholders (786,832) (497,248) (277,880) (235,098) - ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,998,191 $ 5,675,998 $ 3,065,420 $ 1,799,956 - ------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (6,684,158) $(4,032,486) $(2,449,469) $(1,988,080) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (6,684,158) $(4,032,486) $(2,449,469) $(1,988,080) - ------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 725,158 $ 12,879 $ 544,544 $ 39,961 - ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 725,158 $ 12,879 $ 544,544 $ 39,961 - ------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ 2,039,191 $ 1,656,391 $ 1,160,495 $ (148,163) - ------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - ------------------------------------------------------------------------------------------------------- At beginning of year $102,663,876 $60,645,852 $36,634,042 $30,212,535 - ------------------------------------------------------------------------------------------------------- AT END OF YEAR $104,703,067 $62,302,243 $37,794,537 $30,064,372 - ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares - ------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 1,171,261 $ 797,521 $ 465,203 $ 351,524 - -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 38 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2002
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST - ---------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 4,950,137 $ 5,943,478 $ 3,081,803 $ 2,823,050 Net realized gain (loss) 148,253 705,674 211,803 (43,963) Net change in unrealized appreciation (depreciation) 590,372 2,288,681 (120,211) 129,353 Distributions to preferred shareholders (473,418) (548,692) (304,430) (296,919) - ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,215,344 $ 8,389,141 $ 2,868,965 $ 2,611,521 - ---------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $(4,398,246) $(5,246,581) $(2,655,587) $(2,364,612) - ---------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(4,398,246) $(5,246,581) $(2,655,587) $(2,364,612) - ---------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 749,009 $ 788,135 $ 222,185 $ 57,015 - ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 749,009 $ 788,135 $ 222,185 $ 57,015 - ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 1,566,107 $ 3,930,695 $ 435,563 $ 303,924 - ---------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - ---------------------------------------------------------------------------------------------------- At beginning of year $62,237,144 $75,658,168 $39,071,782 $37,723,453 - ---------------------------------------------------------------------------------------------------- AT END OF YEAR $63,803,251 $79,588,863 $39,507,345 $38,027,377 - ---------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares - ---------------------------------------------------------------------------------------------------- AT END OF YEAR $ 807,095 $ 995,775 $ 557,879 $ 511,028 - ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 39 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 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 NOVEMBER 30, 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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
CALIFORNIA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.410 $13.210 $11.630 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.069 $ 1.035 $ 1.008 $ 0.773 Net realized and unrealized gain (loss) 0.155 1.120 1.576 (3.322) Distributions to preferred shareholders (0.110) (0.222) (0.279) (0.186) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.114 $ 1.933 $ 2.305 $(2.735) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.934) $(0.733) $(0.725) $(0.510) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.934) $(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 YEAR (COMMON SHARES) $14.590 $14.410 $13.210 $11.630 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $13.660 $14.320 $11.688 $11.438 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 1.84% 29.65% 8.79% (20.70)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 42 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
CALIFORNIA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $104,703 $102,664 $94,049 $82,333 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.82% 1.83% 1.99% 1.66%(6) Net expenses after custodian fee reduction(5) 1.80% 1.76% 1.92% 1.60%(6) Net investment income(5) 7.44% 7.32% 8.43% 6.83%(6) Portfolio Turnover 11% 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 1.16% 1.15% 1.17% 1.06%(6) Net expenses after custodian fee reduction 1.15% 1.11% 1.13% 1.02%(6) Net investment income 4.73% 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) $ 69,366 $ 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 year ended November 30, 2002 was to increase net investment income per share by $0.012, decrease net realized and unrealized gains per share by $0.012, increase the ratio of net investment income to average net assets applicable to common shares from 7.36% to 7.44% and increase the ratio of net investment income to average total net assets from 4.68% to 4.73%. Per share data and ratios for the 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) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
FLORIDA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.340 $13.070 $11.770 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.103 $ 1.056 $ 1.028 $ 0.779 Net realized and unrealized gain (loss) 0.358 1.162 1.318 (3.180) Distributions to preferred shareholders (0.118) (0.243) (0.338) (0.200) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.343 $ 1.975 $ 2.008 $(2.601) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.953) $(0.705) $(0.708) $(0.502) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.953) $(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 YEAR (COMMON SHARES) $14.730 $14.340 $13.070 $11.770 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $14.400 $13.380 $10.500 $10.438 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 15.18% 34.91% 7.20% (27.62)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 44 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
FLORIDA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $62,302 $60,646 $55,296 $49,715 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.87% 1.90% 1.99% 1.74%(6) Net expenses after custodian fee reduction(5) 1.86% 1.82% 1.91% 1.68%(6) Net investment income(5) 7.61% 7.46% 8.59% 6.89%(6) Portfolio Turnover 14% 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 1.18% 1.19% 1.16% 1.11%(6) Net expenses after custodian fee reduction 1.18% 1.14% 1.12% 1.07%(6) Net investment income 4.82% 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) $68,878 $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 year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.60% to 7.61%, and increase the ratio of net investment income to average total net assets from 4.81% to 4.82%. Per share data and ratios for the 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) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MASSACHUSETTS TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.110 $12.530 $11.470 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.065 $ 1.044 $ 1.008 $ 0.779 Net realized and unrealized gain (loss) 0.218 1.486 1.058 (3.479) Distributions to preferred shareholders (0.106) (0.227) (0.286) (0.192) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.177 $ 2.303 $ 1.780 $(2.892) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.937) $(0.723) $(0.720) $(0.510) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.937) $(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 YEAR (COMMON SHARES) $14.350 $14.110 $12.530 $11.470 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $15.510 $14.370 $10.813 $11.438 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 15.16% 40.54% 0.69% (20.68)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 46 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MASSACHUSETTS TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $37,795 $36,634 $32,501 $29,458 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.97% 1.97% 2.17% 1.98%(6) Net expenses after custodian fee reduction(5) 1.94% 1.88% 2.09% 1.91%(6) Net investment income(5) 7.55% 7.60% 8.80% 6.93%(6) Portfolio Turnover 7% 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 1.24% 1.23% 1.26% 1.26%(6) Net expenses after custodian fee reduction 1.22% 1.17% 1.21% 1.21%(6) Net investment income 4.77% 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) $68,951 $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 year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.51% to 7.55% and increase the ratio of net investment income to average total net assets from 4.75% to 4.77%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MICHIGAN TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.490 $13.060 $11.840 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.085 $ 1.045 $ 0.996 $ 0.771 Net realized and unrealized gain (loss) (0.109) 1.317 1.250 (3.111) Distributions to preferred shareholders (0.113) (0.242) (0.321) (0.191) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.863 $ 2.120 $ 1.925 $(2.531) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.953) $(0.690) $(0.705) $(0.500) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.953) $(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 YEAR (COMMON SHARES) $14.400 $14.490 $13.060 $11.840 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $13.940 $13.000 $10.438 $10.875 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 14.72% 31.69% 2.30% (24.66)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 48 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
MICHIGAN TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $30,064 $30,213 $27,233 $24,691 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 2.00% 1.99% 2.18% 1.78%(6) Net expenses after custodian fee reduction(5) 1.99% 1.90% 2.09% 1.71%(6) Net investment income(5) 7.54% 7.36% 8.34% 6.77%(6) Portfolio Turnover 13% 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 1.27% 1.25% 1.27% 1.14%(6) Net expenses after custodian fee reduction 1.26% 1.19% 1.22% 1.09%(6) Net investment income 4.76% 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) $67,952 $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 year ended November 30, 2002 was to increase net investment income per share by $0.005, increase net realized and unrealized losses per share by $0.005, increase the ratio of net investment income to average net assets attributable to common shares from 7.51% to 7.54% and increase the ratio of net investment income to average total net assets from 4.74% to 4.76%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
NEW JERSEY TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $13.880 $12.680 $11.720 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.098 $ 1.057 $ 1.012 $ 0.778 Net realized and unrealized gain (loss) 0.163 1.089 0.977 (3.235) Distributions to preferred shareholders (0.105) (0.234) (0.324) (0.195) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.156 $ 1.912 $ 1.665 $(2.652) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.976) $(0.712) $(0.705) $(0.500) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.976) $(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 YEAR (COMMON SHARES) $14.060 $13.880 $12.680 $11.720 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $14.400 $13.340 $10.750 $10.875 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 15.70% 31.34% 5.28% (24.64)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 50 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
NEW JERSEY TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $63,803 $62,237 $56,883 $52,490 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.89% 1.95% 2.08% 1.67%(6) Net expenses after custodian fee reduction(5) 1.88% 1.90% 2.00% 1.61%(6) Net investment income(5) 7.80% 7.64% 8.64% 6.83%(6) Portfolio Turnover 25% 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 1.19% 1.21% 1.21% 1.07%(6) Net expenses after custodian fee reduction 1.18% 1.18% 1.16% 1.03%(6) Net investment income 4.88% 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) $66,976 $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 year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets attributable to common shares from 7.78% to 7.80% and increase the ratio of net investment income to average total net assets from 4.87% to 4.88%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW YORK TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.280 $13.020 $11.800 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.114 $ 1.057 $ 1.002 $ 0.781 Net realized and unrealized gain (loss) 0.553 1.150 1.239 (3.153) Distributions to preferred shareholders (0.103) (0.220) (0.301) (0.191) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.564 $ 1.987 $ 1.940 $(2.563) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.984) $(0.727) $(0.720) $(0.510) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.984) $(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 YEAR (COMMON SHARES) $14.860 $14.280 $13.020 $11.800 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $13.990 $14.050 $10.750 $10.813 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 6.56% 38.30% 5.90% (25.00)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 52 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
NEW YORK TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $79,589 $75,658 $69,023 $62,327 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.86% 1.88% 2.03% 1.65%(6) Net expenses after custodian fee reduction(5) 1.86% 1.86% 1.95% 1.59%(6) Net investment income(5) 7.64% 7.45% 8.33% 6.86%(6) Portfolio Turnover 8% 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 1.18% 1.19% 1.20% 1.05%(6) Net expenses after custodian fee reduction 1.18% 1.17% 1.15% 1.01%(6) Net investment income 4.84% 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) $69,714 $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 year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.62% to 7.64% and increase the ratio of net investment income to average total net assets from 4.83% to 4.84%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
OHIO TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.070 $12.820 $11.910 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.107 $ 1.068 $ 1.028 $ 0.772 Net realized and unrealized gain (loss) 0.036 1.134 0.930 (3.035) Distributions to preferred shareholders (0.109) (0.242) (0.335) (0.197) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.034 $ 1.960 $ 1.623 $(2.460) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.954) $(0.710) $(0.713) $(0.502) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.954) $(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 YEAR (COMMON SHARES) $14.150 $14.070 $12.820 $11.910 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $14.730 $13.620 $11.375 $11.250 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 15.59% 26.39% 7.55% (22.06)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 54 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
OHIO TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $39,507 $39,072 $35,613 $33,049 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.96% 1.99% 2.08% 1.84%(6) Net expenses after custodian fee reduction(5) 1.87% 1.90% 2.01% 1.77%(6) Net investment income(5) 7.84% 7.69% 8.56% 6.74%(6) Portfolio Turnover 8% 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 1.23% 1.24% 1.22% 1.17%(6) Net expenses after custodian fee reduction 1.17% 1.18% 1.18% 1.13%(6) Net investment income 4.91% 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) $67,032 $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 year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets attributable to common shares from 7.80% to 7.84% and increase the ratio of net investment income to average total net assets from 4.88% to 4.91%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
PENNSYLVANIA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $14.160 $12.960 $11.840 $15.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment income $ 1.059 $ 1.015 $ 1.013 $ 0.780 Net realized and unrealized gain (loss) 0.039 1.107 1.147 (3.108) Distributions to preferred shareholders (0.111) (0.244) (0.332) (0.201) - -------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.987 $ 1.878 $ 1.828 $(2.529) - -------------------------------------------------------------------------------------------------------- Less distributions to common shareholders - -------------------------------------------------------------------------------------------------------- From net investment income $(0.887) $(0.678) $(0.708) $(0.502) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.887) $(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 YEAR (COMMON SHARES) $14.260 $14.160 $12.960 $11.840 - -------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $13.960 $12.750 $10.625 $10.750 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 16.77% 26.88% 5.29% (25.50)% - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 56 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING PERIODS STATED
PENNSYLVANIA TRUST ---------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ---------------------------------------------------------------------- 2002(1)(2) 2001(2) 2000(2) 1999(2)(3) - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ - -------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of year (000's omitted) $38,027 $37,723 $34,514 $31,543 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.95% 1.97% 1.95% 1.77%(6) Net expenses after custodian fee reduction(5) 1.95% 1.94% 1.86% 1.70%(6) Net investment income(5) 7.48% 7.26% 8.46% 6.85%(6) Portfolio Turnover 20% 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 1.22% 1.23% 1.14% 1.13%(6) Net expenses after custodian fee reduction 1.22% 1.20% 1.09% 1.08%(6) Net investment income 4.68% 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) $67,257 $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 year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets attributable to common shares from 7.45% to 7.48% and increase the ratio of net investment income to average total net assets from 4.67% to 4.68%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (2) Computed using average common shares outstanding. (3) For the period from the start of business, January 29, 1999, to November 30, 1999. (4) Returns are historical and are calculated by determining the percentage change in market value with all distributions reinvested. Total return is not computed on an annualized basis. (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 NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust), and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (individually referred to as the Trust or collectively the Trusts) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Trusts were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated December 10, 1998. Each Trust's investment objective is to 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 UNREALIZED TRUST OF 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 24,250 (24,250)
The effect of this change for the year ended November 30, 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 $85,883 $(4,788) $(81,095) Florida 8,993 (725) (8,268) Massachusetts 13,276 (20) (13,256) Michigan 10,320 (2,628) (7,692) New Jersey 12,703 (7,114) (5,589) New York 14,961 (6,057) (8,904) Ohio 15,243 (3,526) (11,717) Pennsylvania 9,717 (668) (9,049)
The statement of changes in net assets and financial highlights for the prior periods have not been restated to reflect these changes. D Federal Taxes -- Each Trust's policy is to comply with the provisions of the Internal Revenue Code 58 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS CONT'D 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, 2002, 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 $ 6,183,969 November 30, 2007 2,239,451 November 30, 2008 Florida 1,763,318 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 343,176 November 30, 2010 Michigan 1,193,621 November 30, 2007 624,509 November 30, 2008 165,469 November 30, 2009 467,069 November 30, 2010 New Jersey 4,271,329 November 30, 2007 3,178,038 November 30, 2008 262,308 November 30, 2009 New York 5,404,082 November 30, 2007 1,920,646 November 30, 2008 70,059 November 30, 2009 Ohio 1,909,299 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 43,295 November 30, 2010
In addition, each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income taxes when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item for investors. E Financial Futures Contracts -- Upon the entering of a financial futures contract, a Trust is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Trust (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Trust. A Trust's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. F Options on Financial Futures Contracts -- Upon the purchase of a put option on a financial futures contract by a Trust, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Trust will realize a loss in the amount of the cost of the option. When a Trust enters into a closing sale transaction, a Trust will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Trust exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid. G Use of Estimates -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. H 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. 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 59 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS CONT'D of the common shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every seven days thereafter by an auction. Auction Preferred Shares issued and outstanding as of November 30, 2002 and dividend rate ranges for the year ended November 30, 2002 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE TRUST ISSUED AND OUTSTANDING RANGES ---------------------------------------------------------------------------------------- California 2,360 0.89% -- 1.80% Florida 1,420 1.20% -- 1.80% Massachusetts 860 0.81% -- 1.70% Michigan 700 0.78% -- 1.75% New Jersey 1,520 0.80% -- 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 reclassified 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 dividend rate for the Auction Preferred Shares on November 30, 2002 was 1.20%, 1.25%, 1.20%, 1.20%, 1.20%, 1.20%, 1.20%, and 1.20%, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. For the year ended November 30, 2002, the amount of dividends each Trust paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:
DIVIDENDS PAID TO AVERAGE APS TRUST PREFERRED SHAREHOLDERS DIVIDEND RATES -------------------------------------------------------------------------------- California $786,832 1.33% Florida 497,248 1.40% Massachusetts 277,880 1.30% Michigan 235,098 1.34% New Jersey 473,418 1.25% New York 548,692 1.23% Ohio 304,430 1.30% Pennsylvania 296,919 1.32%
The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. These differences relate primarily to the method for amortizing premiums. 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 60 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS CONT'D earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. Except for Trustees of each Trust who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Trust out of such investment adviser fee. For the year ended November 30, 2002, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $1,134,478, $677,180, $408,622, $332,529, $709,900, $855,410, $439,611, and $421,749, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. EVM also serves as the administrator of each Trust. An administration fee, computed at the annual rate of 0.20% of the average weekly gross assets of each Trust is paid to EVM for administering business affairs of each Trust. For the year ended November 30, 2002, the administrative fee amounted to $324,326, $193,480, $116,659, $95,008, $202,829, $244,403, $125,603, and $120,500, 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 year ended November 30, 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 year ended November 30, 2002 were as follows:
CALIFORNIA TRUST ----------------------------------------------------- Purchases $17,917,565 Sales 17,019,042 FLORIDA TRUST ----------------------------------------------------- Purchases $13,616,135 Sales 13,467,333 MASSACHUSETTS TRUST ----------------------------------------------------- Purchases $ 4,395,472 Sales 4,086,184 MICHIGAN TRUST ----------------------------------------------------- Purchases $ 6,323,765 Sales 8,062,092 NEW JERSEY TRUST ----------------------------------------------------- Purchases $24,892,406 Sales 24,882,512 NEW YORK TRUST ----------------------------------------------------- Purchases $11,072,036 Sales 9,344,723 OHIO TRUST ----------------------------------------------------- Purchases $ 5,160,535 Sales 4,686,959 PENNSYLVANIA TRUST ----------------------------------------------------- Purchases $12,023,832 Sales 12,327,181
6 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at November 30, 2002, as computed for Federal income tax purposes, were as follows:
CALIFORNIA TRUST ------------------------------------------------------ AGGREGATE COST $155,545,132 ------------------------------------------------------ Gross unrealized appreciation $ 6,223,118 Gross unrealized depreciation (738,983) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 5,484,135 ------------------------------------------------------ FLORIDA TRUST ------------------------------------------------------ AGGREGATE COST $ 94,129,769 ------------------------------------------------------ Gross unrealized appreciation $ 3,451,021 Gross unrealized depreciation (1,123,392) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,327,629 ------------------------------------------------------
61 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS CONT'D
MASSACHUSETTS TRUST ------------------------------------------------------ AGGREGATE COST $ 55,843,173 ------------------------------------------------------ Gross unrealized appreciation $ 2,711,321 Gross unrealized depreciation (638,466) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,072,855 ------------------------------------------------------ MICHIGAN TRUST ------------------------------------------------------ AGGREGATE COST $ 45,482,466 ------------------------------------------------------ Gross unrealized appreciation $ 1,822,905 Gross unrealized depreciation (689,904) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,133,001 ------------------------------------------------------ NEW JERSEY TRUST ------------------------------------------------------ AGGREGATE COST $ 95,390,386 ------------------------------------------------------ Gross unrealized appreciation $ 5,326,770 Gross unrealized depreciation (2,021,621) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 3,305,149 ------------------------------------------------------ NEW YORK TRUST ------------------------------------------------------ AGGREGATE COST $115,528,611 ------------------------------------------------------ Gross unrealized appreciation $ 7,961,364 Gross unrealized depreciation (1,488,659) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 6,472,705 ------------------------------------------------------ OHIO TRUST ------------------------------------------------------ AGGREGATE COST $ 61,594,061 ------------------------------------------------------ Gross unrealized appreciation $ 2,460,138 Gross unrealized depreciation (1,616,944) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 843,194 ------------------------------------------------------ PENNSYLVANIA TRUST ------------------------------------------------------ AGGREGATE COST $ 58,134,021 ------------------------------------------------------ Gross unrealized appreciation $ 2,383,830 Gross unrealized depreciation (1,227,288) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,156,542 ------------------------------------------------------
7 Shares of Beneficial Interest - ------------------------------------------- Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:
CALIFORNIA TRUST ----------------- YEAR ENDED NOVEMBER 30, ----------------- 2002 2001 ----------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 52,243 6,639 ----------------------------------------------------------- NET INCREASE 52,243 6,639 ----------------------------------------------------------- FLORIDA TRUST ----------------- YEAR ENDED NOVEMBER 30, ----------------- 2002 2001 ----------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 926 -- ----------------------------------------------------------- NET INCREASE 926 -- ----------------------------------------------------------- MASSACHUSETTS TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 37,713 2,587 ------------------------------------------------------------- NET INCREASE 37,713 2,587 ------------------------------------------------------------- MICHIGAN TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 2,758 -- ------------------------------------------------------------- NET INCREASE 2,758 -- -------------------------------------------------------------
62 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 NOTES TO FINANCIAL STATEMENTS CONT'D
NEW JERSEY TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 53,105 -- ------------------------------------------------------------- NET INCREASE 53,105 -- ------------------------------------------------------------- NEW YORK TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 55,136 -- ------------------------------------------------------------- NET INCREASE 55,136 -- ------------------------------------------------------------- OHIO TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 15,351 -- ------------------------------------------------------------- NET INCREASE 15,351 -- ------------------------------------------------------------- PENNSYLVANIA TRUST ------------------- YEAR ENDED NOVEMBER 30, ------------------- 2002 2001 ------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 4,050 -- ------------------------------------------------------------- NET INCREASE 4,050 -- -------------------------------------------------------------
8 Financial Instruments - ------------------------------------------- Each Trust regularly trades in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at November 30, 2002 is as follows:
EXPIRATION NET UNREALIZED TRUST DATE CONTRACTS POSITION APPRECIATION ------------------------------------------------------------------------------------------------------------------------- Michigan 3/03 25 U.S. Treasury Bond Short $ 28,378
At November 30, 2002, the Trust had sufficient cash and/or securities to cover margin requirements on open futures contracts. 63 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF EATON VANCE MUNICIPAL INCOME TRUSTS AND SHAREHOLDERS OF EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST, EATON VANCE FLORIDA MUNICIPAL INCOME TRUST, EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST, EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST, EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST, EATON VANCE NEW YORK MUNICIPAL INCOME TRUST, EATON VANCE OHIO MUNICIPAL INCOME TRUST, AND EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST: - --------------------------------------------- We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Eaton Vance California Municipal Income Trust, Eaton Vance Florida Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (the Trusts), (constituting the Eaton Vance Municipal Income Trusts) as of November 30, 2002, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years in the three year period ended November 30, 2002 and for the period from the start of business, January 29, 1999, to November 30, 1999. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities held as of November 30, 2002 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Eaton Vance California Municipal Income Trust, Eaton Vance Florida Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2002, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts January 3, 2003 64 EATON VANCE MUNICIPAL INCOME TRUSTS DIVIDEND REINVESTMENT PLAN Each Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the same Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested. If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Trust's transfer agent, PFPC Inc., or you will not be able to participate. The Plan Agent's service fee for handling distributions will be paid by each Trust. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases. Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds. If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent. Any inquires regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710. 65 EATON VANCE MUNICIPAL INCOME TRUSTS APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan. The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan. ------------------------------------------------------ Please print exact name on account ------------------------------------------------------ Shareholder signature Date ------------------------------------------------------ Shareholder signature Date Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY. THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS: Eaton Vance Municipal Income Trusts c/o PFPC Inc. P.O. Box 43027 Providence, RI 02940-3027 800-331-1710 - -------------------------------------------------------------------------------- 66 EATON VANCE MUNICIPAL INCOME TRUSTS NUMBER OF EMPLOYEES Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of November 30, 2002, our records indicate that there are 100, 100, 150, 60, 150, 150, 100 and 100 registered shareholders for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively, and approximately 3,200, 2,300, 1,500, 1,300, 2,300, 2,700, 1,700 and 1,600 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call: Eaton Vance Distributors, Inc. The Eaton Vance Building 255 State Street Boston, MA 02109 1-800-225-6265 AMERICAN STOCK EXCHANGE SYMBOLS California Trust CEV Florida Trust FEV Massachusetts Trust MMV Michigan Trust EMI New Jersey Trust EVJ New York Trust EVY Ohio Trust EVO Pennsylvania Trust EVP
67 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 MANAGEMENT AND ORGANIZATION FUND MANAGEMENT. The Trustees of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Florida Municipal Income Trust (FEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO), and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts' affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts, 02109. INTERESTED TRUSTEE(S)
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ----------------------------------------------------------------------------------------------------------------------------------- Jessica M. Trustee(2) 3 years President and Chief 185 None Bibliowicz Since 1998 Executive Officer of 11/28/59 National Financial Partners (financial services company) (since April 1999). President and Chief Operating Officer of John A. Levin & Co. (registered investment adviser) (July 1997 to April 1999) and a Director of Baker, Fentress & Company, which owns John A. Levin & Co. (July 1997 to April 1999). Ms. Bibliowicz is an interested person because of her affiliation with a brokerage firm. James B. Hawkes Vice President and 3 years Chairman, President and 190 Director of EVC 11/9/41 Trustee(3) Since 1998 Chief Executive Officer of BMR, EVM and their corporate parent and trustee, Eaton Vance Corp. (EVC) and Eaton Vance, Inc. (EV), respectively; Director of EV; Vice President and Director of EVD. Trustee and/or officer of 190 registered investment companies in the Eaton Vance Fund Complex. Mr. Hawkes is an interested person because of his positions with BMR, EVM and EVC, which are affiliates of the Trusts.
NONINTERESTED TRUSTEE(S)
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ----------------------------------------------------------------------------------------------------------------------------------- Donald R. Dwight Trustee(2) 3 years President of Dwight 190 Trustee/Director of the 3/26/31 Since 1998 Partners, Inc. Royce Funds (mutual (corporate relations funds) consisting of 17 and communications portfolios company). Samuel L. Hayes, Trustee(3) 3 years Jacob H. Schiff 190 Director of Tiffany & III (A) Since 1998 Professor of Investment Co. (specialty retailer) 2/23/35 Banking Emeritus, and Director of Telect, Harvard University Inc. (telecommunication Graduate School of services company) Business Administration. Norton H. Reamer Trustee(4) 3 years President, Unicorn 190 None (A) Since 1998 Corporation (an 9/21/35 investment and financial advisory services company) (since September 2000). Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (since November 2000). Advisory Director, Berkshire Capital Corporation (investment banking firm) (since June 2002). Formerly, Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds).
68 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2002 MANAGEMENT AND ORGANIZATION CONT'D NONINTERESTED TRUSTEES (CONTINUED)
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ----------------------------------------------------------------------------------------------------------------------------------- Lynn A. Stout Trustee(4) 3 years Professor of Law, 185 None 9/14/57 Since 1998 University of California at Los Angeles School of Law (since July 2001). Formerly, Professor of Law, Georgetown University Law Center. Jack L. Treynor Trustee(4) 3 years Investment Adviser and 170 None 2/21/30 Since 1998 Consultant.
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
TERM OF POSITION(S) OFFICE AND NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS ------------------------------------------------------------------------------------------ William H. Ahern, Vice President of Since 1998 Vice President of EVM and BMR. Jr. EMI Officer of 34 registered 7/28/59 investment companies managed by EVM or BMR. Cynthia J. Clemson Vice President of Since 1998 Vice President of EVM and BMR. 3/2/63 CEV, FEV and EVP Officer of 20 registered investment companies managed by EVM or BMR. Thomas J. Fetter President Since 1998 Vice President of EVM and BMR. 8/20/43 Officer of 126 registered investment companies managed by EVM or BMR. Robert B. Vice President Since 1998 Vice President of EVM and BMR. MacIntosh Officer of 125 registered 1/22/57 investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 1998 Vice President, Secretary and 10/10/40 Chief Legal Officer of BMR, EVM, EVD, and EVC. Officer of 190 registered investment companies managed by EVM or BMR. James L. O'Connor Treasurer Since 1998 Vice President of BMR, EVM and 4/1/45 EVD. Officer of 112 registered investment companies managed by EVM or BMR.
(A) APS Trustee (1) Includes both master and feeder funds in a master-feeder structure. (2) Class I trustee whose term expires in 2003. (3) Class II trustee whose term expires in 2004. (4) Class III trustee whose term expires in 2005. 69 INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE MUNICIPAL INCOME TRUSTS EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT PFPC INC. P.O. Box 43027 Providence, RI 02940-3027 (800) 331-1710 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 200 Berkeley Street Boston, MA 02116-5022 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 147-1/03 CE-MUNISRC -----END PRIVACY-ENHANCED MESSAGE-----