N-CSR 1 a2114229zn-csr.txt N-CSR FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09157 Eaton Vance California Municipal Income Trust --------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09143 Eaton Vance Florida Municipal Income Trust ------------------------------------------ (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09147 Eaton Vance Massachusetts Municipal Income Trust ------------------------------------------------ (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09153 Eaton Vance Michigan Municipal Income Fund ------------------------------------------ (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09155 Eaton Vance New Jersey Municipal Income Trust --------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09145 Eaton Vance New York Municipal Income Trust ------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09149 Eaton Vance Ohio Municipal Income Trust --------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-09151 Eaton Vance Pennsylvania Municipal Income Fund ---------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30, 2003 ----------------- Date of Fiscal Year End May 31, 2003 ------------ Date of Reporting Period -------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS [GRAPHIC] [EATON VANCE LOGO(R)] MANAGED INVESTMENTS EDUCATION SEMIANNUAL REPORT MAY 31, 2003 EATON VANCE MUNICIPAL INCOME TRUSTS 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. From time to time mutual funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures without charge, upon request, by calling 1-800-262-1122. This description is also available on the Securities and Exchange Commission's website at http://www.sec.gov. Eaton Vance Municipal Income Trusts as of May 31, 2003 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] PRESIDENT In our shareholder reports, we refer frequently to "quality spreads" and their important role in bond analysis. However, while followed closely by bond analysts and portfolio managers, this aspect of municipal bond investing is generally overlooked by individual investors. As part of our continuing educational series, we thought it might be instructive to discuss quality spreads and why they constitute a key variable for investors in the municipal bond market. Quality spreads: compensation for added credit risk... The term "quality spread" refers to the difference in yields between bonds of varying quality, but similar maturities. A bond rated BBB, for example, should have a higher yield than an insured bond rated AAA because investors who buy lower-quality bonds anticipate being paid for accepting a higher level of credit risk. That risk premium comes in the form of higher yields. Spreads are typically stated in basis points, or 1/100's of a percentage point. Thus, a bond yielding 5.00% trades at a spread of 100 basis points (1.00%) over a bond that yields 4.00%. Spread fluctuations are influenced by a variety of factors... Spreads fluctuate with changes in market conditions, with many factors influencing spread relationships. The quality and type of bond are primary factors. For example, an insured general obligation rated AAA - with no credit risk - will trade at a significantly lower yield than a BBB rated industrial bond, which has a significantly higher credit risk. Naturally, a bond's price will respond to changes that may impact - for better or worse - the underlying fundamentals of an issuer. Remember, bond yields move in the opposite direction of bond prices. Another factor that influences spreads is supply. Assuming stable demand, spreads are likely to widen if the supply for a specific issuer increases, as the market must now digest a larger volume of bonds. Similarly, if supply declines, spreads may narrow, as investors may be willing to pay more for a credit that is increasingly scarce. Finally, quality spreads may fluctuate with changes in the overall economy. For example, spreads tend to narrow as the economy strengthens and the revenue outlook improves. On the other hand, as the economy slows or enters recession, spreads tend to widen, as investors become increasingly worried about the direction of the economy and its impact on bonds with higher credit risk. Spreads constitute a key factor in investment decisions... Quality spreads have a significant influence on the investment decisions of municipal bond portfolio managers. The widening of spreads may suggest a developing opportunity. If spreads have widened appreciably, the investor may detect an unusual opportunity in a lower-quality, higher-yielding bond. Conversely, if lower-quality bonds have significantly outperformed high-quality bonds over a period, the resulting narrowing of spreads may signal the need for caution. This "spread compression" may prompt portfolio managers to upgrade their portfolios with higher quality bonds because they are no longer being adequately compensated for the risk of owning lower-quality bonds. While quality spreads are a key metric for municipal bond investors, they represent just one of many factors considered in establishing a diversified bond portfolio. At Eaton Vance, we realize that complex markets require intensive research, a need that emphasizes once again the value of experienced, professional portfolio management. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President July 11, 2003 SHARES OF THE TRUSTS ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL VARY. 2 MARKET RECAP The U.S. economy, which has slumped badly in recent years, remained sluggish in the first half of 2003, although there were sporadic signs of improvement. A continued decline in interest rates to their lowest level in 45 years helped fuel rallies in the financial markets. The conclusion of official hostilities in Iraq and the passage of a Tax Bill gave investors added confidence. Capital spending remained well below past recovery rates, although some businesses indicated that they were starting to commit new investment toward equipment. While there were signs of spotty growth, the overall economy failed to gain traction... The manufacturing sector turned in a mixed showing, characterized by weak demand. The auto and textile areas registered declines, while construction and defense-related manufacturing were fairly strong. Boosted by the lowest mortgage rates in a decade, the construction sector was fairly strong. Growth was limited to the residential segment, however, as commercial investment continued to slump. Consumer spending remained lackluster despite a modest rebound in retail activity following the end of the war in Iraq. However, retail sales were below the levels of a year earlier. The Federal Reserve maintained an accommodative monetary policy... Gross Domestic Product expanded 1.9% in the first quarter of 2003, following a 1.4% rise in the fourth quarter of 2002. As the economy struggled, businesses reported more layoffs in response to still-weak demand. The nation's unemployment rate climbed to 6.1% in May 2003, the highest monthly jobless rate since July 1994. Not surprisingly, inflation has remained quite tame. In fact, many economists have pointed to DE-flation as a more worrisome threat. In that environment, the Federal Reserve has maintained an accommodative monetary posture. The Federal Funds rate - a key short-term interest rate barometer - stood at 1.25%, at May 31, 2003 and was lowered to 1.00%, a 45-year low in June. Ten-year Treasury bond yields - which were 5.04% at May 31, 2002 - declined to 3.39% by May 31, 2003, in response to the tepid economy. The sharp decline in rates was greeted warmly by investors wary of the volatile equity markets and helped to sustain a rally in bonds. The Lehman Brothers Municipal Bond Index had a total return of 6.46% for the six months ended May 31, 2003.* [CHART] MUNICIPAL BOND YIELDS EXCEEDED TREASURY YIELDS 30-year AAA-rated General Obligations (GO) Bonds* 4.65% Taxable equivalent yield in 35.0% tax bracket 7.15% 30-Year Treasury bond 4.39%
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 [ILLEGIBLE] OF THE TRUSTS' YIELD. STATISTICS AS OF MAY 31, 2003. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SOURCE: BLOOMBERG L.P. While Federal Tax rates have fallen, state taxes have been on the rise... While interest rates remain near historical lows, the likelihood of a sharp increase in rates in the near term is fairly remote. Core inflation - the major nemesis of the bond market - has been dealt a blow by a weak economy and, importantly, by the longer-term influence of global competition. Meanwhile, the rationale for tax-exempt income remains intact. Even as federal tax rates have been reduced, state governments - most of which have constitutional mandates to balance their budgets - have enacted property and income tax increases to make up for revenue shortfalls. As a result, we believe that municipal bonds will continue to merit a place in the investment portfolios of tax-conscious investors. *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 May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] PORTFOLIO MANAGER Management Discussion - California's economic outlook has been complicated by the state's enormous budget deficit. State and local governments have instituted furloughs and wage cuts to deal with anticipated revenue shortfalls. Meanwhile, consumer confidence weakened amid a stagnant technology outlook. The state's May 2003 jobless rate was 6.6%, unchanged from a year ago. - Insured* general obligations (GOs) constituted the Trust's largest sector weighting at May 31, 2003. Given the state's budgetary issues, the insured* nature of the bonds adds an additional layer of protection, with these bonds representing a dependable revenue stream. - Insured* transportation bonds remained a large investment for the Trust. Given the state's vast geography, the efficient transport of passengers and freight is a key segment of California's economy. The Trust's investments included issues for ports, airport authorities, mass transit and selected Puerto Rico highway issues. - Special tax revenue bonds constituted a major commitment for the Trust and provided an attractive income source. These issues financed a broad array of public programs such as road construction and water facilities. - The Trust was well served by its broad diversification. In addition to diversifying according to issuer, sector and insurer, management had a mixed coupon allocation, balancing income-oriented higher-coupons with performance-minded low- and zero-coupons. Trust Statistics(1) - Number of Issues: 79 - Effective Maturity: 9.9 years - Average Rating: AA - Average Call: 9.0 years - Average Dollar Price: $ 97.78
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 14.25% for the six months ended May 31, 2003. That return was the result of an increase in share price from $13.66 on November 30, 2002 to $15.09 on May 31, 2003, and the reinvestment of $0.476 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 13.27% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.59 on November 30, 2002 to $15.98 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.09, the Trust had a market yield of 6.31% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 10.70%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 62.4% AA 4.4% A 14.4% BBB 6.4% Non-Rated 12.4%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 12.41% Life of Trust (1/29/99) 6.26
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 21.31% Life of Trust (1/29/99) 7.67
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Insured - General Obligations* 21.8% Insured - Transportation* 19.0% Special Tax Revenue 18.8% Insured - Water & Sewer* 14.8% Hospital 14.6%
(1) Trust Statistics, Rating Distribution and Five 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 41.05% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 4 Eaton Vance Florida Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] PORTFOLIO MANAGER Management Discussion - Florida's economy posted modest growth in the first half of 2003. Construction activity was strong, driven by low interest rates. However, while somewhat improved, the performance of Florida's travel and tourism industry has not yet returned to 2000 levels. The state's jobless rate was 5.1% in May 2003, down from 5.5% a year ago. - Insured* transportation bonds were the Trust's largest weighting at May 31, 2003. Transportation facilities are a key element of Florida's tourism economy, and provide the infrastructure needed for the state's continuing population growth. The Trust's holdings included issues for airports, port facilities and highways. - Management maintained a large exposure to essential services bonds, including insured* water and sewer bonds. These bonds are backed by revenues from water and sewer bill payments, which tend to be relatively stable compared to cyclical sources of income. - Insured* special tax revenue bonds constituted another major investment for the Trust. These issues provided local communities a financing mechanism for a wide variety of public initiatives, including utility, water and road projects. - Management continued its efforts to upgrade the Trust's call protection. As rates decline, there is a growing likelihood that some bonds may be called prior to maturity, causing the proceeds to be invested at lower interest rates. That has increased the importance of maintaining good call protection. Trust Statistics(1) - Number of Issues: 70 - Effective Maturity: 8.5 years - Average Rating: AA - Average Call: 6.9 years - Average Dollar Price: $ 106.55
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 12.99% for the six months ended May 31, 2003. That return was the result of an increase in share price from $14.40 on November 30, 2002 to $15.75 on May 31, 2003, and the reinvestment of $0.494 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 11.09% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.73 on November 30, 2002 to $15.84 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.75, the Trust had a market yield of 6.27% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 9.65%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 62.1% AA 11.4% A 5.6% BBB 4.2% CCC 0.3% Non-Rated 16.4%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 20.36% Life of Trust (1/29/99) 7.38
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 18.75% Life of Trust (1/29/99) 7.52
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Insured - Transportation* 23.0% Insured - Water & Sewer* 20.3% Insured - Special Tax Revenue* 13.9% Hospital 11.8% Insured - Miscellaneous* 11.6%
(1) Trust Statistics, Rating Distribution and Five 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 and state intangibles tax and/or federal alternative minimum tax. (3) The Trust's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (4) Taxable-equivalent yield assumes maximum 35.00% combined federal and state intangibles tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 5 Eaton Vance Massachusetts Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF ROBERT B. MACINTOSH] PORTFOLIO MANAGER Management Discussion - The Massachusetts economy struggled in early 2003. Manufacturing of consumer durables was especially weak, while slow technology sales reflected slow capital spending. Temporary staffing showed some growth, as weary employers opted for outsourcing. The Commonwealth's May 2003 jobless rate was 5.5%, lower than the national rate, but above the 5.1% rate of a year ago. - The education and insured* education sectors are characteristically regarded as defensive in a slowing economy. The Trust focused on bonds of well-regarded institutions - at the university and secondary level - with continuing strong applicant demand. - Hospital bonds represented a large commitment for the Trust. The competitive Massachusetts hospital market has felt increasing pressure to reduce costs. The Trust emphasized institutions with sound financial structures, good management and the ability to offer attractive health care specialties. - Insured* transportation bonds remained significant investments. The Trust's transportation holdings included issues for the Commonwealth's turnpike authority, which enjoys fairly consistent toll revenues in any economic environment. - The Trust generally avoided obligations of the Commonwealth, which may be subject to downgrades of credit ratings. In addition, management took advantage of strong retail demand to sell selected coupons and adjust the overall coupon structure of the Trust. Trust Statistics(1) - Number of Issues: 60 - Effective Maturity: 9.9 years - Average Rating: AA- - Average Call: 7.8 years - Average Dollar Price: $ 102.74
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 7.20% for the six months ended May 31, 2003. That return was the result of an increase in share price from $15.51 on November 30, 2002 to $16.10 on May 31, 2003, and the reinvestment of $0.482 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 12.41% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.35 on November 30, 2002 to $15.62 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $16.10, the Trust had a market yield of 5.99% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 9.73%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 51.0% AA 5.8% A 18.6% BBB 14.3% BB 1.1% Non-Rated 9.2%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 16.79% Life of Trust (1/29/99) 7.80
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 20.44% Life of Trust (1/29/99) 7.05
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Education 30.2% Hospital 21.7% Insured - Education* 18.2% Insured - Transportation* 14.5% Insured - General Obligations* 12.7%
(1) Trust Statistics, Rating Distribution and Five 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 38.45% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 6 Eaton Vance Michigan Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF WILLIAM H. AHERN] PORTFOLIO MANAGER Management Discussion - Michigan's economy reflected the uncertainties seen elsewhere in the nation. Manufacturing growth was uneven, as the key auto industry battled rising inventories. Home-building was a source of strength, although commercial construction remained weak. The state's May 2003 jobless rate rose to 6.7%, well above last year's 6.2% rate. - The Trust's largest sector concentration was in hospital bonds. Management remained very selective with respect to hospital investments, focusing on the more competitive institutions, with favorable cost structures, in-demand care specialties and strategic alliances with other hospitals. - Insured* general obligations (GOs) and general obligations remained a major focus for the Trust. In a slow economy, many states and municipalities have encountered a shortfall in income and sales tax receipts. In that climate, insured* GOs provided some insulation from revenue-related uncertainties. - Insured* transportation bonds were a significant investment. The Trust's investments included airport issues for the Wayne County facility that services the Detroit metropolitan area, as well as selected Puerto Rico highway bonds. - Management continued its efforts to improve the Trust's call protection. With the significant decline in interest rates and quickening pace of pre-refundings, call protection has become an increasingly important strategic consideration. Trust Statistics(1) - Number of Issues: 55 - Effective Maturity: 9.9 years - Average Rating: AA - Average Call: 7.7 years - Average Dollar Price: $ 102.80
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 17.92% for the six months ended May 31, 2003. That return was the result of an increase in share price from $13.94 on November 30, 2002 to $15.91 on May 31, 2003, and the reinvestment of $0.486 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 11.71% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.40 on November 30, 2002 to $15.57 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.91, the Trust had a market yield of 6.11% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 9.79%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 57.5% AA 4.4% A 16.6% BBB 10.0% Non-Rated 11.5%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 19.18% Life of Trust (1/29/99) 7.58
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 17.13% Life of Trust (1/29/99) 7.04
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Hospital 34.0% Insured - General Obligations* 24.7% General Obligations 16.9% Insured - Transportation* 12.9% Industrial Development Revenue 10.6%
(1) Trust Statistics, Rating Distribution and Five 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 37.60% combined federal and state income tax rate. Income may also be subject to single business tax and city income tax. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 7 Eaton Vance New Jersey Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF ROBERT B. MACINTOSH] PORTFOLIO MANAGER Management Discussion - The New Jersey economy showed tentative signs of recovery in the first half of 2003. Business services, trade and leisure generated above-average job growth. However, manufacturing again posted declines, with the metals area especially weak. The state's May 2003 jobless rate was 5.6%, lower than the national rate and down slightly from the 5.8% rate of a year ago. - Insured* transportation bonds represented the Trust's largest sector weighting at May 31, 2003. The Trust's transportation holdings included an issue for the state's turnpike authority, which enjoys fairly consistent toll revenues in any economic environment. - Hospital bonds were among the Trust's major investments. Management focused on institutions that either dominate their urban markets or are sole providers in suburban or rural areas, with minimal competition. These hospitals have generally been less vulnerable to the competitive pressures characterizing the industry. - Education bonds remained a major focus of the Trust's investments. Management emphasized institutions with high applications-to-admissions ratios that are able to generate consistent, stable tuition revenues. - In a very strong retail market, management sold a range of in-demand coupons, thereby adjusting the Trust's coupon structure to reflect the decline in interest rates. In addition, with quality spreads having narrowed appreciably, management has made an effort to upgrade quality within the Trust. Trust Statistics(1) - Number of Issues: 62 - Effective Maturity: 10.2 years - Average Rating: AA- - Average Call: 8.4 years - Average Dollar Price: $ 107.52
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 12.86% for the six months ended May 31, 2003. That return was the result of an increase in share price from $14.40 on November 30, 2002 to $15.70 on May 31, 2003, and the reinvestment of $0.504 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 12.86% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.06 on November 30, 2002 to $15.33 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.70, the Trust had a market yield of 6.43% at May 31, 2003.3 The Trust's market yield is equivalent to a taxable yield of 10.57%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 51.6% AA 8.3% A 12.8% BBB 13.4% B 1.1% Non-Rated 12.8%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 16.41% Life of Trust (1/29/99) 7.35
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 17.16% Life of Trust (1/29/99) 6.76
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Insured - Transportation* 28.1% Hospital 19.9% Transportation 19.3% Education 12.3% Insured - General Obligations* 11.8%
(1) Trust Statistics, Rating Distribution and Five 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 39.14% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 8 Eaton Vance New York Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF THOMAS J. FETTER] PORTFOLIO MANAGER Management Discussion - The New York economy reported mixed results, with signs of an emerging recovery. The retail sector was weak, as consumers remained skeptical. However, construction-related areas were fairly robust. The financial sector reported job growth, as the equity markets staged an impressive rally. The state's May 2003 jobless rate was 6.1%, unchanged from a year ago. - Insured* transportation bonds remained the Trust's largest sector weighting at May 31, 2003. While the slow economy has resulted in slower freight and passenger traffic, the Trust focused on thruway, port facilities and airports that are well-positioned to weather the weaker climate. - The Trust was selective within the hospital sector, given the industry's continuing challenges. Management focused on bonds of well-managed facilities, diversified among county and local issuers, as well as by coupon distribution. - Escrowed bonds were among the Trust's largest commitments. Escrowed bonds are pre-refunded to their approaching call dates and, thus, continue to deliver above-average income. Because they are backed by Treasury bonds, escrowed bonds are considered to be of the highest quality. - Call protection remained a priority of the Trust. Management sought to eliminate bonds with poor call features in favor of noncallable bonds or those with superior call protection. Adequate call protection allows bonds to participate more fully in market rallies. Trust Statistics(1) - Number of Issues: 65 - Effective Maturity: 9.2 years - Average Rating: AA- - Average Call: 8.0 years - Average Dollar Price: $111.71
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 16.35% for the six months ended May 31, 2003. That return was the result of an increase in share price from $13.99 on November 30, 2002 to $15.72 on May 31, 2003, and the reinvestment of $0.512 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 12.19% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.86 on November 30, 2002 to $16.10 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.72, the Trust had a market yield of 6.49% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 10.72%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 44.4% AA 18.6% A 17.9% BBB 6.8% Non-Rated 12.3%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 15.15% Life of Trust (1/29/99) 7.38
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 20.07% Life of Trust (1/29/99) 7.97
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Insured-Transportation* 15.6% Hospital 13.3% Escrowed - Prorefunded 12.7% Insured-Hospital* 11.6% Electric Utilities 10.8%
(1) Trust Statistics, Rating Distribution and Five 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 39.45% combined federal and state income tax rate. New York City residents may be subject to New York City personal income tax. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 9 Eaton Vance Ohio Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF THOMAS J. FETTER] PORTFOLIO MANAGER Management Discussion - Economic activity remained mixed in Ohio, with some industries strengthening while others deteriorated. Selected manufacturers enjoyed rising production, while residential construction saw strong gains over last year. Retailers, meanwhile, reported weak demand, exemplified by slumping auto sales. The state's May 2003 jobless rate was 6.1%, up from 5.9% a year ago. - Hospital bonds constituted the Trust's largest sector weighting at May 31, 2003. In a highly competitive, managed-care environment, the Trust continued to focus on institutions we believe have a sound financial underpinning, experienced management and a good marketing strategy. - Insured* general obligations (GOs) were a significant commitment for the Trust. These insured* issues are generally prized by investors, especially at a time when the weak economy has continued to pressure industrial and economically-sensitive issuers. - Insured* education bonds represented a large commitment for the Trust. These issues, which financed the construction of classroom and dormitories for universities throughout the state, are typically less vulnerable to an economic slowdown than cyclical bonds. - Puerto Rico bonds played a role in management's efforts to maintain a broad diversification. The Trust's Puerto Rico holdings included insured* general obligations and transportation bonds, as well as uninsured infrastructure bonds. Trust Statistics(1) - Number of Issues: 49 - Effective Maturity: 10.6 years - Average Rating: AA- - Average Call: 8.9 years - Average Dollar Price: $105.30
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 17.45% for the six months ended May 31, 2003. That return was the result of an increase in share price from $14.73 on November 30, 2002 to $16.73 on May 31, 2003, and the reinvestment of $0.499 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 12.36% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.15 on November 30, 2002 to $15.37 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $16.73, the Trust had a market yield of 5.96% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 9.91%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 44.3% AA 12.7% A 22.1% BBB 8.7% BB 1.6% Non-Rated 10.6%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY SHARE PRICE, AMERICAN STOCK EXCHANGE) One Year 22.42% Life of Trust (1/29/99) 8.74
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 17.58% Life of Trust (1/29/99) 6.65
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Hospital 21.8% Insured - General Obligations* 21.4% Industrial Development Revenue 19.8% Insured - Education* 13.9% Insured - Transportaion* 11.4%
(1) Trust Statistics, Rating Distribution and Five 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 39.88% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 10 Eaton Vance Pennsylvania Municipal Income Trust as of May 31, 2003 MANAGEMENT DISCUSSION [PHOTO OF CYNTHIA J. CLEMSON] PORTFOLIO MANAGER Management Discussion - Uncertainty characterized Pennsyl-vania's economy in the first half of 2003, as manufacturers reported declines in orders, while retail sales were below last year's pace. Meanwhile, residential building was surprisingly strong, while the commercial side lagged. The state's May 2003 jobless rate was 5.6%, unchanged from a year ago. - Insured* education bonds were the Trust's largest sector weighting at May 31, 2003, providing excellent quality and stable revenues in an uncertain economic climate. The Trust's holdings included issues for the state university system as well as prominent private institutions. - The Trust maintained a large exposure to insured* general obligations (GOs). In a period characterized by lower wages and weaker consumer spending, insured* GOs provided an extra measure of security against the likelihood of declining state and municipal revenues. - Insured* water and sewer bonds have played a prominent role in the Trust. These issues are often sought by investors in a slow economy because they finance an essential service and are less vulnerable to cutbacks in consumer spending. - With the dramatic decline in interest rates increasing call risk, management emphasized non-callable bonds and bonds with favorable call characteristics. The calling of older, higher-coupon bonds has made call protection an important consideration for investors. Trust Statistics(1) - Number of Issues: 63 - Effective Maturity: 7.8 years - Average Rating: AA - Average Call: 6.7 years - Average Dollar Price: $104.34
The Trust PERFORMANCE FOR THE PAST SIX MONTHS - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 13.28% for the six months ended May 31, 2003. That return was the result of an increase in share price from $13.96 on November 30, 2002 to $15.32 on May 31, 2003, and the reinvestment of $0.465 in regular monthly dividends.(2) - Based on net asset value, the Trust had a total return of 11.69% for the six months ended May 31, 2003. That return was the result of an increase in net asset value from $14.26 on November 30, 2002 to $15.43 on May 31, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.32, the Trust had a market yield of 6.08% at May 31, 2003.(3) The Trust's market yield is equivalent to a taxable yield of 9.62%.(4) [CHART] Rating Distribution(1) BY TOTAL INVESTMENTS AAA 66.7% AA 2.1% A 11.5% BBB 8.6% BB 2.2% B 0.5% CCC 1.0% Non-Rated 7.4%
TRUST INFORMATION AS OF MAY 31, 2003 PERFORMANCE(5) AVERAGE ANNUAL TOTAL RETURNS (BY PRICE PRICE, AMERICAN STOCK EXCHANGE) One Year 20.45% Life of Trust (1/29/99) 6.54
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 17.42% Life of Trust (1/29/99) 6.71
[CHART] FIVE LARGEST CATEGORIES(1) BY NET ASSETS APPLICABLE TO COMMON SHARES Insured - Education* 23.1% Insured - General Obligations* 17.5% Insured - Water & Sewer* 15.7% Insured - Transportaion* 15.6% Insured - Hospital* 15.2%
(1) Trust Statistics, Rating Distribution and Five 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 36.82% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (5) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 11 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 149.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Education -- 9.3% ------------------------------------------------------------------------- $ 1,000 California Educational Facilities Authority, (Dominican University), 5.75%, 12/1/30 $ 1,056,400 500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 522,525 1,850 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 2,051,742 4,000 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 4,179,360 2,500 California Educational Facilities Authority, (University of Southern California), 5.50%, 10/1/27 2,797,175 ------------------------------------------------------------------------- $ 10,607,202 ------------------------------------------------------------------------- Electric Utilities -- 1.5% ------------------------------------------------------------------------- $ 1,600 California Department Water Resource Power Supply, 5.125%, 5/1/18 $ 1,731,824 ------------------------------------------------------------------------- $ 1,731,824 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 1.0% ------------------------------------------------------------------------- $ 2,425 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, 0.00%, 1/1/20 $ 1,188,735 ------------------------------------------------------------------------- $ 1,188,735 ------------------------------------------------------------------------- General Obligations -- 3.0% ------------------------------------------------------------------------- $ 2,200 California State General Obligation, 5.00%, 2/1/21 $ 2,300,276 1,100 California State General Obligation, 5.25%, 4/1/30 1,148,521 ------------------------------------------------------------------------- $ 3,448,797 ------------------------------------------------------------------------- Hospital -- 14.6% ------------------------------------------------------------------------- $ 2,000 California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 6.25%, 12/1/34 $ 2,176,680 750 California Infrastructure and Economic Development, (Kaiser Hospital), 5.50%, 8/1/31 784,732 1,650 California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32 1,722,006 1,750 California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29 1,697,902 1,500 California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28 1,574,445 1,500 Duarte, COP, (City of Hope), 5.25%, 4/1/24 1,513,800 1,000 Stockton Health Facilities Authority, (Dameron Hospital), 5.70%, 12/1/14 1,067,370 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Hospital (continued) ------------------------------------------------------------------------- $ 2,000 Tahoe Forest Hospital District, 5.85%, 7/1/22 $ 2,007,280 2,000 Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31 2,093,180 2,000 Washington Township, Health Care District, 5.25%, 7/1/29 2,088,280 ------------------------------------------------------------------------- $ 16,725,675 ------------------------------------------------------------------------- Housing -- 2.4% ------------------------------------------------------------------------- $ 1,000 California Statewide Communities Development Authority, (Corporate Fund for Housing), 6.50%, 12/1/29 $ 1,001,400 500 California Statewide Communities Development Authority, (Corporate Fund for Housing), 7.25%, 12/1/34 505,805 787 Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29 770,760 446 Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29 433,285 ------------------------------------------------------------------------- $ 2,711,250 ------------------------------------------------------------------------- Industrial Development Revenue -- 1.2% ------------------------------------------------------------------------- $ 1,250 California Pollution Control Financing Authority, (Mobil Oil Corp.), (AMT), 5.50%, 12/1/29 $ 1,387,337 ------------------------------------------------------------------------- $ 1,387,337 ------------------------------------------------------------------------- Insured-Education -- 6.2% ------------------------------------------------------------------------- $ 3,770 California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23 $ 3,984,815 3,000 California University, (AMBAC), 5.00%, 11/1/33 3,167,100 ------------------------------------------------------------------------- $ 7,151,915 ------------------------------------------------------------------------- Insured-Electric Utilities -- 14.0% ------------------------------------------------------------------------- $ 3,250 California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31 $ 3,486,275 2,500 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16 2,800,475 4,000 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 4,731,000 665 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(2)(3) 847,290 3,000 Sacramento Municipal Electric Utility District, (FSA), 5.00%, 8/15/28 3,173,310
SEE NOTES TO FINANCIAL STATEMENTS 12 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Electric Utilities (continued) ------------------------------------------------------------------------- $ 1,000 Southern California Public Power Authority, (Magnolia Power), (MBIA), 5.00%, 7/1/25 $ 1,063,080 ------------------------------------------------------------------------- $ 16,101,430 ------------------------------------------------------------------------- Insured-Escrowed / Prerefunded -- 1.6% ------------------------------------------------------------------------- $ 5,130 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, (FSA), 0.00%, 1/1/26 $ 1,790,575 ------------------------------------------------------------------------- $ 1,790,575 ------------------------------------------------------------------------- Insured-General Obligations -- 21.8% ------------------------------------------------------------------------- $ 3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,890,298 1,650 California RITES, (AMBAC), Variable Rate, 5/1/26(1)(2) 2,136,436 6,425 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/20 2,955,628 3,000 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/21 1,298,580 3,750 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 4,127,475 5,000 Murrieta Valley Unified School District, (FGIC), 0.00%, 9/1/20 2,291,050 2,500 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(3) 3,192,875 9,635 San Ramon Valley Unified School District, (FGIC), 0.00%, 7/1/18(4) 5,007,984 4,500 Ukiah Unified School District, (FGIC), 0.00%, 8/1/20 2,126,115 ------------------------------------------------------------------------- $ 25,026,441 ------------------------------------------------------------------------- Insured-Hospital -- 4.6% ------------------------------------------------------------------------- $ 3,200 California Statewide Communities Development Authority, (Children's Hospital Los Angeles), (MBIA), 5.25%, 8/15/29 $ 3,477,216 1,245 California Statewide Communities Development Authority, (Sutter Health), Residual Certificates, (FSA), Variable Rate, 8/15/19(2)(3) 1,793,149 ------------------------------------------------------------------------- $ 5,270,365 ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 7.2% ------------------------------------------------------------------------- $ 9,000 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17 $ 4,904,460 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation (continued) ------------------------------------------------------------------------- $11,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/28 $ 3,332,930 ------------------------------------------------------------------------- $ 8,237,390 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 0.8% ------------------------------------------------------------------------- $ 250 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) $ 270,538 525 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 589,696 ------------------------------------------------------------------------- $ 860,234 ------------------------------------------------------------------------- Insured-Transportation -- 19.0% ------------------------------------------------------------------------- $ 2,500 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 $ 2,716,575 2,300 Port Oakland, (MBIA), (AMT), 5.375%, 11/1/25 2,416,656 2,515 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 2,847,885 1,750 Puerto Rico Highway and Transportation Authority, (FSA), 4.75%, 7/1/38 1,823,833 5,000 San Francisco City and County Airports, (International Airport), (FGIC), (AMT), 5.25%, 5/1/30 5,192,400 6,000 San Francisco, (Bay Area Rapid Transportation District), (FGIC), 5.50%, 7/1/34 6,791,280 ------------------------------------------------------------------------- $ 21,788,629 ------------------------------------------------------------------------- Insured-Water and Sewer -- 14.8% ------------------------------------------------------------------------- $ 5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 5,222,400 6,250 East Bay Municipal Utilities District Water System, (MBIA), 5.00%, 6/1/38 6,482,688 3,200 Metropolitan Water District, (Southern California Waterworks), (MBIA), Variable Rate, 7/1/27(2)(3) 3,436,832 4,850 Santa Rosa Wastewater, (AMBAC), 0.00%, 9/1/23 1,854,010 ------------------------------------------------------------------------- $ 16,995,930 ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 6.4% ------------------------------------------------------------------------- $ 4,000 Sacramento City, Financing Authority, 5.40%, 11/1/20 $ 4,647,080 2,500 San Diego County, Certificates of Participation, 5.375%, 10/1/41 2,667,150 ------------------------------------------------------------------------- $ 7,314,230 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 13 CALIFORNIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Special Tax Revenue -- 18.8% ------------------------------------------------------------------------- $ 1,500 Bonita Canyon Public Facilities Financing Authority, 5.375%, 9/1/28 $ 1,491,660 1,750 Capistrano Unified School District, 5.75%, 9/1/29 1,777,965 1,685 Corona, Public Financing Authority, 5.80%, 9/1/20 1,693,206 1,000 Corona-Norco Unified School District Public Financing Authority, 6.125%, 9/1/31 1,028,560 1,590 Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 1,647,081 1,425 Lincoln Public Financing Authority, Improvement Bond Act of 1915 (Twelve Bridges), 6.20%, 9/2/25 1,497,176 600 Manteca Unified School District, 5.80%, 9/1/24 607,458 750 Murrieta Valley Unified School District, 6.20%, 9/1/35 753,330 2,465 Oakland Joint Powers Financing Authority, 5.40%, 9/2/18 2,685,420 995 Oakland Joint Powers Financing Authority, 5.50%, 9/2/24 1,064,222 700 Rancho Cucamonga Public Financing Authority, 6.00%, 9/2/20 734,979 1,245 Roseville Special Tax, 6.30%, 9/1/25 1,307,960 1,325 San Pablo Redevelopment Agency, 5.65%, 12/1/23 1,410,383 1,500 Santa Margarita Water District, 6.20%, 9/1/20 1,565,820 250 Santaluz Community Facilities District No. 2, 6.10%, 9/1/21 257,915 500 Santaluz Community Facilities District No. 2, 6.20%, 9/1/30 515,370 500 Turlock Public Financing Authority, 5.45%, 9/1/24 508,225 1,000 Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 1,031,620 ------------------------------------------------------------------------- $ 21,578,350 ------------------------------------------------------------------------- Transportation -- 1.0% ------------------------------------------------------------------------- $ 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 $ 1,158,183 ------------------------------------------------------------------------- $ 1,158,183 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 149.2% (identified cost $154,368,886) $171,074,492 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.3% $ 2,603,702 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (51.5)% $(59,001,285) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $114,676,909 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 60.3% 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 6.4% to 21.9% 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) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 14 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 150.9%
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 $ 1,067,770 ------------------------------------------------------------------------- $ 1,067,770 ------------------------------------------------------------------------- Electric Utilities -- 5.9% ------------------------------------------------------------------------- $1,850 Hillsborough County, IDA, (Tampa Electric Co.), 5.50%, 10/1/23 $ 1,833,757 2,000 Jacksonville Electric Authority, Variable Rate, 10/1/32(1)(2) 2,128,360 ------------------------------------------------------------------------- $ 3,962,117 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 5.3% ------------------------------------------------------------------------- $ 700 Alachua County Health Facilities Authority, (Beverly Enterprises Inc.), Prerefunded to 4/1/04, 6.75%, 4/1/10 $ 740,068 2,500 Escambia County, Health Facilities Authority, (Charity Obligation Group), Prerefunded to 11/1/10, 5.00%, 11/1/28 2,814,375 ------------------------------------------------------------------------- $ 3,554,443 ------------------------------------------------------------------------- General Obligations -- 2.5% ------------------------------------------------------------------------- $1,250 Florida, Variable Rate, 7/1/27(1)(2) $ 1,337,762 350 Florida Board of Education, 4.75%, 6/1/28 357,084 ------------------------------------------------------------------------- $ 1,694,846 ------------------------------------------------------------------------- Health Care-Miscellaneous -- 0.8% ------------------------------------------------------------------------- $ 500 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 509,535 ------------------------------------------------------------------------- $ 509,535 ------------------------------------------------------------------------- Hospital -- 11.8% ------------------------------------------------------------------------- $2,250 Highlands County Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/28 $ 2,293,717 1,250 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 1,335,075 1,750 Lakeland Hospital System, (Lakeland Regional Health System), 5.50%, 11/15/32 1,819,825 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,025,470 1,400 West Orange Health Care District, 5.80%, 2/1/31 1,466,570 ------------------------------------------------------------------------- $ 7,940,657 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Housing -- 3.6% ------------------------------------------------------------------------- $1,720 Escambia County Housing Finance Authority, SFM, (Multi-County Program), (AMT), 5.50%, 10/1/31 $ 1,801,167 500 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20 518,645 130 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 9.50%, 8/15/05 130,090 ------------------------------------------------------------------------- $ 2,449,902 ------------------------------------------------------------------------- Industrial Development Revenue -- 1.7% ------------------------------------------------------------------------- $ 940 Broward County IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19 $ 856,631 650 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 253,519 ------------------------------------------------------------------------- $ 1,110,150 ------------------------------------------------------------------------- Insured-Electric Utilities -- 9.8% ------------------------------------------------------------------------- $1,600 Burke County Development Authority (Georgia Power Co.), (MBIA), 5.45%, 5/1/34 $ 1,637,008 1,100 Guam Power Authority, (MBIA), 5.125%, 10/1/29 1,163,470 2,750 Jupiter Island, Utility System, (South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 2,869,350 750 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 887,062 ------------------------------------------------------------------------- $ 6,556,890 ------------------------------------------------------------------------- Insured-Escrowed / Prerefunded -- 3.4% ------------------------------------------------------------------------- $ 650 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 755,040 1,250 Tampa Bay Water Utility System, (FGIC), Prerefunded to 10/1/11, 5.75%, 10/1/29 1,518,261 ------------------------------------------------------------------------- $ 2,273,301 ------------------------------------------------------------------------- Insured-General Obligations -- 2.8% ------------------------------------------------------------------------- $1,500 Puerto Rico General Obligation, FSA, Variable Rate, 7/1/27(2)(3) $ 1,915,725 ------------------------------------------------------------------------- $ 1,915,725 ------------------------------------------------------------------------- Insured-Hospital -- 5.7% ------------------------------------------------------------------------- $1,000 Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC), 5.25%, 11/15/37 $ 1,048,910
SEE NOTES TO FINANCIAL STATEMENTS 15 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Hospital (continued) ------------------------------------------------------------------------- $1,350 Miami Dade County Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 $ 1,438,627 1,250 South Miami Health Facility Authority, (Baptist Health), (AMBAC), 5.25%, 11/15/33 1,342,550 ------------------------------------------------------------------------- $ 3,830,087 ------------------------------------------------------------------------- Insured-Housing -- 1.7% ------------------------------------------------------------------------- $1,100 Broward County Housing Finance Authority, Multifamily Housing, (Venice Homes Apartments), (FSA), (AMT), 5.70%, 1/1/32 $ 1,143,527 ------------------------------------------------------------------------- $ 1,143,527 ------------------------------------------------------------------------- Insured-Miscellaneous -- 11.6% ------------------------------------------------------------------------- $4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 $ 4,095,560 3,500 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/30 3,719,450 ------------------------------------------------------------------------- $ 7,815,010 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 13.9% ------------------------------------------------------------------------- $2,500 Dade County Convention Center Special Tax, (AMBAC), 5.00%, 10/1/35 $ 2,577,700 970 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(3) 1,060,443 2,250 Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30 2,364,862 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,901,812 1,395 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 1,451,135 ------------------------------------------------------------------------- $ 9,355,952 ------------------------------------------------------------------------- Insured-Transportation -- 23.0% ------------------------------------------------------------------------- $2,250 Florida Ports Financing Commission, (FGIC), 5.50%, 10/1/29 $ 2,383,920 3,700 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27(4) 3,732,227 1,500 Greater Orlando Aviation Authority, (FGIC), (AMT), Variable Rate, 4/1/13(2)(3) 1,793,475 650 Lee County Airport, (FSA), 6.00%, 10/1/29 737,120 500 Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25 543,400 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37 1,026,650 1,000 Miami-Dade County Expressway Authority, (FGIC), 5.125%, 7/1/29 1,065,730 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Transportation (continued) ------------------------------------------------------------------------- $1,000 Orlando and Orange County Expressway Authority, (FGIC), 5.00%, 7/1/28 $ 1,042,250 1,250 Puerto Rico Highway and Transportation Authority, (MBIA), 5.50%, 7/1/36 1,435,963 1,165 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(2)(3) 1,649,372 ------------------------------------------------------------------------- $ 15,410,107 ------------------------------------------------------------------------- Insured-Water and Sewer -- 20.3% ------------------------------------------------------------------------- $1,500 Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30 $ 1,632,180 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 1,050,970 1,250 Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28 1,308,488 4,000 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 4,324,960 1,500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 1,578,300 3,650 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 3,729,899 ------------------------------------------------------------------------- $ 13,624,797 ------------------------------------------------------------------------- Nursing Home -- 2.3% ------------------------------------------------------------------------- $ 850 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 $ 770,313 265 Orange County Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24 210,672 735 Orange County Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34 585,560 ------------------------------------------------------------------------- $ 1,566,545 ------------------------------------------------------------------------- Other Revenue -- 2.1% ------------------------------------------------------------------------- $ 500 Capital Trust Agency, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 534,490 750 Capital Trust Agency, (Seminole Tribe Convention), 10.00%, 10/1/33 853,868 ------------------------------------------------------------------------- $ 1,388,358 ------------------------------------------------------------------------- Senior Living / Life Care -- 2.2% ------------------------------------------------------------------------- $1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,452,255 ------------------------------------------------------------------------- $ 1,452,255 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 16 FLORIDA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Special Tax Revenue -- 11.0% ------------------------------------------------------------------------- $ 320 Fleming Island Plantation Community Development District, 6.30%, 2/1/05 $ 322,506 685 Heritage Harbour South Community Development District, (Capital Improvements), 5.40%, 11/1/08 688,315 900 Heritage Springs Community Development District, 6.75%, 5/1/21 923,526 920 Longleaf Community Development District, 6.65%, 5/1/20 838,700 750 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 783,923 1,000 Northern Palm Beach County Improvement District, (Water Control and Improvement), 6.00%, 8/1/25 1,032,490 500 Stoneybrook West Community Development District, 7.00%, 5/1/32 525,495 920 University Square Community Development District, 6.75%, 5/1/20 971,529 470 Vista Lakes Community Development District, 7.20%, 5/1/32 496,320 750 Waterlefe Community Development District, 6.95%, 5/1/31 776,363 ------------------------------------------------------------------------- $ 7,359,167 ------------------------------------------------------------------------- Water and Sewer -- 7.9% ------------------------------------------------------------------------- $2,000 Jacksonville, Water and Sewer, 5.375%, 10/1/29 $ 2,047,320 3,000 Seminole County, Water and Sewer, 5.375%, 10/1/22 3,258,180 ------------------------------------------------------------------------- $ 5,305,500 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 150.9% (identified cost $93,796,473) $101,286,641 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.0% $ 1,352,625 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (52.9)% $(35,503,204) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 67,136,062 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 61.2% 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 7.5% to 19.6% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 17 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 149.5%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Education -- 30.2% ------------------------------------------------------------------------- $ 500 Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31 $ 516,790 2,500 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 2,673,275 1,000 Massachusetts Development Finance Agency, (Clark University), 5.00%, 7/1/28 1,015,150 500 Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31 534,425 1,000 Massachusetts Development Finance Agency, (Suffolk University), 5.85%, 7/1/29 1,040,860 400 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 416,664 1,500 Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29 1,603,050 1,000 Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29 1,037,370 2,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 2,552,325 200 Massachusetts HEFA, (Wellesley College), 5.125%, 7/1/39 209,556 500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 519,325 400 Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28 411,256 ------------------------------------------------------------------------- $ 12,530,046 ------------------------------------------------------------------------- Electric Utilities -- 2.6% ------------------------------------------------------------------------- $1,000 Massachusetts IFA, (Devens Electric System), 6.00%, 12/1/30 $ 1,070,070 ------------------------------------------------------------------------- $ 1,070,070 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 4.9% ------------------------------------------------------------------------- $1,450 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20 $ 620,716 3,720 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/22 1,396,897 ------------------------------------------------------------------------- $ 2,017,613 ------------------------------------------------------------------------- Health Care-Miscellaneous -- 5.4% ------------------------------------------------------------------------- $1,000 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20 $ 1,096,990 510 Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29 472,959 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Health Care-Miscellaneous (continued) ------------------------------------------------------------------------- $ 700 Massachusetts HEFA, (Learning Center for Deaf Children), 6.125%, 7/1/29 $ 653,982 ------------------------------------------------------------------------- $ 2,223,931 ------------------------------------------------------------------------- Hospital -- 21.7% ------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Baystate Medical Center), 5.75%, 7/1/33 $ 1,055,300 400 Massachusetts HEFA, (Berkshire Health System), 6.25%, 10/1/31 421,940 500 Massachusetts HEFA, (Caritas Christi), 6.25%, 7/1/22 482,070 175 Massachusetts HEFA, (Central New England Health Systems), 6.30%, 8/1/18 173,717 1,100 Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31 1,174,041 1,000 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.25%, 7/15/18 993,750 125 Massachusetts HEFA, (Milford-Whitinsville Hospital), 5.375%, 7/15/28 119,440 1,375 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 1,423,826 2,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 2,080,300 1,000 Massachusetts HEFA, (Winchester Hospital), 6.75%, 7/1/30 1,073,510 ------------------------------------------------------------------------- $ 8,997,894 ------------------------------------------------------------------------- Industrial Development Revenue -- 1.9% ------------------------------------------------------------------------- $ 750 Massachusetts IFA, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15 $ 776,475 ------------------------------------------------------------------------- $ 776,475 ------------------------------------------------------------------------- Insured-Education -- 18.2% ------------------------------------------------------------------------- $2,925 Massachusetts College Building Authority, (XLCA), 0.00%, 5/1/21 $ 1,313,062 1,000 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 1,194,310 850 Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 10/1/27(1)(2) 933,759 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 1,045,870 500 Massachusetts HEFA, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31 537,775 1,000 Massachusetts IFA, (Merrimack College), (MBIA), 5.00%, 7/1/27 1,037,800
SEE NOTES TO FINANCIAL STATEMENTS 18 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Education (continued) ------------------------------------------------------------------------- $1,450 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28(3) $ 1,475,056 ------------------------------------------------------------------------- $ 7,537,632 ------------------------------------------------------------------------- Insured-Electric Utilities -- 2.0% ------------------------------------------------------------------------- $ 750 Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29 $ 818,520 ------------------------------------------------------------------------- $ 818,520 ------------------------------------------------------------------------- Insured-General Obligations -- 12.7% ------------------------------------------------------------------------- $1,500 Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32 $ 1,583,400 500 Plymouth, (MBIA), 5.25%, 10/15/20 560,985 900 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(4) 1,149,435 1,715 Westfield, (FGIC), 5.00%, 5/1/20 1,992,573 ------------------------------------------------------------------------- $ 5,286,393 ------------------------------------------------------------------------- Insured-Hospital -- 3.7% ------------------------------------------------------------------------- $1,000 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 1,019,130 500 Massachusetts HEFA, (Southcoast Health System), (MBIA), 4.75%, 7/1/27 504,625 ------------------------------------------------------------------------- $ 1,523,755 ------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 5.0% ------------------------------------------------------------------------- $1,000 Massachusetts Port Authority, (US Airways), (FGIC), (AMT), 5.00%, 7/1/28 $ 1,014,780 1,000 Massachusetts Port Authority, (US Airways), (MBIA), (AMT), 6.00%, 9/1/21 1,065,650 ------------------------------------------------------------------------- $ 2,080,430 ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 3.2% ------------------------------------------------------------------------- $1,250 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 1,316,037 ------------------------------------------------------------------------- $ 1,316,037 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 4.1% ------------------------------------------------------------------------- $ 800 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) $ 865,720 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Special Tax Revenue (continued) ------------------------------------------------------------------------- $ 735 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) $ 825,574 ------------------------------------------------------------------------- $ 1,691,294 ------------------------------------------------------------------------- Insured-Transportation -- 14.5% ------------------------------------------------------------------------- $1,435 Massachusetts Port Authority, (Delta Air Lines Inc., (AMBAC), (AMT), 5.50%, 1/1/16 $ 1,561,137 1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/27(2)(4) 1,187,956 2,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.25%, 1/1/29 2,148,520 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(4) 1,132,360 ------------------------------------------------------------------------- $ 6,029,973 ------------------------------------------------------------------------- Insured-Water and Sewer -- 3.7% ------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, (FGIC), 4.75%, 2/1/26 $ 1,528,590 ------------------------------------------------------------------------- $ 1,528,590 ------------------------------------------------------------------------- Nursing Home -- 4.0% ------------------------------------------------------------------------- $ 500 Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37 $ 562,185 520 Massachusetts Development Finance Agency, (Odd Fellows Home of Massachusetts), 6.25%, 1/1/15 490,136 600 Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29 596,022 ------------------------------------------------------------------------- $ 1,648,343 ------------------------------------------------------------------------- Other Revenue -- 1.0% ------------------------------------------------------------------------- $ 300 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(2)(4) $ 421,389 ------------------------------------------------------------------------- $ 421,389 ------------------------------------------------------------------------- Senior Living / Life Care -- 3.3% ------------------------------------------------------------------------- $1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,393,095 ------------------------------------------------------------------------- $ 1,393,095 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 19 MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Transportation -- 3.5% ------------------------------------------------------------------------- $1,350 Massachusetts Bay Transportation Authority, Variable Rate, 3/1/27(1)(2) $ 1,434,956 ------------------------------------------------------------------------- $ 1,434,956 ------------------------------------------------------------------------- Water and Sewer -- 3.9% ------------------------------------------------------------------------- $1,500 Massachusetts Water Pollution Abatement Trust, PCR, 5.375%, 8/1/27 $ 1,633,230 ------------------------------------------------------------------------- $ 1,633,230 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 149.5% (identified cost $56,177,670) $ 61,959,666 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.4% $ 986,838 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (51.9)% $(21,502,941) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 41,443,563 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 44.9% 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 3.3% to 18.2% 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 (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (4) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 20 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 152.4%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Education -- 4.0% ------------------------------------------------------------------------- $1,250 Michigan Higher Education Facility Authority, (Creative Studies), 5.90%, 12/1/27 $ 1,286,825 ------------------------------------------------------------------------- $ 1,286,825 ------------------------------------------------------------------------- Electric Utilities -- 4.0% ------------------------------------------------------------------------- $1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,312,112 ------------------------------------------------------------------------- $ 1,312,112 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 2.8% ------------------------------------------------------------------------- $ 750 Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26 $ 924,720 ------------------------------------------------------------------------- $ 924,720 ------------------------------------------------------------------------- General Obligations -- 16.9% ------------------------------------------------------------------------- $ 500 East Grand Rapids Public Schools, 5.00%, 5/1/25 $ 524,805 500 Garden City School District, 5.00%, 5/1/26 524,120 5,335 Grand Rapids and Kent County Joint Building Authority, 0.00%, 12/1/29 1,490,439 1,000 Manistee Area Public Schools, 5.00%, 5/1/24 1,053,730 1,000 White Cloud Public Schools, 5.125%, 5/1/31 1,052,580 800 Woodhaven Brownstown School District, 5.125%, 5/1/32 846,432 ------------------------------------------------------------------------- $ 5,492,106 ------------------------------------------------------------------------- Health Care-Miscellaneous -- 1.2% ------------------------------------------------------------------------- $ 395 Pittsfield Township EDC, (Arbor Hospice), 7.875%, 8/15/27 $ 391,137 ------------------------------------------------------------------------- $ 391,137 ------------------------------------------------------------------------- Hospital -- 34.0% ------------------------------------------------------------------------- $ 500 Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 $ 508,255 345 John Tolfree Health System Corp., 6.00%, 9/15/23 355,319 500 Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/31 524,645 500 Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 480,540 1,000 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 1,013,680 1,000 Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27 975,740 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Hospital (continued) ------------------------------------------------------------------------- $1,000 Michigan Hospital Finance Authority, (Henry Ford Health), 5.25%, 11/15/20 $ 1,026,940 2,275 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 2,180,110 750 Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 741,577 750 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 780,495 750 Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 843,510 750 Royal Oak Hospital Finance Authority, (William Beaumount Hospital), 5.25%, 1/1/20 775,087 800 Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 881,232 ------------------------------------------------------------------------- $ 11,087,130 ------------------------------------------------------------------------- Housing -- 3.2% ------------------------------------------------------------------------- $1,000 Multifamily Housing, (AMT), 6.00%, 11/1/33 $ 1,042,870 ------------------------------------------------------------------------- $ 1,042,870 ------------------------------------------------------------------------- Industrial Development Revenue -- 10.6% ------------------------------------------------------------------------- $ 500 Delta County EDC, (Mead Westvaco-Escanaba), 6.25%, 4/15/27 $ 518,200 1,000 Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 1,028,500 800 Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16 846,040 800 Michigan Strategic Fund, (S.D. Warren), (AMT), 7.375%, 1/15/22 807,688 625 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 243,769 ------------------------------------------------------------------------- $ 3,444,197 ------------------------------------------------------------------------- Insured-Education -- 1.6% ------------------------------------------------------------------------- $ 500 Central Michigan University, (FGIC), 5.00%, 10/1/27 $ 516,645 ------------------------------------------------------------------------- $ 516,645 ------------------------------------------------------------------------- Insured-Electric Utilities -- 4.9% ------------------------------------------------------------------------- $1,000 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 $ 1,067,590 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 525,060 ------------------------------------------------------------------------- $ 1,592,650 ------------------------------------------------------------------------- Insured-General Obligations -- 24.7% ------------------------------------------------------------------------- $1,000 Central Montcalm Public Schools, (MBIA), 6.00%, 5/1/29 $ 1,153,950
SEE NOTES TO FINANCIAL STATEMENTS 21 MICHIGAN MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-General Obligations (continued) ------------------------------------------------------------------------- $ 650 Detroit School District, (FGIC), 4.75%, 5/1/28 $ 663,397 450 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 458,703 2,000 Fenton Area Public Schools, (FGIC), 5.00%, 5/1/24 2,102,940 2,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 2,219,440 1,120 Okemos Public School District, (MBIA), 0.00%, 5/1/19 563,662 700 Puerto Rico General Obligation, FSA, Variable Rate, 7/1/27(1)(2) 894,005 ------------------------------------------------------------------------- $ 8,056,097 ------------------------------------------------------------------------- Insured-Hospital -- 8.2% ------------------------------------------------------------------------- $ 500 Michigan Health Facilities Authority, (Detroit Medical Group), (AMBAC), 5.25%, 8/15/27 $ 522,975 1,000 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,052,980 1,000 Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 1,080,770 ------------------------------------------------------------------------- $ 2,656,725 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 8.5% ------------------------------------------------------------------------- $ 300 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 305,070 600 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(3) 649,290 455 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) 511,070 1,250 Wayne Charter County, (Airport Hotel-Detroit Metroplitan Airport), (MBIA), 5.00%, 12/1/30 1,306,250 ------------------------------------------------------------------------- $ 2,771,680 ------------------------------------------------------------------------- Insured-Student Loan -- 3.2% ------------------------------------------------------------------------- $1,000 Michigan Higher Education Student Loan Authority Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(4) $ 1,041,750 ------------------------------------------------------------------------- $ 1,041,750 ------------------------------------------------------------------------- Insured-Transportation -- 12.9% ------------------------------------------------------------------------- $ 670 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) $ 758,681 600 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(1)(2) 849,462 2,000 Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 12/1/28(1)(3) 2,053,940 525 Wayne Charter County Metropolitan Airport, (MBIA), 5.00%, 12/1/28 544,299 ------------------------------------------------------------------------- $ 4,206,382 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Water and Sewer -- 8.5% ------------------------------------------------------------------------- $1,000 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,053,500 1,650 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 1,722,963 ------------------------------------------------------------------------- $ 2,776,463 ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 0.8% ------------------------------------------------------------------------- $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 259,943 ------------------------------------------------------------------------- $ 259,943 ------------------------------------------------------------------------- Transportation -- 2.4% ------------------------------------------------------------------------- $ 750 Kent County Airport Facility, Variable Rate, 1/1/25(1)(3) $ 790,125 ------------------------------------------------------------------------- $ 790,125 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 152.4% (identified cost $45,328,831) $ 49,649,557 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 1.3% $ 432,809 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (53.7)% $(17,501,298) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 32,581,068 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 47.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.1% to 21.0% 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. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 22 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 151.4%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Cogeneration -- 1.5% ------------------------------------------------------------------------- $ 1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,030,130 ------------------------------------------------------------------------- $ 1,030,130 ------------------------------------------------------------------------- Education -- 12.3% ------------------------------------------------------------------------- $ 1,485 New Jersey Educational Facilities Authority, (Bloomfield College), 6.85%, 7/1/30 $ 1,562,398 3,935 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/20 4,216,471 2,750 New Jersey Educational Facilities Authority, (Steven's Institute of Technology), 5.25%, 7/1/32 2,842,345 ------------------------------------------------------------------------- $ 8,621,214 ------------------------------------------------------------------------- Electric Utilities -- 2.2% ------------------------------------------------------------------------- $ 1,500 Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31 $ 1,508,280 ------------------------------------------------------------------------- $ 1,508,280 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 2.3% ------------------------------------------------------------------------- $ 1,250 New Jersey EDA, (Kapkowski Mall), Prerefunded to 5/15/14, 6.375%, 4/1/31 $ 1,608,362 ------------------------------------------------------------------------- $ 1,608,362 ------------------------------------------------------------------------- Hospital -- 19.9% ------------------------------------------------------------------------- $ 1,035 New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25 $ 1,118,142 550 New Jersey Health Care Facilities Financing Authority, (Burdette Tomlin Memorial Hospital), 5.50%, 7/1/29 569,695 1,950 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27 1,896,667 1,000 New Jersey Health Care Facilities Financing Authority, (Deborah Heart and Lung Center), 6.30%, 7/1/23 1,019,430 2,000 New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34 2,128,120 750 New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 6.50%, 7/1/21 781,072 2,000 New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31 2,181,180 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Hospital (continued) ------------------------------------------------------------------------- $ 1,450 New Jersey Health Care Facilities Financing Authority, (Saint Peters University Hospital), (AMT), 6.875%, 7/1/20 $ 1,615,039 1,900 New Jersey Health Care Facilities Financing Authority, (St. Elizabeth's Hospital), 6.00%, 7/1/20 1,948,963 600 New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30 666,972 ------------------------------------------------------------------------- $ 13,925,280 ------------------------------------------------------------------------- Industrial Development Revenue -- 10.8% ------------------------------------------------------------------------- $ 1,000 Gloucester County, Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29 $ 1,152,370 1,000 New Jersey EDA, (Anheuser-Busch), (AMT), 5.85%, 12/1/30 1,050,560 1,500 New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29 1,116,165 3,700 New Jersey EDA, (The Seeing Eye, Inc.), 6.20%, 12/1/24 4,255,370 ------------------------------------------------------------------------- $ 7,574,465 ------------------------------------------------------------------------- Insured-Education -- 10.1% ------------------------------------------------------------------------- $ 1,000 New Jersey Educational Facilities Authority, (Jersey City University), (AMBAC), 5.00%, 7/1/32 $ 1,054,850 600 New Jersey Educational Facilities Authority, (NJ Institute of Technology), (MBIA), 4.75%, 7/1/31 617,634 1,750 New Jersey Educational Facilities Authority, (Ramapo College), (MBIA), 5.75%, 7/1/29 2,000,705 1,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(1)(2) 1,825,584 1,500 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 1,585,395 ------------------------------------------------------------------------- $ 7,084,168 ------------------------------------------------------------------------- Insured-Electric Utilities -- 1.9% ------------------------------------------------------------------------- $ 1,250 Vineland, (Electric Utility), (MBIA), (AMT), 5.25%, 5/15/26 $ 1,334,062 ------------------------------------------------------------------------- $ 1,334,062 ------------------------------------------------------------------------- Insured-General Obligations -- 11.8% ------------------------------------------------------------------------- $ 700 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30 $ 742,154 1,000 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/31 1,059,480
SEE NOTES TO FINANCIAL STATEMENTS 23 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-General Obligations (continued) ------------------------------------------------------------------------- $ 1,555 Colts Neck Township Board of Education, (FSA), 5.00%, 2/1/26 $ 1,705,135 1,000 Montgomery Township Board of Education, (MBIA), 5.00%, 8/1/25 1,067,270 500 Montgomery Township Board of Education, (MBIA), 5.00%, 4/1/27 527,815 1,000 Old Bridge Township Board of Education, (MBIA), 5.00%, 7/15/26 1,057,720 2,000 Washington Township, Mercer County Board of Education, (FGIC), 5.00%, 1/1/26 2,113,520 ------------------------------------------------------------------------- $ 8,273,094 ------------------------------------------------------------------------- Insured-Housing -- 0.5% ------------------------------------------------------------------------- $ 300 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing, (FSA), 5.75%, 5/1/25 $ 323,217 ------------------------------------------------------------------------- $ 323,217 ------------------------------------------------------------------------- Insured-Industrial Development Revenue -- 3.1% ------------------------------------------------------------------------- $ 1,580 New Jersey EDA, (FSA), Variable Rate, 5/1/17(1)(3) $ 2,148,373 ------------------------------------------------------------------------- $ 2,148,373 ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 3.1% ------------------------------------------------------------------------- $ 6,000 Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/25 $ 2,133,780 ------------------------------------------------------------------------- $ 2,133,780 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 5.3% ------------------------------------------------------------------------- $ 3,575 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 9/1/20 $ 3,671,847 ------------------------------------------------------------------------- $ 3,671,847 ------------------------------------------------------------------------- Insured-Transportation -- 28.1% ------------------------------------------------------------------------- $ 4,000 Delaware River and Bay Authority, (AMBAC), 5.75%, 1/1/29(4) $ 4,567,640 1,000 Delaware River Port Authority, (FSA), 5.625%, 1/1/26 1,123,120 3,250 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 3,701,068 800 New Jersey Transportation Trust Fund Authority, (MBIA), 5.00%, 12/15/21 853,216 1,500 New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate, 7/1/23(1)(2) 1,975,590 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Transportation (continued) ------------------------------------------------------------------------- $ 1,100 Port Authority of New York and New Jersey, (AMBAC), 4.75%, 1/15/26 $ 1,120,746 4,000 Port Authority of New York and New Jersey, (JFK International Terminal), (MBIA), (AMT), 5.75%, 12/1/25 4,434,840 1,630 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) 1,845,747 ------------------------------------------------------------------------- $ 19,621,967 ------------------------------------------------------------------------- Insured-Water and Sewer -- 8.1% ------------------------------------------------------------------------- $ 750 Bayonne Municipal Utilities Authority, Sewer System, (FGIC), 5.00%, 4/1/33 $ 793,868 1,500 Bordentown Sewer Authority, (FGIC), 5.375%, 12/1/20 1,675,365 1,000 New Jersey Economic Development Authority Water Facilities, (Middlesex Water Co.), (AMBAC), (AMT), 5.10%, 1/1/32 1,053,670 3,150 Passaic Valley Sewer Commissioners, (FGIC), 2.50%, 12/1/32 2,144,426 ------------------------------------------------------------------------- $ 5,667,329 ------------------------------------------------------------------------- Nursing Home -- 3.1% ------------------------------------------------------------------------- $ 1,000 New Jersey EDA, (Masonic Charity Foundation), 5.50%, 6/1/31 $ 1,085,880 995 New Jersey EDA, (Victoria Health), 5.20%, 12/20/36 1,072,839 ------------------------------------------------------------------------- $ 2,158,719 ------------------------------------------------------------------------- Other Revenue -- 4.9% ------------------------------------------------------------------------- $ 1,000 New Jersey EDA, (Glimcher Properties REIT), (AMT), 6.00%, 11/1/28 $ 971,650 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(1)(2) 1,404,630 1,250 Tobacco Settlement Financing Corp., Variable Rate, 6/1/39(1)(3) 1,080,375 ------------------------------------------------------------------------- $ 3,456,655 ------------------------------------------------------------------------- Senior Living / Life Care -- 3.1% ------------------------------------------------------------------------- $ 1,100 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 1,088,296 1,100 New Jersey EDA, (United Methodist Homes), 5.75%, 7/1/29 1,087,482 ------------------------------------------------------------------------- $ 2,175,778 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 24 NEW JERSEY MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Transportation -- 19.3% ------------------------------------------------------------------------- $ 1,175 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,221,001 4,000 New Jersey Highway Authority, (Garden State Parkway), 5.625%, 1/1/30 4,409,880 1,500 New Jersey Transportation Trust Fund Authority, Variable Rate, 6/15/17(1)(3) 1,761,645 2,550 Port Authority of New York and New Jersey, 4.75%, 8/1/33 2,574,327 1,600 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) 2,295,600 1,175 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,220,179 ------------------------------------------------------------------------- $ 13,482,632 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 151.4% (identified cost $94,492,870) $105,799,352 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.0% $ 2,071,646 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (54.4)% $(38,000,000) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 69,870,998 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 47.5% 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 8.1% to 18.3% 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. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. SEE NOTES TO FINANCIAL STATEMENTS 25 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 148.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Cogeneration -- 2.4% ------------------------------------------------------------------------- $1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,030,130 1,150 Suffolk County IDA, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23 1,073,548 ------------------------------------------------------------------------- $ 2,103,678 ------------------------------------------------------------------------- Education -- 8.1% ------------------------------------------------------------------------- $1,000 Dutchess County IDA, (Marist College), 5.00%, 7/1/20 $ 1,032,360 500 New York Dormitory Authority, (City University), 5.25%, 7/1/31 570,210 4,025 New York Dormitory Authority, (Rockefeller University), 4.75%, 7/1/37 4,114,757 1,285 New York Dormitory Authority, (University Educational Facility), 4.75%, 5/15/28 1,297,940 ------------------------------------------------------------------------- $ 7,015,267 ------------------------------------------------------------------------- Electric Utilities -- 10.8% ------------------------------------------------------------------------- $2,000 Long Island Power Authority, 5.50%, 12/1/23 $ 2,177,300 1,655 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 1,760,457 1,000 Long Island Power Authority, Electric System Revenue, 5.375%, 9/1/25 1,045,310 4,100 New York Power Authority, 5.25%, 11/15/40 4,339,768 ------------------------------------------------------------------------- $ 9,322,835 ------------------------------------------------------------------------- Escrowed / Prerefunded -- 12.7% ------------------------------------------------------------------------- $2,000 New York City Transitional Finance Authority, Prerefunded to 5/15/10, 6.00%, 11/15/29 $ 2,450,540 3,000 New York City Transitional Finance Authority, Prerefunded to 8/15/09, 6.00%, 8/15/29 3,663,510 1,545 New York Dormitory Authority, (University Educational Facility), Prerefunded to 5/15/08, 4.75%, 5/15/28 1,757,098 2,500 Tompkins County IDA, (Cornell University), Prerefunded to 3/1/10, 5.75%, 7/1/30 3,031,925 ------------------------------------------------------------------------- $ 10,903,073 ------------------------------------------------------------------------- General Obligations -- 6.0% ------------------------------------------------------------------------- $4,630 New York City, 6.00%, 8/1/16 $ 5,143,467 ------------------------------------------------------------------------- $ 5,143,467 ------------------------------------------------------------------------- Health Care-Miscellaneous -- 6.6% ------------------------------------------------------------------------- $1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29 $ 1,044,437 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Health Care-Miscellaneous (continued) ------------------------------------------------------------------------- $1,500 New York City IDA, (Ohel Children's Home), 6.00%, 3/15/23 $ 1,362,405 225 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 237,863 230 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 243,149 2,600 Westchester County IDA, (Children's Village), 5.375%, 3/15/19 2,750,566 ------------------------------------------------------------------------- $ 5,638,420 ------------------------------------------------------------------------- Hospital -- 13.3% ------------------------------------------------------------------------- $ 245 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 233,213 500 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 477,345 1,250 Fulton County IDA, (Nathan Littauer Hospital), 6.00%, 11/1/18 1,127,700 400 Nassau County, IDA, Civic Facility Revenue, (North Shore Health System), 6.25%, 11/1/21 403,540 3,200 New York City Health and Hospital Corp., 5.25%, 2/15/17 3,364,640 300 New York City Health and Hospital Corp., (Health System), 5.375%, 2/15/26 312,789 500 New York City Industrial Development Agency Civic, (Staten Island University Hospital), 6.45%, 7/1/32 538,085 1,500 New York Dormitory Authority Revenue, (Lenox Hill Hospital), 5.50%, 7/1/30 1,579,905 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,139,462 2,105 Suffolk County Industrial Development Agency Civic Facility, (Huntington Hospital), 6.00%, 11/1/22 2,278,768 ------------------------------------------------------------------------- $ 11,455,447 ------------------------------------------------------------------------- Industrial Development Revenue -- 5.4% ------------------------------------------------------------------------- $1,500 New York City, NY, Industrial Development Agency, (American Airlines, Inc.-JFK International Airport), (AMT), 8.00%, 8/1/12 $ 607,680 775 Onandaga County IDA, (AMT), 6.125%, 1/1/32 790,422 2,500 Onondaga County IDA, (Anheuser-Busch), (AMT), 6.25%, 12/1/34 2,727,225 550 Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15 556,985 ------------------------------------------------------------------------- $ 4,682,312 ------------------------------------------------------------------------- Insured-Education -- 8.1% ------------------------------------------------------------------------- $1,200 New York Dormitory Authority, (Cooper Union), (MBIA), 6.25%, 7/1/29 $ 1,427,292
SEE NOTES TO FINANCIAL STATEMENTS 26 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Education (continued) ------------------------------------------------------------------------- $4,500 New York Dormitory Authority, (New York University), (MBIA), 5.75%, 7/1/27 $ 5,550,255 ------------------------------------------------------------------------- $ 6,977,547 ------------------------------------------------------------------------- Insured-Electric Utilities -- 0.9% ------------------------------------------------------------------------- $ 750 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 $ 810,255 ------------------------------------------------------------------------- $ 810,255 ------------------------------------------------------------------------- Insured-Escrowed / Prerefunded -- 12.0% ------------------------------------------------------------------------- $1,500 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 $ 1,589,805 1,400 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 1,496,530 1,000 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.875%, 7/1/18 1,107,560 4,005 Metropolitan Transportation Authority of New York, Prerefunded to 10/1/14, (FSA), 5.25%, 4/1/23 4,778,165 1,250 New York Local Government Assistance Corp., (AMBAC), Prerefunded to 4/1/05, 6.00%, 4/1/24 1,386,362 ------------------------------------------------------------------------- $ 10,358,422 ------------------------------------------------------------------------- Insured-General Obligations -- 2.6% ------------------------------------------------------------------------- $1,750 Puerto Rico General Obligation, FSA, Variable Rate, 7/1/27(1)(2) $ 2,235,013 ------------------------------------------------------------------------- $ 2,235,013 ------------------------------------------------------------------------- Insured-Hospital -- 11.6% ------------------------------------------------------------------------- $5,000 New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), (MBIA), 5.50%, 7/1/23(3) $ 5,902,200 4,000 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 4,077,960 ------------------------------------------------------------------------- $ 9,980,160 ------------------------------------------------------------------------- Insured-Lease Revenue / Certificates of Participation -- 1.3% ------------------------------------------------------------------------- $1,000 New York Dormitory Authority, (Department Health), (MBIA), 5.50%, 7/1/25 $ 1,108,180 ------------------------------------------------------------------------- $ 1,108,180 ------------------------------------------------------------------------- Insured-Miscellaneous -- 1.5% ------------------------------------------------------------------------- $1,000 New York City, Trust for Cultural Resources, (AMBAC), Variable Rate, 7/1/29(1)(4) $ 1,322,200 ------------------------------------------------------------------------- $ 1,322,200 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 3.0% ------------------------------------------------------------------------- $1,175 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(4) $ 1,271,526 1,190 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) 1,336,644 ------------------------------------------------------------------------- $ 2,608,170 ------------------------------------------------------------------------- Insured-Transportation -- 15.6% ------------------------------------------------------------------------- $2,325 Monroe County Airport Authority, (MBIA), (AMT), Variable Rate, 1/1/17(1)(4) $ 3,264,184 3,750 New York Thruway Authority, (Highway and Bridge), (AMBAC), 5.125%, 4/1/20 4,088,438 2,735 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), 5.625%, 4/1/29 2,959,844 1,750 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), Variable Rate, 4/1/29(1)(4) 2,037,735 1,000 Port Authority of New York and New Jersey, (FSA), 5.00%, 4/15/32 1,059,140 ------------------------------------------------------------------------- $ 13,409,341 ------------------------------------------------------------------------- Insured-Water and Sewer -- 2.6% ------------------------------------------------------------------------- $2,000 New York City Municipal Water Finance Authority, (FGIC), 5.50%, 6/15/32 $ 2,253,860 ------------------------------------------------------------------------- $ 2,253,860 ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 5.6% ------------------------------------------------------------------------- $4,385 New York Dormitory Authority, (Court Facility), 6.00%, 5/15/39 $ 4,792,849 ------------------------------------------------------------------------- $ 4,792,849 ------------------------------------------------------------------------- Miscellaneous -- 3.6% ------------------------------------------------------------------------- $1,285 Albany Industrial Development Agency Civic Facility, (Charitable Leadership), 5.75%, 7/1/26 $ 1,329,153 1,250 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(2) 1,749,313 ------------------------------------------------------------------------- $ 3,078,466 ------------------------------------------------------------------------- Senior Living / Life Care -- 2.6% ------------------------------------------------------------------------- $1,250 Mount Vernon IDA, (Wartburg Senior Housing, Inc. - Meadowview), 6.20%, 6/1/29 $ 1,204,750 1,000 Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19 1,054,700 ------------------------------------------------------------------------- $ 2,259,450 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 27 NEW YORK MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Special Tax Revenue -- 1.3% ------------------------------------------------------------------------- $1,040 New York State Local Government Assistance Corp., 5.00%, 4/1/21 $ 1,148,493 ------------------------------------------------------------------------- $ 1,148,493 ------------------------------------------------------------------------- Transportation -- 3.0% ------------------------------------------------------------------------- $1,800 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) $ 2,582,550 ------------------------------------------------------------------------- $ 2,582,550 ------------------------------------------------------------------------- Water and Sewer -- 7.6% ------------------------------------------------------------------------- $1,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29 $ 1,563,600 3,500 New York City Municipal Water Finance Authority, 5.75%, 6/15/29 3,952,585 1,000 New York Environmental Facility Corp., Clean Water, 5.00%, 6/15/28 1,054,650 ------------------------------------------------------------------------- $ 6,570,835 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 148.2% (identified cost $114,394,185) $127,760,290 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 3.4% $ 2,954,006 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (51.6)% $(44,501,598) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 86,212,698 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 40.0% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 5.0% to 17.4% 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 (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (4) Security has been issued as an inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 28 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 151.9%
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 $ 373,464 ------------------------------------------------------------------------- $ 373,464 ------------------------------------------------------------------------- Education -- 3.8% ------------------------------------------------------------------------- $1,500 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 10/1/29(1)(2) $ 1,628,265 ------------------------------------------------------------------------- $ 1,628,265 ------------------------------------------------------------------------- Electric Utilities -- 5.4% ------------------------------------------------------------------------- $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 529,680 1,750 Ohio Water Development Authority, Pollution Control Facilities, (Cleveland Electric), (AMT), 6.10%, 8/1/20 1,789,917 ------------------------------------------------------------------------- $ 2,319,597 ------------------------------------------------------------------------- General Obligations -- 6.7% ------------------------------------------------------------------------- $1,000 Delaware County, 6.00%, 12/1/25 $ 1,180,780 1,530 Hamilton City School District, 5.625%, 12/1/24 1,724,325 ------------------------------------------------------------------------- $ 2,905,105 ------------------------------------------------------------------------- Hospital -- 21.8% ------------------------------------------------------------------------- $ 550 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 578,452 1,500 Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32 1,573,500 2,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 2,053,840 625 Highland County, (Joint Township Hospital District), 6.75%, 12/1/29 592,631 400 Mahoning County Hospital Facility, (Forum Health Obligation Group), 6.00%, 11/15/32 424,724 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,304,050 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,790,180 1,000 Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22 1,084,800 ------------------------------------------------------------------------- $ 9,402,177 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Housing -- 2.4% ------------------------------------------------------------------------- $1,000 Multifamily Housing, (Tyler's Creek), (AMT), 6.00%, 11/1/33 $ 1,042,870 ------------------------------------------------------------------------- $ 1,042,870 ------------------------------------------------------------------------- Industrial Development Revenue -- 19.8% ------------------------------------------------------------------------- $1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.70%, 12/1/19 $ 740,063 1,300 Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18 1,066,260 3,000 Moraine Solid Waste Disposal, (General Motors Corp.), (AMT), 5.65%, 7/1/24 3,012,720 1,250 Ohio Environmental Facilities, (Ford Motor), (AMT), 5.95%, 9/1/29 1,255,925 2,250 Ohio Water Development Authority, (Anheuser-Busch), (AMT), 6.00%, 8/1/38 2,428,020 ------------------------------------------------------------------------- $ 8,502,988 ------------------------------------------------------------------------- Insured-Certificates of Participation -- 3.8% ------------------------------------------------------------------------- $1,500 Cleveland, Certificates of Participation, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/22 $ 1,627,770 ------------------------------------------------------------------------- $ 1,627,770 ------------------------------------------------------------------------- Insured-Education -- 13.9% ------------------------------------------------------------------------- $1,500 Cleveland State University, (FGIC), 5.00%, 6/1/33 $ 1,582,755 1,000 Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), 5.50%, 12/1/30 1,107,670 1,500 University of Akron, (FGIC), Variable Rate, 1/1/29(1)(2) 1,925,775 1,250 University of Cincinnati, (FGIC), 5.25%, 6/1/24 1,356,713 ------------------------------------------------------------------------- $ 5,972,913 ------------------------------------------------------------------------- Insured-Electric Utilities -- 4.1% ------------------------------------------------------------------------- $2,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 731,080 3,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 1,040,010 ------------------------------------------------------------------------- $ 1,771,090 ------------------------------------------------------------------------- Insured-Escrowed / Prerefunded -- 1.2% ------------------------------------------------------------------------- $ 500 Cuyahoga County, (Cleveland Clinic), (MBIA), Escrowed to Maturity, 5.125%, 1/1/29(3) $ 523,610 ------------------------------------------------------------------------- $ 523,610 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 29 OHIO MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-General Obligations -- 21.4% ------------------------------------------------------------------------- $1,000 Lima City School District, (AMBAC), 5.50%, 12/1/22 $ 1,123,340 500 Lima City School District, (AMBAC), 6.00%, 12/1/22 593,110 1,705 Plain Local School District, (FGIC), 5.00%, 12/1/30 1,804,248 1,000 Puerto Rico General Obligation, FSA, Variable Rate, 7/1/27(2)(4) 1,277,150 1,250 South-Western City School District, Franklin and Pickway Counties, (AMBAC), 4.75%, 12/1/26 1,279,125 2,860 Springfield City School District Clark County, (FGIC), 5.20%, 12/1/23 3,127,896 ------------------------------------------------------------------------- $ 9,204,869 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 11.0% ------------------------------------------------------------------------- $2,500 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 $ 2,570,675 2,000 Hamiliton County Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32 2,153,820 ------------------------------------------------------------------------- $ 4,724,495 ------------------------------------------------------------------------- Insured-Transportation -- 11.4% ------------------------------------------------------------------------- $1,325 Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31 $ 1,381,392 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 1,190,160 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26 1,186,560 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(4) 1,132,360 ------------------------------------------------------------------------- $ 4,890,472 ------------------------------------------------------------------------- Lease Revenue / Certificates of Participation -- 3.2% ------------------------------------------------------------------------- $1,300 Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19 $ 1,379,495 ------------------------------------------------------------------------- $ 1,379,495 ------------------------------------------------------------------------- Miscellaneous -- 3.2% ------------------------------------------------------------------------- $1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(2)(4) $ 1,399,450 ------------------------------------------------------------------------- $ 1,399,450 ------------------------------------------------------------------------- Nursing Home -- 5.0% ------------------------------------------------------------------------- $1,755 Cuyahoga County, Health Care Facilities, (Benjamin Rose Institute), 5.50%, 12/1/28 $ 1,609,932 630 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 554,954 ------------------------------------------------------------------------- $ 2,164,886 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Pooled Loans -- 7.5% ------------------------------------------------------------------------- $1,020 Ohio Economic Development, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22 $ 1,092,930 1,000 Rickenbacker Port Authority, Oasbo Expanded Asset Pooled Loan, 5.375%, 1/1/32 1,113,120 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 1,020,635 ------------------------------------------------------------------------- $ 3,226,685 ------------------------------------------------------------------------- Special Tax Revenue -- 5.4% ------------------------------------------------------------------------- $ 600 Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18 $ 614,556 1,420 Cuyahoga County, Economic Development, (Shaker Square), 6.75%, 12/1/30 1,695,636 ------------------------------------------------------------------------- $ 2,310,192 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 151.9% (identified cost $60,698,852) $ 65,370,393 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.7% $ 1,165,092 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (54.6)% $(23,502,829) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 43,032,656 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Ohio municipali- ties. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 43.9% 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 4.1% to 18.6% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (4) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 30 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) TAX-EXEMPT INVESTMENTS -- 152.4%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Cogeneration -- 3.7% ------------------------------------------------------------------------- $ 470 Carbon County IDA, (Panther Creek Partners), (AMT), 6.65%, 5/1/10 $ 494,825 500 Pennsylvania EDA, (Northampton Generating), (AMT), 6.50%, 1/1/13 508,620 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 518,180 ------------------------------------------------------------------------- $ 1,521,625 ------------------------------------------------------------------------- Education -- 8.6% ------------------------------------------------------------------------- $ 1,500 Pennsylvania HEFA, (Drexel University), 6.00%, 5/1/29 $ 1,635,645 1,300 Pennsylvania HEFA, (University of Pennsylvania), 4.625%, 7/15/30 1,306,409 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 600,918 ------------------------------------------------------------------------- $ 3,542,972 ------------------------------------------------------------------------- Electric Utilities -- 1.5% ------------------------------------------------------------------------- $ 600 York County, IDA, Pollution Control, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20 $ 601,878 ------------------------------------------------------------------------- $ 601,878 ------------------------------------------------------------------------- Health Care -- Miscellaneous -- 5.3% ------------------------------------------------------------------------- $ 600 Allegheny County, IDA, (Residential Resources, Inc.), 6.50%, 9/1/21 $ 599,286 1,500 Chester County HEFA, (Devereux Foundation), 6.00%, 11/1/29 1,586,730 ------------------------------------------------------------------------- $ 2,186,016 ------------------------------------------------------------------------- Hospital -- 7.4% ------------------------------------------------------------------------- $ 300 Allegheny County Hospital Development Authority, (West Pennsylvania Allegheny Health System), 9.25%, 11/15/30 $ 335,583 1,250 Lehigh County, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,269,525 850 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 909,211 500 Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17 538,525 ------------------------------------------------------------------------- $ 3,052,844 ------------------------------------------------------------------------- PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Industrial Development Revenue -- 5.1% ------------------------------------------------------------------------- $ 500 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 447,495 1,000 Pennsylvania, IDA, (Sun Co.), (AMT), 7.60%, 12/1/24 1,059,720 1,550 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 604,547 ------------------------------------------------------------------------- $ 2,111,762 ------------------------------------------------------------------------- Insured-Education -- 23.1% ------------------------------------------------------------------------- $ 900 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 965,853 1,000 Northampton County HEFA, (Lafayette College), (MBIA), 5.00%, 11/1/27 1,031,780 1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29 1,054,860 2,000 Pennsylvania HEFA, (State System Higher Education), (FSA), 5.00%, 6/15/24 2,103,740 2,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(1) 2,076,080 600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(2)(3) 684,594 1,500 University of Pittsburgh, (MBIA), 5.00%, 6/1/21 1,596,855 ------------------------------------------------------------------------- $ 9,513,762 ------------------------------------------------------------------------- Insured-Electric Utilities -- 4.4% ------------------------------------------------------------------------- $ 600 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(2)(3) $ 764,472 835 Puerto Rico Electric Power Authority, DRIVERS, (FSA), Variable Rate, 7/1/29(2)(3) 1,063,890 ------------------------------------------------------------------------- $ 1,828,362 ------------------------------------------------------------------------- Insured-Escrowed / Prerefunded -- 5.4% ------------------------------------------------------------------------- $ 1,000 Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09 @ 102, 6.00%, 11/1/29 $ 1,233,040 2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 994,080 ------------------------------------------------------------------------- $ 2,227,120 -------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 31 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Gas Utilities -- 3.4% ------------------------------------------------------------------------- $ 1,325 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(4) $ 1,403,705 ------------------------------------------------------------------------- $ 1,403,705 ------------------------------------------------------------------------- Insured-General Obligations -- 17.5% ------------------------------------------------------------------------- $ 1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 $ 633,750 1,000 McKeesport Area School District, (FGIC), 0.00%, 10/1/31 253,670 2,000 Philadelphia General Obligation, (FSA), 5.00%, 3/15/28 2,091,320 1,125 Philadelphia School District, (FSA), 5.50%, 2/1/31 1,246,579 1,500 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 1,596,150 1,000 Puerto Rico General Obligation, FSA, Variable Rate, 7/1/27(2)(3) 1,277,150 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 94,035 ------------------------------------------------------------------------- $ 7,192,654 ------------------------------------------------------------------------- Insured-Hospital -- 15.2% ------------------------------------------------------------------------- $ 1,000 Dauphin County General Authority, (Pinnacle Health System), (MBIA), 5.50%, 5/15/27 $ 1,081,840 500 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 509,380 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 1,583,190 3,000 Montgomery County HEFA, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28 3,094,620 ------------------------------------------------------------------------- $ 6,269,030 ------------------------------------------------------------------------- Insured-Special Tax Revenue -- 4.2% ------------------------------------------------------------------------- $ 1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 1,051,430 595 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 668,322 ------------------------------------------------------------------------- $ 1,719,752 ------------------------------------------------------------------------- Insured-Transportation -- 15.6% ------------------------------------------------------------------------- $ 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 1,050,030 3,100 Pennsylvania Turnpike Commision Oil Franchise, (AMBAC), 4.75%, 12/1/27 3,158,900 1,005 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 1,073,903 PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Insured-Transportation (continued) ------------------------------------------------------------------------- $ 800 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(2)(3) $ 1,132,616 ------------------------------------------------------------------------- $ 6,415,449 ------------------------------------------------------------------------- Insured-Water and Sewer -- 15.7% ------------------------------------------------------------------------- $ 500 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.00%, 12/1/19 $ 545,925 1,000 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.50%, 12/1/24 1,113,250 500 Delaware County IDA, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29 574,490 1,000 Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 1,053,320 3,000 Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/31 3,180,150 ------------------------------------------------------------------------- $ 6,467,135 ------------------------------------------------------------------------- Miscellaneous -- 1.4% ------------------------------------------------------------------------- $ 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 $ 573,690 ------------------------------------------------------------------------- $ 573,690 ------------------------------------------------------------------------- Nursing Home -- 2.1% ------------------------------------------------------------------------- $ 500 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 493,200 400 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 390,892 ------------------------------------------------------------------------- $ 884,092 ------------------------------------------------------------------------- Senior Living / Life Care -- 8.5% ------------------------------------------------------------------------- $ 600 Bucks County, IDA, (Pennswood), 6.00%, 10/1/27 $ 634,266 490 Cliff House Trust (AMT), 6.625%, 6/1/27 441,093 500 Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29 493,535 400 Delaware IDA, (Glen Riddle), (AMT), 8.625%, 9/1/25 423,796 500 Lancaster County Hospital Authority, (Health Center), 5.875%, 6/1/31 522,605 925 Montgomery County HEFA, (Faulkeways at Gwynedd), 6.75%, 11/15/30 995,975 ------------------------------------------------------------------------- $ 3,511,270 ------------------------------------------------------------------------- Transportation -- 4.3% ------------------------------------------------------------------------- $ 600 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 623,490
SEE NOTES TO FINANCIAL STATEMENTS 32 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF MAY 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE ------------------------------------------------------------------------- Transportation (continued) ------------------------------------------------------------------------- $ 395 Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09 $ 409,741 500 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 500,855 250 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 215,795 ------------------------------------------------------------------------- $ 1,749,881 ------------------------------------------------------------------------- Total Tax-Exempt Investments -- 152.4% (identified cost $58,241,111) $ 62,772,999 ------------------------------------------------------------------------- Other Assets, Less Liabilities -- 2.2% $ 919,847 ------------------------------------------------------------------------- Auction Preferred Shares Plus Cumulative Unpaid Dividends -- (54.6)% $(22,503,461) ------------------------------------------------------------------------- Net Assets Applicable to Common Shares -- 100.0% $ 41,189,385 -------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at May 31, 2003, 68.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 6.3% to 23.5% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security has been issued as an inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS 33 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 2003
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ---------------------------------------------------------------------------------------------------- Assets ---------------------------------------------------------------------------------------------------- Investments -- Identified cost $154,368,886 $ 93,796,473 $56,177,670 $45,328,831 Unrealized appreciation 16,705,606 7,490,168 5,781,996 4,320,726 ---------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $171,074,492 $101,286,641 $61,959,666 $49,649,557 ---------------------------------------------------------------------------------------------------- Cash $ 117,804 $ 187,228 $ -- $ -- Receivable for investments sold 6,849 -- -- -- Interest receivable 2,573,753 1,194,929 1,161,617 744,595 Receivable for daily variation margin on open financial futures contracts -- 11,987 10,312 6,894 Prepaid expenses 5,215 4,135 4,085 1,621 ---------------------------------------------------------------------------------------------------- TOTAL ASSETS $173,778,113 $102,684,920 $63,135,680 $50,402,667 ---------------------------------------------------------------------------------------------------- Liabilities ---------------------------------------------------------------------------------------------------- Payable for daily variation margin on open financial futures contracts $ 44,147 $ -- $ -- $ -- Due to bank -- -- 147,347 287,950 Payable to affiliate for Trustees' fees 1,454 1,081 311 521 Accrued expenses 54,318 44,573 41,518 31,830 ---------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 99,919 $ 45,654 $ 189,176 $ 320,301 ---------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 59,001,285 $ 35,503,204 $21,502,941 $17,501,298 ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $114,676,909 $ 67,136,062 $41,443,563 $32,581,068 ---------------------------------------------------------------------------------------------------- Sources of Net Assets ---------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 71,773 $ 42,386 $ 26,528 $ 20,923 Additional paid-in capital 106,399,318 62,964,801 39,249,148 31,083,981 Accumulated net realized loss (computed on the basis of identified cost) (9,627,665) (4,078,465) (4,012,381) (3,170,052) Accumulated undistributed net investment income 1,357,218 847,286 517,705 388,832 Net unrealized appreciation (computed on the basis of identified cost) 16,476,265 7,360,054 5,662,563 4,257,384 ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $114,676,909 $ 67,136,062 $41,443,563 $32,581,068 ---------------------------------------------------------------------------------------------------- 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 4,238,608 2,652,767 2,092,265 ---------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share ---------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.98 $ 15.84 $ 15.62 $ 15.57 ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 34 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF ASSETS AND LIABILITIES AS OF MAY 31, 2003
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ------------------------------------------------------------------------------------------------------- Assets ------------------------------------------------------------------------------------------------------- Investments -- Identified cost $ 94,492,870 $114,394,185 $60,698,852 $58,241,111 Unrealized appreciation 11,306,482 13,366,105 4,671,541 4,531,888 ------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $105,799,352 $127,760,290 $65,370,393 $62,772,999 ------------------------------------------------------------------------------------------------------- Cash $ -- $ 802,622 $ -- $ -- Receivable for investments sold 173,582 -- -- -- Interest receivable 2,240,510 2,215,821 1,253,283 1,195,929 Receivable for daily variation margin on open financial futures contracts 14,733 9,675 7,740 6,230 Prepaid expenses 4,151 3,165 4,106 1,659 ------------------------------------------------------------------------------------------------------- TOTAL ASSETS $108,232,328 $130,791,573 $66,635,522 $63,976,817 ------------------------------------------------------------------------------------------------------- Liabilities ------------------------------------------------------------------------------------------------------- Due to bank $ 314,880 $ -- $ 58,625 $ 248,898 Payable to affiliate for Trustees' fees 1,081 866 311 532 Accrued expenses 45,369 76,411 41,101 34,541 ------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 361,330 $ 77,277 $ 100,037 $ 283,971 ------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 38,000,000 $ 44,501,598 $23,502,829 $22,503,461 ------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 69,870,998 $ 86,212,698 $43,032,656 $41,189,385 ------------------------------------------------------------------------------------------------------- Sources of Net Assets ------------------------------------------------------------------------------------------------------- Common Shares, $0.01 par value, unlimited number of shares authorized $ 45,567 $ 53,551 $ 28,005 $ 26,688 Additional paid-in capital 67,629,258 79,461,619 41,596,585 39,644,641 Accumulated net realized loss (computed on the basis of identified cost) (9,791,121) (7,604,929) (3,769,944) (3,550,752) Accumulated undistributed net investment income 846,437 999,277 556,809 605,258 Net unrealized appreciation (computed on the basis of identified cost) 11,140,857 13,303,180 4,621,201 4,463,550 ------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 69,870,998 $ 86,212,698 $43,032,656 $41,189,385 ------------------------------------------------------------------------------------------------------- Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) ------------------------------------------------------------------------------------------------------- 1,520 1,780 940 900 ------------------------------------------------------------------------------------------------------- Common Shares Outstanding ------------------------------------------------------------------------------------------------------- 4,556,699 5,355,058 2,800,538 2,668,807 ------------------------------------------------------------------------------------------------------- Net Asset Value Per Common Share ------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.33 $ 16.10 $ 15.37 $ 15.43 -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 35 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MAY 31, 2003
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ---------------------------------------------------------------------------------------------------------- Investment Income ---------------------------------------------------------------------------------------------------------- Interest $ 4,839,412 $2,903,829 $1,804,314 $1,444,502 ---------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 4,839,412 $2,903,829 $1,804,314 $1,444,502 ---------------------------------------------------------------------------------------------------------- Expenses ---------------------------------------------------------------------------------------------------------- Investment adviser fee $ 583,160 $ 348,116 $ 212,451 $ 169,748 Administration fee 166,617 99,462 60,700 48,499 Trustees fees and expenses 4,569 3,049 902 1,035 Legal and accounting services 19,806 18,018 17,351 18,007 Printing and postage 13,524 9,678 7,060 5,417 Custodian fee 32,674 25,450 15,655 13,410 Transfer and dividend disbursing agent 55,320 34,378 24,897 17,180 Preferred shares remarketing agent fee 73,548 44,253 26,801 21,695 Miscellaneous 12,530 9,853 9,262 11,766 ---------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 961,748 $ 592,257 $ 375,079 $ 306,757 ---------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,877,664 $2,311,572 $1,429,235 $1,137,745 ---------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) ---------------------------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 97,721 $ 453,109 $ 246,811 $ (65,856) Financial futures contracts (1,496,950) (855,400) (538,679) (645,164) ---------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $(1,399,229) $ (402,291) $ (291,868) $ (711,020) ---------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $11,416,455 $5,188,128 $3,735,875 $3,216,655 Financial futures contracts (229,341) (130,114) (119,433) (91,720) ---------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $11,187,114 $5,058,014 $3,616,442 $3,124,935 ---------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 9,787,885 $4,655,723 $3,324,574 $2,413,915 ---------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (278,821) $ (173,462) $ (104,436) $ (85,345) ---------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $13,386,728 $6,793,833 $4,649,373 $3,466,315 ----------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 36 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MAY 31, 2003
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ------------------------------------------------------------------------------------------------------ Investment Income ------------------------------------------------------------------------------------------------------ Interest $ 3,135,286 $3,685,734 $1,894,254 $1,835,988 ------------------------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME $ 3,135,286 $3,685,734 $1,894,254 $1,835,988 ------------------------------------------------------------------------------------------------------ Expenses ------------------------------------------------------------------------------------------------------ Investment adviser fee $ 364,331 $ 441,377 $ 225,121 $ 215,444 Administration fee 104,095 126,108 64,320 61,556 Trustees fees and expenses 3,050 3,576 903 1,046 Legal and accounting services 17,808 21,153 17,365 18,287 Printing and postage 10,829 2,063 7,747 6,191 Custodian fee 25,279 30,136 17,142 14,651 Transfer and dividend disbursing agent 36,013 41,221 23,350 21,933 Preferred shares remarketing agent fee 47,369 55,472 29,295 28,048 Miscellaneous 9,569 17,560 8,936 12,256 ------------------------------------------------------------------------------------------------------ TOTAL EXPENSES $ 618,343 $ 738,666 $ 394,179 $ 379,412 ------------------------------------------------------------------------------------------------------ Deduct -- Reduction of custodian fee $ -- $ 4,299 $ 5,694 $ -- ------------------------------------------------------------------------------------------------------ TOTAL EXPENSE REDUCTIONS $ -- $ 4,299 $ 5,694 $ -- ------------------------------------------------------------------------------------------------------ NET EXPENSES $ 618,343 $ 734,367 $ 388,485 $ 379,412 ------------------------------------------------------------------------------------------------------ NET INVESTMENT INCOME $ 2,516,943 $2,951,367 $1,505,769 $1,456,576 ------------------------------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) ------------------------------------------------------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $(1,196,337) $ 502,737 $ 221,855 $ 133,229 Financial futures contracts (911,611) (753,952) (626,754) (427,700) ------------------------------------------------------------------------------------------------------ NET REALIZED LOSS $(2,107,948) $ (251,215) $ (404,899) $ (294,471) ------------------------------------------------------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 8,029,834 $6,934,473 $3,866,923 $3,408,640 Financial futures contracts (165,625) (62,925) (50,340) (68,338) ------------------------------------------------------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 7,864,209 $6,871,548 $3,816,583 $3,340,302 ------------------------------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN $ 5,756,261 $6,620,333 $3,411,684 $3,045,831 ------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (184,909) $ (208,753) $ (113,181) $ (120,257) ------------------------------------------------------------------------------------------------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $ 8,088,295 $9,362,947 $4,804,272 $4,382,150 ------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 37 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 2003
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST ------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 3,877,664 $ 2,311,572 $ 1,429,235 $ 1,137,745 Net realized loss (1,399,229) (402,291) (291,868) (711,020) Net change in unrealized appreciation (depreciation) 11,187,114 5,058,014 3,616,442 3,124,935 Distributions to preferred shareholders (278,821) (173,462) (104,436) (85,345) ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 13,386,728 $ 6,793,833 $ 4,649,373 $ 3,466,315 ------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (3,412,886) $(2,088,345) $(1,272,297) $(1,015,092) ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (3,412,886) $(2,088,345) $(1,272,297) $(1,015,092) ------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ -- $ 128,331 $ 271,950 $ 65,473 ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ -- $ 128,331 $ 271,950 $ 65,473 ------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 9,973,842 $ 4,833,819 $ 3,649,026 $ 2,516,696 ------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ------------------------------------------------------------------------------------------------------- At beginning of period $104,703,067 $62,302,243 $37,794,537 $30,064,372 ------------------------------------------------------------------------------------------------------- AT END OF PERIOD $114,676,909 $67,136,062 $41,443,563 $32,581,068 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares ------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 1,357,218 $ 847,286 $ 517,705 $ 388,832 -------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 38 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) CONT'D STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED MAY 31, 2003
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST ---------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 2,516,943 $ 2,951,367 $ 1,505,769 $ 1,456,576 Net realized loss (2,107,948) (251,215) (404,899) (294,471) Net change in unrealized appreciation (depreciation) 7,864,209 6,871,548 3,816,583 3,340,302 Distributions to preferred shareholders (184,909) (208,753) (113,181) (120,257) ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 8,088,295 $ 9,362,947 $ 4,804,272 $ 4,382,150 ---------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $(2,292,692) $(2,739,112) $(1,393,658) $(1,242,089) ---------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(2,292,692) $(2,739,112) $(1,393,658) $(1,242,089) ---------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 272,144 $ -- $ 114,697 $ 21,947 ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 272,144 $ -- $ 114,697 $ 21,947 ---------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 6,067,747 $ 6,623,835 $ 3,525,311 $ 3,162,008 ---------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ---------------------------------------------------------------------------------------------------- At beginning of period $63,803,251 $79,588,863 $39,507,345 $38,027,377 ---------------------------------------------------------------------------------------------------- AT END OF PERIOD $69,870,998 $86,212,698 $43,032,656 $41,189,385 ---------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets applicable to common shares ---------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 846,437 $ 999,277 $ 556,809 $ 605,258 ----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 39 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 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 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 40 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 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 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 41 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
CALIFORNIA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.590 $14.410 $13.210 $11.630 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.540 $ 1.069 $ 1.035 $ 1.008 $ 0.773 Net realized and unrealized gain (loss) 1.365 0.155 1.120 1.576 (3.322) Distributions to preferred shareholders (0.039) (0.110) (0.222) (0.279) (0.186) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.866 $ 1.114 $ 1.933 $ 2.305 $(2.735) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.476) $(0.934) $(0.733) $(0.725) $(0.510) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.476) $(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 PERIOD (COMMON SHARES) $15.980 $14.590 $14.410 $13.210 $11.630 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.090 $13.660 $14.320 $11.688 $11.438 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 14.25% 1.84% 29.65% 8.79% (20.70)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 42 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
CALIFORNIA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $114,677 $104,703 $102,664 $94,049 $82,333 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.78%(6) 1.82% 1.83% 1.99% 1.66%(6) Net expenses after custodian fee reduction(5) 1.78%(6) 1.80% 1.76% 1.92% 1.60%(6) Net investment income(5) 7.18%(6) 7.44% 7.32% 8.43% 6.83%(6) Portfolio Turnover 3% 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 1.15%(6) 1.16% 1.15% 1.17% 1.06%(6) Net expenses after custodian fee reduction 1.15%(6) 1.15% 1.11% 1.13% 1.02%(6) Net investment income 4.65%(6) 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 2,360 Asset coverage per preferred share(7) $ 73,592 $ 69,366 $ 68,507 $64,862 $59,892 Involuntary liquidation preference per preferred share(8) $ 25,000 $ 25,000 $ 25,000 $25,000 $25,000 Approximate market value per preferred share(8) $ 25,000 $ 25,000 $ 25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.012, decrease net realized and unrealized gains per share by $0.012, increase the ratio of net investment income to average net assets applicable to common shares from 7.36% to 7.44% and increase the ratio of net investment income to average total net assets from 4.68% to 4.73%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
FLORIDA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.730 $14.340 $13.070 $11.770 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.546 $ 1.103 $ 1.056 $ 1.028 $ 0.779 Net realized and unrealized gain (loss) 1.099 0.358 1.162 1.318 (3.180) Distributions to preferred shareholders (0.041) (0.118) (0.243) (0.338) (0.200) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.604 $ 1.343 $ 1.975 $ 2.008 $(2.601) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.494) $(0.953) $(0.705) $(0.708) $(0.502) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.494) $(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 PERIOD (COMMON SHARES) $15.840 $14.730 $14.340 $13.070 $11.770 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.750 $14.400 $13.380 $10.500 $10.438 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 12.99% 15.18% 34.91% 7.20% (27.62)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 44 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
FLORIDA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $67,136 $62,302 $60,646 $55,296 $49,715 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.85%(6) 1.87% 1.90% 1.99% 1.74%(6) Net expenses after custodian fee reduction(5) 1.85%(6) 1.86% 1.82% 1.91% 1.68%(6) Net investment income(5) 7.21%(6) 7.61% 7.46% 8.59% 6.89%(6) Portfolio Turnover 8% 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 1.19%(6) 1.18% 1.19% 1.16% 1.11%(6) Net expenses after custodian fee reduction 1.19%(6) 1.18% 1.14% 1.12% 1.07%(6) Net investment income 4.64%(6) 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 1,420 Asset coverage per preferred share(7) $72,281 $68,878 $67,695 $63,944 $60,023 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.60% to 7.61%, and increase the ratio of net investment income to average total net assets from 4.81% to 4.82 %. Per share data and ratios for the period prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MASSACHUSETTS TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.350 $14.110 $12.530 $11.470 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.541 $ 1.065 $ 1.044 $ 1.008 $ 0.779 Net realized and unrealized gain (loss) 1.251 0.218 1.486 1.058 (3.479) Distributions to preferred shareholders (0.040) (0.106) (0.227) (0.286) (0.192) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.752 $ 1.177 $ 2.303 $ 1.780 $(2.892) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.482) $(0.937) $(0.723) $(0.720) $(0.510) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.482) $(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 PERIOD (COMMON SHARES) $15.620 $14.350 $14.110 $12.530 $11.470 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $16.100 $15.510 $14.370 $10.813 $11.438 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 7.20% 15.16% 40.54% 0.69% (20.68)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 46 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MASSACHUSETTS TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $41,444 $37,795 $36,634 $32,501 $29,458 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.91%(6) 1.97% 1.97% 2.17% 1.98%(6) Net expenses after custodian fee reduction(5) 1.91%(6) 1.94% 1.88% 2.09% 1.91%(6) Net investment income(5) 7.27%(6) 7.55% 7.60% 8.80% 6.93%(6) Portfolio Turnover 12% 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 1.23%(6) 1.24% 1.23% 1.26% 1.26%(6) Net expenses after custodian fee reduction 1.23%(6) 1.22% 1.17% 1.21% 1.21%(6) Net investment income 4.70%(6) 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 860 860 860 860 860 Asset coverage per preferred share(7) $73,194 $68,951 $67,602 $62,797 $59,256 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.51% to 7.55%, and increase the ratio of net investment income to average total net assets from 4.75% to 4.77 %. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MICHIGAN TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.400 $14.490 $13.060 $11.840 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.545 $ 1.085 $ 1.045 $ 0.996 $ 0.771 Net realized and unrealized gain (loss) 1.152 (0.109) 1.317 1.250 (3.111) Distributions to preferred shareholders (0.041) (0.113) (0.242) (0.321) (0.191) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.656 $ 0.863 $ 2.120 $ 1.925 $(2.531) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.486) $(0.953) $(0.690) $(0.705) $(0.500) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.486) $(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 PERIOD (COMMON SHARES) $15.570 $14.400 $14.490 $13.060 $11.840 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.910 $13.940 $13.000 $10.438 $10.875 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 17.92% 14.72% 31.69% 2.30% (24.66)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 48 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MICHIGAN TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $32,581 $30,064 $30,213 $27,233 $24,691 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.97%(6) 2.00% 1.99% 2.18% 1.78%(6) Net expenses after custodian fee reduction(5) 1.97%(6) 1.99% 1.90% 2.09% 1.71%(6) Net investment income(5) 7.32%(6) 7.54% 7.36% 8.34% 6.77%(6) Portfolio Turnover 4% 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 1.26%(6) 1.27% 1.25% 1.27% 1.14%(6) Net expenses after custodian fee reduction 1.26%(6) 1.26% 1.19% 1.22% 1.09%(6) Net investment income 4.69%(6) 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 700 700 700 700 700 Asset coverage per preferred share(7) $71,546 $67,952 $68,163 $63,906 $60,283 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, increase net realized and unrealized losses per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.51% to 7.54% and increase the ratio of net investment income to average total net assets from 4.74% to 4.76%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW JERSEY TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.060 $13.880 $12.680 $11.720 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.553 $ 1.098 $ 1.057 $ 1.012 $ 0.778 Net realized and unrealized gain (loss) 1.262 0.163 1.089 0.977 (3.235) Distributions to preferred shareholders (0.041) (0.105) (0.234) (0.324) (0.195) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.774 $ 1.156 $ 1.912 $ 1.665 $(2.652) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.504) $(0.976) $(0.712) $(0.705) $(0.500) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.504) $(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 PERIOD (COMMON SHARES) $15.330 $14.060 $13.880 $12.680 $11.720 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.700 $14.400 $13.340 $10.750 $10.875 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 12.86% 15.70% 31.34% 5.28% (24.64)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 50 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW JERSEY TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $69,871 $63,803 $62,237 $56,883 $52,490 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.87%(6) 1.89% 1.95% 2.08% 1.67%(6) Net expenses after custodian fee reduction(5) 1.87%(6) 1.88% 1.90% 2.00% 1.61%(6) Net investment income(5) 7.59%(6) 7.80% 7.64% 8.64% 6.83%(6) Portfolio Turnover 15% 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%(6) 1.19% 1.21% 1.21% 1.07%(6) Net expenses after custodian fee reduction 1.19%(6) 1.18% 1.18% 1.16% 1.03%(6) Net investment income 4.83%(6) 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 1,520 Asset coverage per preferred share(7) $70,968 $66,976 $65,951 $62,434 $59,538 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.78% to 7.80% and increase the ratio of net investment income to average total net assets from 4.87% to 4.88%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 distibutions 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 substracting the Trust's liabilities (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 51 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW YORK TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.860 $14.280 $13.020 $11.800 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.551 $ 1.114 $ 1.057 $ 1.002 $ 0.781 Net realized and unrealized gain (loss) 1.240 0.553 1.150 1.239 (3.153) Distributions to preferred shareholders (0.039) (0.103) (0.220) (0.301) (0.191) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.752 $ 1.564 $ 1.987 $ 1.940 $(2.563) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.512) $(0.984) $(0.727) $(0.720) $(0.510) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.512) $(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 PERIOD (COMMON SHARES) $16.100 $14.860 $14.280 $13.020 $11.800 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.720 $13.990 $14.050 $10.750 $10.813 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 16.35% 6.56% 38.30% 5.90% (25.00)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 52 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW YORK TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $86,213 $79,589 $75,658 $69,023 $62,327 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.80%(6) 1.86% 1.88% 2.03% 1.65%(6) Net expenses after custodian fee reduction(5) 1.79%(6) 1.86% 1.86% 1.95% 1.59%(6) Net investment income(5) 7.21%(6) 7.64% 7.45% 8.33% 6.86%(6) Portfolio Turnover 10% 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 1.17%(6) 1.18% 1.19% 1.20% 1.05%(6) Net expenses after custodian fee reduction 1.16%(6) 1.18% 1.17% 1.15% 1.01%(6) Net investment income 4.68%(6) 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 1,780 Asset coverage per preferred share(7) $73,435 $69,714 $67,506 $63,777 $60,026 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.002, decrease net realized and unrealized gains per share by $0.002, increase the ratio of net investment income to average net assets applicable to common shares from 7.62% to 7.64% and increase the ratio of net investment income to average total net assets from 4.83% to 4.84%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
OHIO TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.150 $14.070 $12.820 $11.910 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.538 $ 1.107 $ 1.068 $ 1.028 $ 0.772 Net realized and unrealized gain (loss) 1.221 0.036 1.134 0.930 (3.035) Distributions to preferred shareholders (0.040) (0.109) (0.242) (0.335) (0.197) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.719 $ 1.034 $ 1.960 $ 1.623 $(2.460) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.499) $(0.954) $(0.710) $(0.713) $(0.502) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.499) $(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 PERIOD (COMMON SHARES) $15.370 $14.150 $14.070 $12.820 $11.910 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 16.73 $14.730 $13.620 $11.375 $11.250 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 17.45% 15.59% 26.39% 7.55% (22.06)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 54 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
OHIO TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $43,033 $39,507 $39,072 $35,613 $33,049 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.93%(6) 1.96% 1.99% 2.08% 1.84%(6) Net expenses after custodian fee reduction(5) 1.90%(6) 1.87% 1.90% 2.01% 1.77%(6) Net investment income(5) 7.36%(6) 7.84% 7.69% 8.56% 6.74%(6) Portfolio Turnover 6% 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%(6) 1.23% 1.24% 1.22% 1.17%(6) Net expenses after custodian fee reduction 1.21%(6) 1.17% 1.18% 1.18% 1.13%(6) Net investment income 4.68%(6) 4.91% 4.78% 5.02% 4.31%(6) + The expenses of the Trust may reflect a reduction of the invesment 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 940 940 940 940 940 Asset coverage per preferred share(7) $70,782 $67,032 $66,569 $62,895 $60,158 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(9) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.005, decrease net realized and unrealized gains per share by $0.005, increase the ratio of net investment income to average net assets applicable to common shares from 7.80% 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. (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 MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
PENNSYLVANIA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $14.260 $14.160 $12.960 $11.840 $15.000 ---------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations ---------------------------------------------------------------------------------------------------------------------------- Net investment income $ 0.546 $ 1.059 $ 1.015 $ 1.013 $ 0.780 Net realized and unrealized gain (loss) 1.134 0.039 1.107 1.147 (3.108) Distributions to preferred shareholders (0.045) (0.111) (0.244) (0.332) (0.201) ---------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.635 $ 0.987 $ 1.878 $ 1.828 $(2.529) ---------------------------------------------------------------------------------------------------------------------------- Less distributions to common shareholders ---------------------------------------------------------------------------------------------------------------------------- From net investment income $(0.465) $(0.887) $(0.678) $(0.708) $(0.502) ---------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $(0.465) $(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 PERIOD (COMMON SHARES) $15.430 $14.260 $14.160 $12.960 $11.840 ---------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $15.320 $13.960 $12.750 $10.625 $10.750 ---------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 13.28% 16.77% 26.88% 5.29% (25.50)% ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 56 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
PENNSYLVANIA TRUST ------------------------------------------------------------------------------------------ SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, 2003 ---------------------------------------------------------------------- (UNAUDITED)(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data+ ++ ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares, end of period (000's omitted) $41,189 $38,027 $37,723 $34,514 $31,543 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.94%(6) 1.95% 1.97% 1.95% 1.77%(6) Net expenses after custodian fee reduction(5) 1.94%(6) 1.95% 1.94% 1.86% 1.70%(6) Net investment income(5) 7.44%(6) 7.48% 7.26% 8.46% 6.85%(6) Portfolio Turnover 3% 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 1.23%(6) 1.22% 1.23% 1.14% 1.13%(6) Net expenses after custodian fee reduction 1.23%(6) 1.22% 1.20% 1.09% 1.08%(6) Net investment income 4.73%(6) 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 900 900 900 900 900 Asset coverage per preferred share(7) $70,770 $67,257 $66,920 $63,357 $60,050 Involuntary liquidation preference per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 Approximate market value per preferred share(8) $25,000 $25,000 $25,000 $25,000 $25,000 ----------------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums of fixed-income securities. The effect of this change for the year ended November 30, 2002 was to increase net investment income per share by $0.003, decrease net realized and unrealized gains per share by $0.003, increase the ratio of net investment income to average net assets applicable to common shares from 7.45% to 7.48% and increase the ratio of net investment income to average total net assets from 4.67% to 4.68%. Per share data and ratios for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation. (3) 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 liabilites (not including the preferred shares) from the Trust's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. SEE NOTES TO FINANCIAL STATEMENTS 57 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies ------------------------------------------- Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust), and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (individually referred to as the Trust or collectively the Trusts) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Trusts were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated December 10, 1998. Each Trust's investment objective is to achieve current income exempt from regular federal income taxes and taxes in its specified state. Each Trust seeks to achieve its objective by investing primarily in investment grade municipal obligations issued by its specified state. The following is a summary of significant accounting policies consistently followed by each Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A Investment Valuation -- Municipal bonds are normally valued on the basis of valuations furnished by a pricing service. Futures contracts listed on the commodity exchanges are valued at closing settlement prices. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates fair value. Investments for which valuations or market quotations are unavailable are valued at fair value using methods determined in good faith by or at the direction of the Trustees. B Investment Transactions -- Investment transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined using the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuations during this period. To the extent that when-issued or delayed delivery purchases are outstanding, the Trust instructs the custodian to segregate assets in a separate account, with a current value at least equal to the amount of its purchase commitments. C Income -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or discount. D Federal Taxes -- Each Trust's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable income, 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 58 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 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. I Interim Financial Statements -- The interim financial statements relating to May 31, 2003 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Trusts' management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Auction Preferred Shares (APS) ------------------------------------------- Each Trust issued Auction Preferred Shares on March 1, 1999 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every seven days thereafter by an auction. Auction Preferred Shares issued and outstanding as of May 31, 2003 and dividend rate ranges for the six months ended May 31, 2003 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE TRUST ISSUED AND OUTSTANDING RANGES ---------------------------------------------------------------------------------- California 2,360 0.60% - 1.25% Florida 1,420 0.10% - 1.45% Massachusetts 860 0.60% - 1.50% Michigan 700 0.62% - 1.50% New Jersey 1,520 0.60% - 1.20% New York 1,780 0.60% - 1.25% Ohio 940 0.59% - 1.50% Pennsylvania 900 0.84% - 1.65%
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 59 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in each Trust's By-Laws and the Investment Company Act of 1940. Each Trust pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction. 3 Distributions to Shareholders ------------------------------------------- Each Trust intends to make monthly distributions of net investment income, after payment of any dividends on any outstanding Auction Preferred Shares. Distributions are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. Each dividend payment period for the Auction Preferred Shares is generally seven days. The applicable dividend rate for the Auction Preferred Shares on May 31, 2003 was 0.795%, 1.10%, 1.00%, 0.90%, 1.05%, 0.65%, 1.10%, and 1.125%, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. For the six months ended May 31, 2003, 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 $278,821 0.94% Florida 173,462 0.99% Massachusetts 104,436 0.98% Michigan 85,345 0.99% New Jersey 184,909 0.99% New York 208,753 0.94% Ohio 113,181 0.98% Pennsylvania 120,257 1.07%
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 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 six months ended May 31, 2003, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $583,160, $348,116, $212,451, $169,748, $364,331, $441,377, $225,121, and $215,444, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. EVM also serves as the administrator of each Trust. An administration fee, computed at the annual rate of 0.20% of the average weekly gross assets of each Trust is paid to EVM for administering business affairs of each Trust. For the six months ended May 31, 2003, the administrative fee amounted to $166,617, $99,462, $60,700, $48,499, $104,095, $126,108, $64,320, and $61,556, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. Trustees of the Trusts that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended May 31, 2003, no significant amounts have been deferred. Certain officers and one Trustee of each Trust are officers of the above organization. 5 Investments ------------------------------------------- Purchases and sales of investments, other than U.S. Government securities and short-term obligations for the six months ended May 31, 2003 were as follows:
CALIFORNIA TRUST ----------------------------------------------------- Purchases $ 5,657,181 Sales 7,795,194 FLORIDA TRUST ----------------------------------------------------- Purchases $ 7,779,258 Sales 8,602,804
60 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
MASSACHUSETTS TRUST ----------------------------------------------------- Purchases $ 6,932,167 Sales 6,953,772 MICHIGAN TRUST ----------------------------------------------------- Purchases $ 1,797,626 Sales 1,973,074 NEW JERSEY TRUST ----------------------------------------------------- Purchases $15,690,850 Sales 15,495,990 NEW YORK TRUST ----------------------------------------------------- Purchases $12,600,240 Sales 14,290,734 OHIO TRUST ----------------------------------------------------- Purchases $ 3,796,445 Sales 4,998,931 PENNSYLVANIA TRUST ----------------------------------------------------- Purchases $ 1,830,664 Sales 1,927,584
6 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at May 31, 2003, as computed for federal income tax purposes, were as follows:
CALIFORNIA TRUST ------------------------------------------------------ AGGREGATE COST $154,134,515 ------------------------------------------------------ Gross unrealized appreciation $ 16,999,149 Gross unrealized depreciation (59,172) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 16,939,977 ------------------------------------------------------ FLORIDA TRUST ------------------------------------------------------ AGGREGATE COST $ 93,771,837 ------------------------------------------------------ Gross unrealized appreciation $ 8,373,260 Gross unrealized depreciation (858,456) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 7,514,804 ------------------------------------------------------ MASSACHUSETTS TRUST ------------------------------------------------------ AGGREGATE COST $ 56,134,471 ------------------------------------------------------ Gross unrealized appreciation $ 6,037,535 Gross unrealized depreciation (212,340) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 5,825,195 ------------------------------------------------------ MICHIGAN TRUST ------------------------------------------------------ AGGREGATE COST $ 45,298,844 ------------------------------------------------------ Gross unrealized appreciation $ 4,770,434 Gross unrealized depreciation (419,721) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 4,350,713 ------------------------------------------------------ NEW JERSEY TRUST ------------------------------------------------------ AGGREGATE COST $ 94,460,983 ------------------------------------------------------ Gross unrealized appreciation $ 11,607,312 Gross unrealized depreciation (268,943) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 11,338,369 ------------------------------------------------------ NEW YORK TRUST ------------------------------------------------------ AGGREGATE COST $114,369,615 ------------------------------------------------------ Gross unrealized appreciation $ 14,846,867 Gross unrealized depreciation (1,456,192) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 13,390,675 ------------------------------------------------------ OHIO TRUST ------------------------------------------------------ AGGREGATE COST $ 60,660,476 ------------------------------------------------------ Gross unrealized appreciation $ 5,671,322 Gross unrealized depreciation (961,405) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 4,709,917 ------------------------------------------------------
61 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
PENNSYLVANIA TRUST ------------------------------------------------------ AGGREGATE COST $ 58,203,356 ------------------------------------------------------ Gross unrealized appreciation $ 5,712,389 Gross unrealized depreciation (1,142,746) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 4,569,643 ------------------------------------------------------
7 Shares of Beneficial Interest ------------------------------------------- Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:
CALIFORNIA TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan -- 52,243 -------------------------------------------------------------------------------- NET INCREASE -- 52,243 -------------------------------------------------------------------------------- FLORIDA TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 8,327 926 -------------------------------------------------------------------------------- NET INCREASE 8,327 926 -------------------------------------------------------------------------------- MASSACHUSETTS TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 18,212 37,713 -------------------------------------------------------------------------------- NET INCREASE 18,212 37,713 -------------------------------------------------------------------------------- MICHIGAN TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 4,310 2,758 -------------------------------------------------------------------------------- NET INCREASE 4,310 2,758 -------------------------------------------------------------------------------- NEW JERSEY TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 18,882 53,105 -------------------------------------------------------------------------------- NET INCREASE 18,882 53,105 -------------------------------------------------------------------------------- NEW YORK TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan -- 55,136 -------------------------------------------------------------------------------- NET INCREASE -- 55,136 -------------------------------------------------------------------------------- OHIO TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 7,763 15,351 -------------------------------------------------------------------------------- NET INCREASE 7,763 15,351 -------------------------------------------------------------------------------- PENNSYLVANIA TRUST -------------------------------------- SIX MONTHS ENDED MAY 31, 2003 YEAR ENDED (UNAUDITED) NOVEMBER 30, 2002 -------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 1,514 4,050 -------------------------------------------------------------------------------- NET INCREASE 1,514 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. 62 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF MAY 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D A summary of obligations under these financial instruments at May 31, 2003 is as follows:
EXPIRATION NET UNREALIZED TRUST DATE CONTRACTS POSITION DEPRECIATION -------------------------------------------------------------------------------------------- California 9/03 220 U.S. Treasury Bond Short $(229,341) -------------------------------------------------------------------------------------------- Florida 9/03 125 U.S. Treasury Bond Short $(130,114) -------------------------------------------------------------------------------------------- Massachusetts 9/03 110 U.S. Treasury Bond Short $(119,433) -------------------------------------------------------------------------------------------- Michigan 9/03 72 U.S. Treasury Bond Short $ (63,342) -------------------------------------------------------------------------------------------- New Jersey 9/03 160 U.S. Treasury Bond Short $(165,625) -------------------------------------------------------------------------------------------- New York 9/03 100 U.S. Treasury Bond Short $ (62,925) -------------------------------------------------------------------------------------------- Ohio 9/03 80 U.S. Treasury Bond Short $ (50,340) -------------------------------------------------------------------------------------------- Pennsylvania 9/03 65 U.S. Treasury Bond Short $ (68,338) --------------------------------------------------------------------------------------------
At May 31, 2003, the Trust had sufficient cash and/or securities to cover margin requirements on open future contracts. 9 Annual Meeting of Shareholders ------------------------------------------- Each Trust held its Annual Meeting of Shareholders on March 21, 2003. The following action was taken by the shareholders of each Trust: ITEM 1: The election of Jessica M. Bibliowicz and Donald R. Dwight as Trustees of the Trust for a three-year term expiring in 2006.
NOMINEE FOR TRUSTEE NOMINEE FOR TRUSTEE ELECTED BY ALL ELECTED BY ALL SHAREHOLDERS SHAREHOLDERS TRUST JESSICA M. BIBLIOWICZ DONALD R. DWIGHT ------------------------------------------------------------------------------------ California Trust For 6,952,445 6,968,810 Withheld 101,025 84,660 Florida Trust For 3,937,378 3,909,744 Withheld 47,021 74,655 Massachusetts Trust For 2,410,839 2,399,673 Withheld 30,963 42,129 Michigan Trust For 1,958,288 1,956,788 Withheld 32,788 34,288 New Jersey Trust For 4,389,725 4,383,086 Withheld 47,049 53,688 New York Trust For 5,090,535 5,064,887 Withheld 77,915 103,563 Ohio Trust For 2,266,387 2,250,144 Withheld 18,404 34,647 Pennsylvania Trust For 2,602,208 2,580,813 Withheld 11,458 32,853
10 Subsequent Events ------------------------------------------- At their June 2003 Board meeting, the Trustees of each Trust appointed two new Trustees, William H. Park and Ronald A. Pearlman, to replace Jack L. Treynor and Donald R. Dwight, respectively, as Trustees of each Trust, such appointments being effective upon Mr. Treynor's and Mr. Dwight's retirement. As of July 1, 2003, both Mr. Treynor and Mr. Dwight had retired from each Trust's Board of Trustees. In addition, as of June 2003, each Trust's Audit Committee membership has changed and now consists of the following independent Trustees: Norton H. Reamer (chairman), Samuel L. Hayes, III, William H. Park, and Lynn A. Stout. 63 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. 64 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 CONTINUE 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 -------------------------------------------------------------------------------- 65 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 May 31, 2003 our records indicate that there are 69, 47, 62, 39, 68, 63, 56 and 57 registered shareholders for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively, and approximately 3,000, 2,000, 1,300, 1,200, 2,300, 2,800, 1,600 and 1,500 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call: Eaton Vance Distributors, Inc. The Eaton Vance Building 255 State Street Boston, MA 02109 1-800-225-6265 AMERICAN STOCK EXCHANGE SYMBOLS California Trust CEV Florida Trust FEV Massachusetts Trust MMV Michigan Trust EMI New Jersey Trust EVJ New York Trust EVY Ohio Trust EVO Pennsylvania Trust EVP
66 INVESTMENT MANAGEMENT EATON VANCE MUNICIPAL INCOME TRUSTS Officers Thomas J. Fetter President and Portfolio Manager of New York and Ohio Municipal Income Trusts James B. Hawkes Vice President and Trustee William H. Ahern, Jr. Vice President and Portfolio Manager of Michigan Municipal Income Trust Cynthia J. Clemson Vice President and Portfolio Manager of California, Florida and Pennsylvania Municipal Income Trusts Robert B. MacIntosh Vice President and Portfolio Manager of Massachusetts and New Jersey Municipal Income Trusts James L. O'Connor Treasurer Alan R. Dynner Secretary Trustees Jessica M. Bibliowicz Samuel L. Hayes, III William H. Park Ronald A. Pearlman Norton H. Reamer Lynn A. Stout 67 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 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 diclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to sercice your account). - Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. For more information about Eaton Vance's privacy policies, call: 1-800-262-1122 EATON VANCE MUNICIPAL INCOME TRUSTS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 147-7/03 CE-MUNISRC [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance California Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O' Connor ---------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance Florida Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance Massachusetts Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EATON VANCE MICHIGAN MUNICIPAL INCOME FUND By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 ------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 ------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 ------------- [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance New Jersey Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance New York Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance Ohio Municipal Income Trust By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16,2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 [[NOTE TO FILERS: INSERT SHAREHOLDER REPORT HERE]] ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, an independent trustee, as its audit committee financial expert. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EATON VANCE PENNSYLVANIA MUNICIPAL INCOME FUND By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: July 16, 2003 ------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: July 16, 2003 ------------- By: /s/ Thomas J. Fetter --------------------- Thomas J. Fetter President Date: July 16, 2003 -------------