N-CSR 1 a2126058zn-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 ----------- Date of Fiscal Year End November 30, 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 ----------- Date of Fiscal Year End November 30, 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 ----------- Date of Fiscal Year End November 30, 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 Trust ------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30 ----------- Date of Fiscal Year End November 30, 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 ----------- Date of Fiscal Year End November 30, 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: 811-09157 --------- Eaton Vance New York Municipal Income Trust ------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30 ----------- Date of Fiscal Year End November 30, 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 ----------- Date of Fiscal Year End November 30, 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 Trust ----------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) November 30 ----------- Date of Fiscal Year End November 30, 2003 ----------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EV LOGO] [GRAPHIC IMAGE] ANNUAL REPORT NOVEMBER 30,2003 [GRAPHIC IMAGE] EATON VANCE MUNICIPAL INCOME TRUSTS CALIFORNIA FLORIDA MASSACHUSETTS MICHIGAN NEW JERSEY NEW YORK OHIO PENNSYLVANIA [GRAPHIC IMAGE] EATON VANCE FUNDS EATON VANCE MANAGEMENT BOSTON MANAGEMENT AND RESEARCH EATON VANCE DISTRIBUTORS, INC. PRIVACY NOTICE The Eaton Vance organization is committed to ensuring your financial privacy. This notice is being sent to comply with privacy regulations of the Securities and Exchange Commission. Each of the above financial institutions has in effect the following policy with respect to nonpublic personal information about its customers: - Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. - None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). - Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. For more information about Eaton Vance's privacy policies, call: 1-800-262-1122. IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS The Securities and Exchange Commission permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders. EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL ADVISER, OTHERWISE. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures without charge, upon request, by calling 1-800-262-1122. This description is also available on the Securities and Exchange Commission's website at http://www.sec.gov. EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2003 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President Amid the market volatility and external political shocks of recent years, many investors have become more concerned with risk management. That trend has been especially true in the municipal bond market, where the use of bond insurance has become increasingly common. Today, roughly half of all municipal bond issuance is composed of insured bonds. As part of our continuing educational series, we thought it might be helpful to discuss bond insurance and its impact on the municipal market. THE USE OF BOND INSURANCE HAS GROWN DRAMATICALLY OVER THE YEARS... Municipal bond insurance was initially developed in 1971, when AMBAC Assurance Corp., the nation's first municipal insurer, offered insurance as a way to guarantee principal and interest payments on bond issues in the event of a bond default. Over the following three decades, the municipal market has witnessed a surge in the use of insurance. For example, in 1980, just 3% of all municipal issuance was insured. However, by late 2003, that figure had risen to roughly 50%. Insurance has clear benefits for purchasers: the elimination of default risk of the underlying issuer, AAA quality ratings and an enhancement of an issue's liquidity. (It's important to note that, while insured bonds are insured as to principal and interest payments, they still remain subject to interest rate and market risks.) THE MECHANICS OF MUNICIPAL BOND INSURANCE... We start with the underlying reality that an issuer with a AAA credit rating will pay less in interest expense than an issuer with a lower credit rating. Thus, an issuer must first determine whether purchasing insurance is financially feasible. That is, will the interest savings offset the cost of insurance? If so, the issuer must then qualify for insurance. Just as an individual must qualify for insurance, so must a bond issuer meet certain criteria. The issuer provides key financial data and documents to potential insurers that are then used to assess the issuer's financial strength and underlying fundamentals. If the issuer qualifies, insurance is then effected by "direct purchase," with the payment of a one-time premium by the issuer. The premium fee is calculated as a percentage of the value of the bond issue - typically, around 50 basis points (0.50%), but more if the credit entails higher risk. (An alternative method of purchase involves "elective bidding," in which the insurance is purchased by bond dealers, who determine at the time the bond is sold whether it is more attractive as an insured or uninsured bond.) IN-DEPTH CREDIT ANALYSIS INCLUDES INSURERS AS WELL AS BOND ISSUERS... When analyzing municipal bonds, an investor naturally researches the issuer's fundamentals. However, if the bond is insured, the analyst is concerned with the soundness of the insurer as well. At Eaton Vance, analysis of the insured segment is an integral part of our total municipal research effort. Research includes, among other areas, analysis of an insurer's claims-paying ability, its capital structure and the overall quality of its portfolio of policies. Based on claims-paying ability, there are currently six bond insurers rated AAA by Moody's Investor Services, Standard & Poor's and Fitch - the nation's leading rating agencies. INSURERS CAN PLAY A VALUABLE ROLE IN STRUCTURING BOND DEALS AND IMPROVING CREDIT QUALITY... Insurers play an important role in capital formation for municipal borrowers, working closely with municipal officials to forge deals that raise capital for vital projects at affordable interest rates. In so doing, the insurers can help states and municipalities achieve more efficient fiscal management. Insurers often re-structure bond deals by insisting on provisions that are intended to make the deal more secure. That has proved a major benefit to investors in recent years. In a more risk-conscious climate, we believe that an ongoing analysis of the insured market is a necessary discipline to invest successfully in today's municipal market. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President January 7, 2004 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 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2003 MARKET RECAP The U.S. economy saw encouaging growth in the year ended November 30, 2003. Consumer spending picked up, as tax cuts added to discretionary incomes. Capital spending - which has been very slow to recover - rebounded somewhat, as companies increased their investment in new technology and machinery. The equity markets, which typically anticipate future economic trends, mounted a strong rally. SERVICE INDUSTRIES LED THE RECOVERY, WHILE MANUFACTURING IMPROVED SLIGHTLY... The manufacturing sector showed signs of a modest revival during the period, while service sectors such as health care, tourism and information technology also gained ground. The residential real estate sector remained strong, although the commercial segment continued to lag. Financial services gathered some momentum due to increasing investor confidence and stronger equity markets. Meanwhile, the retail sector benefited from tax cuts enacted earlier in the year, which boosted consumer spending. WITH INFLATION IN CHECK, THE FEDERAL RESERVE HAS KEPT INTEREST RATES LOW... The nation's Gross Domestic Product grew 3.3% in the second quarter of 2003, followed by a startling 8.2% rise in the third quarter. The data suggested that an economy plagued by numerous false starts in the past year had finally gained some traction. Typical of an early-stage recovery, however, the labor markets were slow to rebound. The nation's unemployment rate was 5.9% in November 2003. While job growth was generally disappointing, there were signs of incremental hiring in some sectors, including temporary agencies, the financial services sector and smaller companies. The building trades remained strong, as low mortgage rates prompted brisk residential construction. Inflation, meanwhile, has been modest. Prices for finished goods remained fairly stable, although health care costs continued to rise and prices for manufacturing inputs and commodities such as oil and natural gas remained high. With inflation [CHART] MUNICIPAL BOND YIELDS EXCEEDED TREASURY YIELDS 30-YEAR AAA-RATED GENERAL OBLIGATION (GO) BONDS* 4.87% TAXABLE EQUIVALENT YIELD IN 35.0% TAX BRACKET 7.49% 30-YEAR TREASURY BOND 5.15%
PRINCIPAL AND INTEREST PAYMENTS OF TREASURY SECURITIES ARE GUARANTEED BY THE U.S. GOVERNMENT. *GO YIELDS ARE A COMPILATION OF A REPRESENTATIVE VARIETY OF GENERAL OBLIGATIONS AND ARE NOT NECESSARILY REPRESENTATIVE OF THE TRUSTS' YIELD. STATISTICS AS OF NOVEMBER 30, 2003. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SOURCE: BLOOMBERG, L.P. generally under control, the Federal Reserve has maintained an accommodative monetary policy, holding its Federal Funds rate - a key short-term interest rate barometer - at 1.00%, where it has stood since June. While signs of a more robust economy have driven a strong rally in the equity markets, the bond markets have given up some of their gains of the past year. Ten-year Treasury bond yields -which had fallen to 3.40% in late May - rose to 4.37% by November 30, 2003, in response to a reviving economy, prompting a market correction. Nonetheless, the Lehman Brothers Municipal Bond Index posted a solidly positive total return of 6.65% for the year ended November 30, 2003.* STATE TAX RATES HAVE RISEN IN 2003, EVEN AS FEDERAL RATES HAVE BEEN REDUCED... While federal tax rates were lowered in 2003, the opposite was true of state tax rates. A revenue shortfall has left many state governments with the difficult choice between raising taxes or cutting services. The result has been a widespread trend toward higher income and property taxes. This has left taxpayers with a larger state tax burden and, once again, made a strong case for municipal bonds as one of the few remaining ways to trim one's state tax bill. Therefore, we believe that municipal bonds continue to merit consideration from 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 NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - Following a prolonged period of stagnant demand, the California economy posted solid growth in 2003. The economy saw especially strong improvement in the manufacturing, service, information technology and commercial construction sectors. The state's November 2003 jobless rate was 6.4%, down from 6.8% a year ago. - Insured* general obligations (GOs) were the Trust's largest investments at November 30, 2003. These insured* issues represented excellent quality, especially at a time when the state's fiscal woes remained a major concern for taxpayers and investors alike. - Special tax revenue bonds constituted a major commitment for the Trust. These issues provide California communities a financing mechanism for public facilities that included utilities and road construction projects. - Insured* water and sewer bonds represented significant investments. These essential service bonds have generally been insulated from economic fluctuations because they represent non-discretionary expenses. These bonds financed California communities' urgent efforts to upgrade their water infrastructure. - Management continued to adjust coupon structure and upgrade call protection, as market conditions warranted. Coupon structure and call features can have a significant influence on the Trust's performance characteristics. TRUST STATISTICS(1) - Number of Issues: 80 - Effective Maturity: 10.5 years - Average Rating: AA- - Average Call: 8.7 years - Average Dollar Price: $94.44
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 17.06% for the year ended November 30, 2003. That return was the result of an increase in share price from $13.66 on November 30, 2002, to $14.950 on November 30, 2003, and the reinvestment of $0.963 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 12.31% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.59 on November 30, 2002, to $15.32 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $14.950, the Trust had a market yield of 6.84% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 11.60%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 57.9% AA 4.3% A 15.7% BBB 7.7% Non-Rated 14.4%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 17.06% Life of Trust (1/29/99) 6.12
Average Annual Total Returns (at net asset value) One Year 12.31% Life of Trust (1/29/99) 6.66
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 23.4% Special Tax Revenue 20.8% Insured - Water & Sewer* 14.9% Hospital 14.9% Insured - Transportation* 14.5%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 4 EATON VANCE FLORIDA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - Florida's economy rebounded in 2003, with the service sector, health care and education quite strong. Tourism was less robust, with job losses in the theme park area. Construction produced new jobs, as low interest rates promoted residential building. The state's jobless rate was 4.7% in November 2003, down from 5.3% a year ago. - Insured* water and sewer bonds represented the Trust's largest sector weighting at November 30, 2003. These essential services bonds represent high-quality investments that provide financing for Florida's ever-evolving infrastructure needs. - The Trust had large investments in insured* transportation bonds, which constitute a major portion of Florida municipal issuance. The Trust's investments were well-diversified across the state and included bonds for ports, turnpikes, expressways and county airport authorities. - Insured* special tax revenue bonds were among the Trust's largest sector weightings. These bonds are secured by the levy of special assessments - as opposed to property taxes - by local governments. The levies help defray costs on improvements or infrastructures that benefit local property owners. - Amid continued low interest rates, management upgraded the Trust's call protection. Faced with the prospect of a faster pace of refundings, management believes that call protection remains an important strategic aspect for municipal bond investors. TRUST STATISTICS(1) - Number of Issues: 72 - Effective Maturity: 10.9 years - Average Rating: AA - Average Call: 6.7 years - Average Dollar Price: $103.77
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 14.67% for the year ended November 30, 2003. That return was the result of an increase in share price from $14.40 on November 30, 2002, to $15.455 on November 30, 2003, and the reinvestment of $0.995 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 12.65% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.73 on November 30, 2002, to $15.53 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.455, the Trust had a market yield of 6.70% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 10.31%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 64.5% AA 10.2% A 5.3% BBB 3.4% Non-Rated 16.6%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 14.67% Life of Trust (1/29/99) 6.92
Average Annual Total Returns (at net asset value) One Year 12.65% Life of Trust (1/29/99) 7.03
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Water & Sewer* 24.6% Insured - Transportation* 22.7% Insured - Special Tax Revenue* 13.7% Special Tax Revenue 12.2% Insured - Miscellaneous* 11.5%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 5 EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. Macintosh Portfolio Manager MANAGEMENT DISCUSSION - The Massachusetts economy took steps toward recovery in 2003, as rising demand for technology and improving financial markets boosted the state's leading industries. A strong residential building climate lifted the construction sector. The state's November 2003 jobless rate was 5.4%, the same level as a year ago, but below the national rate. - Education bonds were the Trust's largest sector weighting at November 30, 2003. Management focused on high quality bonds from some of the Commonwealth's finest educational resources. - The Trust was increasingly selective within the hospital sector, which is the subject of widespread credit concerns. Amid lower reimbursements and an uncertain outlook for Medicare, the Trust focused on institutions with sound fundamentals that management believed are likely to emerge in an increasingly competitive industry. - Insured* general obligations constituted a major investment for the Trust and a representative geographical mix. Issuers included Westfield in western Massachusetts, Plymouth in the eastern part of the Commonwealth and Martha's Vineyard Land Bank from the Islands. - Management adjusted the Trust's coupon structure, especially within the hospital sector. Management also continued its efforts to update call protection. The pace of bond calls has picked up in a lower rate environment. TRUST STATISTICS(1) - Number of Issues: 60 - Effective Maturity: 10.3 years - Average Rating: AA- - Average Call: 7.8 years - Average Dollar Price: $100.65
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 5.91% for the year ended November 30, 2003. That return was the result of a decrease in share price from $15.51 on November 30, 2002, to $15.400 on November 30, 2003, and the reinvestment of $0.973 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 14.33% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.35 on November 30, 2002, to $15.38 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.400, the Trust had a market yield of 6.64% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 10.79%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 49.5% AA 9.1% A 18.6% BBB 13.1% BB 1.0% Non-Rated 8.7%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 5.91% Life of Trust (1/29/99) 6.70
Average Annual Total Returns (at net asset value) One Year 14.33% Life of Trust (1/29/99) 6.67
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Education 36.3% Hospital 18.9% Insured - Education* 17.0% Insured - General Obligations* 12.4% Insured - Transportation* 10.5%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 6 EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT DISCUSSION - Michigan's economy made uneven steps toward recovery in 2003. Manufacturing remained mixed, although the state's auto manufacturing sector gained ground in the fall months. The building trades remained strong, as residential construction activity responded to low interest rates. The state's November 2003 jobless rate was 7.0%, up from 6.1% a year ago. - Hospital bonds were the Trust's largest sector weighting at November 30, 2003. In a competitive hospital environment, management emphasized institutions they believe are well-regarded and whose in-demand health care specialities and financial soundness give them a competitive advantage in their markets. - Insured* general obligations (GOs) and uninsured GOs provided a high-quality investment in a still-recovering economy. The Trust's investments were focused primarily on school district and local board of education issues, which typically have stable revenues, a characteristic valued by investors. - The Trust had significant investments in insured* special tax revenue bonds. These bonds provide communities with creative funding alternatives and were used to finance hotel and development projects in the Detroit metropolitan area. - Management continued to make adjustments to coupon structure to improve the Trust's performance characteristics. Management also continued to focus on call protection. In a low interest rate climate, call protection has proved increasingly important. TRUST STATISTICS(1) - Number of Issues: 53 - Effective Maturity: 10.0 years - Average Rating: AA - Average Call: 7.5 years - Average Dollar Price: $100.66
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 19.82% for the year ended November 30, 2003. That return was the result of an increase in share price from $13.94 on November 30, 2002, to $15.635 on November 30, 2003, and the reinvestment of $0.982 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 13.06% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.40 on November 30, 2002, to $15.24 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.635, the Trust had a market yield of 6.22% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 9.97%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 57.9% AA 4.3% A 16.5% BBB 9.5% Non-Rated 11.8%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 19.82% Life of Trust (1/29/99) 7.12
Average Annual Total Returns (at net asset value) One Year 13.06% Life of Trust (1/29/99) 6.56
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Hospital 32.9% Insured - General Obligation* 24.1% General Obligations 16.5% Insured - Special Tax Revenue* 11.6% Industrial Development Revenue 11.3%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) Taxable-equivalent yield assumes maximum 37.60% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 7 EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. Macintosh Portfolio Manager MANAGEMENT DISCUSSION - The New Jersey economy showed positive trends in 2003. Job growth picked up in a number of areas, with notable further gains in manufacturing. While retailing has seen uneven growth, residential construction has remained robust. The state's November 2003 jobless rate was 5.5%, down from 6.0% a year ago and below the national rate. - Insured* transportation bonds remained the Trust's largest sector weighting at November 30, 2003. Local port and turnpike authorities are among the state's largest issuers and are important components of the state's transportation matrix. - Hospital bonds represented major investments for the Trust. Management emphasized institutions they believed were most competitive within their local market. These included acute care facilities across the state, as well as facilities that provided health care specialties, such as care for cardiac and lung-related ailments. - Management found some unique opportunities in new issues. For example, insured* lease revenue issues for the Garden State Preservation Trust provided funding for a land preservation project. The bonds were unusual in that they have fairly long maturities for non-callable, zero coupon bonds - a rarity in today's market - which increases their convexity, giving them better trading characteristics. - Management also found selected opportunities in Puerto Rico bonds. The Trust's Puerto Rico holdings included issues for highways, infrastructure repair, education, and electric utilities. TRUST STATISTICS(1) - Number of Issues: 68 - Effective Maturity: 10.8 years - Average Rating: AA- - Average Call: 9.0 years - Average Dollar Price: $102.58
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 14.75% for the year ended November 30, 2003. That return was the result of an increase in share price from $14.40 on November 30, 2002, to $15.415 on November 30, 2003, and the reinvestment of $1.018 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 15.81% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.06 on November 30, 2002, to $15.19 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.415, the Trust had a market yield of 6.93% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 11.39%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 52.9% AA 6.2% A 13.8% BBB 12.5% BB 1.0% B 1.1% Non-Rated 12.5%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 14.75% Life of Trust (1/29/99) 6.93
Average Annual Total Returns (at net asset value) One Year 15.81% Life of Trust (1/29/99) 6.61
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Transportation* 26.7% Hospital 20.5% Insured - General Obligations* 16.0% Transportation 13.7% Education 12.5%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 8 EATON VANCE NEW YORK MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - The New York economy showed positive trends in 2003. The manufacturing sector continued to give encouraging signals with a pick-up in hiring. Meanwhile, the state's key securities industry has seen some job growth accompanying an improvement in industry profits. The state's November 2003 jobless rate was 6.1%, down from 6.3% a year ago. - Insured* transportation bonds were the Trust's largest weighting at November 30, 2003 and included several segments of the state's transportation complex, including bonds for bridges and tunnels, the New York and New Jersey port authority and regional airport authorities. - As essential services, electric utilities provided a solid income source. With the state experiencing strong power demand, local utilities have needed to upgrade and expand facilities. Management believes the bonds offer good quality from well-regarded New York issuers. - Management continued to update the Trust's coupon distribution to reflect the sharp decline in interest rates. The Trust took advantage of selected Puerto Rico bonds to make structural adjustments and increase diversification. - Call protection remained a priority of the Trust. Management sought to eliminate bonds with poor call features in favor of those with more call protection. Maintaining adequate call protection typically allows bonds to participate more fully in market rallies. TRUST STATISTICS(1) - Number of Issues: 66 - Effective Maturity: 9.9 years - Average Rating: AA- - Average Call: 8.2 years - Average Dollar Price: $107.63
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 18.34% for the year ended November 30, 2003. That return was the result of an increase in share price from $13.99 on November 30, 2002, to $15.460 on November 30, 2003, and the reinvestment of $1.026 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 13.94% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.86 on November 30, 2002, to $15.81 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.460, the Trust had a market yield of 6.73% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 11.22%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 41.1% AA 17.3% A 22.6% BBB 6.7% Non-Rated 12.3%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 18.34% Life of Trust (1/29/99) 6.97
Average Annual Total Returns (at net asset value) One Year 13.94% Life of Trust (1/29/99) 7.46
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Transportation* 15.7% Electric Utilities 13.3% Hospital 13.2% Transportation 12.6% Insured - Hospital* 11.3%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) Taxable-equivalent yield assumes maximum 40.01% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 9 EATON VANCE OHIO MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT DISCUSSION - Ohio's economy made progress in 2003, reflecting a newly confident consumer sector. While slow to recover, manufacturing saw gradually rising demand in some segments. Residential construction remained strong, with modest improvement on the commercial side. The state's November 2003 jobless rate was 5.7%, up from 5.6% a year ago. - Insured* general obligations represented the Trust's largest sector weighting at November 30, 2003. The Trust's investments focused on school district bonds of cities and towns management believes are in sound financial condition and have relatively strong economic underpinnings. - In an increasingly competitive market, Ohio hospitals have faced the need to reduce overhead and restructure operations. Management has focused the Trust's hospital investments on institutions that, in management's opinion, have contained costs while improving the delivery of health care services. - The Trust had significant investments in industrial development revenue (IDR) bonds. The Trust's IDR investments were diversified among some of the nation's leading airlines, air freight delivery, auto manufacturers and beverage companies. - Insured* special tax revenue bonds were again a major commitment for the Trust. These issues provided Ohio counties an alternative method to meet the demands of growing communities and finance new infrastructure projects. TRUST STATISTICS(1) - Number of Issues: 53 - Effective Maturity: 10.8 years - Average Rating: AA- - Average Call: 8.9 years - Average Dollar Price: $102.46
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 14.12% for the year ended November 30, 2003. That return was the result of an increase in share price from $14.73 on November 30, 2002 to $15.715 on November 30, 2003, and the reinvestment of $0.999 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 13.92% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.15 on November 30, 2002, to $15.07 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.715, the Trust had a market yield of 6.42% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 10.68%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 47.0% AA 14.2% A 15.7% BBB 10.5% BB 1.6% Non-Rated 11.0%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 14.12% Life of Trust (1/29/99) 7.16
Average Annual Total Returns (at net asset value) One Year 13.92% Life of Trust (1/29/99) 6.24
For federal income tax purposes, 99.85% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 22.0% Hospital 21.8% Industrial Development Revenue 20.4% Insured - Special Tax Revenue* 12.4% Insured - Transportation* 11.0%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are sub- ject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 10 EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 MANAGEMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT DISCUSSION - The Pennsylvania economy rebounded in 2003. The service sector again generated the lion's share of job creation, especially in education, health care and local government. While manufacturing lost jobs since last year, orders have risen in recent months. The Commonwealth's November 2003 jobless rate was 5.2%, down from 5.9% a year ago. - Insured* education bonds constituted the Trust's largest sector weighting at November 30, 2003, including some of Pennsylvania's finest universities. Colleges and universities generally tend to enjoy stable enrollment and revenues, irrespective of the economic environment. - The Trust had major investments in insured* general obligations. These bonds provided secure income together with diversification among a variety of school districts. - Management had large investments in essential services bonds, including insured* sewer revenue issues. These issues funded sewer and wastewater facilities, vital projects for Pennsylvania's future growth. - The Trust focused on maintaining good credit quality - its average quality rating was AA. Given the low interest rate environment, the Trust continued to emphasize 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: 64 - Effective Maturity: 8.4 years - Average Rating: AA - Average Call: 6.3 years - Average Dollar Price: $101.69
THE TRUST PERFORMANCE FOR THE PAST YEAR - Based on share price (traded on the American Stock Exchange), the Trust had a total return of 22.05% for the year ended November 30, 2003. That return was the result of an increase in share price from $13.96 on November 30, 2002, to $15.98 on November 30, 2003, and the reinvestment of $0.943 in regular monthly dividends.(3) - Based on net asset value, the Trust had a total return of 13.72% for the year ended November 30, 2003. That return was the result of an increase in net asset value from $14.26 on November 30, 2002, to $15.21 on November 30, 2003, and the reinvestment of all distributions. - Based on the most recent dividend and a share price of $15.98, the Trust had a market yield of 6.28% at November 30, 2003.(4) The Trust's market yield is equivalent to a taxable yield of 9.94%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 65.4% A 13.8% BBB 9.8% BB 2.2% CCC 1.7% Non-Rated 7.1%
TRUST INFORMATION AS OF NOVEMBER 30, 2003 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One Year 22.05% Life of Trust (1/29/99) 7.49
Average Annual Total Returns (at net asset value) One Year 13.72% Life of Trust (1/29/99) 6.40
For federal income tax purposes, 100% of the total dividends paid by the Trust from net investment income during the year ended November 30, 2003 was designated as an exempt interest dividend. [CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Education* 22.7% Insured - General Obligations* 16.8% Insured - Water & Sewer* 15.5% Insured - Transportation* 15.3% Insured - Hospital* 15.2%
(1) Trust Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Trust. (3) A portion of the Trust's income may be subject to federal and state income tax and/or federal alternative minimum tax. (4) 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. (5) 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. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. Performance results reflect the effect of leverage resulting from the Trust's issuance of Auction Preferred Shares. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 11 CALIFORNIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 150.1%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- EDUCATION -- 9.3% $ 1,000 California Educational Facilities Authority, (Dominican University), 5.75%, 12/1/30 $ 1,035,510 500 California Educational Facilities Authority, (Pepperdine University), 5.00%, 11/1/29 506,345 1,850 California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23 1,951,417 4,000 California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31 4,089,640 2,500 California Educational Facilities Authority, (University of Southern California), 5.50%, 10/1/27 2,656,225 ----------------------------------------------------------------------------------------------------- $ 10,239,137 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 1.0% $ 2,425 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, 0.00%, 1/1/20 $ 1,138,392 ----------------------------------------------------------------------------------------------------- $ 1,138,392 ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 6.3% $ 2,200 California State General Obligation, 5.00%, 2/1/21 $ 2,218,370 1,100 California State General Obligation, 5.25%, 4/1/30 1,103,234 3,500 California State General Obligation, 5.50%, 11/1/33 3,603,705 ----------------------------------------------------------------------------------------------------- $ 6,925,309 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 14.9% $ 2,000 California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 6.25%, 12/1/34 $ 2,149,260 750 California Infrastructure and Economic Development, (Kaiser Hospital), 5.50%, 8/1/31 765,450 1,650 California Statewide Communities Development Authority, (Kaiser Permanente), 5.50%, 11/1/32 1,681,020 1,750 California Statewide Communities Development Authority, (Sonoma County Indian Health), 6.40%, 9/1/29 1,647,047 1,500 California Statewide Communities Development Authority, (Sutter Health), 5.50%, 8/15/28 1,535,835 1,500 Duarte, COP, (City of Hope), 5.25%, 4/1/24 1,475,040 1,000 Stockton Health Facilities Authority, (Dameron Hospital), 5.70%, 12/1/14 1,053,690 2,000 Tahoe Forest Hospital District, 5.85%, 7/1/22 1,968,940 2,000 Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31 2,042,880 2,000 Washington Township, Health Care District, 5.25%, 7/1/29 2,035,600 ----------------------------------------------------------------------------------------------------- $ 16,354,762 ----------------------------------------------------------------------------------------------------- HOUSING -- 2.4% $ 1,000 California Statewide Communities Development Authority, (Corporate Fund for Housing), 6.50%, 12/1/29 $ 965,980 500 California Statewide Communities Development Authority, (Corporate Fund for Housing), 7.25%, 12/1/34 492,120 783 Commerce, (Hermitage III Senior Apartments), 6.50%, 12/1/29 736,687 444 Commerce, (Hermitage III Senior Apartments), 6.85%, 12/1/29 414,548 ----------------------------------------------------------------------------------------------------- $ 2,609,335 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 1.2% $ 1,250 California Pollution Control Financing Authority, (Mobil Oil Corp.), (AMT), 5.50%, 12/1/29 $ 1,339,225 ----------------------------------------------------------------------------------------------------- $ 1,339,225 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 5.8% $ 3,270 California Educational Facilities Authority, (Pooled College and University), (MBIA), 5.10%, 4/1/23 $ 3,370,487 3,000 California University, (AMBAC), 5.00%, 11/1/33 3,057,210 ----------------------------------------------------------------------------------------------------- $ 6,427,697 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 13.1% $ 3,250 California Pollution Control Financing Authority, (Southern California Edison Co.), (MBIA), (AMT), 5.55%, 9/1/31 $ 3,453,970 2,500 California Pollution Control Financing Authority, PCR, (Pacific Gas and Electric), (MBIA), 5.35%, 12/1/16 2,666,350 4,000 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 4,400,280 665 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(2)(3) 764,816 3,000 Sacramento Municipal Electric Utility District, (FSA), 5.00%, 8/15/28 3,066,750 ----------------------------------------------------------------------------------------------------- $ 14,352,166 ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 1.5% $ 5,130 Foothill/Eastern Transportation Corridor Agency, Escrowed to Maturity, (FSA), 0.00%, 1/1/26 $ 1,645,088 ----------------------------------------------------------------------------------------------------- $ 1,645,088 ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 23.4% $ 3,650 Burbank Unified School District, (FGIC), 0.00%, 8/1/18 $ 1,828,796 1,650 California RITES, (AMBAC), Variable Rate, 11/1/19(1)(2) 2,013,379 1,600 California State General Obligation, (AMBAC), 5.00%, 2/1/28 1,674,496
SEE NOTES TO FINANCIAL STATEMENTS. 12
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS (CONTINUED) $ 6,425 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/20 $ 2,845,697 3,000 Foothill-De Anza Community College District, (MBIA), 0.00%, 8/1/21 1,244,190 3,750 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 3,984,862 5,000 Murrieta Valley Unified School District, (FGIC), 0.00%, 9/1/20 2,205,200 2,500 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(3) 3,016,175 9,635 San Ramon Valley Unified School District, (FGIC), 0.00%, 7/1/18(4) 4,846,501 4,500 Ukiah Unified School District, (FGIC), 0.00%, 8/1/20 2,038,725 ----------------------------------------------------------------------------------------------------- $ 25,698,021 ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 4.5% $ 3,200 California Statewide Communities Development Authority, (Children's Hospital Los Angeles), (MBIA), 5.25%, 8/15/29 $ 3,332,352 1,245 California Statewide Communities Development Authority, (Sutter Health), Residual Certificates, (FSA), Variable Rate, 8/15/27(2)(3) 1,570,169 ----------------------------------------------------------------------------------------------------- $ 4,902,521 ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.1% $ 9,000 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/17 $ 4,746,420 11,500 Anaheim Public Financing Authority, (Public Improvements), (FSA), 0.00%, 9/1/28 3,048,650 ----------------------------------------------------------------------------------------------------- $ 7,795,070 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 0.7% $ 250 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(2) $ 260,820 525 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 559,083 ----------------------------------------------------------------------------------------------------- $ 819,903 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 14.5% $ 2,500 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 $ 2,632,475 2,300 Port Oakland, (MBIA), (AMT), 5.375%, 11/1/25 2,372,680 2,515 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 2,689,793 $ 1,750 Puerto Rico Highway and Transportation Authority, (FSA), 4.75%, 7/1/38 $ 1,760,010 6,000 San Francisco, (Bay Area Rapid Transportation District), (FGIC), 5.50%, 7/1/34 6,509,220 ----------------------------------------------------------------------------------------------------- $ 15,964,178 ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.9% $ 5,000 Contra Costa County, Water District, (MBIA), 5.00%, 10/1/24 $ 5,054,400 6,250 East Bay Municipal Utilities District Water System, (MBIA), 5.00%, 6/1/38 6,334,813 3,200 Metropolitan Water District, (Southern California Waterworks), (MBIA), Variable Rate, 7/1/27(2)(3) 3,285,728 4,850 Santa Rosa Wastewater, (AMBAC), 0.00%, 9/1/23 1,747,067 ----------------------------------------------------------------------------------------------------- $ 16,422,008 ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 6.4% $ 4,000 Sacramento City, Financing Authority, 5.40%, 11/1/20 $ 4,462,040 2,500 San Diego County, Certificates of Participation, 5.375%, 10/1/41 2,585,100 ----------------------------------------------------------------------------------------------------- $ 7,047,140 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 1.3% $ 1,500 California Statewide Communities Development Authority, (East Valley Tourist Development Authority), 8.25%, 10/1/14 $ 1,413,960 ----------------------------------------------------------------------------------------------------- $ 1,413,960 ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 20.8% $ 1,500 Bonita Canyon Public Facilities Financing Authority, 5.375%, 9/1/28 $ 1,484,670 1,600 Brentwood Infrastructure Financing Authority, 6.375%, 9/2/33 1,644,208 1,750 Capistrano Unified School District, 5.75%, 9/1/29 1,753,623 1,665 Corona, Public Financing Authority, 5.80%, 9/1/20 1,668,147 1,000 Corona-Norco Unified School District Public Financing Authority, 6.125%, 9/1/31 1,014,980 1,590 Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27 1,611,513 1,405 Lincoln Public Financing Authority, Improvement Bond Act of 1915 (Twelve Bridges), 6.20%, 9/2/25 1,456,339 600 Manteca Unified School District, 5.80%, 9/1/24 603,288 750 Murrieta Valley Unified School District, 6.20%, 9/1/35 751,485 2,465 Oakland Joint Powers Financing Authority, 5.40%, 9/2/18 2,617,362 995 Oakland Joint Powers Financing Authority, 5.50%, 9/2/24 1,043,178
SEE NOTES TO FINANCIAL STATEMENTS. 13
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE (CONTINUED) $ 700 Rancho Cucamonga Public Financing Authority, 6.00%, 9/2/20 $ 726,047 1,245 Roseville Special Tax, 6.30%, 9/1/25 1,283,545 1,325 San Pablo Redevelopment Agency, 5.65%, 12/1/23 1,362,683 1,500 Santa Margarita Water District, 6.20%, 9/1/20 1,548,900 250 Santaluz Community Facilities District No. 2, 6.10%, 9/1/21 255,438 500 Santaluz Community Facilities District No. 2, 6.20%, 9/1/30 510,480 500 Turlock Public Financing Authority, 5.45%, 9/1/24 501,555 1,000 Whittier Public Financing Authority, (Greenleaf Avenue Redevelopment), 5.50%, 11/1/23 1,016,520 ----------------------------------------------------------------------------------------------------- $ 22,853,961 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 1.0% $ 1,170 Port Redwood City, (AMT), 5.125%, 6/1/30 $ 1,126,511 ----------------------------------------------------------------------------------------------------- $ 1,126,511 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 150.1% (IDENTIFIED COST $155,191,636) $ 165,074,384 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.6% $ 3,919,941 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (53.7)% (59,003,071) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 109,991,254 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 57.0% 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 7.3% to 21.0% 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 NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 151.0%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- EDUCATION -- 1.5% $ 1,000 Volusia County Educational Facilities Authority, (Embry Riddle Aeronautical), 5.75%, 10/15/29 $ 983,400 ----------------------------------------------------------------------------------------------------- $ 983,400 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 3.1% $ 2,000 Jacksonville Electric Authority, Variable Rate, 10/1/32(1)(2) $ 2,044,500 ----------------------------------------------------------------------------------------------------- $ 2,044,500 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 4.2% $ 2,500 Escambia County, Health Facilities Authority, (Charity Obligation Group), Prerefunded to 11/1/10, 5.00%, 11/1/28 $ 2,752,625 ----------------------------------------------------------------------------------------------------- $ 2,752,625 ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 2.5% $ 350 Florida Board of Education, 4.75%, 6/1/28 $ 348,841 1,250 Florida State General Obligation, Variable Rate, 7/1/27(1)(2) 1,283,425 ----------------------------------------------------------------------------------------------------- $ 1,632,266 ----------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 0.5% $ 350 Osceola County IDA Community Provider Pooled Loan, 7.75%, 7/1/17 $ 353,853 ----------------------------------------------------------------------------------------------------- $ 353,853 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 11.5% $ 1,250 Jacksonville, EDA, (Mayo Clinic), 5.50%, 11/15/36 $ 1,301,275 1,750 Lakeland Hospital System, (Lakeland Regional Health System), 5.50%, 11/15/32 1,774,745 2,000 Orange County Health Facilities Authority, (Adventist Health System), 5.625%, 11/15/32 2,054,320 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,011,900 1,400 West Orange Health Care District, 5.80%, 2/1/31 1,434,552 ----------------------------------------------------------------------------------------------------- $ 7,576,792 ----------------------------------------------------------------------------------------------------- HOUSING -- 3.5% $ 1,630 Escambia County Housing Finance Authority, SFM, (Multi-County Program), (AMT), 5.50%, 10/1/31 $ 1,676,618 500 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20 511,020 85 Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 9.50%, 8/15/05 84,752 ----------------------------------------------------------------------------------------------------- $ 2,272,390 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 3.4% $ 913 Broward County IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19 $ 836,621 1,000 Capital Trust Agency, (Fort Lauderdale Project), (AMT), 5.75%, 1/1/32 945,100 650 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 429,481 ----------------------------------------------------------------------------------------------------- $ 2,211,202 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 9.7% $ 1,600 Burke County Development Authority (Georgia Power Co.), (MBIA), 5.45%, 5/1/34 $ 1,620,704 1,100 Guam Power Authority, (MBIA), 5.125%, 10/1/29 1,135,981 2,750 Jupiter Island, Utility System, (South Martin Regional Utility), (MBIA), 5.00%, 10/1/28 2,799,060 750 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 825,052 ----------------------------------------------------------------------------------------------------- $ 6,380,797 ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.3% $ 650 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 705,731 1,250 Tampa Bay Water Utility System, (FGIC), Prerefunded to 10/1/11, 5.75%, 10/1/29 1,474,675 ----------------------------------------------------------------------------------------------------- $ 2,180,406 ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 2.7% $ 1,500 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(3) $ 1,809,705 ----------------------------------------------------------------------------------------------------- $ 1,809,705 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 15
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 5.6% $ 1,000 Maricopa County IDA, (Mayo Clinic Hospital), (AMBAC), 5.25%, 11/15/37 $ 1,026,130 1,350 Miami Dade County Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,388,110 1,250 South Miami Health Facility Authority, (Baptist Health), (AMBAC), 5.25%, 11/15/33 1,300,200 ----------------------------------------------------------------------------------------------------- $ 3,714,440 ----------------------------------------------------------------------------------------------------- INSURED-HOUSING -- 1.7% $ 1,100 Broward County Housing Finance Authority, Multifamily Housing, (Venice Homes Apartments), (FSA), (AMT), 5.70%, 1/1/32 $ 1,123,287 ----------------------------------------------------------------------------------------------------- $ 1,123,287 ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 11.5% $ 4,000 Miami-Dade County, (Professional Sport Franchise), (MBIA), 4.75%, 10/1/30 $ 3,984,720 3,500 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/30 3,609,970 ----------------------------------------------------------------------------------------------------- $ 7,594,690 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 13.7% $ 2,500 Dade County Convention Center Special Tax, (AMBAC), 5.00%, 10/1/35 $ 2,527,250 970 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(3) 1,001,709 2,250 Jacksonville, Sales Tax, (AMBAC), 5.00%, 10/1/30 2,292,975 1,470 Miami Beach Resort Tax, (AMBAC), 6.25%, 10/1/22 1,806,101 1,395 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 1,413,735 ----------------------------------------------------------------------------------------------------- $ 9,041,770 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 22.7% $ 2,250 Florida Ports Financing Commission, (FGIC), 5.50%, 10/1/29 $ 2,377,260 3,700 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27(4) 3,599,138 1,500 Greater Orlando Aviation Authority, (FGIC), (AMT), Variable Rate, 4/1/13(2)(3) 1,708,710 650 Lee County Airport, (FSA), 6.00%, 10/1/29 728,201 500 Lee County Airport, (FSA), (AMT), 5.75%, 10/1/25 536,900 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37 1,008,220 1,000 Miami-Dade County Expressway Authority, (FGIC), 5.125%, 7/1/29 1,032,930 $ 1,000 Orlando and Orange County Expressway Authority, (FGIC), 5.00%, 7/1/28 $ 1,017,530 1,250 Puerto Rico Highway and Transportation Authority, (MBIA), 5.50%, 7/1/36 1,388,188 1,165 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(2)(3) 1,558,502 ----------------------------------------------------------------------------------------------------- $ 14,955,579 ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 24.6% $ 3,000 Marco Island Utility System, (MBIA), 5.00%, 10/1/33 $ 3,064,140 1,500 Miami Beach Storm Water, (FGIC), 5.375%, 9/1/30 1,579,515 1,000 Okeechobee Utility Authority, (FSA), 5.00%, 10/1/25 1,020,540 1,250 Saint Petersburg Public Utilities, (FSA), 5.00%, 10/1/28 1,272,300 4,000 Sunrise Utilities Systems, (AMBAC), 5.00%, 10/1/28 4,143,400 1,500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 1,500,930 3,650 Winter Haven Utilities System, (MBIA), 4.75%, 10/1/28 3,644,489 ----------------------------------------------------------------------------------------------------- $ 16,225,314 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 2.3% $ 500 Capital Trust Agency, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 586,270 750 Capital Trust Agency, (Seminole Tribe Convention), 10.00%, 10/1/33 931,680 ----------------------------------------------------------------------------------------------------- $ 1,517,950 ----------------------------------------------------------------------------------------------------- NURSING HOME -- 2.3% $ 850 Okaloosa County Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14 $ 756,075 265 Orange County Health Facilities Authority, (Westminster Community Care), 6.60%, 4/1/24 204,970 735 Orange County Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34 567,141 ----------------------------------------------------------------------------------------------------- $ 1,528,186 ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 2.2% $ 1,500 Lee County IDA, (Shell Point Village), 5.50%, 11/15/29 $ 1,438,980 ----------------------------------------------------------------------------------------------------- $ 1,438,980 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 16
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 12.2% $ 165 Fleming Island Plantation Community Development District, 6.30%, 2/1/05 $ 165,805 325 Heritage Harbour South Community Development District, 6.20%, 5/1/35 326,963 625 Heritage Harbour South Community Development District, (Capital Improvements), 5.40%, 11/1/08 629,400 890 Heritage Springs Community Development District, 6.75%, 5/1/21 916,771 915 Longleaf Community Development District, 6.65%, 5/1/20 800,451 750 North Springs Improvement District, (Heron Bay), 7.00%, 5/1/19 787,710 1,000 Northern Palm Beach County Improvement District, (Water Control and Improvement), 6.00%, 8/1/25 1,017,200 600 Sterling Hill Community Development District, 6.20%, 5/1/35 601,560 500 Stoneybrook West Community Development District, 7.00%, 5/1/32 523,030 920 University Square Community Development District, 6.75%, 5/1/20 962,762 470 Vista Lakes Community Development District, 7.20%, 5/1/32 501,208 750 Waterlefe Community Development District, 6.95%, 5/1/31 780,698 ----------------------------------------------------------------------------------------------------- $ 8,013,558 ----------------------------------------------------------------------------------------------------- WATER AND SEWER -- 6.3% $ 2,000 Jacksonville, Water and Sewer, 5.375%, 10/1/29 $ 2,025,360 2,000 Seminole County, Water and Sewer, 5.375%, 10/1/22 2,118,240 ----------------------------------------------------------------------------------------------------- $ 4,143,600 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 151.0% (IDENTIFIED COST $94,457,877) $ 99,495,290 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.9% $ 1,910,193 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (53.9)% (35,503,071) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 65,902,412 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 63.3% 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 7.4% to 22.4% 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 NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 149.2%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- EDUCATION -- 36.3% $ 500 Massachusetts Development Finance Agency, (Belmont Hill School), 5.00%, 9/1/31 $ 505,155 2,000 Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59 2,052,720 1,000 Massachusetts Development Finance Agency, (Clark University), 5.00%, 7/1/28 995,050 500 Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), 5.75%, 7/1/33 495,405 600 Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 604,794 500 Massachusetts Development Finance Agency, (Mount Holyoke College), 5.25%, 7/1/31 519,795 1,000 Massachusetts Development Finance Agency, (Suffolk University), 5.85%, 7/1/29 1,023,980 400 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 408,544 1,500 Massachusetts Development Finance Agency, (Wheeler School), 6.50%, 12/1/29 1,581,360 1,000 Massachusetts Development Finance Agency, (Xaverian Brothers High School), 5.65%, 7/1/29 1,014,100 2,000 Massachusetts HEFA, (Boston College), 5.125%, 6/1/33 2,048,840 2,500 Massachusetts HEFA, (Massachusetts Institute of Technology), 4.75%, 1/1/28 2,504,475 200 Massachusetts HEFA, (Wellesley College), 5.125%, 7/1/39 204,494 500 Massachusetts IFA, (Babson College), 5.25%, 10/1/27 510,315 400 Massachusetts IFA, (Belmont Hill School), 5.25%, 9/1/28 404,616 ----------------------------------------------------------------------------------------------------- $ 14,873,643 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 2.5% $ 1,000 Massachusetts IFA, (Devens Electric System), 6.00%, 12/1/30 $ 1,040,530 ----------------------------------------------------------------------------------------------------- $ 1,040,530 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 4.9% $ 1,450 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/20 $ 618,932 3,720 Rail Connections, Inc., (Route 128 Parking), (ACA), Prerefunded to 7/1/09, 0.00%, 7/1/22 1,392,880 ----------------------------------------------------------------------------------------------------- $ 2,011,812 ----------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 5.3% $ 1,000 Massachusetts Development Finance Agency, (Biomedical Research Corp.), 6.25%, 8/1/20 $ 1,069,970 $ 510 Massachusetts Development Finance Agency, (MCHSP Human Services), 6.60%, 8/15/29 $ 456,348 700 Massachusetts HEFA, (Learning Center for Deaf Children), 6.125%, 7/1/29 639,863 ----------------------------------------------------------------------------------------------------- $ 2,166,181 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 18.9% $ 1,000 Massachusetts HEFA, (Baystate Medical Center), 5.75%, 7/1/33 $ 1,035,910 400 Massachusetts HEFA, (Berkshire Health System), 6.25%, 10/1/31 412,864 500 Massachusetts HEFA, (Caritas Christi), 6.25%, 7/1/22 479,880 175 Massachusetts HEFA, (Central New England Health Systems), 6.30%, 8/1/18 170,172 1,100 Massachusetts HEFA, (Covenant Health), 6.00%, 7/1/31 1,151,733 1,375 Massachusetts HEFA, (Partners Healthcare System), 5.25%, 7/1/29 1,401,207 2,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 2,038,640 1,000 Massachusetts HEFA, (Winchester Hospital), 6.75%, 7/1/30 1,073,830 ----------------------------------------------------------------------------------------------------- $ 7,764,236 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 1.9% $ 750 Massachusetts IFA, (American Hingham Water Co.), (AMT), 6.60%, 12/1/15 $ 783,015 ----------------------------------------------------------------------------------------------------- $ 783,015 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 17.0% $ 1,800 Massachusetts College Building Authority, (XLCA), 0.00%, 5/1/21 $ 775,386 1,000 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39(1) 1,124,930 1,600 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 1,647,936 850 Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 10/1/27(2)(3) 885,759 1,000 Massachusetts HEFA, (Northeastern University), (MBIA), 5.00%, 10/1/29 1,017,130 500 Massachusetts HEFA, (UMass-Worcester Campus), (FGIC), 5.25%, 10/1/31 520,325 1,000 Massachusetts IFA, (Merrimack College), (MBIA), 5.00%, 7/1/27 1,014,360 ----------------------------------------------------------------------------------------------------- $ 6,985,826 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 18
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 1.9% $ 750 Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29 $ 787,522 ----------------------------------------------------------------------------------------------------- $ 787,522 ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 12.4% $ 1,500 Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32 $ 1,528,395 500 Plymouth, (MBIA), 5.25%, 10/15/20 544,615 900 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(3)(4) 1,085,823 1,715 Westfield, (FGIC), 5.00%, 5/1/20 1,941,329 ----------------------------------------------------------------------------------------------------- $ 5,100,162 ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 2.5% $ 1,000 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 1,003,180 ----------------------------------------------------------------------------------------------------- $ 1,003,180 ----------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 5.0% $ 1,000 Massachusetts Port Authority, (US Airways), (FGIC), (AMT), 5.00%, 7/1/28 $ 1,003,730 1,000 Massachusetts Port Authority, (US Airways), (MBIA), (AMT), 6.00%, 9/1/21 1,051,400 ----------------------------------------------------------------------------------------------------- $ 2,055,130 ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.1% $ 1,250 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 1,277,713 ----------------------------------------------------------------------------------------------------- $ 1,277,713 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 3.9% $ 800 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(2)(3) $ 834,624 735 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 782,716 ----------------------------------------------------------------------------------------------------- $ 1,617,340 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 10.5% $ 1,100 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/27(3)(4) $ 1,127,148 2,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.25%, 1/1/29 2,104,520 $ 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(3)(4) $ 1,069,500 ----------------------------------------------------------------------------------------------------- $ 4,301,168 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 0.9% $ 300 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(3)(4) $ 381,558 ----------------------------------------------------------------------------------------------------- $ 381,558 ----------------------------------------------------------------------------------------------------- NURSING HOME -- 4.0% $ 500 Boston, IDA (Alzheimers Center), (FHA), 6.00%, 2/1/37 $ 559,500 520 Massachusetts Development Finance Agency, (Odd Fellows Home of Massachusetts), 6.25%, 1/1/15 479,669 600 Massachusetts HEFA, (Christopher House), 6.875%, 1/1/29 578,730 ----------------------------------------------------------------------------------------------------- $ 1,617,899 ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 3.3% $ 1,500 Massachusetts Development Finance Agency, (Berkshire Retirement), 5.625%, 7/1/29 $ 1,361,640 ----------------------------------------------------------------------------------------------------- $ 1,361,640 ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 2.5% $ 1,000 Massachusetts Bay Transportation Authority, Sales Tax, 5.00%, 7/1/32 $ 1,015,660 ----------------------------------------------------------------------------------------------------- $ 1,015,660 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 3.4% $ 1,350 Massachusetts Bay Transportation Authority, Variable Rate, 3/1/27(2)(3) $ 1,379,876 ----------------------------------------------------------------------------------------------------- $ 1,379,876 ----------------------------------------------------------------------------------------------------- WATER AND SEWER -- 9.0% $ 2,000 Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33 $ 2,094,900 1,500 Massachusetts Water Pollution Abatement Trust, PCR, 5.375%, 8/1/27 1,600,635 ----------------------------------------------------------------------------------------------------- $ 3,695,535 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 149.2% (IDENTIFIED COST $57,228,596) $ 61,219,626 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.2% $ 1,318,478
SEE NOTES TO FINANCIAL STATEMENTS. 19
VALUE ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (52.4)% $ (21,502,897) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 41,035,207 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Trust invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 39.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 4.7% to 16.6% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security has been issued as an inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (4) Security has been issued as a leveraged inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS. 20 MICHIGAN MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.2%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- EDUCATION -- 4.0% $ 1,250 Michigan Higher Education Facility Authority, (Creative Studies), 5.90%, 12/1/27 $ 1,263,725 ----------------------------------------------------------------------------------------------------- $ 1,263,725 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 4.0% $ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,285,462 ----------------------------------------------------------------------------------------------------- $ 1,285,462 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 2.8% $ 750 Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26 $ 900,450 ----------------------------------------------------------------------------------------------------- $ 900,450 ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 16.5% $ 500 East Grand Rapids Public Schools, 5.00%, 5/1/25 $ 510,075 500 Garden City School District, 5.00%, 5/1/26 509,450 5,335 Grand Rapids and Kent County Joint Building Authority, 0.00%, 12/1/29 1,379,044 1,000 Manistee Area Public Schools, 5.00%, 5/1/24 1,022,040 1,000 White Cloud Public Schools, 5.125%, 5/1/31 1,025,590 800 Woodhaven Brownstown School District, 5.125%, 5/1/32 822,336 ----------------------------------------------------------------------------------------------------- $ 5,268,535 ----------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 1.2% $ 390 Pittsfield Township EDC, (Arbor Hospice), 7.875%, 8/15/27 $ 374,607 ----------------------------------------------------------------------------------------------------- $ 374,607 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 32.9% $ 500 Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 $ 510,605 500 Kent Hospital Finance Authority, (Spectrum Health), 5.50%, 1/15/31 515,020 500 Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 471,055 1,000 Michigan Health Facilities Authority, (Henry Ford Health), 5.25%, 11/15/25 1,000,570 1,000 Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27 962,540 $ 1,000 Michigan Hospital Finance Authority, (Henry Ford Health), 5.25%, 11/15/20 $ 1,010,870 2,275 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 2,082,239 750 Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 758,047 750 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 757,500 750 Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 820,102 750 Royal Oak Hospital Finance Authority, (William Beaumount Hospital), 5.25%, 1/1/20 763,065 800 Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 861,448 ----------------------------------------------------------------------------------------------------- $ 10,513,061 ----------------------------------------------------------------------------------------------------- HOUSING -- 3.2% $ 1,000 Multifamily Housing, (AMT), 6.00%, 11/1/33 $ 1,031,680 ----------------------------------------------------------------------------------------------------- $ 1,031,680 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 11.3% $ 500 Delta County EDC, (Mead Westvaco-Escanaba), 6.25%, 4/15/27 $ 522,825 1,000 Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 1,009,780 800 Dickinson County Economic Development Corp., (International Paper Co.), 5.75%, 6/1/16 868,864 800 Michigan Strategic Fund, (S.D. Warren), (AMT), 7.375%, 1/15/22 793,120 625 Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 412,962 ----------------------------------------------------------------------------------------------------- $ 3,607,551 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 1.6% $ 500 Central Michigan University, (FGIC), 5.00%, 10/1/27 $ 506,180 ----------------------------------------------------------------------------------------------------- $ 506,180 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.9% $ 1,000 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 $ 1,047,630 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 520,250 ----------------------------------------------------------------------------------------------------- $ 1,567,880 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 21
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 24.1% $ 1,000 Central Montcalm Public Schools, (MBIA), 6.00%, 5/1/29 $ 1,127,260 650 Detroit School District, (FGIC), 4.75%, 5/1/28 648,576 450 Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 450,729 2,000 Fenton Area Public Schools, (FGIC), 5.00%, 5/1/24 2,028,040 2,000 Novi Building Authority, (FSA), 5.50%, 10/1/25 2,181,980 870 Okemos Public School District, (MBIA), 0.00%, 5/1/19 424,282 700 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(1)(2) 844,529 ----------------------------------------------------------------------------------------------------- $ 7,705,396 ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 8.2% $ 500 Michigan Health Facilities Authority, (Detroit Medical Group), (AMBAC), 5.25%, 8/15/27 $ 521,285 1,000 Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,032,880 1,000 Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 1,071,510 ----------------------------------------------------------------------------------------------------- $ 2,625,675 ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 3.2% $ 1,000 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,026,060 ----------------------------------------------------------------------------------------------------- $ 1,026,060 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 11.6% $ 300 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 300,171 600 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(3) 625,968 455 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) 484,539 2,250 Wayne Charter County, (Airport Hotel-Detroit Metroplitan Airport), (MBIA), 5.00%, 12/1/30 2,291,648 ----------------------------------------------------------------------------------------------------- $ 3,702,326 ----------------------------------------------------------------------------------------------------- INSURED-STUDENT LOAN -- 3.2% $ 1,000 Michigan Higher Education Student Loan Authority Revenue, (AMBAC), (AMT), 5.50%, 6/1/25(4) $ 1,026,280 ----------------------------------------------------------------------------------------------------- $ 1,026,280 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.1% $ 670 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) $ 716,565 600 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(1)(2) 802,662 $ 2,000 Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 12/1/28(1)(3) $ 2,017,580 ----------------------------------------------------------------------------------------------------- $ 3,536,807 ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 5.2% $ 1,650 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,676,483 ----------------------------------------------------------------------------------------------------- $ 1,676,483 ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 0.8% $ 250 Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 $ 255,660 ----------------------------------------------------------------------------------------------------- $ 255,660 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 2.4% $ 750 Kent County Airport Facility, Variable Rate, 1/1/25(1)(3) $ 758,933 ----------------------------------------------------------------------------------------------------- $ 758,933 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.2% (IDENTIFIED COST $45,404,453) $ 48,632,751 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.6% $ 831,916 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (54.8)% (17,501,439) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 31,963,228 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Trust invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 48.1% 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 21.7% 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 NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.9%
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 $ 1,020,920 ----------------------------------------------------------------------------------------------------- $ 1,020,920 ----------------------------------------------------------------------------------------------------- EDUCATION -- 12.5% $ 1,465 New Jersey Educational Facilities Authority, (Bloomfield College), 6.85%, 7/1/30 $ 1,491,136 3,935 New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/20 4,433,761 2,750 New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.25%, 7/1/32 2,792,322 ----------------------------------------------------------------------------------------------------- $ 8,717,219 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 2.2% $ 1,500 Salem County Pollution Control Financing Authority, (Public Service Enterprise Group, Inc.), (AMT), 5.75%, 4/1/31 $ 1,530,810 ----------------------------------------------------------------------------------------------------- $ 1,530,810 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 3.3% $ 2,000 New Jersey Highway Authority, (Garden State Parkway), Prerefunded to 1/1/10, 5.625%, 1/1/30 $ 2,328,180 ----------------------------------------------------------------------------------------------------- $ 2,328,180 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 20.5% $ 1,035 New Jersey Health Care Facilities Financing Authority, (Atlantic City Medical Center), 5.75%, 7/1/25 $ 1,087,516 550 New Jersey Health Care Facilities Financing Authority, (Burdette Tomlin Memorial Hospital), 5.50%, 7/1/29 559,234 1,500 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.25%, 7/1/27 1,449,735 1,015 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.375%, 7/1/33(1) 987,118 1,000 New Jersey Health Care Facilities Financing Authority, (Deborah Heart and Lung Center), 6.30%, 7/1/23 1,019,580 2,000 New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), 6.00%, 1/1/34 2,083,540 750 New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 6.50%, 7/1/21 768,975 2,000 New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.75%, 7/1/31 2,121,820 $ 1,450 New Jersey Health Care Facilities Financing Authority, (Saint Peters University Hospital), (AMT), 6.875%, 7/1/20 $ 1,573,888 1,900 New Jersey Health Care Facilities Financing Authority, (St. Elizabeth's Hospital), 6.00%, 7/1/20 1,909,272 600 New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30 655,332 ----------------------------------------------------------------------------------------------------- $ 14,216,010 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 11.2% $ 1,000 Gloucester County, Improvements Authority, (Waste Management, Inc.), (AMT), 7.00%, 12/1/29 $ 1,149,900 1,000 New Jersey EDA, (Anheuser-Busch), (AMT), 5.85%, 12/1/30 1,039,090 750 New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29 638,347 750 New Jersey EDA, (Continental Airlines), (AMT), 9.00%, 6/1/33 815,887 3,700 New Jersey EDA, (The Seeing Eye, Inc.), 6.20%, 12/1/24 4,120,838 ----------------------------------------------------------------------------------------------------- $ 7,764,062 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 9.8% $ 1,000 New Jersey Educational Facilities Authority, (Jersey City University), (AMBAC), 5.00%, 7/1/32 $ 1,022,380 600 New Jersey Educational Facilities Authority, (NJ Institute of Technology), (MBIA), 4.75%, 7/1/31 602,442 1,750 New Jersey Educational Facilities Authority, (Ramapo College), (MBIA), 5.75%, 7/1/29 1,940,138 1,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(2)(3) 1,698,320 1,500 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 1,535,505 ----------------------------------------------------------------------------------------------------- $ 6,798,785 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 3.3% $ 1,000 Puerto Rico Electric Power Authority, (MBIA), 5.00%, 7/1/32 $ 1,028,740 1,250 Vineland, (Electric Utility), (MBIA), (AMT), 5.25%, 5/15/26 1,295,625 ----------------------------------------------------------------------------------------------------- $ 2,324,365 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 23
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 16.0% $ 700 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30 $ 718,725 1,000 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/31 1,025,930 1,555 Colts Neck Township Board of Education, (FSA), 5.00%, 2/1/26 1,630,122 3,500 Irvington Township, (FSA), 0.00%, 7/15/24 1,247,120 5,500 Irvington Township, (FSA), 0.00%, 7/15/25 1,848,495 1,000 Montgomery Township Board of Education, (MBIA), 5.00%, 8/1/25 1,036,030 500 Montgomery Township Board of Education, (MBIA), 5.00%, 4/1/27 513,660 1,000 Old Bridge Township Board of Education, (MBIA), 5.00%, 7/15/26 1,028,360 2,000 Washington Township, Mercer County Board of Education, (FGIC), 5.00%, 1/1/26 2,048,700 ----------------------------------------------------------------------------------------------------- $ 11,097,142 ----------------------------------------------------------------------------------------------------- INSURED-HOUSING -- 0.3% $ 230 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing, (FSA), 5.75%, 5/1/25 $ 243,749 ----------------------------------------------------------------------------------------------------- $ 243,749 ----------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 3.2% $ 1,580 New Jersey EDA, (FSA), Variable Rate, 5/1/07(2)(3) $ 2,207,813 ----------------------------------------------------------------------------------------------------- $ 2,207,813 ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.9% $ 2,500 Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/27 $ 743,575 6,000 Garden Preservation Trust and Open Space and Farmland, (FSA), 0.00%, 11/1/25 1,986,840 ----------------------------------------------------------------------------------------------------- $ 2,730,415 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 4.5% $ 3,075 New Jersey Sports and Exposition Authority, (MBIA), 4.50%, 9/1/20(4) $ 3,100,430 ----------------------------------------------------------------------------------------------------- $ 3,100,430 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 26.7% $ 4,000 Delaware River and Bay Authority, (AMBAC), 5.75%, 1/1/29(5) $ 4,455,280 1,000 Delaware River Port Authority, (FSA), 5.625%, 1/1/26 1,094,000 3,250 Delaware River Port Authority, (FSA), 5.75%, 1/1/26 3,605,030 $ 1,365 New Jersey Transportation Trust Fund Authority, (MBIA), 5.00%, 12/15/21 $ 1,424,200 1,500 New Jersey Turnpike Authority, RITES, (MBIA), Variable Rate, 7/1/23(2)(3) 1,879,050 4,000 Port Authority of New York and New Jersey, (JFK International Terminal), (MBIA), (AMT), 5.75%, 12/1/25 4,344,600 1,630 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 1,743,285 ----------------------------------------------------------------------------------------------------- $ 18,545,445 ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 6.2% $ 550 Bayonne Municipal Utilities Authority, Sewer System, (FGIC), 5.00%, 4/1/33 $ 562,953 1,500 Bordentown Sewer Authority, (FGIC), 5.375%, 12/1/20 1,641,750 1,000 New Jersey Economic Development Authority Water Facilities, (Middlesex Water Co.), (AMBAC), (AMT), 5.10%, 1/1/32 1,021,770 1,650 Passaic Valley Sewer Commissioners, (FGIC), 2.50%, 12/1/32 1,088,373 ----------------------------------------------------------------------------------------------------- $ 4,314,846 ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.2% $ 900 Bayonne Municipal Utilities Authority, Water and Sewer Revenue, (XLCA), Variable Rate, 4/1/11(2)(3) $ 839,961 ----------------------------------------------------------------------------------------------------- $ 839,961 ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.0% $ 1,350 New Jersey EDA, (School Facilities), 5.00%, 6/15/26 $ 1,377,189 ----------------------------------------------------------------------------------------------------- $ 1,377,189 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 4.9% $ 1,000 New Jersey EDA, (Glimcher Properties REIT), (AMT), 6.00%, 11/1/28 $ 940,630 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/34(2)(3) 1,271,860 1,250 Tobacco Settlement Financing Corp., Variable Rate, 6/1/39(2)(6) 1,163,713 ----------------------------------------------------------------------------------------------------- $ 3,376,203 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 24
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- NURSING HOME -- 3.0% $ 1,000 New Jersey EDA, (Masonic Charity Foundation), 5.50%, 6/1/31 $ 1,050,990 985 New Jersey EDA, (Victoria Health), 5.20%, 12/20/36 1,023,366 ----------------------------------------------------------------------------------------------------- $ 2,074,356 ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 3.0% $ 1,100 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 1,045,330 1,100 New Jersey EDA, (United Methodist Homes), 5.75%, 7/1/29 1,041,535 ----------------------------------------------------------------------------------------------------- $ 2,086,865 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 13.7% $ 925 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 941,752 1,500 New Jersey Transportation Trust Fund Authority, Variable Rate, 6/15/17(2)(6) 1,681,065 3,650 Port Authority of New York and New Jersey, 5.00%, 9/1/33 3,713,109 1,600 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(3) 2,031,184 1,175 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,191,250 ----------------------------------------------------------------------------------------------------- $ 9,558,360 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.9% (IDENTIFIED COST $97,748,134) $ 106,253,125 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.8% $ 1,247,325 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (54.7)% (38,000,000) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 69,500,450 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Trust invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 49.1% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 0.8% to 18.7% of total investments. (1) When-issued security. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover when-issued securities. (5) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (6) Security has been issued as an inverse floater bond. SEE NOTES TO FINANCIAL STATEMENTS. 25 NEW YORK MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.2%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- COGENERATION -- 2.5% $ 1,000 Port Authority of New York and New Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,020,920 1,150 Suffolk County IDA, (Nissequogue Cogeneration Partners Facility), (AMT), 5.50%, 1/1/23 1,078,884 ----------------------------------------------------------------------------------------------------- $ 2,099,804 ----------------------------------------------------------------------------------------------------- EDUCATION -- 7.5% $ 1,000 Dutchess County IDA, (Marist College), 5.00%, 7/1/20 $ 1,014,800 50 New York Dormitory Authority, (City University), 5.25%, 7/1/31 51,624 4,025 New York Dormitory Authority, (Rockefeller University), 4.75%, 7/1/37 4,042,227 1,285 New York Dormitory Authority, (University Educational Facility), 4.75%, 5/15/28 1,262,705 ----------------------------------------------------------------------------------------------------- $ 6,371,356 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 13.3% $ 2,000 Long Island Power Authority, 5.50%, 12/1/23 $ 2,126,840 1,655 Long Island Power Authority, Electric System Revenue, 5.25%, 12/1/26 1,723,765 1,000 Long Island Power Authority, Electric System Revenue, 5.375%, 9/1/25 1,034,510 4,100 New York Power Authority, 5.25%, 11/15/40 4,243,869 2,100 Suffolk County IDA, (Keyspan-Port Jefferson), (AMT), 5.25%, 6/1/27 2,103,255 ----------------------------------------------------------------------------------------------------- $ 11,232,239 ----------------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 8.9% $ 2,000 New York City Transitional Finance Authority, Prerefunded to 5/15/10, 6.00%, 11/15/29 $ 2,388,500 450 New York Dormitory Authority, (City University), Prerefunded to 7/1/11, 5.25%, 7/1/31 515,479 1,545 New York Dormitory Authority, (University Educational Facility), Prerefunded to 5/15/08, 4.75%, 5/15/28 1,723,602 2,500 Tompkins County IDA, (Cornell University), Prerefunded to 3/1/10, 5.75%, 7/1/30 2,954,400 ----------------------------------------------------------------------------------------------------- $ 7,581,981 ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 6.0% $ 4,630 New York City, 6.00%, 8/1/16 $ 5,080,499 ----------------------------------------------------------------------------------------------------- $ 5,080,499 ----------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 6.5% $ 1,250 New York City IDA, (A Very Special Place, Inc.), 5.75%, 1/1/29 $ 1,014,987 1,500 New York City IDA, (Ohel Children's Home), 6.00%, 3/15/23 1,330,680 185 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 197,561 220 Suffolk County IDA, Civic Facility Revenue, (Alliance of LI), 7.50%, 9/1/15 234,938 2,600 Westchester County IDA, (Children's Village), 5.375%, 3/15/19 2,707,978 ----------------------------------------------------------------------------------------------------- $ 5,486,144 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 13.2% $ 235 Chautauqua County IDA, (Womans Christian Association), 6.35%, 11/15/17 $ 218,947 495 Chautauqua County IDA, (Womans Christian Association), 6.40%, 11/15/29 456,895 1,250 Fulton County IDA, (Nathan Littauer Hospital), 6.00%, 11/1/18 1,097,475 400 Nassau County, IDA, Civic Facility Revenue, (North Shore Health System), 6.25%, 11/1/21 433,048 3,200 New York City Health and Hospital Corp., 5.25%, 2/15/17 3,275,488 300 New York City Health and Hospital Corp., (Health System), 5.375%, 2/15/26 303,150 500 New York City Industrial Development Agency Civic, (Staten Island University Hospital), 6.45%, 7/1/32 524,810 1,500 New York Dormitory Authority Revenue, (Lenox Hill Hospital), 5.50%, 7/1/30 1,542,825 1,250 Oneida County IDA, (St. Elizabeth Hospital), 5.75%, 12/1/19 1,113,100 2,105 Suffolk County IDA, Civic Facility, (Huntington Hospital), 6.00%, 11/1/22 2,224,690 ----------------------------------------------------------------------------------------------------- $ 11,190,428 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 6.1% $ 1,500 New York City, NY, Industrial Development Agency, (American Airlines, Inc.-JFK International Airport), (AMT), 8.00%, 8/1/12 $ 1,137,420 775 Onandaga County IDA, (AMT), 6.125%, 1/1/32 786,269 2,500 Onondaga County IDA, (Anheuser-Busch), (AMT), 6.25%, 12/1/34 2,678,375 550 Port Authority of New York and New Jersey, (Continental Airlines), (AMT), 9.125%, 12/1/15 557,645 ----------------------------------------------------------------------------------------------------- $ 5,159,709 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 26
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 7.8% $ 1,200 New York Dormitory Authority, (Cooper Union), (MBIA), 6.25%, 7/1/29 $ 1,401,072 4,500 New York Dormitory Authority, (New York University), (MBIA), 5.75%, 7/1/27 5,254,380 ----------------------------------------------------------------------------------------------------- $ 6,655,452 ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 9.5% $ 1,500 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 $ 1,530,105 1,400 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26 1,428,098 1,000 Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.875%, 7/1/18 1,059,150 3,505 Metropolitan Transportation Authority of New York, Prerefunded to 10/1/14, (FSA), 5.25%, 4/1/23 3,998,189 ----------------------------------------------------------------------------------------------------- $ 8,015,542 ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 2.5% $ 1,750 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(1)(2) $ 2,111,323 ----------------------------------------------------------------------------------------------------- $ 2,111,323 ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.3% $ 5,000 New York Dormitory Authority, (Memorial Sloan Kettering Cancer Center), (MBIA), 5.50%, 7/1/23(3) $ 5,614,800 4,000 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 4,001,000 ----------------------------------------------------------------------------------------------------- $ 9,615,800 ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 1.3% $ 1,000 New York Dormitory Authority, (Department Health), (MBIA), 5.50%, 7/1/25 $ 1,089,560 ----------------------------------------------------------------------------------------------------- $ 1,089,560 ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 1.5% $ 1,000 New York City, Trust for Cultural Resources, (AMBAC), Variable Rate, 7/1/29(1)(4) $ 1,238,510 ----------------------------------------------------------------------------------------------------- $ 1,238,510 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 2.9% $ 1,175 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(1)(4) $ 1,225,854 1,190 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2) 1,267,255 ----------------------------------------------------------------------------------------------------- $ 2,493,109 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.7% $ 2,325 Monroe County Airport Authority, (MBIA), (AMT), Variable Rate, 1/1/17(1)(4) $ 2,996,646 3,750 New York Thruway Authority, (Highway and Bridge), (AMBAC), 5.125%, 4/1/20 4,248,600 2,735 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), 5.625%, 4/1/29 2,980,959 1,750 Niagara Frontier Airport Authority, (Buffalo Niagara International Airport), (MBIA), (AMT), Variable Rate, 4/1/29(1)(4) 2,064,755 1,000 Port Authority of New York and New Jersey, (FSA), 5.00%, 4/15/32 1,024,530 ----------------------------------------------------------------------------------------------------- $ 13,315,490 ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 2.6% $ 2,000 New York City Municipal Water Finance Authority, (FGIC), 5.50%, 6/15/32 $ 2,178,420 ----------------------------------------------------------------------------------------------------- $ 2,178,420 ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 5.6% $ 4,385 New York Dormitory Authority, (Court Facility), 6.00%, 5/15/39 $ 4,710,411 ----------------------------------------------------------------------------------------------------- $ 4,710,411 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 3.4% $ 1,285 Albany Industrial Development Agency Civic Facility, (Charitable Leadership), 5.75%, 7/1/26 $ 1,303,363 1,250 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(2) 1,596,875 ----------------------------------------------------------------------------------------------------- $ 2,900,238 ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 2.6% $ 1,250 Mount Vernon IDA, (Wartburg Senior Housing, Inc. - Meadowview), 6.20%, 6/1/29 $ 1,162,575 1,000 Suffolk County IDA, (Jeffersons Ferry), 7.20%, 11/1/19 1,045,900 ----------------------------------------------------------------------------------------------------- $ 2,208,475 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 27
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 $ 1,105,312 ----------------------------------------------------------------------------------------------------- $ 1,105,312 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 12.6% $ 6,000 Metropolitan Transportation Authority of New York, 5.25%, 11/15/32 $ 6,175,800 1,000 Port Authority of New York and New Jersey, 5.00%, 9/1/33 1,017,290 1,800 Port Authority of New York and New Jersey, Variable Rate, 3/1/19(2) 2,285,082 1,300 Port Authority of New York and New Jersey, (AMT), Variable Rate, 6/15/33(1)(4) 1,229,501 ----------------------------------------------------------------------------------------------------- $ 10,707,673 ----------------------------------------------------------------------------------------------------- WATER AND SEWER -- 7.6% $ 1,500 New York City Municipal Water Finance Authority, 5.25%, 6/15/29 $ 1,538,010 3,500 New York City Municipal Water Finance Authority, 5.75%, 6/15/29 3,862,005 1,000 New York Environmental Facility Corp., Clean Water, 5.00%, 6/15/28 1,024,150 ----------------------------------------------------------------------------------------------------- $ 6,424,165 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.2% (IDENTIFIED COST $119,038,837) $ 128,971,640 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 0.3% $ 274,749 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (52.5)% (44,502,160) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 84,744,229 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 36.2% 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 4.8% to 16.6% of total investments. (1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (2) Security has been issued as a leveraged inverse floater bond. (3) Security (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 NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 151.8%
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 $ 372,884 ----------------------------------------------------------------------------------------------------- $ 372,884 ----------------------------------------------------------------------------------------------------- EDUCATION -- 3.7% $ 1,500 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 10/1/29(1)(2) $ 1,549,320 ----------------------------------------------------------------------------------------------------- $ 1,549,320 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 1.2% $ 500 Clyde Electric System Revenue, (AMT), 6.00%, 11/15/14 $ 520,000 ----------------------------------------------------------------------------------------------------- $ 520,000 ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 6.7% $ 1,000 Delaware County, 6.00%, 12/1/25 $ 1,139,680 1,530 Hamilton City School District, 5.625%, 12/1/24 1,691,201 ----------------------------------------------------------------------------------------------------- $ 2,830,881 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 21.8% $ 550 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 564,608 1,500 Erie County Hospital Facilities, (Firelands Regional Medical Center), 5.625%, 8/15/32 1,534,800 2,000 Franklin County, (Childrens Hospital), 5.20%, 5/1/29 2,024,100 620 Highland County, (Joint Township Hospital District), 6.75%, 12/1/29 569,104 400 Mahoning County Hospital Facility, (Forum Health Obligation Group), 6.00%, 11/15/32 415,640 1,250 Parma Community General Hospital Association, 5.35%, 11/1/18 1,286,712 1,750 Parma Community General Hospital Association, 5.375%, 11/1/29 1,757,945 1,000 Richland County Hospital Facilities, (Medcentral Health Systems), 6.375%, 11/15/22 1,067,340 ----------------------------------------------------------------------------------------------------- $ 9,220,249 ----------------------------------------------------------------------------------------------------- HOUSING -- 2.4% $ 1,000 Multifamily Housing, (Tyler's Creek), (AMT), 6.00%, 11/1/33 $ 1,031,680 ----------------------------------------------------------------------------------------------------- $ 1,031,680 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 20.4% $ 1,250 Cleveland Airport, (Continental Airlines), (AMT), 5.70%, 12/1/19 $ 1,001,625 1,300 Dayton Special Facilities Revenue, (Emery Air Freight), 5.625%, 2/1/18 1,070,147 3,000 Moraine Solid Waste Disposal, (General Motors Corp.), (AMT), 5.65%, 7/1/24 2,939,070 1,250 Ohio Environmental Facilities, (Ford Motor), (AMT), 5.95%, 9/1/29 1,256,800 2,250 Ohio Water Development Authority, (Anheuser-Busch), (AMT), 6.00%, 8/1/38 2,379,712 ----------------------------------------------------------------------------------------------------- $ 8,647,354 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 10.0% $ 1,000 Ohio Higher Educational Facilities, (University of Dayton), (AMBAC), 5.50%, 12/1/30 $ 1,082,710 1,500 University of Akron, (FGIC), Variable Rate, 1/1/29(1)(2) 1,841,415 1,250 University of Cincinnati, (FGIC), 5.25%, 6/1/24 1,317,925 ----------------------------------------------------------------------------------------------------- $ 4,242,050 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 3.9% $ 2,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 680,080 3,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 963,270 ----------------------------------------------------------------------------------------------------- $ 1,643,350 ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 0.6% $ 245 Cuyahoga County Hospital, (MBIA), Escrowed to Maturity, 5.125%, 1/1/29(3) $ 250,664 ----------------------------------------------------------------------------------------------------- $ 250,664 ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 22.0% $ 1,000 Columbus City School District, (FGIC), 5.00%, 12/1/31 $ 1,023,940 1,000 Lima City School District, (AMBAC), 5.50%, 12/1/22 1,110,460 500 Lima City School District, (AMBAC), 6.00%, 12/1/22 583,875 1,705 Plain Local School District, (FGIC), 5.00%, 12/1/30 1,747,131 1,000 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(4) 1,206,470 400 Puerto Rico General Obligation, (MBIA), Variable Rate, 7/1/20(2)(4) 588,924 2,860 Springfield City School District Clark County, (FGIC), 5.20%, 12/1/23 3,032,658 ----------------------------------------------------------------------------------------------------- $ 9,293,458 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 29
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 3.0% $ 255 Cuyahoga County, (Cleveland Clinic), (MBIA), 5.125%, 1/1/29 $ 260,896 1,000 Franklin County, (Ohio Health Corp.), (MBIA), 5.00%, 5/15/33 1,016,950 ----------------------------------------------------------------------------------------------------- $ 1,277,846 ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 8.0% $ 1,500 Cleveland, Certificates of Participation, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/22 $ 1,599,990 600 Puerto Rico Public Finance Corp., (AMBAC), Variable Rate, 12/1/19(2)(4) 753,432 1,000 Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 1,018,160 ----------------------------------------------------------------------------------------------------- $ 3,371,582 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 12.4% $ 2,500 Delaware County, Sewer District, (MBIA), 4.75%, 12/1/24 $ 2,517,025 2,000 Hamiliton County Sales Tax Revenue, (AMBAC), 5.25%, 12/1/32 2,094,320 2,235 Hamilton County Sales Tax Revenue, (AMBAC), 0.00%, 12/1/28 619,207 ----------------------------------------------------------------------------------------------------- $ 5,230,552 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.0% $ 1,325 Cleveland Airport System Revenue, (FSA), 5.00%, 1/1/31 $ 1,347,485 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/24 1,123,910 1,000 Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/26 1,125,080 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(4) 1,069,500 ----------------------------------------------------------------------------------------------------- $ 4,665,975 ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.2% $ 1,300 Union County, (Pleasant Valley Joint Fire District), 6.125%, 12/1/19 $ 1,358,045 ----------------------------------------------------------------------------------------------------- $ 1,358,045 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 3.0% $ 1,000 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(2)(4) $ 1,277,500 ----------------------------------------------------------------------------------------------------- $ 1,277,500 ----------------------------------------------------------------------------------------------------- NURSING HOME -- 4.8% $ 1,755 Cuyahoga County, Health Care Facilities, (Benjamin Rose Institute), 5.50%, 12/1/28 $ 1,497,191 630 Ohio HFA, Retirement Rental Housing, (Encore Retirement Partners), 6.75%, 3/1/19 541,882 ----------------------------------------------------------------------------------------------------- $ 2,039,073 ----------------------------------------------------------------------------------------------------- POOLED LOANS -- 7.4% $ 1,020 Ohio Economic Development, (Ohio Enterprise Bond Fund), (AMT), 5.85%, 12/1/22 $ 1,056,261 1,000 Rickenbacker Port Authority, Oasbo Expanded Asset Pooled Loan, 5.375%, 1/1/32 1,057,000 1,100 Toledo-Lucas County Port Authority, 5.40%, 5/15/19 1,028,808 ----------------------------------------------------------------------------------------------------- $ 3,142,069 ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 5.4% $ 600 Cleveland-Cuyahoga County Port Authority, 7.00%, 12/1/18 $ 614,064 1,420 Cuyahoga County, Economic Development, (Shaker Square), 6.75%, 12/1/30 1,652,014 ----------------------------------------------------------------------------------------------------- $ 2,266,078 ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 151.8% (IDENTIFIED COST $61,260,095) $ 64,230,610 ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.7% $ 1,576,143 ----------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.5)% (23,503,215) ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 42,303,538 -----------------------------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 46.7% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 4.0% to 17.5% of total investments. SEE NOTES TO FINANCIAL STATEMENTS. 30 (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. 31 PENNSYLVANIA MUNICIPAL INCOME TRUST AS OF NOVEMBER 30, 2003 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 152.0%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- COGENERATION -- 3.8% $ 470 Carbon County IDA, (Panther Creek Partners), (AMT), 6.65%, 5/1/10 $ 509,809 500 Pennsylvania EDA, (Northampton Generating), (AMT), 6.50%, 1/1/13 504,730 500 Pennsylvania EDA, (Resource Recovery-Colver), (AMT), 7.05%, 12/1/10 523,670 ----------------------------------------------------------------------------------------------------- $ 1,538,209 ----------------------------------------------------------------------------------------------------- EDUCATION -- 5.4% $ 1,500 Pennsylvania HEFA, (Drexel University), 6.00%, 5/1/29 $ 1,604,580 600 Philadelphia HEFA, (Chestnut Hill College), 6.00%, 10/1/29 589,506 ----------------------------------------------------------------------------------------------------- $ 2,194,086 ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 1.5% $ 600 York County, IDA, Pollution Control, (Public Service Enterprise Group, Inc.), 5.50%, 9/1/20 $ 600,972 ----------------------------------------------------------------------------------------------------- $ 600,972 ----------------------------------------------------------------------------------------------------- HEALTH CARE-MISCELLANEOUS -- 5.2% $ 600 Allegheny County, IDA, (Residential Resources, Inc.), 6.50%, 9/1/21 $ 580,920 1,500 Chester County HEFA, (Devereux Foundation), 6.00%, 11/1/29 1,554,420 ----------------------------------------------------------------------------------------------------- $ 2,135,340 ----------------------------------------------------------------------------------------------------- HOSPITAL -- 9.6% $ 750 Lancaster County Hospital Authority, 5.50%, 3/15/26 $ 760,425 1,250 Lehigh County, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,241,700 500 Monroe County Hospital Authority, (Pocono Medical Center), 6.00%, 1/1/43 504,410 850 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 890,256 500 Washington County Hospital Authority, (Monongahela Hospital), 5.50%, 6/1/17 527,370 ----------------------------------------------------------------------------------------------------- $ 3,924,161 ----------------------------------------------------------------------------------------------------- INDUSTRIAL DEVELOPMENT REVENUE -- 6.3% $ 500 New Morgan IDA, (New Morgan Landfill), (AMT), 6.50%, 4/1/19 $ 485,975 1,000 Pennsylvania, IDA, (Sun Co.), (AMT), 7.60%, 12/1/24 1,069,990 1,550 Puerto Rico Port Authority, (American Airlines), (AMT), 6.30%, 6/1/23 1,024,224 ----------------------------------------------------------------------------------------------------- $ 2,580,189 ----------------------------------------------------------------------------------------------------- INSURED-EDUCATION -- 22.7% $ 900 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 940,572 1,000 Northampton County HEFA, (Lafayette College), (MBIA), 5.00%, 11/1/27 1,012,700 1,000 Pennsylvania HEFA, (Bryn Mawr College), (AMBAC), 5.125%, 12/1/29 1,028,010 2,000 Pennsylvania HEFA, (State System Higher Education), (FSA), 5.00%, 6/15/24 2,038,240 2,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(1) 2,033,000 600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental, Residual Certificates, (MBIA), Variable Rate, 7/1/33(2)(3) 636,870 1,500 University of Pittsburgh, (MBIA), 5.00%, 6/1/21 1,563,930 ----------------------------------------------------------------------------------------------------- $ 9,253,322 ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.1% $ 600 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(2)(3) $ 690,060 835 Puerto Rico Electric Power Authority, DRIVERS, (FSA), Variable Rate, 7/1/29(2)(3) 960,333 ----------------------------------------------------------------------------------------------------- $ 1,650,393 ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 5.5% $ 1,000 Berks County Municipal Authority, (Reading Hospital and Medical Center), (FSA), Prerefunded to 11/1/09 @ 102, 6.00%, 11/1/29 $ 1,201,190 265 McKeesport Area School District, (FGIC), Escrowed to Maturity, 0.00%, 10/1/31 62,490 2,000 Westmoreland County Municipal Authority, (FGIC), Escrowed to Maturity, 0.00%, 8/15/19 962,340 ----------------------------------------------------------------------------------------------------- $ 2,226,020 ----------------------------------------------------------------------------------------------------- INSURED-GAS UTILITIES -- 3.3% $ 1,325 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(4) $ 1,358,801 ----------------------------------------------------------------------------------------------------- $ 1,358,801 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 32
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 16.8% $ 1,825 Hopewell School District, (FSA), 0.00%, 9/1/25 $ 590,972 735 McKeesport Area School District, (FGIC), 0.00%, 10/1/31 170,057 2,000 Philadelphia General Obligation, (FSA), 5.00%, 3/15/28 2,038,660 1,125 Philadelphia School District, (FSA), 5.50%, 2/1/31 1,198,395 1,500 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 1,554,585 1,000 Puerto Rico General Obligation, (FSA), Variable Rate, 7/1/27(2)(3) 1,206,470 250 Southeast Delco Area School District, (MBIA), 0.00%, 2/1/24 88,570 ----------------------------------------------------------------------------------------------------- $ 6,847,709 ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 15.2% $ 1,000 Dauphin County General Authority, (Pinnacle Health System), (MBIA), 5.50%, 5/15/27 $ 1,053,620 500 Delaware County Authority, (Catholic Health East), (AMBAC), 4.875%, 11/15/26 503,805 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (MBIA), 5.25%, 7/1/29 1,566,540 3,000 Montgomery County HEFA, (Abington Memorial Hospital), (AMBAC), 5.00%, 6/1/28 3,046,260 ----------------------------------------------------------------------------------------------------- $ 6,170,225 ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 4.1% $ 1,000 Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/24 $ 1,022,410 595 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 633,627 ----------------------------------------------------------------------------------------------------- $ 1,656,037 ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.3% $ 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 $ 1,020,610 3,100 Pennsylvania Turnpike Commision, Oil Franchise Tax, (AMBAC), 4.75%, 12/1/27 3,102,046 1,005 Philadelphia Parking Authority, (AMBAC), 5.25%, 2/15/29 1,052,155 800 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 1/1/19(2)(3) 1,070,216 ----------------------------------------------------------------------------------------------------- $ 6,245,027 ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 15.5% $ 500 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.00%, 12/1/19 $ 531,775 1,000 Allegheny County Sanitation and Sewer Authority, (MBIA), 5.50%, 12/1/24 1,083,530 500 Delaware County IDA, (Water Facilities), (FGIC), (AMT), 6.00%, 6/1/29 557,450 1,000 Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 1,020,530 3,000 Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/31 3,094,500 ----------------------------------------------------------------------------------------------------- $ 6,287,785 ----------------------------------------------------------------------------------------------------- MISCELLANEOUS -- 1.4% $ 600 Philadelphia IDA, (Franklin Institute), 5.20%, 6/15/26 $ 568,728 ----------------------------------------------------------------------------------------------------- $ 568,728 ----------------------------------------------------------------------------------------------------- NURSING HOME -- 2.2% $ 500 Clarion County IDA, (Beverly Enterprises, Inc.), 5.875%, 5/1/07 $ 489,615 400 Cumberland County IDA, (Beverly Enterprises, Inc.), 5.50%, 10/1/08 389,008 ----------------------------------------------------------------------------------------------------- $ 878,623 ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 8.4% $ 600 Bucks County, IDA, (Pennswood), 6.00%, 10/1/27 $ 616,776 490 Cliff House Trust (AMT), 6.625%, 6/1/27 419,097 500 Crawford County Hospital Authority, (Wesbury United Methodist Community), 6.25%, 8/15/29 483,030 400 Delaware IDA, (Glen Riddle), (AMT), 8.625%, 9/1/25 419,304 500 Lancaster County Hospital Authority, (Health Center), 5.875%, 6/1/31 512,500 925 Montgomery County HEFA, (Faulkeways at Gwynedd), 6.75%, 11/15/30 963,193 ----------------------------------------------------------------------------------------------------- $ 3,413,900 ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.7% $ 1,200 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,221,732 340 Erie Municipal Airport Authority, (AMT), 5.50%, 7/1/09 349,938 500 Erie Municipal Airport Authority, (AMT), 5.875%, 7/1/16 489,750 250 Pennsylvania EDA, (Amtrak), (AMT), 6.25%, 11/1/31 249,198 ----------------------------------------------------------------------------------------------------- $ 2,310,618 -----------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 33
VALUE ---------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 152.0% (IDENTIFIED COST $58,553,929) $ 61,840,145 ---------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.3% $ 1,333,265 ---------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (55.3)% (22,503,509) ---------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 40,669,901 ----------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association The Trust invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at November 30, 2003, 67.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 6.1% to 23.3% 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. 34 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2003 FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES AS OF NOVEMBER 30, 2003
CALIFORNIA TRUST FLORIDA TRUST ------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 155,191,636 $ 94,457,877 Unrealized appreciation 9,882,748 5,037,413 ------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 165,074,384 $ 99,495,290 ------------------------------------------------------------------------------------------------------- Cash $ 1,127,905 $ 613,143 Receivable for investments sold 6,500 -- Interest receivable 2,626,156 1,222,655 Receivable for daily variation margin on open financial futures contracts 222,812 125,937 Prepaid expenses -- -- ------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 169,057,757 $ 101,457,025 ------------------------------------------------------------------------------------------------------- LIABILITIES Payable to affiliate for Trustees' fees $ 1,490 $ 1,135 Accrued expenses 61,942 50,407 ------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 63,432 $ 51,542 ------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 59,003,071 $ 35,503,071 ------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 109,991,254 $ 65,902,412 ------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 71,773 $ 42,437 Additional paid-in capital 106,399,317 63,044,886 Accumulated net realized loss (computed on the basis of identified cost) (8,197,151) (3,345,568) Accumulated undistributed net investment income 1,433,045 896,297 Net unrealized appreciation (computed on the basis of identified cost) 10,284,270 5,264,360 ------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 109,991,254 $ 65,902,412 ------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) $ 2,360 $ 1,420 ------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING $ 7,177,287 $ 4,243,709 ------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.32 $ 15.53 ------------------------------------------------------------------------------------------------------- MASSACHUSETTS TRUST MICHIGAN TRUST ----------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 57,228,596 $ 45,404,453 Unrealized appreciation 3,991,030 3,228,298 ----------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 61,219,626 $ 48,632,751 ----------------------------------------------------------------------------------------------------------- Cash $ 87,926 $ 45,609 Receivable for investments sold -- -- Interest receivable 1,169,207 763,707 Receivable for daily variation margin on open financial futures contracts 106,562 69,750 Prepaid expenses -- 1,416 ----------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 62,583,321 $ 49,513,233 ----------------------------------------------------------------------------------------------------------- LIABILITIES Payable to affiliate for Trustees' fees $ 296 $ 351 Accrued expenses 44,921 48,215 ----------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 45,217 $ 48,566 ----------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 21,502,897 $ 17,501,439 ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 41,035,207 $ 31,963,228 ----------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 26,678 $ 20,973 Additional paid-in capital 39,477,340 31,160,548 Accumulated net realized loss (computed on the basis of identified cost) (3,234,851) (2,970,897) Accumulated undistributed net investment income 583,005 421,148 Net unrealized appreciation (computed on the basis of identified cost) 4,183,035 3,331,456 ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 41,035,207 $ 31,963,228 ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) $ 860 $ 700 ----------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING $ 2,667,846 $ 2,097,294 ----------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.38 $ 15.24 -----------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 35
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 97,748,134 $ 119,038,837 $ 61,260,095 $ 58,553,929 Unrealized appreciation 8,504,991 9,932,803 2,970,515 3,286,216 --------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 106,253,125 $ 128,971,640 $ 64,230,610 $ 61,840,145 --------------------------------------------------------------------------------------------------------------------------------- Cash $ -- $ -- $ 177,002 $ 58,706 Receivable for investments sold 5,000 -- 5,000 -- Interest receivable 2,273,074 2,215,368 1,367,146 1,241,667 Receivable for daily variation margin on open financial futures contracts 155,000 101,719 72,656 82,344 Prepaid expenses -- -- -- 1,420 --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 108,686,199 $ 131,288,727 $ 65,852,414 $ 63,224,282 --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for when-issued securities $ 980,990 $ -- $ -- $ -- Due to bank 153,167 1,970,082 -- -- Payable to affiliate for Trustees' fees 1,135 1,135 296 351 Accrued expenses 50,457 71,121 45,365 50,521 --------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 1,185,749 $ 2,042,338 $ 45,661 $ 50,872 --------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends $ 38,000,000 $ 44,502,160 $ 23,503,215 $ 22,503,509 --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 69,500,450 $ 84,744,229 $ 42,303,538 $ 40,669,901 --------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 45,739 $ 53,603 $ 28,080 $ 26,746 Additional paid-in capital 67,887,176 79,543,024 41,707,481 39,732,133 Accumulated net realized loss (computed on the basis of identified cost) (8,160,878) (6,013,082) (3,097,606) (3,197,359) Accumulated undistributed net investment income 944,142 1,066,685 579,928 673,776 Net unrealized appreciation (computed on the basis of identified cost) 8,784,271 10,093,999 3,085,655 3,434,605 --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 69,500,450 $ 84,744,229 $ 42,303,538 $ 40,669,901 --------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) $ 1,520 $ 1,780 $ 940 $ 900 --------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING $ 4,573,950 $ 5,360,320 $ 2,808,002 $ 2,674,582 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.19 $ 15.81 $ 15.07 $ 15.21 ---------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 36 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED NOVEMBER 30, 2003
CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 9,669,442 $ 5,821,091 $ 3,633,982 $ 2,898,631 --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 9,669,442 $ 5,821,091 $ 3,633,982 $ 2,898,631 --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 1,169,695 $ 700,053 $ 429,013 $ 341,202 Administration fee 334,199 200,015 122,575 97,486 Trustees fees and expenses 9,073 6,507 1,774 1,752 Legal and accounting services 36,706 32,326 30,614 33,902 Printing and postage 19,971 14,059 7,985 9,077 Custodian fee 70,045 53,291 31,414 28,697 Transfer and dividend disbursing agent 106,938 66,803 42,965 39,292 Preferred shares remarketing agent fee 147,500 88,750 53,750 43,749 Miscellaneous 29,001 21,620 19,555 19,122 --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 1,923,128 $ 1,183,424 $ 739,645 $ 614,279 --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee -- 7,586 -- -- --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS -- 7,586 -- -- --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES -- 1,175,838 -- -- --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 7,746,314 $ 4,645,253 $ 2,894,337 $ 2,284,352 --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 339,944 $ 547,567 $ 384,587 $ (78,551) Financial futures contracts (390,643) (225,970) 90,692 (443,673) --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ (50,699) $ 321,597 $ 475,279 $ (522,224) --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 4,593,597 $ 2,735,373 $ 1,944,909 $ 2,124,227 Financial futures contracts 401,522 226,947 192,005 74,780 --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,995,119 $ 2,962,320 $ 2,136,914 $ 2,199,007 --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 4,944,420 $ 3,283,917 $ 2,612,193 $ 1,676,783 --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (490,647) $ (321,534) $ (186,866) $ (150,383) --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 12,200,087 $ 7,607,636 $ 5,319,664 $ 3,810,752 ---------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 37
NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 6,337,694 $ 7,389,512 $ 3,815,931 $ 3,667,764 --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 6,337,694 $ 7,389,512 $ 3,815,931 $ 3,667,764 --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 733,594 $ 887,696 $ 452,521 $ 434,248 Administration fee 209,598 253,627 129,292 124,071 Trustees fees and expenses 6,508 7,249 1,775 1,752 Legal and accounting services 32,450 35,169 30,378 34,382 Printing and postage 14,850 1,757 9,896 10,400 Custodian fee 49,575 53,392 34,850 31,344 Transfer and dividend disbursing agent 69,909 82,910 45,437 47,962 Preferred shares remarketing agent fee 94,999 111,248 58,750 56,250 Miscellaneous 21,159 23,024 18,975 19,646 --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 1,232,642 $ 1,456,072 $ 781,874 $ 760,055 --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee -- -- 7,036 -- --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS -- -- 7,036 -- --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES -- -- 774,838 -- --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 5,105,052 $ 5,933,440 $ 3,041,093 $ 2,907,709 --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ (495,939) $ 1,260,852 $ 213,585 $ 174,154 Financial futures contracts 11,934 75,605 46,862 (128,463) --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED GAIN (LOSS) $ (484,005) $ 1,336,457 $ 260,447 $ 45,691 --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 5,228,343 $ 3,501,171 $ 2,165,897 $ 2,162,968 Financial futures contracts 279,280 161,196 115,140 148,389 --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 5,507,623 $ 3,662,367 $ 2,281,037 $ 2,311,357 --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 5,023,618 $ 4,998,824 $ 2,541,484 $ 2,357,048 --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (323,091) $ (363,142) $ (215,153) $ (214,431) --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,805,579 $ 10,569,122 $ 5,367,424 $ 5,050,326 ---------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 38 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2003
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA TRUST FLORIDA TRUST MASSACHUSETTS TRUST MICHIGAN TRUST --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 7,746,314 $ 4,645,253 $ 2,894,337 $ 2,284,352 Net realized gain (loss) (50,699) 321,597 475,279 (522,224) Net change in unrealized appreciation (depreciation) 4,995,119 2,962,320 2,136,914 2,199,007 Distributions to preferred shareholders (490,647) (321,534) (186,866) (150,383) --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 12,200,087 $ 7,607,636 $ 5,319,664 $ 3,810,752 --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (6,911,900) $ (4,215,934) $ (2,579,286) $ (2,053,986) --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (6,911,900) $ (4,215,934) $ (2,579,286) $ (2,053,986) --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ -- $ 208,467 $ 500,292 $ 142,090 --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ -- $ 208,467 $ 500,292 $ 142,090 --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 5,288,187 $ 3,600,169 $ 3,240,670 $ 1,898,856 --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 104,703,067 $ 62,302,243 $ 37,794,537 $ 30,064,372 --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 109,991,254 $ 65,902,412 $ 41,035,207 $ 31,963,228 --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 1,433,045 $ 896,297 $ 583,005 $ 421,148 ---------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 39
INCREASE (DECREASE) IN NET ASSETS NEW JERSEY TRUST NEW YORK TRUST OHIO TRUST PENNSYLVANIA TRUST --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 5,105,052 $ 5,933,440 $ 3,041,093 $ 2,907,709 Net realized gain (loss) (484,005) 1,336,457 260,447 45,691 Net change in unrealized appreciation (depreciation) 5,507,623 3,662,367 2,281,037 2,311,357 Distributions to preferred shareholders (323,091) (363,142) (215,153) (214,431) --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,805,579 $ 10,569,122 $ 5,367,424 $ 5,050,326 --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (4,638,616) $ (5,495,212) $ (2,796,900) $ (2,517,299) --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (4,638,616) $ (5,495,212) $ (2,796,900) $ (2,517,299) --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 530,236 $ 81,456 $ 225,669 $ 109,497 --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 530,236 $ 81,456 $ 225,669 $ 109,497 --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 5,697,199 $ 5,155,366 $ 2,796,193 $ 2,642,524 --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 63,803,251 $ 79,588,863 $ 39,507,345 $ 38,027,377 --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 69,500,450 $ 84,744,229 $ 42,303,538 $ 40,669,901 --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 944,142 $ 1,066,685 $ 579,928 $ 673,776 ---------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 40
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. 41
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. 42 FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
CALIFORNIA TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.590 $ 14.410 $ 13.210 $ 11.630 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.079 $ 1.069 $ 1.035 $ 1.008 $ 0.773 Net realized and unrealized gain (loss) 0.682 0.155 1.120 1.576 (3.322) Distribution to preferred shareholders (0.068) (0.110) (0.222) (0.279) (0.186) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.693 $ 1.114 $ 1.933 $ 2.305 $ (2.735) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.963) $ (0.934) $ (0.733) $ (0.725) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.963) $ (0.934) $ (0.733) $ (0.725) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.040) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.085) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.320 $ 14.590 $ 14.410 $ 13.210 $ 11.630 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 14.950 $ 13.660 $ 14.320 $ 11.688 $ 11.438 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 17.06% 1.84% 29.65% 8.79% (20.70)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 43 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
CALIFORNIA TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 109,991 $ 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% 1.82% 1.83% 1.99% 1.66%(6) Net expenses after custodian fee reduction(5) 1.78% 1.80% 1.76% 1.92% 1.60%(6) Net investment income(5) 7.17% 7.44% 7.32% 8.43% 6.83%(6) Portfolio Turnover 9% 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% 1.16% 1.15% 1.17% 1.06%(6) Net expenses after custodian fee reduction 1.15% 1.15% 1.11% 1.13% 1.02%(6) Net investment income 4.64% 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) $ 71,608 $ 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. 44 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
FLORIDA TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.730 $ 14.340 $ 13.070 $ 11.770 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.096 $ 1.103 $ 1.056 $ 1.028 $ 0.779 Net realized and unrealized gain (loss) 0.775 0.358 1.162 1.318 (3.180) Distribution to preferred shareholders (0.076) (0.118) (0.243) (0.338) (0.200) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.795 $ 1.343 $ 1.975 $ 2.008 $ (2.601) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.995) $ (0.953) $ (0.705) $ (0.708) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.995) $ (0.953) $ (0.705) $ (0.708) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.042) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.085) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.530 $ 14.730 $ 14.340 $ 13.070 $ 11.770 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.455 $ 14.400 $ 13.380 $ 10.500 $ 10.438 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 14.67% 15.18% 34.91% 7.20% (27.62)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 45 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
FLORIDA TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 65,902 $ 62,302 $ 60,646 $ 55,296 $ 49,715 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.83% 1.87% 1.90% 1.99% 1.74%(6) Net expenses after custodian fee reduction(5) 1.82% 1.86% 1.82% 1.91% 1.68%(6) Net investment income(5) 7.20% 7.61% 7.46% 8.59% 6.89%(6) Portfolio Turnover 15% 14% 24% 20% 101% + The expenses of the Trust may reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 2.07% 1.88%(6) Expenses after custodian fee reduction(5) 1.99% 1.82%(6) Net investment income(5) 8.51% 6.75%(6) Net investment income per share $ 1.018 $ 0.763 ----------------------------------------------------------------------------------------------------------------------------- ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 1.18% 1.18% 1.19% 1.16% 1.11%(6) Net expenses after custodian fee reduction 1.18% 1.18% 1.14% 1.12% 1.07%(6) Net investment income 4.64% 4.82% 4.68% 5.05% 4.39%(6) + The expenses of the Trust may reflect a reduction of the investment advisor fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.20% 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) $ 71,412 $ 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. 46 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MASSACHUSETTS TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.350 $ 14.110 $ 12.530 $ 11.470 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.091 $ 1.065 $ 1.044 $ 1.008 $ 0.779 Net realized and unrealized gain (loss) 0.982 0.218 1.486 1.058 (3.479) Distribution to preferred shareholders (0.070) (0.106) (0.227) (0.286) (0.192) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 2.003 $ 1.177 $ 2.303 $ 1.780 $ (2.892) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.973) $ (0.937) $ (0.723) $ (0.720) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.973) $ (0.937) $ (0.723) $ (0.720) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.043) PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.085) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.380 $ 14.350 $ 14.110 $ 12.530 $ 11.470 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.400 $ 15.510 $ 14.370 $ 10.813 $ 11.438 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 5.91% 15.16% 40.54% 0.69% (20.68)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 47 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MASSACHUSETTS TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 41,035 $ 37,795 $ 36,634 $ 32,501 $ 29,458 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.86% 1.97% 1.97% 2.17% 1.98%(6) Net expenses after custodian fee reduction(5) 1.86% 1.94% 1.88% 2.09% 1.91%(6) Net investment income(5) 7.27% 7.55% 7.60% 8.80% 6.93%(6) Portfolio Turnover 26% 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 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 1.21% 1.24% 1.23% 1.26% 1.26%(6) Net expenses after custodian fee reduction 1.21% 1.22% 1.17% 1.21% 1.21%(6) Net investment income 4.72% 4.77% 4.74% 5.10% 4.41%(6) + The expenses of the Trust may reflect a reduction of the investment advisor fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.28%(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) $ 72,719 $ 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. 48 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MICHIGAN TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.400 $ 14.490 $ 13.060 $ 11.840 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.092 $ 1.085 $ 1.045 $ 0.996 $ 0.771 Net realized and unrealized gain (loss) 0.802 (0.109) 1.317 1.250 (3.111) Distribution to preferred shareholders (0.072) (0.113) (0.242) (0.321) (0.191) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.822 $ 0.863 $ 2.120 $ 1.925 $ (2.531) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.982) $ (0.953) $ (0.690) $ (0.705) $ (0.500) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.982) $ (0.953) $ (0.690) $ (0.705) $ (0.500) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.044) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.085) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.240 $ 14.400 $ 14.490 $ 13.060 $ 11.840 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.635 $ 13.940 $ 13.000 $ 10.438 $ 10.875 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 19.82% 14.72% 31.69% 2.30% (24.66)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 49 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
MICHIGAN TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 31,963 $ 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% 2.00% 1.99% 2.18% 1.78%(6) Net expenses after custodian fee reduction(5) 1.97% 1.99% 1.90% 2.09% 1.71%(6) Net investment income(5) 7.31% 7.54% 7.36% 8.34% 6.77%(6) Portfolio Turnover 8% 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% 1.27% 1.25% 1.27% 1.14%(6) Net expenses after custodian fee reduction 1.26% 1.26% 1.19% 1.22% 1.09%(6) Net investment income 4.69% 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) $ 70,664 $ 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. 50 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW JERSEY TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(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 $ 1.120 $ 1.098 $ 1.057 $ 1.012 $ 0.778 Net realized and unrealized gain (loss) 1.099 0.163 1.089 0.977 (3.235) Distribution to preferred shareholders (0.071) (0.105) (0.234) (0.324) (0.195) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 2.148 $ 1.156 $ 1.912 $ 1.665 $ (2.652) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.018) $ (0.976) $ (0.712) $ (0.705) $ (0.500) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.018) $ (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) $ 15.190 $ 14.060 $ 13.880 $ 12.680 $ 11.720 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.415 $ 14.400 $ 13.340 $ 10.750 $ 10.875 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 14.75% 15.70% 31.34% 5.28% (24.64)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 51 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW JERSEY TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(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) $ 69,500 $ 63,803 $ 62,237 $ 56,883 $ 52,490 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.84% 1.89% 1.95% 2.08% 1.67%(6) Net expenses after custodian fee reduction(5) 1.84% 1.88% 1.90% 2.00% 1.61%(6) Net investment income(5) 7.64% 7.80% 7.64% 8.64% 6.83%(6) Portfolio Turnover 28% 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 1.18% 1.19% 1.21% 1.21% 1.07%(6) Net expenses after custodian fee reduction 1.18% 1.18% 1.18% 1.16% 1.03%(6) Net investment income 4.87% 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) $ 70,724 $ 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. 52 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW YORK TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.860 $ 14.280 $ 13.020 $ 11.800 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.108 $ 1.114 $ 1.057 $ 1.002 $ 0.781 Net realized and unrealized gain (loss) 0.936 0.553 1.150 1.239 (3.153) Distribution to preferred shareholders (0.068) (0.103) (0.220) (0.301) (0.191) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.976 $ 1.564 $ 1.987 $ 1.940 $ (2.563) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.026) $ (0.984) $ (0.727) $ (0.720) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.026) $ (0.984) $ (0.727) $ (0.720) $ (0.510) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.041) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.086) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.810 $ 14.860 $ 14.280 $ 13.020 $ 11.800 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.460 $ 13.990 $ 14.050 $ 10.750 $ 10.813 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 18.34% 6.56% 38.30% 5.90% (25.00)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 53 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
NEW YORK TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 84,744 $ 79,589 $ 75,658 $ 69,023 $ 62,327 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.77% 1.86% 1.88% 2.03% 1.65%(6) Net expenses after custodian fee reduction(5) 1.77% 1.86% 1.86% 1.95% 1.59%(6) Net investment income(5) 7.21% 7.64% 7.45% 8.33% 6.86%(6) Portfolio Turnover 19% 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 1.15% 1.18% 1.19% 1.20% 1.05%(6) Net expenses after custodian fee reduction 1.15% 1.18% 1.17% 1.15% 1.01%(6) Net investment income 4.68% 4.84% 4.68% 4.91% 4.38%(6) ----------------------------------------------------------------------------------------------------------------------------- + The expenses of the Trust may reflect a reduction of the investment advisor fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.18%(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) $ 72,603 $ 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. 54 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
OHIO TRUST ------------------------------------------------------------------------ YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------------ 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.150 $ 14.070 $ 12.820 $ 11.910 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.083 $ 1.107 $ 1.068 $ 1.028 $ 0.772 Net realized and unrealized gain (loss) 0.913 0.036 1.134 0.930 (3.035) Distribution to preferred shareholders (0.077) (0.109) (0.242) (0.335) (0.197) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.919 $ 1.034 $ 1.960 $ 1.623 $ (2.460) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.999) $ (0.954) $ (0.710) $ (0.713) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.999) $ (0.954) $ (0.710) $ (0.713) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.043) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.085) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.070 $ 14.150 $ 14.070 $ 12.820 $ 11.910 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.715 $ 14.730 $ 13.620 $ 11.375 $ 11.250 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 14.12% 15.59% 26.39% 7.55% (22.06)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 55 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
OHIO TRUST -------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------- 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 42,304 $ 39,507 $ 39,072 $ 35,613 $ 33,049 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.90% 1.96% 1.99% 2.08% 1.84%(6) Net expenses after custodian fee reduction(5) 1.88% 1.87% 1.90% 2.01% 1.77%(6) Net investment income(5) 7.37% 7.84% 7.69% 8.56% 6.74%(6) Portfolio Turnover 23% 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 1.21% 1.23% 1.24% 1.22% 1.17%(6) Net expenses after custodian fee reduction 1.20% 1.17% 1.18% 1.18% 1.13%(6) Net investment income 4.69% 4.91% 4.78% 5.02% 4.31%(6) + The expenses of the Trust may reflect a reduction of the investment advisor fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 1.26% 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) $ 70,007 $ 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(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 7.80% 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. 56 Selected data for a common share outstanding during the periods stated
PENNSYLVANIA TRUST ------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, ------------------------------------------------------------------- 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ----------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.260 $ 14.160 $ 12.960 $ 11.840 $ 15.000 ----------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.089 $ 1.059 $ 1.015 $ 1.013 $ 0.780 Net realized and unrealized gain (loss) 0.884 0.039 1.107 1.147 (3.108) Distribution to preferred shareholders (0.080) (0.111) (0.244) (0.332) (0.201) ----------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.893 $ 0.987 $ 1.878 $ 1.828 $ (2.529) ----------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.943) $ (0.887) $ (0.678) $ (0.708) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.943) $ (0.887) $ (0.678) $ (0.708) $ (0.502) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ -- $ -- $ -- $ (0.043) ----------------------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ -- $ -- $ -- $ (0.086) ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 15.210 $ 14.260 $ 14.160 $ 12.960 $ 11.840 ----------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.980 $ 13.960 $ 12.750 $ 10.625 $ 10.750 ----------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN(4) 22.05% 16.77% 26.88% 5.29% (25.50)% -----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 57 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
PENNSYLVANIA TRUST -------------------------------------------------------------------------- YEAR ENDED NOVEMBER 30, -------------------------------------------------------------------------- 2003(1) 2002(1)(2) 2001(1) 2000(1) 1999(1)(3) ---------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 40,670 $ 38,027 $ 37,723 $ 34,514 $ 31,543 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.92% 1.95% 1.97% 1.95% 1.77%(6) Net expenses after custodian fee reduction(5) 1.92% 1.95% 1.94% 1.86% 1.70%(6) Net investment income(5) 7.35% 7.48% 7.26% 8.46% 6.85%(6) Portfolio Turnover 6% 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% 1.22% 1.23% 1.14% 1.13%(6) Net expenses after custodian fee reduction 1.23% 1.22% 1.20% 1.09% 1.08%(6) Net investment income 4.69% 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) $ 70,193 $ 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. 58 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2003 NOTES TO FINANCIAL STATEMENTS 1 SIGNIFICANT ACCOUNTING POLICIES Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Florida Municipal Income Trust (Florida Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust), and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust), (individually referred to as the Trust or collectively the Trusts) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. The Trusts were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated December 10, 1998. Each Trust's investment objective is to achieve current income exempt from regular federal income taxes and taxes in its specified state. Each Trust seeks to achieve its objective by investing primarily in investment grade municipal obligations issued by its specified state. The following is a summary of significant accounting policies consistently followed by each Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of valuations furnished by a pricing service. Futures contracts listed on the commodity exchanges are valued at closing settlement prices. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates fair value. Investments for which valuations or market quotations are unavailable are valued at fair value using methods determined in good faith by or at the direction of the Trustees. B INVESTMENT TRANSACTIONS -- Investment transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined using the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuations during this period. To the extent that when-issued or delayed delivery purchases are outstanding, the Trust instructs the custodian to segregate assets in a separate account, with a current value at least equal to the amount of its purchase commitments. C INCOME -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or discount. D FEDERAL TAXES -- Each Trust's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary. At November 30, 2003, 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:
FUND AMOUNT EXPIRES ----------------------------------------------------------------------------- California $ 2,239,451 November 30, 2008 5,832,093 November 30, 2007 Florida 160,909 November 30, 2009 1,777,536 November 30, 2008 1,207,714 November 30, 2007 Massachusetts 343,176 November 30, 2010 39,627 November 30, 2009 1,739,252 November 30, 2008 950,140 November 30, 2007 Michigan 443,883 November 30, 2011 475,985 November 30, 2010 165,469 November 30, 2009 624,509 November 30, 2008 1,193,621 November 30, 2007 New Jersey 177,350 November 30, 2011 262,308 November 30, 2009 3,178,038 November 30, 2008 4,271,328 November 30, 2007 New York 70,059 November 30, 2009 1,920,646 November 30, 2008 3,885,856 November 30, 2007 Ohio 850,745 November 30, 2009 643,577 November 30, 2008 1,531,618 November 30, 2007 Pennsylvania 41,331 November 30, 2010 844,973 November 30, 2009 807,118 November 30, 2008 1,395,577 November 30, 2007
59 In addition, each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income taxes when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item for investors. E FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures contract, a Trust is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Trust (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Trust. A Trust's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. F OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put option on a financial futures contract by a Trust, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Trust will realize a loss in the amount of the cost of the option. When a Trust enters into a closing sale transaction, a Trust will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Trust exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid. G USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. H EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as custodian of the Trusts. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Trust maintains with IBT. All significant credit balances used to reduce the Trusts' custodian fees are reported as a reduction of total expenses in the Statement of Operations. 2 AUCTION PREFERRED SHARES (APS) Each Trust issued Auction Preferred Shares on March 1, 1999 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Trust. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Trust's APS and have been reset every seven days thereafter by an auction. Auction Preferred Shares issued and outstanding as of November 30, 2003 and dividend rate ranges for the year ended November 30, 2003 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE TRUST ISSUED AND OUTSTANDING RANGES --------------------------------------------------------------- California 2,360 0.40% - 1.25% Florida 1,420 0.10% - 1.45% Massachusetts 860 0.47% - 1.50% Michigan 700 0.40% - 1.50% New Jersey 1,520 0.40% - 1.20% New York 1,780 0.40% - 1.25% Ohio 940 0.59% - 1.50% Pennsylvania 900 0.50% - 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 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. 60 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 Auction Preferred Shares on November 30, 2003 are listed below. For the year ended November 30, 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 PREFERRED AVERAGE APS APS SHAREHOLDERS DIVIDEND RATES DIVIDEND RATES FOR THE FOR THE AS OF YEAR ENDED YEAR ENDED NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, TRUST 2003 2003 2003 --------------------------------------------------------------------------- California 0.95% $ 490,647 0.83% Florida 1.05% 321,534 0.91% Massachusetts 0.82% 186,866 0.87% Michigan 1.00% 150,383 0.87% New Jersey 0.95% 323,091 0.85% New York 0.59% 363,142 0.82% Ohio 1.00% 215,153 0.92% Pennsylvania 0.95% 214,431 0.95%
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 year ended November 30, 2003, the fee was equivalent to 0.70% of each Trust's average weekly gross assets and amounted to $1,169,695, $700,053, $429,013, $341,202, $733,594, $887,696, $452,521, and $434,248, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. EVM also serves as the administrator of each Trust. An administration fee, computed at the annual rate of 0.20% of the average weekly gross assets of each Trust is paid to EVM for administering business affairs of each Trust. For the year ended November 30, 2003, the administrative fee amounted to $334,199, $200,015, $122,575, $97,486, $209,598, $253,627, $129,292, and $124,071, for California Trust, Florida Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, New York Trust, Ohio Trust and Pennsylvania Trust, respectively. Trustees of the Trusts that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended November 30, 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 year ended November 30, 2003 were as follows: CALIFORNIA TRUST Purchases $ 14,210,935 Sales 16,456,306 FLORIDA TRUST Purchases $ 14,693,721 Sales 14,958,569 MASSACHUSETTS TRUST Purchases $ 16,213,262 Sales 15,407,759 MICHIGAN TRUST Purchases $ 3,852,336 Sales 4,002,894 NEW JERSEY TRUST Purchases $ 31,872,452 Sales 29,273,893
61 NEW YORK TRUST Purchases $ 26,408,002 Sales 24,222,058 OHIO TRUST Purchases $ 14,626,781 Sales 15,322,315 PENNSYLVANIA TRUST Purchases $ 3,869,260 Sales 3,741,118
6 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION) The cost and unrealized appreciation (depreciation) in value of the investments owned by each Trust at November 30, 2003, as computed for Federal income tax purposes, were as follows: CALIFORNIA TRUST AGGREGATE COST $ 154,915,721 -------------------------------------------------------- Gross unrealized appreciation $ 10,388,100 Gross unrealized depreciation (229,437) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 10,158,663 -------------------------------------------------------- FLORIDA TRUST AGGREGATE COST $ 94,430,338 -------------------------------------------------------- Gross unrealized appreciation $ 5,855,856 Gross unrealized depreciation (790,904) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 5,064,952 -------------------------------------------------------- MASSACHUSETTS TRUST AGGREGATE COST $ 57,199,247 -------------------------------------------------------- Gross unrealized appreciation $ 4,323,349 Gross unrealized depreciation (302,970) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 4,020,379 -------------------------------------------------------- MICHIGAN TRUST AGGREGATE COST $ 45,368,725 -------------------------------------------------------- Gross unrealized appreciation $ 3,535,604 Gross unrealized depreciation (271,578) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,264,026 -------------------------------------------------------- NEW JERSEY TRUST AGGREGATE COST $ 97,740,708 -------------------------------------------------------- Gross unrealized appreciation $ 8,775,589 Gross unrealized depreciation (263,172) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 8,512,417 -------------------------------------------------------- NEW YORK TRUST AGGREGATE COST $ 119,014,162 -------------------------------------------------------- Gross unrealized appreciation $ 11,061,879 Gross unrealized depreciation (1,104,401) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 9,957,478 -------------------------------------------------------- OHIO TRUST AGGREGATE COST $ 61,216,621 -------------------------------------------------------- Gross unrealized appreciation $ 3,996,523 Gross unrealized depreciation (982,534) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,013,989 -------------------------------------------------------- PENNSYLVANIA TRUST AGGREGATE COST $ 58,513,900 -------------------------------------------------------- Gross unrealized appreciation $ 4,040,164 Gross unrealized depreciation (713,919) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 3,326,245 --------------------------------------------------------
62 7 SHARES OF BENEFICIAL INTEREST Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:
CALIFORNIA TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan -- 52,243 --------------------------------------------------------------------------------------- NET INCREASE -- 52,243 --------------------------------------------------------------------------------------- FLORIDA TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 13,428 926 --------------------------------------------------------------------------------------- NET INCREASE 13,428 926 --------------------------------------------------------------------------------------- MASSACHUSETTS TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 33,291 37,713 --------------------------------------------------------------------------------------- NET INCREASE 33,291 37,713 --------------------------------------------------------------------------------------- MICHIGAN TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 9,339 2,758 --------------------------------------------------------------------------------------- NET INCREASE 9,339 2,758 --------------------------------------------------------------------------------------- NEW JERSEY TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 36,133 53,105 --------------------------------------------------------------------------------------- NET INCREASE 36,133 53,105 --------------------------------------------------------------------------------------- NEW YORK TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 5,262 55,136 --------------------------------------------------------------------------------------- NET INCREASE 5,262 55,136 --------------------------------------------------------------------------------------- OHIO TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 15,227 15,351 --------------------------------------------------------------------------------------- NET INCREASE 15,227 15,351 --------------------------------------------------------------------------------------- PENNSYLVANIA TRUST ----------------------- YEAR ENDED NOVEMBER 30, ----------------------- 2003 2002 --------------------------------------------------------------------------------------- Shares issued pursuant to the Trust's dividend reinvestment plan 7,289 4,050 --------------------------------------------------------------------------------------- NET INCREASE 7,289 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. 63 A summary of obligations under these financial instruments at November 30, 2003 is as follows:
EXPIRATION NET UNREALIZED TRUST DATE CONTRACTS POSITION APPRECIATION ------------------------------------------------------------------------------- California 3/04 230 U.S. Treasury Bond Short $ 401,522 Florida 3/04 130 U.S. Treasury Bond Short $ 226,947 Massachusetts 3/04 110 U.S. Treasury Bond Short $ 192,005 Michigan 3/04 72 U.S. Treasury Bond Short $ 103,158 New Jersey 3/04 160 U.S. Treasury Bond Short $ 279,280 New York 3/04 105 U.S. Treasury Bond Short $ 161,196 Ohio 3/04 75 U.S. Treasury Bond Short $ 115,140 Pennsylvania 3/04 85 U.S. Treasury Bond Short $ 148,389
At November 30, 2003, the Trust had sufficient cash and/or securities to cover margin requirements on open future contracts. 64 EATON VANCE MUNICIPAL INCOME TRUSTS AS OF NOVEMBER 30, 2003 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF EATON VANCE MUNICIPAL INCOME TRUSTS AND SHAREHOLDERS OF EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST, EATON VANCE FLORIDA MUNICIPAL INCOME TRUST, EATON VANCE MASSACHUSETTS MUNICIPAL INCOME TRUST, EATON VANCE MICHIGAN MUNICIPAL INCOME TRUST, EATON VANCE NEW JERSEY MUNICIPAL INCOME TRUST, EATON VANCE NEW YORK MUNICIPAL INCOME TRUST, EATON VANCE OHIO MUNICIPAL INCOME TRUST, AND EATON VANCE PENNSYLVANIA MUNICIPAL INCOME TRUST: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Eaton Vance California Municipal Income Trust, Eaton Vance Florida Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (the Trusts), (constituting the Eaton Vance Municipal Income Trusts) as of November 30, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years in the four year period ended November 30, 2003 and for the period from the start of business, January 29, 1999, to November 30, 1999. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities held as of November 30, 2003 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Eaton Vance California Municipal Income Trust, Eaton Vance Florida Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts January 14, 2004 65 DIVIDEND REINVESTMENT PLAN Each Trust offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the same Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested. If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Trust's transfer agent, PFPC Inc., or you will not be able to participate. The Plan Agent's service fee for handling distributions will be paid by each Trust. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases. Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds. If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent. Any inquires regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710. 66 APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan. The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan. ------------------------------------------------ Please print exact name on account ------------------------------------------------ Shareholder signature Date ------------------------------------------------ Shareholder signature Date Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign. YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY. THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS: Eaton Vance Municipal Income Trusts c/o PFPC Inc. P.O. Box 43027 Providence, RI 02940-3027 800-331-1710 67 NUMBER OF EMPLOYEES Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of November 30, 2003 our records indicate that there are 64, 49, 60, 39, 67, 64, 57 and 62 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 3,100, 2,100, 1,400, 1,200, 2,400, 2,700, 1,700 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
68 EATON VANCE MUNICIPAL INCOME TRUSTS MANAGEMENT AND ORGANIZATION FUND MANAGEMENT. The Trustees of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Florida Municipal Income Trust (FEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO), and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts' affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The "noninterested Trustees" consist of those Trustees who are not "interested persons" of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Trusts' principal underwriter and a wholly-owned subsidiary of EVM.
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE (1) OTHER DIRECTORSHIPS HELD ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE(S) Jessica M. Bibliowicz Trustee Until 2006. Chairman, President and 193 Director of National 11/28/59 3 years. Chief Executive Officer of Financial Partners Trustee National Financial Partners since 1998. (financial services company) (since April 1999). President and Chief Operating Officer of John A. Levin & Co. (registered investment adviser) (July 1997 to April 1999) and a Director of Baker, Fentress & Company which owns John A. Levin & Co. (July 1997 to April 1999). Ms. Bibliowicz is an interested person because of her affiliation with a brokerage firm. James B. Hawkes Vice President Until 2004. Chairman, President and 195 Director of EVC 11/9/41 and Trustee 3 years. Chief Executive Officer of Trustee BMR, EVC, EVM and EV; since 1998. Director of EV; Vice President and Director of EVD. Trustee and/or officer of 195 registered investment companies in the Eaton Vance Fund Complex. Mr. Hawkes is an interested person because of his positions with BMR, EVM, EVC and EV, which are affiliates of the Trusts. NONINTERESTED TRUSTEE(S) Samuel L. Hayes, III Trustee Until 2004. Jacob H. Schiff Professor 195 Director of Tiffany & Co. 2/23/35 3 years. of Investment Banking (specialty retailer) and Trustee Emeritus, Harvard Telect, Inc. since 1998. University Graduate School (telecommunication services of Business Administration. company) William H. Park Trustee Until 2005. President and Chief 192 None 9/19/47 3 years. Executive Officer, Prizm Trustee Capital Management, LLC since 2003. (investment management firm) (since 2002). Executive Vice President and Chief Financial Officer, United Asset Management Corporation (a holding company owning institutional investment management firms) (1982-2001). Ronald A. Pearlman Trustee Until 2006. Professor of Law, 192 None 7/10/40 3 years. Georgetown University Law Trustee Center (since 1999). Tax since 2003. Partner Covington & Burling, Washington, DC (1991-2000).
69
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS TRUSTEE (1) OTHER DIRECTORSHIPS HELD -------------------------------------- --------------------------------------------------------------------------------------------- NONINTERESTED TRUSTEE(S) (CONTINUED) Norton H. Reamer Trustee Until 2005. President and Chief 195 None 9/21/35 3 years. Executive Officer of Asset Trustee Management Finance Corp. (a since 1998. specialty finance company serving the investment management industry) (since October 2003). President, Unicorn Corporation (an investment and financial advisory services company) (since September 2000). Formerly, Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (2000-2003). Formerly, Advisory Director of Berkshire Capital Corporation (investment banking firm) (2002-2003). Formerly, Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds) (1980-2000). Lynn A. Stout Trustee Until 2005. Professor of Law, 195 None 9/14/57 3 years. University of California at Trustee Los Angeles School of Law since 1998. (since July 2001). Formerly, Professor of Law, Georgetown University Law Center.
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
TERM OF POSITION(S) OFFICE AND NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH TRUSTS SERVICE DURING PAST FIVE YEARS ------------------------------------------------------------------------------------------------------------------------------- Thomas J. Fetter President Since 1998 Vice President of EVM and BMR. Trustee and President of The 8/20/43 Massachusetts Health & Education Tax-Exempt Trust. Officer of 127 registered investment companies managed by EVM or BMR. William H. Ahern, Jr. Vice President of EMI Since 1998 Vice President of EVM and BMR. Officer of 35 registered 7/28/59 investment companies managed by EVM or BMR. Cynthia J. Clemson Vice President of CEV, Since 1998 Vice President of EVM and BMR. Officer of 20 registered 3/2/63 FEV and EVP investment companies managed by EVM or BMR. Robert B. MacIntosh Vice President Since 1998 Vice President of EVM and BMR. Officer of 127 registered 1/22/57 investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 1998 Vice President, Secretary and Chief Legal Officer of BMR, 10/10/40 EVM, EVD, EV and EVC. Officer of 195 registered investment companies managed by EVM or BMR. James L. O'Connor Treasurer Since 1998 Vice President of BMR, EVM and EVD. Officer of 116 4/1/45 registered investment companies managed by EVM or BMR.
(1) Includes both master and feeder funds in a master-feeder structure. 70 This Page Intentionally Left Blank This Page Intentionally Left Blank This Page Intentionally Left Blank INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE MUNICIPAL INCOME TRUSTS EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT PFPC INC. P.O. Box 43027 Providence, RI 02940-3027 (800) 331-1710 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 200 Berkeley Street Boston, MA 02116-5022 EATON VANCE MUNICIPAL INCOME TRUSTS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 147-1/04 CE-MUNISRC ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter --------------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter --------------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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 TRUST By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter --------------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /s/ Thomas J. Fetter --------------------------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter --------------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). 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 TRUST By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 13, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: January 13, 2004 ---------------- By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: January 13, 2004 ----------------