UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number)
November 30
Date of Fiscal Year End
May 31, 2014
Date of Reporting Period
Item 1. Reports to Stockholders
Eaton Vance
Municipal Income Trusts
Semiannual Report
May 31, 2014
California (CEV) Massachusetts (MMV) Michigan (EMI) New Jersey (EVJ)
New York (EVY) Ohio (EVO) Pennsylvania (EVP)
Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (CFTC) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. Each Fund has claimed an exclusion from the definition of the term commodity pool operator under the Commodity Exchange Act. Accordingly, neither the Funds nor the adviser with respect to the operation of the Funds is subject to CFTC regulation. Because of its management of other strategies, each Funds adviser is registered with the CFTC as a commodity pool operator and a commodity trading advisor.
Fund shares 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.
Semiannual Report May 31, 2014
Eaton Vance
Municipal Income Trusts
Table of Contents
Performance and Fund Profile |
||||
California Municipal Income Trust |
2 | |||
Massachusetts Municipal Income Trust |
3 | |||
Michigan Municipal Income Trust |
4 | |||
New Jersey Municipal Income Trust |
5 | |||
New York Municipal Income Trust |
6 | |||
Ohio Municipal Income Trust |
7 | |||
Pennsylvania Municipal Income Trust |
8 | |||
Endnotes and Additional Disclosures |
9 | |||
Financial Statements |
10 | |||
Annual Meeting of Shareholders |
65 | |||
Board of Trustees Contract Approval |
66 | |||
Officers and Trustees |
69 | |||
Important Notices |
70 |
Eaton Vance
California Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Craig R. Brandon, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 12.39 | % | 4.98 | % | 10.25 | % | 5.65 | % | |||||||||||
Fund at Market Price |
| 17.57 | 5.07 | 9.81 | 5.19 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
8.04 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.389 | ||||||||||||||||||
Distribution Rate at NAV |
5.38 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
10.96 | % | ||||||||||||||||||
Distribution Rate at Market Price |
5.85 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
11.92 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
Auction Preferred Shares (APS) |
30.46 | % | ||||||||||||||||||
Residual Interest Bond (RIB) |
8.95 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
4.4 | % | BBB |
9.3 | % | |||||
AA |
63.7 | BB |
0.7 | |||||||
A |
19.0 | Not Rated |
2.9 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
2
Eaton Vance
Massachusetts Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Craig R. Brandon, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 11.85 | % | 4.46 | % | 9.92 | % | 6.08 | % | |||||||||||
Fund at Market Price |
| 16.10 | 2.81 | 7.75 | 5.09 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
9.50 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.360 | ||||||||||||||||||
Distribution Rate at NAV |
4.59 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
8.55 | % | ||||||||||||||||||
Distribution Rate at Market Price |
5.07 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
9.45 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
31.08 | % | ||||||||||||||||||
RIB |
5.25 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
18.8 | % | BB |
1.4 | % | |||||
AA |
47.8 | B |
1.3 | |||||||
A |
21.2 | Not Rated |
0.9 | |||||||
BBB |
8.6 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
3 |
Eaton Vance
Michigan Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Thomas M. Metzold, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 13.83 | % | 5.34 | % | 9.77 | % | 5.99 | % | |||||||||||
Fund at Market Price |
| 18.04 | 1.07 | 9.65 | 4.18 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
11.64 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.355 | ||||||||||||||||||
Distribution Rate at NAV |
4.97 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
9.17 | % | ||||||||||||||||||
Distribution Rate at Market Price |
5.63 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
10.39 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
36.70 | % |
Fund Profile
Credit Quality (% of total investments)6
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
4 |
Eaton Vance
New Jersey Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Adam A. Weigold, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 11.33 | % | 4.97 | % | 9.19 | % | 6.05 | % | |||||||||||
Fund at Market Price |
| 14.49 | 0.72 | 7.94 | 5.03 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
9.22 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.379 | ||||||||||||||||||
Distribution Rate at NAV |
5.20 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
10.09 | % | ||||||||||||||||||
Distribution Rate at Market Price |
5.73 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
11.12 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
32.56 | % | ||||||||||||||||||
RIB |
3.68 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
12.8 | % | BBB |
8.3 | % | |||||
AA |
27.9 | B |
2.1 | |||||||
A |
45.0 | Not Rated |
3.9 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
5 |
Eaton Vance
New York Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Craig R. Brandon, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 11.97 | % | 4.85 | % | 10.97 | % | 6.06 | % | |||||||||||
Fund at Market Price |
| 20.92 | 6.21 | 9.51 | 6.59 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
1.46 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.435 | ||||||||||||||||||
Distribution Rate at NAV |
6.05 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
11.72 | % | ||||||||||||||||||
Distribution Rate at Market Price |
6.14 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
11.90 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
25.60 | % | ||||||||||||||||||
RIB |
14.66 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
15.4 | % | BBB |
13.7 | % | |||||
AA |
34.7 | BB |
3.7 | |||||||
A |
26.2 | Not Rated |
6.3 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
6 |
Eaton Vance
Ohio Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Thomas M. Metzold, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 12.76 | % | 5.87 | % | 9.86 | % | 6.28 | % | |||||||||||
Fund at Market Price |
| 20.32 | 4.73 | 8.74 | 5.58 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
6.48 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.366 | ||||||||||||||||||
Distribution Rate at NAV |
4.94 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
9.23 | % | ||||||||||||||||||
Distribution Rate at Market Price |
5.28 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
9.86 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
34.18 | % | ||||||||||||||||||
RIB |
2.19 |
Fund Profile
Credit Quality (% of total investments)6
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
7 |
Eaton Vance
Pennsylvania Municipal Income Trust
May 31, 2014
Performance1,2
Portfolio Manager Adam A. Weigold, CFA
% Average Annual Total Returns | Inception Date | Six Months | One Year | Five Years | Ten Years | |||||||||||||||
Fund at NAV |
01/29/1999 | 11.26 | % | 4.97 | % | 8.42 | % | 5.64 | % | |||||||||||
Fund at Market Price |
| 19.61 | 5.75 | 7.84 | 5.18 | |||||||||||||||
Barclays Long (22+) Year Municipal Bond Index |
| 9.19 | % | 2.94 | % | 7.68 | % | 5.72 | % | |||||||||||
% Premium/Discount to NAV3 | ||||||||||||||||||||
7.82 | % | |||||||||||||||||||
Distributions4 | ||||||||||||||||||||
Total Distributions per share for the period |
$ | 0.389 | ||||||||||||||||||
Distribution Rate at NAV |
5.65 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
10.30 | % | ||||||||||||||||||
Distribution Rate at Market Price |
6.13 | % | ||||||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
11.17 | % | ||||||||||||||||||
% Total Leverage5 | ||||||||||||||||||||
APS |
35.16 | % | ||||||||||||||||||
RIB |
2.74 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
3.5 | % | BBB |
3.1 | % | |||||
AA |
43.9 | Not Rated |
2.9 | |||||||
A |
46.6 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.
8 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Endnotes and Additional Disclosures
9 |
Eaton Vance
California Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
10 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
11 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
12 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
13 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
14 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
15 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
16 | See Notes to Financial Statements. |
Eaton Vance
Michigan Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
17 | See Notes to Financial Statements. |
Eaton Vance
Michigan Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
18 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
19 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
20 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
21 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
22 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
23 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
24 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
25 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
26 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
27 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
28 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
29 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited)
30 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
31 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
May 31, 2014
Portfolio of Investments (Unaudited) continued
32 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Assets and Liabilities (Unaudited)
May 31, 2014 | ||||||||||||||||
Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
Investments |
||||||||||||||||
Identified cost |
$ | 149,609,439 | $ | 57,619,539 | $ | 44,391,817 | $ | 94,039,737 | ||||||||
Unrealized appreciation |
11,958,288 | 4,950,279 | 2,677,815 | 7,241,411 | ||||||||||||
Investments, at value |
$ | 161,567,727 | $ | 62,569,818 | $ | 47,069,632 | $ | 101,281,148 | ||||||||
Cash |
$ | 789,149 | $ | 1,084,438 | $ | 93,767 | $ | | ||||||||
Restricted cash* |
195,000 | 102,000 | 41,500 | 210,000 | ||||||||||||
Interest receivable |
1,621,432 | 828,197 | 523,861 | 1,529,176 | ||||||||||||
Receivable for investments sold |
| | 10,000 | | ||||||||||||
Receivable for variation margin on open financial futures contracts |
13,562 | 7,438 | 3,063 | 15,313 | ||||||||||||
Deferred debt issuance costs |
25,894 | 1,074 | | 423 | ||||||||||||
Total assets |
$ | 164,212,764 | $ | 64,592,965 | $ | 47,741,823 | $ | 103,036,060 | ||||||||
Liabilities | ||||||||||||||||
Payable for floating rate notes issued |
$ | 14,680,000 | $ | 3,385,000 | $ | | $ | 3,780,000 | ||||||||
Due to custodian |
| | | 277,915 | ||||||||||||
Payable to affiliates: |
||||||||||||||||
Investment adviser fee |
83,542 | 33,017 | 25,117 | 54,109 | ||||||||||||
Administration fee |
26,733 | 10,566 | 8,030 | 17,315 | ||||||||||||
Trustees fees |
1,121 | 498 | 395 | 768 | ||||||||||||
Interest expense and fees payable |
16,004 | 4,755 | | 5,144 | ||||||||||||
Accrued expenses |
42,650 | 28,447 | 26,654 | 34,875 | ||||||||||||
Total liabilities |
$ | 14,850,050 | $ | 3,462,283 | $ | 60,196 | $ | 4,170,126 | ||||||||
Auction preferred shares at liquidation value plus cumulative unpaid dividends |
$ | 49,976,214 | $ | 20,050,361 | $ | 17,500,189 | $ | 33,425,812 | ||||||||
Net assets applicable to common shares |
$ | 99,386,500 | $ | 41,080,321 | $ | 30,181,438 | $ | 65,440,122 | ||||||||
Sources of Net Assets | ||||||||||||||||
Common shares, $0.01 par value, unlimited number of shares authorized |
$ | 72,611 | $ | 27,505 | $ | 21,163 | $ | 46,792 | ||||||||
Additional paid-in capital |
104,203,764 | 39,728,155 | 29,106,720 | 67,036,426 | ||||||||||||
Accumulated net realized loss |
(16,923,903 | ) | (3,626,707 | ) | (1,649,970 | ) | (8,934,355 | ) | ||||||||
Accumulated undistributed net investment income |
151,544 | 45,245 | 43,892 | 140,757 | ||||||||||||
Net unrealized appreciation |
11,882,484 | 4,906,123 | 2,659,633 | 7,150,502 | ||||||||||||
Net assets applicable to common shares |
$ | 99,386,500 | $ | 41,080,321 | $ | 30,181,438 | $ | 65,440,122 | ||||||||
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
1,999 | 802 | 700 | 1,337 | ||||||||||||
Common Shares Outstanding | 7,261,075 | 2,750,521 | 2,116,294 | 4,679,158 | ||||||||||||
Net Asset Value Per Common Share | ||||||||||||||||
Net assets applicable to common shares ÷ common shares issued and outstanding |
$ | 13.69 | $ | 14.94 | $ | 14.26 | $ | 13.99 |
* | Represents restricted cash on deposit at the broker for open financial futures contracts. |
33 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Assets and Liabilities (Unaudited) continued
May 31, 2014 | ||||||||||||
Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
Investments |
||||||||||||
Identified cost |
$ | 118,822,356 | $ | 57,840,048 | $ | 55,583,181 | ||||||
Unrealized appreciation |
11,085,672 | 5,988,855 | 3,646,683 | |||||||||
Investments, at value |
$ | 129,908,028 | $ | 63,828,903 | $ | 59,229,864 | ||||||
Cash |
$ | 136,368 | $ | 676,644 | $ | 92,669 | ||||||
Restricted cash* |
129,250 | 47,000 | 150,000 | |||||||||
Interest receivable |
1,694,674 | 988,617 | 823,262 | |||||||||
Receivable for investments sold |
| 55,636 | | |||||||||
Receivable for variation margin on open financial futures contracts |
9,406 | 3,500 | 10,938 | |||||||||
Total assets |
$ | 131,877,726 | $ | 65,600,300 | $ | 60,306,733 | ||||||
Liabilities | ||||||||||||
Payable for floating rate notes issued |
$ | 19,315,000 | $ | | $ | 1,650,000 | ||||||
Payable for when-issued securities |
| 500,000 | | |||||||||
Payable to affiliates: |
||||||||||||
Investment adviser fee |
64,984 | 34,251 | 31,604 | |||||||||
Administration fee |
20,795 | 10,960 | 10,113 | |||||||||
Trustees fees |
904 | 512 | 483 | |||||||||
Interest expense and fees payable |
26,801 | | 8,446 | |||||||||
Accrued expenses |
38,579 | 28,428 | 32,162 | |||||||||
Total liabilities |
$ | 19,467,063 | $ | 574,151 | $ | 1,732,808 | ||||||
Auction preferred shares at liquidation value plus cumulative unpaid dividends |
$ | 33,725,243 | $ | 22,725,327 | $ | 21,175,381 | ||||||
Net assets applicable to common shares |
$ | 78,685,420 | $ | 42,300,822 | $ | 37,398,544 | ||||||
Sources of Net Assets | ||||||||||||
Common shares, $0.01 par value, unlimited number of shares authorized |
$ | 54,750 | $ | 28,572 | $ | 27,204 | ||||||
Additional paid-in capital |
79,380,074 | 39,573,731 | 37,694,604 | |||||||||
Accumulated net realized loss |
(11,993,757 | ) | (3,472,178 | ) | (3,952,102 | ) | ||||||
Accumulated undistributed net investment income |
214,525 | 202,621 | 47,090 | |||||||||
Net unrealized appreciation |
11,029,828 | 5,968,076 | 3,581,748 | |||||||||
Net assets applicable to common shares |
$ | 78,685,420 | $ | 42,300,822 | $ | 37,398,544 | ||||||
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
1,349 | 909 | 847 | |||||||||
Common Shares Outstanding | 5,474,995 | 2,857,157 | 2,720,414 | |||||||||
Net Asset Value Per Common Share | ||||||||||||
Net assets applicable to common shares ÷ common shares issued and outstanding |
$ | 14.37 | $ | 14.81 | $ | 13.75 |
* | Represents restricted cash on deposit at the broker for open financial futures contracts. |
34 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Operations (Unaudited)
Six Months Ended May 31, 2014 | ||||||||||||||||
Investment Income | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
Interest |
$ | 3,566,931 | $ | 1,344,268 | $ | 1,028,811 | $ | 2,296,498 | ||||||||
Total investment income |
$ | 3,566,931 | $ | 1,344,268 | $ | 1,028,811 | $ | 2,296,498 | ||||||||
Expenses | ||||||||||||||||
Investment adviser fee |
$ | 487,542 | $ | 192,635 | $ | 146,009 | $ | 316,976 | ||||||||
Administration fee |
152,983 | 60,446 | 45,809 | 99,461 | ||||||||||||
Trustees fees and expenses |
3,430 | 1,510 | 1,200 | 2,325 | ||||||||||||
Custodian fee |
24,706 | 15,437 | 13,425 | 19,225 | ||||||||||||
Transfer and dividend disbursing agent fees |
9,363 | 9,088 | 9,078 | 9,133 | ||||||||||||
Legal and accounting services |
27,674 | 20,891 | 18,450 | 24,753 | ||||||||||||
Printing and postage |
8,063 | 4,850 | 4,676 | 6,697 | ||||||||||||
Interest expense and fees |
44,525 | 10,651 | | 11,912 | ||||||||||||
Preferred shares service fee |
34,826 | 14,551 | 11,744 | 24,417 | ||||||||||||
Miscellaneous |
19,600 | 15,335 | 15,828 | 17,446 | ||||||||||||
Total expenses |
$ | 812,712 | $ | 345,394 | $ | 266,219 | $ | 532,345 | ||||||||
Deduct |
||||||||||||||||
Reduction of custodian fee |
$ | 702 | $ | 342 | $ | 193 | $ | 316 | ||||||||
Total expense reductions |
$ | 702 | $ | 342 | $ | 193 | $ | 316 | ||||||||
Net expenses |
$ | 812,010 | $ | 345,052 | $ | 266,026 | $ | 532,029 | ||||||||
Net investment income |
$ | 2,754,921 | $ | 999,216 | $ | 762,785 | $ | 1,764,469 | ||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) |
||||||||||||||||
Investment transactions |
$ | (227,534 | ) | $ | 39,924 | $ | 12,766 | $ | 71,484 | |||||||
Financial futures contracts |
(434,882 | ) | (272,515 | ) | (112,212 | ) | (611,445 | ) | ||||||||
Net realized loss |
$ | (662,416 | ) | $ | (232,591 | ) | $ | (99,446 | ) | $ | (539,961 | ) | ||||
Change in unrealized appreciation (depreciation) |
||||||||||||||||
Investments |
$ | 8,860,732 | $ | 3,574,287 | $ | 2,964,103 | $ | 5,418,920 | ||||||||
Financial futures contracts |
(48,937 | ) | (34,000 | ) | (14,000 | ) | (64,026 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
$ | 8,811,795 | $ | 3,540,287 | $ | 2,950,103 | $ | 5,354,894 | ||||||||
Net realized and unrealized gain |
$ | 8,149,379 | $ | 3,307,696 | $ | 2,850,657 | $ | 4,814,933 | ||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
$ | (27,566 | ) | $ | (11,152 | ) | $ | (9,385 | ) | $ | (18,437 | ) | ||||
Net increase in net assets from operations |
$ | 10,876,734 | $ | 4,295,760 | $ | 3,604,057 | $ | 6,560,965 |
35 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Operations (Unaudited) continued
Six Months Ended May 31, 2014 | ||||||||||||
Investment Income | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
Interest |
$ | 3,006,580 | $ | 1,460,796 | $ | 1,385,360 | ||||||
Total investment income |
$ | 3,006,580 | $ | 1,460,796 | $ | 1,385,360 | ||||||
Expenses | ||||||||||||
Investment adviser fee |
$ | 379,451 | $ | 199,500 | $ | 185,199 | ||||||
Administration fee |
119,065 | 62,600 | 58,111 | |||||||||
Trustees fees and expenses |
2,740 | 1,555 | 1,465 | |||||||||
Custodian fee |
25,496 | 15,197 | 15,096 | |||||||||
Transfer and dividend disbursing agent fees |
9,173 | 9,363 | 9,373 | |||||||||
Legal and accounting services |
26,870 | 20,140 | 23,511 | |||||||||
Printing and postage |
6,165 | 5,863 | 5,564 | |||||||||
Interest expense and fees |
57,829 | | 10,844 | |||||||||
Preferred shares service fee |
24,392 | 16,267 | 15,057 | |||||||||
Miscellaneous |
18,230 | 16,450 | 15,854 | |||||||||
Total expenses |
$ | 669,411 | $ | 346,935 | $ | 340,074 | ||||||
Deduct |
||||||||||||
Reduction of custodian fee |
$ | 62 | $ | 75 | $ | 65 | ||||||
Total expense reductions |
$ | 62 | $ | 75 | $ | 65 | ||||||
Net expenses |
$ | 669,349 | $ | 346,860 | $ | 340,009 | ||||||
Net investment income |
$ | 2,337,231 | $ | 1,113,936 | $ | 1,045,351 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) |
||||||||||||
Investment transactions |
$ | 39,522 | $ | 120,805 | $ | 47,345 | ||||||
Financial futures contracts |
(344,651 | ) | (128,242 | ) | (400,757 | ) | ||||||
Net realized loss |
$ | (305,129 | ) | $ | (7,437 | ) | $ | (353,412 | ) | |||
Change in unrealized appreciation (depreciation) |
||||||||||||
Investments |
$ | 6,480,406 | $ | 3,679,048 | $ | 3,089,237 | ||||||
Financial futures contracts |
(43,000 | ) | (16,000 | ) | (50,000 | ) | ||||||
Net change in unrealized appreciation (depreciation) |
$ | 6,437,406 | $ | 3,663,048 | $ | 3,039,237 | ||||||
Net realized and unrealized gain |
$ | 6,132,277 | $ | 3,655,611 | $ | 2,685,825 | ||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
$ | (18,664 | ) | $ | (12,445 | ) | $ | (11,778 | ) | |||
Net increase in net assets from operations |
$ | 8,450,844 | $ | 4,757,102 | $ | 3,719,398 |
36 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Changes in Net Assets
Six Months Ended May 31, 2014 (Unaudited) | ||||||||||||||||
Increase (Decrease) in Net Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
From operations |
||||||||||||||||
Net investment income |
$ | 2,754,921 | $ | 999,216 | $ | 762,785 | $ | 1,764,469 | ||||||||
Net realized loss from investment transactions and financial futures contracts |
(662,416 | ) | (232,591 | ) | (99,446 | ) | (539,961 | ) | ||||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
8,811,795 | 3,540,287 | 2,950,103 | 5,354,894 | ||||||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
(27,566 | ) | (11,152 | ) | (9,385 | ) | (18,437 | ) | ||||||||
Net increase in net assets from operations |
$ | 10,876,734 | $ | 4,295,760 | $ | 3,604,057 | $ | 6,560,965 | ||||||||
Distributions to common shareholders |
||||||||||||||||
From net investment income |
$ | (2,823,520 | ) | $ | (989,263 | ) | $ | (750,234 | ) | $ | (1,773,410 | ) | ||||
Total distributions to common shareholders |
$ | (2,823,520 | ) | $ | (989,263 | ) | $ | (750,234 | ) | $ | (1,773,410 | ) | ||||
Net increase in net assets |
$ | 8,053,214 | $ | 3,306,497 | $ | 2,853,823 | $ | 4,787,555 | ||||||||
Net Assets Applicable to Common Shares | ||||||||||||||||
At beginning of period |
$ | 91,333,286 | $ | 37,773,824 | $ | 27,327,615 | $ | 60,652,567 | ||||||||
At end of period |
$ | 99,386,500 | $ | 41,080,321 | $ | 30,181,438 | $ | 65,440,122 | ||||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
| |||||||||||||||
At end of period |
$ | 151,544 | $ | 45,245 | $ | 43,892 | $ | 140,757 |
37 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Changes in Net Assets continued
Six Months Ended May 31, 2014 (Unaudited) | ||||||||||||
Increase (Decrease) in Net Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
From operations |
||||||||||||
Net investment income |
$ | 2,337,231 | $ | 1,113,936 | $ | 1,045,351 | ||||||
Net realized loss from investment transactions and financial futures contracts |
(305,129 | ) | (7,437 | ) | (353,412 | ) | ||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
6,437,406 | 3,663,048 | 3,039,237 | |||||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
(18,664 | ) | (12,445 | ) | (11,778 | ) | ||||||
Net increase in net assets from operations |
$ | 8,450,844 | $ | 4,757,102 | $ | 3,719,398 | ||||||
Distributions to common shareholders |
||||||||||||
From net investment income |
$ | (2,381,499 | ) | $ | (1,044,331 | ) | $ | (1,056,881 | ) | |||
Total distributions to common shareholders |
$ | (2,381,499 | ) | $ | (1,044,331 | ) | $ | (1,056,881 | ) | |||
Capital share transactions |
||||||||||||
Reinvestment of distributions to common shareholders |
$ | 5,143 | $ | | $ | | ||||||
Net increase in net assets from capital share transactions |
$ | 5,143 | $ | | $ | | ||||||
Net increase in net assets |
$ | 6,074,488 | $ | 3,712,771 | $ | 2,662,517 | ||||||
Net Assets Applicable to Common Shares | ||||||||||||
At beginning of period |
$ | 72,610,932 | $ | 38,588,051 | $ | 34,736,027 | ||||||
At end of period |
$ | 78,685,420 | $ | 42,300,822 | $ | 37,398,544 | ||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
| |||||||||||
At end of period |
$ | 214,525 | $ | 202,621 | $ | 47,090 |
38 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Changes in Net Assets continued
Year Ended November 30, 2013 | ||||||||||||||||
Increase (Decrease) in Net Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
From operations |
||||||||||||||||
Net investment income |
$ | 5,490,439 | $ | 2,061,580 | $ | 1,541,662 | $ | 3,565,665 | ||||||||
Net realized gain from investment transactions, extinguishment of debt and financial futures contracts |
616,200 | 377,103 | 2,099 | 1,523,973 | ||||||||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
(15,324,211 | ) | (7,044,980 | ) | (4,992,486 | ) | (9,875,771 | ) | ||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
(86,193 | ) | (34,378 | ) | (29,679 | ) | (57,651 | ) | ||||||||
Net decrease in net assets from operations |
$ | (9,303,765 | ) | $ | (4,640,675 | ) | $ | (3,478,404 | ) | $ | (4,843,784 | ) | ||||
Distributions to common shareholders |
||||||||||||||||
From net investment income |
$ | (5,779,391 | ) | $ | (2,134,388 | ) | $ | (1,585,116 | ) | $ | (3,686,470 | ) | ||||
Total distributions to common shareholders |
$ | (5,779,391 | ) | $ | (2,134,388 | ) | $ | (1,585,116 | ) | $ | (3,686,470 | ) | ||||
Capital share transactions |
||||||||||||||||
Reinvestment of distributions to common shareholders |
$ | 49,584 | $ | | $ | | $ | 47,846 | ||||||||
Net increase in net assets from capital share transactions |
$ | 49,584 | $ | | $ | | $ | 47,846 | ||||||||
Net decrease in net assets |
$ | (15,033,572 | ) | $ | (6,775,063 | ) | $ | (5,063,520 | ) | $ | (8,482,408 | ) | ||||
Net Assets Applicable to Common Shares | ||||||||||||||||
At beginning of year |
$ | 106,366,858 | $ | 44,548,887 | $ | 32,391,135 | $ | 69,134,975 | ||||||||
At end of year |
$ | 91,333,286 | $ | 37,773,824 | $ | 27,327,615 | $ | 60,652,567 | ||||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
| |||||||||||||||
At end of year |
$ | 247,709 | $ | 46,444 | $ | 40,726 | $ | 168,135 |
39 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statements of Changes in Net Assets continued
Year Ended November 30, 2013 | ||||||||||||
Increase (Decrease) in Net Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
From operations |
||||||||||||
Net investment income |
$ | 4,624,466 | $ | 2,183,503 | $ | 2,039,475 | ||||||
Net realized loss from investment transactions and financial futures contracts |
(493,955 | ) | (108,259 | ) | (63,344 | ) | ||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
(11,683,568 | ) | (6,623,437 | ) | (5,257,630 | ) | ||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
(57,302 | ) | (38,194 | ) | (36,307 | ) | ||||||
Net decrease in net assets from operations |
$ | (7,610,359 | ) | $ | (4,586,387 | ) | $ | (3,317,806 | ) | |||
Distributions to common shareholders |
||||||||||||
From net investment income |
$ | (4,835,003 | ) | $ | (2,112,450 | ) | $ | (2,140,917 | ) | |||
Total distributions to common shareholders |
$ | (4,835,003 | ) | $ | (2,112,450 | ) | $ | (2,140,917 | ) | |||
Capital share transactions |
||||||||||||
Reinvestment of distributions to common shareholders |
$ | 55,392 | $ | 3,154 | $ | 7,155 | ||||||
Net increase in net assets from capital share transactions |
$ | 55,392 | $ | 3,154 | $ | 7,155 | ||||||
Net decrease in net assets |
$ | (12,389,970 | ) | $ | (6,695,683 | ) | $ | (5,451,568 | ) | |||
Net Assets Applicable to Common Shares | ||||||||||||
At beginning of year |
$ | 85,000,902 | $ | 45,283,734 | $ | 40,187,595 | ||||||
At end of year |
$ | 72,610,932 | $ | 38,588,051 | $ | 34,736,027 | ||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
| |||||||||||
At end of year |
$ | 277,457 | $ | 145,461 | $ | 70,398 |
40 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Statement of Cash Flows* (Unaudited)
Six Months Ended May 31, 2014 |
||||
Cash Flows From Operating Activities | New York Trust | |||
Net increase in net assets from operations |
$ | 8,450,844 | ||
Distributions to preferred shareholders |
18,664 | |||
Net increase in net assets from operations excluding distributions to preferred shareholders |
$ | 8,469,508 | ||
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: |
||||
Investments purchased |
(1,891,114 | ) | ||
Investments sold |
1,858,744 | |||
Net amortization/accretion of premium (discount) |
(39,592 | ) | ||
Increase in interest receivable |
(42,630 | ) | ||
Increase in receivable for variation margin on open financial futures contracts |
(9,406 | ) | ||
Increase in payable to affiliate for investment adviser fee |
3,437 | |||
Increase in payable to affiliate for administration fee |
1,562 | |||
Increase in payable to affiliate for Trustees fees |
31 | |||
Decrease in interest expense and fees payable |
(1,599 | ) | ||
Decrease in accrued expenses |
(35,904 | ) | ||
Net change in unrealized (appreciation) depreciation from investments |
(6,480,406 | ) | ||
Net realized gain from investments |
(39,522 | ) | ||
Net cash provided by operating activities |
$ | 1,793,109 | ||
Cash Flows From Financing Activities | ||||
Distributions paid to common shareholders, net of reinvestments |
$ | (2,376,356 | ) | |
Cash distributions paid to preferred shareholders |
(18,602 | ) | ||
Net cash used in financing activities |
$ | (2,394,958 | ) | |
Net decrease in cash |
$ | (601,849 | ) | |
Cash at beginning of period |
$ | 738,217 | ||
Cash at end of period |
$ | 136,368 | ||
Supplemental disclosure of cash flow information: | ||||
Noncash financing activities not included herein consist of: |
||||
Reinvestment of dividends and distributions |
$ | 5,143 | ||
Cash paid for interest and fees |
59,428 |
* | Statement of Cash Flows is not required for California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust. |
41 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights
Selected data for a common share outstanding during the periods stated
California Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 12.580 | $ | 14.660 | $ | 12.410 | $ | 12.390 | $ | 12.330 | $ | 9.890 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.379 | $ | 0.756 | $ | 0.791 | $ | 0.926 | $ | 0.945 | $ | 0.947 | ||||||||||||
Net realized and unrealized gain (loss) |
1.124 | (2.028 | ) | 2.316 | 0.002 | 0.026 | 2.321 | |||||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.012 | ) | (0.018 | ) | (0.022 | ) | (0.028 | ) | (0.047 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.499 | $ | (1.284 | ) | $ | 3.089 | $ | 0.906 | $ | 0.943 | $ | 3.221 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.389 | ) | $ | (0.796 | ) | $ | (0.839 | ) | $ | (0.886 | ) | $ | (0.883 | ) | $ | (0.781 | ) | ||||||
Total distributions to common shareholders |
$ | (0.389 | ) | $ | (0.796 | ) | $ | (0.839 | ) | $ | (0.886 | ) | $ | (0.883 | ) | $ | (0.781 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 13.690 | $ | 12.580 | $ | 14.660 | $ | 12.410 | $ | 12.390 | $ | 12.330 | ||||||||||||
Market value End of period (Common shares) |
$ | 12.590 | $ | 11.060 | $ | 14.680 | $ | 12.770 | $ | 12.400 | $ | 12.170 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
12.39 | %(3) | (8.69 | )% | 25.59 | % | 7.99 | % | 7.73 | % | 34.24 | % | ||||||||||||
Total Investment Return on Market Value(2) |
17.57 | %(3) | (19.84 | )% | 22.22 | % | 11.04 | % | 9.25 | % | 43.19 | % |
42 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
California Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 99,387 | $ | 91,333 | $ | 106,367 | $ | 89,862 | $ | 89,395 | $ | 88,720 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.63 | %(6) | 1.66 | % | 1.66 | % | 1.83 | % | 1.78 | % | 1.93 | % | ||||||||||||
Interest and fee expense(7) |
0.09 | %(6) | 0.10 | % | 0.11 | % | 0.17 | % | 0.18 | % | 0.23 | % | ||||||||||||
Total expenses(5) |
1.72 | %(6) | 1.76 | % | 1.77 | % | 2.00 | % | 1.96 | % | 2.16 | % | ||||||||||||
Net investment income |
5.84 | %(6) | 5.64 | % | 5.77 | % | 7.81 | % | 7.34 | % | 8.35 | % | ||||||||||||
Portfolio Turnover |
4 | %(3) | 8 | % | 17 | % | 22 | % | 14 | % | 18 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.07 | %(6) | 1.09 | % | 1.11 | % | 1.15 | % | 1.16 | % | 1.19 | % | ||||||||||||
Interest and fee expense(7) |
0.06 | %(6) | 0.07 | % | 0.07 | % | 0.11 | % | 0.11 | % | 0.15 | % | ||||||||||||
Total expenses(5) |
1.13 | %(6) | 1.16 | % | 1.18 | % | 1.26 | % | 1.27 | % | 1.34 | % | ||||||||||||
Net investment income |
3.82 | %(6) | 3.73 | % | 3.84 | % | 4.93 | % | 4.77 | % | 5.18 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
1,999 | 1,999 | 1,999 | 1,999 | 1,999 | 1,999 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 74,719 | $ | 70,690 | $ | 78,210 | $ | 69,954 | $ | 69,721 | $ | 69,383 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
43 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Massachusetts Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 13.730 | $ | 16.200 | $ | 13.970 | $ | 13.790 | $ | 13.590 | $ | 10.160 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.363 | $ | 0.750 | $ | 0.771 | $ | 0.890 | $ | 0.926 | $ | 0.948 | ||||||||||||
Net realized and unrealized gain (loss) |
1.211 | (2.432 | ) | 2.283 | 0.219 | 0.210 | 3.356 | |||||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.012 | ) | (0.019 | ) | (0.023 | ) | (0.030 | ) | (0.049 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.570 | $ | (1.694 | ) | $ | 3.035 | $ | 1.086 | $ | 1.106 | $ | 4.255 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.360 | ) | $ | (0.776 | ) | $ | (0.805 | ) | $ | (0.906 | ) | $ | (0.906 | ) | $ | (0.825 | ) | ||||||
Total distributions to common shareholders |
$ | (0.360 | ) | $ | (0.776 | ) | $ | (0.805 | ) | $ | (0.906 | ) | $ | (0.906 | ) | $ | (0.825 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 14.940 | $ | 13.730 | $ | 16.200 | $ | 13.970 | $ | 13.790 | $ | 13.590 | ||||||||||||
Market value End of period (Common shares) |
$ | 13.520 | $ | 11.970 | $ | 16.350 | $ | 14.810 | $ | 13.980 | $ | 13.260 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
11.85 | %(3) | (10.34 | )% | 22.28 | % | 8.49 | % | 8.16 | % | 43.29 | % | ||||||||||||
Total Investment Return on Market Value(2) |
16.10 | %(3) | (22.55 | )% | 16.41 | % | 13.45 | % | 12.38 | % | 58.91 | % |
44 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Massachusetts Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 41,080 | $ | 37,774 | $ | 44,549 | $ | 38,372 | $ | 37,735 | $ | 37,011 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees |
1.72 | %(5) | 1.73 | % | 1.73 | % | 1.87 | % | 1.83 | % | 2.02 | % | ||||||||||||
Interest and fee expense(6) |
0.05 | %(5) | 0.08 | % | 0.09 | % | 0.11 | % | 0.09 | % | 0.14 | % | ||||||||||||
Total expenses before custodian fee reduction |
1.77 | %(5) | 1.81 | % | 1.82 | % | 1.98 | % | 1.92 | % | 2.16 | % | ||||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.72 | %(5) | 1.73 | % | 1.73 | % | 1.87 | % | 1.82 | % | 2.02 | % | ||||||||||||
Net investment income |
5.11 | %(5) | 5.12 | % | 5.06 | % | 6.70 | % | 6.51 | % | 7.77 | % | ||||||||||||
Portfolio Turnover |
2 | %(3) | 1 | % | 11 | % | 15 | % | 16 | % | 24 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(7) |
1.13 | %(5) | 1.16 | % | 1.17 | % | 1.21 | % | 1.20 | % | 1.26 | % | ||||||||||||
Interest and fee expense(6) |
0.04 | %(5) | 0.05 | % | 0.06 | % | 0.07 | % | 0.06 | % | 0.09 | % | ||||||||||||
Total expenses(7) |
1.17 | %(5) | 1.21 | % | 1.23 | % | 1.28 | % | 1.26 | % | 1.35 | % | ||||||||||||
Net investment income |
3.38 | %(5) | 3.42 | % | 3.42 | % | 4.32 | % | 4.29 | % | 4.85 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
802 | 802 | 802 | 802 | 802 | 802 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 76,223 | $ | 72,100 | $ | 80,548 | $ | 72,846 | $ | 72,051 | $ | 71,150 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Annualized. |
(6) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(7) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
45 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Michigan Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 12.910 | $ | 15.310 | $ | 13.400 | $ | 12.880 | $ | 12.940 | $ | 10.860 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.360 | $ | 0.728 | $ | 0.760 | $ | 0.826 | $ | 0.876 | $ | 0.918 | ||||||||||||
Net realized and unrealized gain (loss) |
1.349 | (2.365 | ) | 1.944 | 0.558 | (0.044 | ) | 1.990 | ||||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.014 | ) | (0.021 | ) | (0.025 | ) | (0.033 | ) | (0.056 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.705 | $ | (1.651 | ) | $ | 2.683 | $ | 1.359 | $ | 0.799 | $ | 2.852 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.355 | ) | $ | (0.749 | ) | $ | (0.773 | ) | $ | (0.839 | ) | $ | (0.859 | ) | $ | (0.772 | ) | ||||||
Total distributions to common shareholders |
$ | (0.355 | ) | $ | (0.749 | ) | $ | (0.773 | ) | $ | (0.839 | ) | $ | (0.859 | ) | $ | (0.772 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 14.260 | $ | 12.910 | $ | 15.310 | $ | 13.400 | $ | 12.880 | $ | 12.940 | ||||||||||||
Market value End of period (Common shares) |
$ | 12.600 | $ | 11.000 | $ | 14.690 | $ | 12.470 | $ | 12.100 | $ | 11.530 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
13.83 | %(3) | (10.49 | )% | 20.92 | % | 11.66 | % | 6.57 | % | 28.08 | % | ||||||||||||
Total Investment Return on Market Value(2) |
18.04 | %(3) | (20.51 | )% | 24.67 | % | 10.60 | % | 12.36 | % | 56.49 | % |
46 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Michigan Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 30,181 | $ | 27,328 | $ | 32,391 | $ | 28,366 | $ | 27,262 | $ | 27,392 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.87 | %(6) | 1.91 | % | 1.89 | % | 2.04 | % | 1.98 | % | 2.18 | % | ||||||||||||
Interest and fee expense(7) |
| | | | | 0.06 | % | |||||||||||||||||
Total expenses(5) |
1.87 | %(6) | 1.91 | % | 1.89 | % | 2.04 | % | 1.98 | % | 2.24 | % | ||||||||||||
Net investment income |
5.37 | %(6) | 5.26 | % | 5.26 | % | 6.49 | % | 6.57 | % | 7.61 | % | ||||||||||||
Portfolio Turnover |
12 | %(3) | 11 | % | 14 | % | 18 | % | 14 | % | 23 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.16 | %(6) | 1.20 | % | 1.20 | % | 1.24 | % | 1.22 | % | 1.29 | % | ||||||||||||
Interest and fee expense(7) |
| | | | | 0.04 | % | |||||||||||||||||
Total expenses(5) |
1.16 | %(6) | 1.20 | % | 1.20 | % | 1.24 | % | 1.22 | % | 1.33 | % | ||||||||||||
Net investment income |
3.33 | %(6) | 3.29 | % | 3.35 | % | 3.93 | % | 4.06 | % | 4.52 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
700 | 700 | 700 | 700 | 700 | 700 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 68,117 | $ | 64,040 | $ | 71,273 | $ | 65,524 | $ | 63,948 | $ | 64,132 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
47 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New Jersey Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 12.960 | $ | 14.790 | $ | 13.020 | $ | 13.260 | $ | 13.570 | $ | 9.400 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.377 | $ | 0.762 | $ | 0.802 | $ | 0.890 | $ | 0.957 | $ | 0.971 | ||||||||||||
Net realized and unrealized gain (loss) |
1.036 | (1.792 | ) | 1.783 | (0.185 | ) | (0.290 | ) | 4.091 | |||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.012 | ) | (0.018 | ) | (0.022 | ) | (0.029 | ) | (0.048 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.409 | $ | (1.042 | ) | $ | 2.567 | $ | 0.683 | $ | 0.638 | $ | 5.014 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.379 | ) | $ | (0.788 | ) | $ | (0.797 | ) | $ | (0.923 | ) | $ | (0.948 | ) | $ | (0.844 | ) | ||||||
Total distributions to common shareholders |
$ | (0.379 | ) | $ | (0.788 | ) | $ | (0.797 | ) | $ | (0.923 | ) | $ | (0.948 | ) | $ | (0.844 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 13.990 | $ | 12.960 | $ | 14.790 | $ | 13.020 | $ | 13.260 | $ | 13.570 | ||||||||||||
Market value End of period (Common shares) |
$ | 12.700 | $ | 11.440 | $ | 16.380 | $ | 13.370 | $ | 13.520 | $ | 14.040 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
11.33 | %(3) | (6.96 | )% | 20.18 | % | 5.64 | % | 4.62 | % | 55.43 | % | ||||||||||||
Total Investment Return on Market Value(2) |
14.49 | %(3) | (25.85 | )% | 29.62 | % | 6.39 | % | 3.10 | % | 77.84 | % |
48 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New Jersey Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 65,440 | $ | 60,653 | $ | 69,135 | $ | 60,734 | $ | 61,717 | $ | 62,792 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.66 | %(6) | 1.70 | % | 1.71 | % | 1.81 | % | 1.79 | % | 1.99 | % | ||||||||||||
Interest and fee expense(7) |
0.04 | %(6) | 0.08 | % | 0.11 | % | 0.15 | % | 0.18 | % | 0.24 | % | ||||||||||||
Total expenses(5) |
1.70 | %(6) | 1.78 | % | 1.82 | % | 1.96 | % | 1.97 | % | 2.23 | % | ||||||||||||
Net investment income |
5.65 | %(6) | 5.55 | % | 5.70 | % | 6.96 | % | 6.87 | % | 8.16 | % | ||||||||||||
Portfolio Turnover |
1 | %(3) | 16 | % | 14 | % | 11 | % | 9 | % | 48 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.09 | %(6) | 1.12 | % | 1.14 | % | 1.16 | % | 1.18 | % | 1.24 | % | ||||||||||||
Interest and fee expense(7) |
0.02 | %(6) | 0.05 | % | 0.07 | % | 0.09 | % | 0.12 | % | 0.15 | % | ||||||||||||
Total expenses(5) |
1.11 | %(6) | 1.17 | % | 1.21 | % | 1.25 | % | 1.30 | % | 1.39 | % | ||||||||||||
Net investment income |
3.68 | %(6) | 3.65 | % | 3.78 | % | 4.46 | % | 4.53 | % | 5.08 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
1,337 | 1,337 | 1,337 | 1,337 | 1,337 | 1,337 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 73,946 | $ | 70,365 | $ | 76,709 | $ | 70,427 | $ | 71,162 | $ | 71,966 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
49 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New York Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 13.260 | $ | 15.540 | $ | 13.310 | $ | 13.110 | $ | 12.920 | $ | 9.350 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.427 | $ | 0.845 | $ | 0.856 | $ | 0.950 | $ | 0.954 | $ | 0.960 | ||||||||||||
Net realized and unrealized gain (loss) |
1.121 | (2.232 | ) | 2.300 | 0.179 | 0.166 | 3.493 | |||||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.003 | ) | (0.010 | ) | (0.016 | ) | (0.019 | ) | (0.025 | ) | (0.042 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.545 | $ | (1.397 | ) | $ | 3.140 | $ | 1.110 | $ | 1.095 | $ | 4.411 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.435 | ) | $ | (0.883 | ) | $ | (0.910 | ) | $ | (0.910 | ) | $ | (0.905 | ) | $ | (0.841 | ) | ||||||
Total distributions to common shareholders |
$ | (0.435 | ) | $ | (0.883 | ) | $ | (0.910 | ) | $ | (0.910 | ) | $ | (0.905 | ) | $ | (0.841 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 14.370 | $ | 13.260 | $ | 15.540 | $ | 13.310 | $ | 13.110 | $ | 12.920 | ||||||||||||
Market value End of period (Common shares) |
$ | 14.160 | $ | 12.100 | $ | 16.150 | $ | 13.450 | $ | 13.350 | $ | 13.200 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
11.97 | %(3) | (8.99 | )% | 24.30 | % | 9.06 | % | 8.48 | % | 49.00 | % | ||||||||||||
Total Investment Return on Market Value(2) |
20.92 | %(3) | (20.09 | )% | 27.89 | % | 8.18 | % | 8.16 | % | 80.12 | % |
50 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New York Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 78,685 | $ | 72,611 | $ | 85,001 | $ | 72,678 | $ | 71,372 | $ | 69,857 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.64 | %(6) | 1.65 | % | 1.66 | % | 1.78 | % | 1.74 | % | 1.98 | % | ||||||||||||
Interest and fee expense(7) |
0.15 | %(6) | 0.16 | % | 0.18 | % | 0.22 | % | 0.21 | % | 0.24 | % | ||||||||||||
Total expenses(5) |
1.79 | %(6) | 1.81 | % | 1.84 | % | 2.00 | % | 1.95 | % | 2.22 | % | ||||||||||||
Net investment income |
6.25 | %(6) | 5.97 | % | 5.90 | % | 7.40 | % | 7.02 | % | 8.40 | % | ||||||||||||
Portfolio Turnover |
1 | %(3) | 10 | % | 17 | % | 13 | % | 13 | % | 20 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.12 | %(6) | 1.15 | % | 1.16 | % | 1.20 | % | 1.18 | % | 1.28 | % | ||||||||||||
Interest and fee expense(7) |
0.11 | %(6) | 0.11 | % | 0.13 | % | 0.15 | % | 0.15 | % | 0.15 | % | ||||||||||||
Total expenses(5) |
1.23 | %(6) | 1.26 | % | 1.29 | % | 1.35 | % | 1.33 | % | 1.43 | % | ||||||||||||
Net investment income |
4.31 | %(6) | 4.16 | % | 4.14 | % | 5.00 | % | 4.82 | % | 5.43 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
1,349 | 1,349 | 1,349 | 1,349 | 1,349 | 1,349 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 83,329 | $ | 78,826 | $ | 88,010 | $ | 78,877 | $ | 77,909 | $ | 76,785 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
51 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Ohio Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 13.510 | $ | 15.850 | $ | 13.440 | $ | 13.170 | $ | 13.520 | $ | 10.450 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.390 | $ | 0.764 | $ | 0.786 | $ | 0.851 | $ | 0.899 | $ | 0.945 | ||||||||||||
Net realized and unrealized gain (loss) |
1.280 | (2.352 | ) | 2.475 | 0.305 | (0.325 | ) | 2.974 | ||||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.013 | ) | (0.020 | ) | (0.025 | ) | (0.033 | ) | (0.055 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.666 | $ | (1.601 | ) | $ | 3.241 | $ | 1.131 | $ | 0.541 | $ | 3.864 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.366 | ) | $ | (0.739 | ) | $ | (0.831 | ) | $ | (0.861 | ) | $ | (0.891 | ) | $ | (0.794 | ) | ||||||
Total distributions to common shareholders |
$ | (0.366 | ) | $ | (0.739 | ) | $ | (0.831 | ) | $ | (0.861 | ) | $ | (0.891 | ) | $ | (0.794 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 14.810 | $ | 13.510 | $ | 15.850 | $ | 13.440 | $ | 13.170 | $ | 13.520 | ||||||||||||
Market value End of period (Common shares) |
$ | 13.850 | $ | 11.840 | $ | 16.800 | $ | 13.320 | $ | 13.420 | $ | 13.430 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
12.76 | %(3) | (10.01 | )% | 24.71 | % | 9.21 | % | 3.96 | % | 38.58 | % | ||||||||||||
Total Investment Return on Market Value(2) |
20.32 | %(3) | (25.59 | )% | 33.34 | % | 6.25 | % | 6.64 | % | 68.25 | % |
52 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Ohio Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 42,301 | $ | 38,588 | $ | 45,284 | $ | 38,379 | $ | 37,463 | $ | 38,295 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.73 | %(6) | 1.76 | % | 1.76 | % | 1.93 | % | 1.85 | % | 2.08 | % | ||||||||||||
Interest and fee expense(7) |
| | | 0.01 | % | 0.02 | % | 0.02 | % | |||||||||||||||
Total expenses(5) |
1.73 | %(6) | 1.76 | % | 1.76 | % | 1.94 | % | 1.87 | % | 2.10 | % | ||||||||||||
Net investment income |
5.57 | %(6) | 5.33 | % | 5.31 | % | 6.64 | % | 6.53 | % | 7.77 | % | ||||||||||||
Portfolio Turnover |
5 | %(3) | 10 | % | 11 | % | 11 | % | 17 | % | 20 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.11 | %(6) | 1.13 | % | 1.15 | % | 1.19 | % | 1.17 | % | 1.26 | % | ||||||||||||
Interest and fee expense(7) |
| | | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||||||||
Total expenses(5) |
1.11 | %(6) | 1.13 | % | 1.15 | % | 1.20 | % | 1.18 | % | 1.27 | % | ||||||||||||
Net investment income |
3.55 | %(6) | 3.43 | % | 3.45 | % | 4.09 | % | 4.13 | % | 4.68 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
909 | 909 | 909 | 909 | 909 | 909 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 71,536 | $ | 67,451 | $ | 74,818 | $ | 67,221 | $ | 66,215 | $ | 67,131 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
53 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Pennsylvania Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Net asset value Beginning of period (Common shares) |
$ | 12.770 | $ | 14.780 | $ | 13.250 | $ | 13.330 | $ | 13.380 | $ | 10.320 | ||||||||||||
Income (Loss) From Operations | ||||||||||||||||||||||||
Net investment income(1) |
$ | 0.384 | $ | 0.750 | $ | 0.786 | $ | 0.873 | $ | 0.912 | $ | 0.928 | ||||||||||||
Net realized and unrealized gain (loss) |
0.989 | (1.960 | ) | 1.591 | (0.062 | ) | (0.063 | ) | 2.973 | |||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||||||
From net investment income(1) |
(0.004 | ) | (0.013 | ) | (0.020 | ) | (0.024 | ) | (0.032 | ) | (0.053 | ) | ||||||||||||
Total income (loss) from operations |
$ | 1.369 | $ | (1.223 | ) | $ | 2.357 | $ | 0.787 | $ | 0.817 | $ | 3.848 | |||||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||||||
From net investment income |
$ | (0.389 | ) | $ | (0.787 | ) | $ | (0.827 | ) | $ | (0.867 | ) | $ | (0.867 | ) | $ | (0.788 | ) | ||||||
Total distributions to common shareholders |
$ | (0.389 | ) | $ | (0.787 | ) | $ | (0.827 | ) | $ | (0.867 | ) | $ | (0.867 | ) | $ | (0.788 | ) | ||||||
Net asset value End of period (Common shares) |
$ | 13.750 | $ | 12.770 | $ | 14.780 | $ | 13.250 | $ | 13.330 | $ | 13.380 | ||||||||||||
Market value End of period (Common shares) |
$ | 12.680 | $ | 10.950 | $ | 15.100 | $ | 13.660 | $ | 12.930 | $ | 13.050 | ||||||||||||
Total Investment Return on Net Asset Value(2) |
11.26 | %(3) | (8.07 | )% | 18.20 | % | 6.53 | % | 6.13 | % | 39.16 | % | ||||||||||||
Total Investment Return on Market Value(2) |
19.61 | %(3) | (22.84 | )% | 17.23 | % | 13.15 | % | 5.57 | % | 45.88 | % |
54 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Pennsylvania Trust | ||||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
Year Ended November 30, | |||||||||||||||||||||||
Ratios/Supplemental Data | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 37,399 | $ | 34,736 | $ | 40,188 | $ | 36,011 | $ | 36,210 | $ | 36,255 | ||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.84 | %(6) | 1.85 | % | 1.85 | % | 1.93 | % | 1.88 | % | 2.11 | % | ||||||||||||
Interest and fee expense(7) |
0.06 | %(6) | 0.05 | % | 0.04 | % | 0.05 | % | 0.06 | % | 0.21 | % | ||||||||||||
Total expenses(5) |
1.90 | %(6) | 1.90 | % | 1.89 | % | 1.98 | % | 1.94 | % | 2.32 | % | ||||||||||||
Net investment income |
5.85 | %(6) | 5.53 | % | 5.57 | % | 6.71 | % | 6.61 | % | 7.61 | % | ||||||||||||
Portfolio Turnover |
0 | %(3) | 11 | % | 15 | % | 8 | % | 17 | % | 23 | % | ||||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4) |
||||||||||||||||||||||||
Expenses excluding interest and fees(5) |
1.16 | %(6) | 1.18 | % | 1.20 | % | 1.21 | % | 1.20 | % | 1.28 | % | ||||||||||||
Interest and fee expense(7) |
0.04 | %(6) | 0.03 | % | 0.02 | % | 0.03 | % | 0.04 | % | 0.13 | % | ||||||||||||
Total expenses(5) |
1.20 | %(6) | 1.21 | % | 1.22 | % | 1.24 | % | 1.24 | % | 1.41 | % | ||||||||||||
Net investment income |
3.68 | %(6) | 3.51 | % | 3.59 | % | 4.19 | % | 4.22 | % | 4.63 | % | ||||||||||||
Senior Securities: |
||||||||||||||||||||||||
Total preferred shares outstanding |
847 | 847 | 847 | 847 | 847 | 847 | ||||||||||||||||||
Asset coverage per preferred share(8) |
$ | 69,155 | $ | 66,011 | $ | 72,448 | $ | 67,516 | $ | 67,752 | $ | 67,806 | ||||||||||||
Involuntary liquidation preference per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
Approximate market value per preferred share(9) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 |
(1) | Computed using average common shares outstanding. |
(2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Trusts dividend reinvestment plan. |
(3) | Not annualized. Amount is less than 0.5%. |
(4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(5) | Excludes the effect of custody fee credits, if any, of less than 0.005%. |
(6) | Annualized. |
(7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(8) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(9) | Plus accumulated and unpaid dividends. |
55 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Notes to Financial Statements (Unaudited)
1 Significant Accounting Policies
Eaton Vance California Municipal Income Trust (California 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) (each individually referred to as the Trust, and collectively, the Trusts), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. The Trusts investment objective is to provide current income exempt from regular federal income tax and taxes in its specified state.
The following is a summary of significant accounting policies of the Trusts. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation The following methodologies are used to determine the market value or fair value of investments.
Debt Obligations. Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value.
Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded.
Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Trust in a manner that fairly reflects the securitys value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entitys financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes Each Trusts policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which are exempt from regular federal income tax 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 to shareholders.
At November 30, 2013, the following Trusts, for federal income tax purposes, had capital loss carryforwards and deferred capital losses which will reduce the respective Trusts taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Trusts next taxable year and are treated as realized prior to the utilization of the capital loss carryforward. The amounts and expiration dates of the capital loss carryforwards and the amounts of the deferred capital losses are as follows:
Expiration Date | California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
|||||||||||||||||||||
November 30, 2016 |
$ | 6,689,345 | $ | 692,532 | $ | 517,712 | $ | | $ | 2,354,581 | $ | 736,482 | $ | 800,874 | ||||||||||||||
November 30, 2017 |
4,084,290 | 991,790 | 337,540 | 2,795,679 | 3,171,310 | 840,450 | | |||||||||||||||||||||
November 30, 2018 |
355,871 | | 34,334 | 1,512,852 | 671,928 | 41,243 | 329,527 | |||||||||||||||||||||
November 30, 2019 |
5,299,748 | 1,780,081 | 345,052 | 4,137,608 | 3,607,489 | 1,169,431 | 1,724,760 | |||||||||||||||||||||
Total capital loss carryforward |
$ | 16,429,254 | $ | 3,464,403 | $ | 1,234,638 | $ | 8,446,139 | $ | 9,805,308 | $ | 2,787,606 | $ | 2,855,161 | ||||||||||||||
Deferred capital losses |
$ | 271,835 | $ | 75,959 | $ | 364,043 | $ | | $ | 1,548,393 | $ | 715,886 | $ | 851,298 |
56 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Notes to Financial Statements (Unaudited) continued
As of May 31, 2014, the Trusts had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Trust files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
D Expense Reduction State Street Bank and Trust Company (SSBT) serves as custodian of the Trusts. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Trust maintains with SSBT. All credit balances, if any, used to reduce each Trusts custodian fees are reported as a reduction of expenses in the Statements of Operations.
E Legal Fees Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
F Use of Estimates The preparation of the 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.
G Indemnifications Under each Trusts organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Trust) could be deemed to have personal liability for the obligations of the Trust. However, each Trusts Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Trust enters into agreements with service providers that may contain indemnification clauses. Each Trusts maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred.
H Floating Rate Notes Issued in Conjunction with Securities Held The Trusts may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Trust may sell a variable or fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Trust, and which may have been, but is not required to be, the bond purchased from the Trust (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trusts account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption Payable for floating rate notes issued in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 10) at May 31, 2014. Interest expense related to the Trusts liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At May 31, 2014, the amounts of the Trusts Floating Rate Notes and related interest rates and collateral were as follows:
California Trust |
Massachusetts Trust |
New Jersey Trust |
New York Trust |
Pennsylvania Trust |
||||||||||||||||
Floating Rate Notes Outstanding |
$ | 14,680,000 | $ | 3,385,000 | $ | 3,780,000 | $ | 19,315,000 | $ | 1,650,000 | ||||||||||
Interest Rate or Range of Interest Rates (%) |
0.06 - 1.21 | 0.06 - 0.08 | 0.11 - 0.21 | 0.06 - 0.11 | 0.07 - 1.21 | |||||||||||||||
Collateral for Floating Rate Notes Outstanding |
$ | 18,791,632 | $ | 4,855,187 | $ | 5,255,430 | $ | 28,136,508 | $ | 2,902,226 |
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May 31, 2014
Notes to Financial Statements (Unaudited) continued
For the six months ended May 31, 2014, the Trusts average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:
California Trust |
Massachusetts Trust |
New Jersey Trust |
New York Trust |
Pennsylvania Trust |
||||||||||||||||
Average Floating Rate Notes Outstanding |
$ | 14,680,000 | $ | 3,385,000 | $ | 3,780,000 | $ | 19,315,000 | $ | 1,650,000 | ||||||||||
Average Interest Rate |
0.61 | % | 0.63 | % | 0.63 | % | 0.60 | % | 1.32 | % |
The Trusts may enter into shortfall and forbearance agreements with the broker by which a Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trusts had no shortfalls as of May 31, 2014.
The Trusts may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.
The Trusts investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Trusts investment policies do not allow the Trusts to borrow money except as permitted by the 1940 Act. Management believes that the Trusts restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts restrictions apply. Residual interest bonds held by the Trusts are securities exempt from registration under Rule 144A of the Securities Act of 1933.
On December 10, 2013, five U.S. federal agencies published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Volcker Rule). The Volcker Rule prohibits banking entities from engaging in proprietary trading of certain instruments and limits such entities investments in, and relationships with, covered funds, as defined in the rules. The compliance date for the Volcker Rule is July 21, 2015. The Volcker Rule may preclude banking entities and their affiliates from (i) sponsoring residual interest bond programs (as such programs are presently structured) and (ii) continuing relationships with or services for existing residual interest bond programs. As a result, residual interest bond trusts may need to be restructured or unwound. There can be no assurances that residual interest bond trusts can be restructured, that new sponsors of residual interest bond programs will develop, or that alternative forms of leverage will be available to the Trusts. The effects of the Volcker Rule may make it more difficult for the Trusts to maintain current or desired levels of leverage and may cause the Trusts to incur additional expenses to maintain their leverage.
I Financial Futures Contracts Upon entering into a financial futures contract, a Trust is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Trust each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Trust. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
J When-Issued Securities and Delayed Delivery Transactions The Trusts may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trusts maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
K Statement of Cash Flows The cash amount shown in the Statement of Cash Flows of a Trust is the amount included in the Trusts Statement of Assets and Liabilities and represents the unrestricted cash on hand at its custodian and does not include any short-term investments.
L Interim Financial Statements The interim financial statements relating to May 31, 2014 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Trusts management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Auction Preferred Shares
Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS,
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Municipal Income Trusts
May 31, 2014
Notes to Financial Statements (Unaudited) continued
which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) AA Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. The stated spread over the reference benchmark rate is determined based on the credit rating of the APS.
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 a Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS 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 the Trusts By-laws and the 1940 Act. Each Trust pays an annual fee up to 0.15% of the liquidation value of the APS to broker/dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
3 Distributions to Shareholders
Each Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for APS at May 31, 2014, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates (annualized), and dividend rate ranges for the six months then ended were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
APS Dividend Rates at May 31, 2014 |
0.10 | % | 0.13 | % | 0.13 | % | 0.10 | % | 0.13 | % | 0.13 | % | 0.13 | % | ||||||||||||||
Dividends Accrued to APS Shareholders |
$ | 27,566 | $ | 11,152 | $ | 9,385 | $ | 18,437 | $ | 18,664 | $ | 12,445 | $ | 11,778 | ||||||||||||||
Average APS Dividend Rates |
0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | ||||||||||||||
Dividend Rate Ranges (%) |
0.07 - 0.23 | 0.07 - 0.23 | 0.07 - 0.20 | 0.07 - 0.23 | 0.07 - 0.21 | 0.07 - 0.23 | 0.07 - 0.23 |
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of May 31, 2014.
The Trusts 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. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
4 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. The fee is computed at an annual rate of 0.625% (0.640% prior to May 1, 2014) of each Trusts average weekly gross assets and is payable monthly. Pursuant to a fee reduction agreement between each Trust and EVM that commenced on May 1, 2010, the annual adviser fee is reduced by 0.015% every May 1 thereafter for the next nineteen years. The fee reduction cannot be terminated or reduced without the approval of a majority vote of the Trustees of the Trusts who are not invested persons of EVM or each Trust and by a vote of a majority of shareholders. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Trust, and the amount of any outstanding APS issued by the Trust. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Trusts APS then outstanding and the amount payable by the Trust to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Trust. The administration fee is earned by EVM for administering the business affairs of each Trust and is computed at
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May 31, 2014
Notes to Financial Statements (Unaudited) continued
an annual rate of 0.20% of each Trusts average weekly gross assets. For the six months ended May 31, 2014, the investment adviser fees and administration fees were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Investment Adviser Fee |
$ | 487,542 | $ | 192,635 | $ | 146,009 | $ | 316,976 | $ | 379,451 | $ | 199,500 | $ | 185,199 | ||||||||||||||
Administration Fee |
$ | 152,983 | $ | 60,446 | $ | 45,809 | $ | 99,461 | $ | 119,065 | $ | 62,600 | $ | 58,111 |
Trustees and officers of the Trusts who are members of EVMs organization receive remuneration for their services to the Trusts out of the investment adviser fee. Trustees of the Trusts who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended May 31, 2014, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
5 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, for the six months ended May 31, 2014 were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Purchases |
$ | 9,718,049 | $ | 1,402,218 | $ | 6,553,587 | $ | 1,994,261 | $ | 1,891,114 | $ | 2,894,080 | $ | 275,165 | ||||||||||||||
Sales |
$ | 6,510,434 | $ | 1,353,840 | $ | 5,381,326 | $ | 897,813 | $ | 1,773,744 | $ | 3,326,454 | $ | 724,176 |
6 Common Shares of Beneficial Interest
Common shares issued pursuant to the Trusts dividend reinvestment plan for the six months ended May 31, 2014 and the year ended November 30, 2013 were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Six Months Ended May 31, 2014 (Unaudited) |
| | | | 359 | | | |||||||||||||||||||||
Year Ended November 30, 2013 |
3,484 | | | 3,303 | 3,692 | 203 | 496 |
On November 11, 2013, the Boards of Trustees of the Trusts authorized the repurchase by each Trust of up to 10% of its then currently outstanding common shares in open-market transactions at a discount to net asset value. The repurchase program does not obligate the Trusts to purchase a specific amount of shares. There were no repurchases of common shares by the Trusts for the six months ended May 31, 2014.
7 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of each Trust at May 31, 2014, as determined on a federal income tax basis, were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Aggregate cost |
$ | 134,496,599 | $ | 54,103,744 | $ | 44,342,642 | $ | 90,156,518 | $ | 99,843,788 | $ | 57,797,105 | $ | 53,870,160 | ||||||||||||||
Gross unrealized appreciation |
$ | 13,124,539 | $ | 5,191,252 | $ | 2,901,143 | $ | 8,432,462 | $ | 11,166,086 | $ | 6,098,063 | $ | 4,436,205 | ||||||||||||||
Gross unrealized depreciation |
(733,411 | ) | (110,178 | ) | (174,153 | ) | (1,087,832 | ) | (416,846 | ) | (66,265 | ) | (726,501 | ) | ||||||||||||||
Net unrealized appreciation |
$ | 12,391,128 | $ | 5,081,074 | $ | 2,726,990 | $ | 7,344,630 | $ | 10,749,240 | $ | 6,031,798 | $ | 3,709,704 |
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May 31, 2014
Notes to Financial Statements (Unaudited) continued
8 Overdraft Advances
Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft, the Trusts are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to SSBT. SSBT has a lien on a Trusts assets to the extent of any overdraft. At May 31, 2014, New Jersey Trust had a payment due to SSBT pursuant to the foregoing arrangement of $277,915. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at May 31, 2014. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 10) at May 31, 2014. The Trusts average overdraft advances during the six months ended May 31, 2014 were not significant.
9 Financial Instruments
The Trusts may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial 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 do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at May 31, 2014 is as follows:
Futures Contracts | ||||||||||||||||||||
Trust | Expiration Month/Year |
Contracts | Position | Aggregate Cost |
Value | Net Unrealized Depreciation |
||||||||||||||
California | 9/14 | 38 U.S. 10 -Year Treasury Note |
Short | $ | (4,749,634 | ) | $ | (4,769,594 | ) | $ | (19,960 | ) | ||||||||
9/14 | 43 U.S. Long Treasury Bond |
Short | (5,855,312 | ) | (5,911,156 | ) | (55,844 | ) | ||||||||||||
Massachusetts | 9/14 | 34 U.S. Long Treasury Bond |
Short | $ | (4,629,782 | ) | $ | (4,673,938 | ) | $ | (44,156 | ) | ||||||||
Michigan | 9/14 | 14 U.S. Long Treasury Bond |
Short | $ | (1,906,381 | ) | $ | (1,924,563 | ) | $ | (18,182 | ) | ||||||||
New Jersey | 9/14 | 70 U.S. Long Treasury Bond |
Short | $ | (9,531,904 | ) | $ | (9,622,813 | ) | $ | (90,909 | ) | ||||||||
New York | 9/14 | 43 U.S. Long Treasury Bond |
Short | $ | (5,855,312 | ) | $ | (5,911,156 | ) | $ | (55,844 | ) | ||||||||
Ohio | 9/14 | 16 U.S. Long Treasury Bond |
Short | $ | (2,178,721 | ) | $ | (2,199,500 | ) | $ | (20,779 | ) | ||||||||
Pennsylvania | 9/14 | 50 U.S. Long Treasury Bond |
Short | $ | (6,808,503 | ) | $ | (6,873,438 | ) | $ | (64,935 | ) |
At May 31, 2014, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.
Each Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trusts hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trusts purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
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Notes to Financial Statements (Unaudited) continued
The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at May 31, 2014 were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Liability Derivative: |
||||||||||||||||||||||||||||
Futures Contracts |
$ | (75,804 | )(1) | $ | (44,156 | )(1) | $ | (18,182 | )(1) | $ | (90,909 | )(1) | $ | (55,844 | )(1) | $ | (20,779 | )(1) | $ | (64,935 | )(1) | |||||||
Total |
$ | (75,804 | ) | $ | (44,156 | ) | $ | (18,182 | ) | $ | (90,909 | ) | $ | (55,844 | ) | $ | (20,779 | ) | $ | (64,935 | ) |
(1) | Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current days variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended May 31, 2014 was as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Realized Gain (Loss) on Derivatives Recognized in Income |
$ | (434,882 | )(1) | $ | (272,515 | )(1) | $ | (112,212 | )(1) | $ | (611,445 | )(1) | $ | (344,651 | )(1) | $ | (128,242 | )(1) | $ | (400,757 | )(1) | |||||||
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income |
$ | (48,937 | )(2) | $ | (34,000 | )(2) | $ | (14,000 | )(2) | $ | (64,026 | )(2) | $ | (43,000 | )(2) | $ | (16,000 | )(2) | $ | (50,000 | )(2) |
(1) | Statement of Operations location: Net realized gain (loss) Financial futures contracts. |
(2) | Statement of Operations location: Change in unrealized appreciation (depreciation) Financial futures contracts. |
The average notional amount of futures contracts outstanding during the six months ended May 31, 2014, which is indicative of the volume of this derivative type, was approximately as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Average Notional Amount: |
||||||||||||||||||||||||||||
Futures Contracts Short |
$ | 10,391,000 | $ | 4,474,000 | $ | 1,842,000 | $ | 10,329,000 | $ | 5,658,000 | $ | 2,105,000 | $ | 6,579,000 |
10 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| Level 1 quoted prices in active markets for identical investments |
| Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
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Notes to Financial Statements (Unaudited) continued
At May 31, 2014, the hierarchy of inputs used in valuing the Trusts investments and open derivative instruments, which are carried at value, were as follows:
California Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 161,567,727 | $ | | $ | 161,567,727 | ||||||||
Total Investments |
$ | | $ | 161,567,727 | $ | | $ | 161,567,727 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (75,804 | ) | $ | | $ | | $ | (75,804 | ) | ||||||
Total |
$ | (75,804 | ) | $ | | $ | | $ | (75,804 | ) | ||||||
Massachusetts Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 62,569,818 | $ | | $ | 62,569,818 | ||||||||
Total Investments |
$ | | $ | 62,569,818 | $ | | $ | 62,569,818 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (44,156 | ) | $ | | $ | | $ | (44,156 | ) | ||||||
Total |
$ | (44,156 | ) | $ | | $ | | $ | (44,156 | ) | ||||||
Michigan Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 47,069,632 | $ | | $ | 47,069,632 | ||||||||
Total Investments |
$ | | $ | 47,069,632 | $ | | $ | 47,069,632 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (18,182 | ) | $ | | $ | | $ | (18,182 | ) | ||||||
Total |
$ | (18,182 | ) | $ | | $ | | $ | (18,182 | ) | ||||||
New Jersey Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Municipal Securities |
$ | | $ | 100,273,648 | $ | | $ | 100,273,648 | ||||||||
Taxable Municipal Securities |
| 1,007,500 | | 1,007,500 | ||||||||||||
Total Investments |
$ | | $ | 101,281,148 | $ | | $ | 101,281,148 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (90,909 | ) | $ | | $ | | $ | (90,909 | ) | ||||||
Total |
$ | (90,909 | ) | $ | | $ | | $ | (90,909 | ) |
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May 31, 2014
Notes to Financial Statements (Unaudited) continued
New York Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3* | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 129,020,864 | $ | | $ | 129,020,864 | ||||||||
Miscellaneous |
| | 887,164 | 887,164 | ||||||||||||
Total Investments |
$ | | $ | 129,020,864 | $ | 887,164 | $ | 129,908,028 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (55,844 | ) | $ | | $ | | $ | (55,844 | ) | ||||||
Total |
$ | (55,844 | ) | $ | | $ | | $ | (55,844 | ) | ||||||
Ohio Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 63,828,903 | $ | | $ | 63,828,903 | ||||||||
Total Investments |
$ | | $ | 63,828,903 | $ | | $ | 63,828,903 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (20,779 | ) | $ | | $ | | $ | (20,779 | ) | ||||||
Total |
$ | (20,779 | ) | $ | | $ | | $ | (20,779 | ) | ||||||
Pennsylvania Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 59,229,864 | $ | | $ | 59,229,864 | ||||||||
Total Investments |
$ | | $ | 59,229,864 | $ | | $ | 59,229,864 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (64,935 | ) | $ | | $ | | $ | (64,935 | ) | ||||||
Total |
$ | (64,935 | ) | $ | | $ | | $ | (64,935 | ) |
* | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the New York Trust. |
California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust held no investments or other financial instruments as of November 30, 2013 whose fair value was determined using Level 3 inputs.
Level 3 investments held by New York Trust at the beginning and/or end of the period in relation to net assets applicable to common shares were not significant and accordingly, a reconciliation of Level 3 assets for the six months ended May 31, 2014 is not presented.
At May 31, 2014, there were no investments transferred between Level 1 and Level 2 during the six months ended May 31, 2014.
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May 31, 2014
Annual Meeting of Shareholders (Unaudited)
Each Trust held its Annual Meeting of Shareholders on March 27, 2014. Valerie A. Mosley was elected Class I Trustee of each Trust for a one-year term expiring in 2015 and Helen Frame Peters and Harriett Tee Taggart were elected Class III Trustees of each Trust for a three-year term expiring in 2017. Mr. Park had been nominated for election by the holders of each Trusts APS. Due to the lack of quorum of APS, each Trust was unable to act on election of Mr. Park. Accordingly, Mr. Park will remain in office and continue to serve as Trustee of each Trust until his successor is elected and qualified.
Trust | Nominee
for Class III Trustee Elected by APS Shareholders: William H. Park |
Nominee for Class I Trustee Elected by All Shareholders: Valerie A. Mosley |
Nominee for Class III Trustee Elected by All Shareholders: Helen Frame Peters |
Nominee for Class III Trustee Elected by All Shareholders: Harriett Tee Taggart |
||||||||||||
California Trust |
||||||||||||||||
For |
434 | 6,429,873 | 6,433,858 | 6,433,507 | ||||||||||||
Withheld |
77 | 209,759 | 205,774 | 206,125 | ||||||||||||
Massachusetts Trust |
||||||||||||||||
For |
185 | 2,408,414 | 2,403,867 | 2,407,505 | ||||||||||||
Withheld |
27 | 132,400 | 136,947 | 133,309 | ||||||||||||
Michigan Trust |
||||||||||||||||
For |
314 | 1,713,905 | 1,700,453 | 1,713,905 | ||||||||||||
Withheld |
2 | 210,686 | 224,138 | 210,686 | ||||||||||||
New Jersey Trust |
||||||||||||||||
For |
235 | 4,168,479 | 4,161,879 | 4,161,879 | ||||||||||||
Withheld |
28 | 137,910 | 144,510 | 144,510 | ||||||||||||
New York Trust |
||||||||||||||||
For |
390 | 4,762,618 | 4,742,869 | 4,744,892 | ||||||||||||
Withheld |
123 | 182,139 | 201,888 | 199,865 | ||||||||||||
Ohio Trust |
||||||||||||||||
For |
197 | 2,606,476 | 2,606,476 | 2,606,476 | ||||||||||||
Withheld |
5 | 79,000 | 79,000 | 79,000 | ||||||||||||
Pennsylvania Trust |
||||||||||||||||
For |
278 | 2,372,524 | 2,338,434 | 2,339,151 | ||||||||||||
Withheld |
7 | 64,565 | 98,655 | 97,938 |
65 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Board of Trustees Contract Approval
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the 1940 Act), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuation is approved at least annually by the funds board of trustees, including by a vote of a majority of the trustees who are not interested persons of the fund (Independent Trustees), cast in person at a meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a Board) of the Eaton Vance group of mutual funds (the Eaton Vance Funds) held on April 28, 2014, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished by each adviser to the Eaton Vance Funds (including information specifically requested by the Board) for a series of meetings of the Contract Review Committee held between February and April 2014, as well as information considered throughout the year at meetings of the Board and its committees. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
| An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds; |
| An independent report comparing each funds total expense ratio and its components to comparable funds; |
| An independent report comparing the investment performance of each fund (including, where relevant, yield data, Sharpe ratios and information ratios) to the investment performance of comparable funds over various time periods; |
| Data regarding investment performance in comparison to benchmark indices and customized peer groups identified by the adviser in consultation with the Board; |
| For each fund, comparative information concerning the fees charged and the services provided by each adviser in managing other accounts (including mutual funds, other collective investment funds and institutional accounts) using investment strategies and techniques similar to those used in managing such fund; |
| Profitability analyses for each adviser with respect to each fund; |
Information about Portfolio Management and Trading
| Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed, and any changes in portfolio management processes and personnel; |
| Information about the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through client commission arrangements and the funds policies with respect to soft dollar arrangements; |
| Data relating to portfolio turnover rates of each fund; |
| The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes; |
| Information about each advisers processes for monitoring best execution of portfolio transactions, and other policies and practices of each adviser with respect to trading; |
Information about each Adviser
| Reports detailing the financial results and condition of each adviser; |
| Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts; |
| Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes; |
| Copies of or descriptions of each advisers policies and procedures relating to proxy voting, the handling of corporate actions and class actions; |
| Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions; |
| Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates; |
| A description of Eaton Vance Managements procedures for overseeing third party advisers and sub-advisers, including with respect to regulatory and compliance issues, investment management and other matters; |
66 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Board of Trustees Contract Approval continued
Other Relevant Information
| Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates; |
| Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds administrator; and |
| The terms of each advisory agreement. |
Over the course of the twelve-month period ended April 30, 2014, with respect to one or more funds, the Board met nine times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, seventeen, eleven, six and ten times respectively. At such meetings, the Trustees participated in investment and performance reviews with the portfolio managers and other investment professionals of each adviser relating to each fund, and considered the investment and trading strategies used in pursuing each funds investment objective, including, where relevant, the use of derivative instruments, as well as processes for monitoring best execution of portfolio transactions and risk management techniques. The Board and its Committees also evaluated issues pertaining to industry and regulatory developments, compliance procedures, fund governance and other issues with respect to the funds, and received and participated in reports and presentations provided by Eaton Vance Management and other fund advisers with respect to such matters.
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the funds investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement. In evaluating each advisory and sub-advisory agreement, including the specific fee structures and other terms of the agreements, the Contract Review Committee was informed by multiple years of analysis and discussion among the Independent Trustees and the Funds advisers and sub-advisers.
Results of the Process
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuation of the investment advisory agreements of the following funds:
| Eaton Vance California 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 |
| Eaton Vance Pennsylvania Municipal Income Trust |
(the Funds), each with Eaton Vance Management (the Adviser), including their fee structures, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for each Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.
The Board considered the Advisers management capabilities and investment process with respect to the types of investments held by each Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Funds, including changes to such personnel, where relevant. In particular, the Board considered, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. The Board considered the Advisers large municipal bond team, which includes portfolio managers and credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation methods of the Adviser to recruit and retain investment personnel, and the time and attention devoted to each Fund by senior management.
67 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Board of Trustees Contract Approval continued
The Board reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests in recent years from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreements.
Fund Performance
The Board compared each Funds investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices and, where relevant, a customized peer group of similarly managed funds, and assessed each Funds performance on the basis of total return and current income return. The Boards review included comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2013 for each Fund. The Board considered, among other things, the Advisers efforts to generate competitive levels of tax exempt current income over time through investments that, relative to its peer universe, focus on higher quality municipal bonds with longer maturities. The Board noted that the Adviser had taken action to restructure each Funds portfolio as part of a long-term strategy for managing interest rate risk, consistent with each Funds objective of providing current income. The Board concluded that each Funds performance had been satisfactory on the basis of current income return. The Board also concluded it would continue to monitor the effectiveness of steps taken by the Adviser to improve fund performance on the basis of total return.
Management Fees and Expenses
The Board reviewed contractual fee rates for investment advisory and administrative services payable by each Fund (referred to as management fees). As part of its review, the Board considered the management fees and each Funds total expense ratio for the year ended September 30, 2013, as compared to a group of similarly managed funds selected by an independent data provider (the peer group). The Board considered certain Fund specific factors that had an impact on Fund expense ratios relative to the peer group, as identified by management in response to inquiries from the Contract Review Committee. The Board also considered actions taken by management in recent years to reduce expenses at the fund complex level, including the negotiation of reduced fees for transfer agency and custody services. Additionally, the Board took into account the financial resources committed by the Adviser in structuring each Fund at the time of its initial public offering and the waiver of fees provided by the Adviser for the first five years of each Funds life. The Board also considered that, at the request of the Contract Review Committee, the Adviser had implemented a series of permanent reductions in management fees beginning in May 2010, which include a further fee reduction effective May 1, 2014.
After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationships with the Funds, including the benefits of research services that may be available to the Adviser as a result of securities transactions effected for the Funds and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
Economies of Scale
In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of each Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of each Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of each Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that each Fund currently shares in the benefits from economies of scale. The Board also considered the fact that the Funds are not continuously offered and that the Funds assets are not expected to increase materially in the foreseeable future. The Board concluded that, in light of the level of the Advisers profits with respect to each Fund, the implementation of breakpoints in the advisory fee schedules is not warranted at this time.
68 |
Eaton Vance
Municipal Income Trusts
May 31, 2014
Officers and Trustees
Officers
Trustees
* | Interested Trustee |
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 management investment company and has no employees.
Number of Shareholders
As of May 31, 2014, Trust records indicate that there are 23, 30, 12, 33, 26, 26 and 28 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively, and approximately 2,227, 1,209, 1,246, 1,715, 2,119, 1,464 and 1,453 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income 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.
Two International Place
Boston, MA 02110
1-800-262-1122
NYSE MKT symbols
69 |
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy 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. This may include information such as name, address, social security number, tax status, account balances and transactions. |
| 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). In the normal course of servicing a customers account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers. |
| Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
| We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Managements Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customers account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisors privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vances Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) 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 advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, 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 advisor. 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 advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SECs website at www.sec.gov. Form N-Q may also be reviewed and copied at the SECs public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. 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 (if applicable) 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 and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SECs website at www.sec.gov.
Share Repurchase Program. On November 11, 2013, the Funds Boards of Trustees approved a share repurchase program authorizing each Fund to repurchase up to 10% of its currently outstanding common shares in open-market transactions at a discount to net asset value. The repurchase program does not obligate a Fund to purchase a specific amount of shares. The Funds repurchase activity, including the number of shares purchased, average price and average discount to net asset value, are disclosed in the Funds annual and semi-annual reports to shareholders.
Additional Notice to Shareholders. If applicable, a Fund may redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly after the end of each month. The funds net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under Individual Investors Closed-End Funds.
70 |
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7694 5.31.14 |
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
Not required in this filing.
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. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not required in this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Thomas M. Metzold is responsible for the overall and day-to-day management of each Funds investments. Mr. Metzold has been an Eaton Vance portfolio manager since 1991, is a Senior Portfolio Advisor and is a Vice President of Eaton Vance Management (EVM or Eaton Vance). This information is provided as of the date of filing of this report.
The following table shows, as of May 31, 2014, the number of accounts the portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.
Number of All Accounts |
Total Assets of All Accounts |
Number of Accounts Paying a Performance Fee |
Total Assets of Accounts Paying a Performance Fee |
|||||||||
Thomas M. Metzold |
||||||||||||
Registered Investment Companies |
9 | $ | 5,255.1 | 0 | $ | 0 | ||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 |
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of May 31, 2014.
Portfolio Manager and Fund Name | Dollar Range of Equity Securities Owned in the Fund | |
Thomas M. Metzold |
||
Michigan Municipal Income Trust |
None | |
Ohio Municipal Income Trust |
None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio managers management of the Funds investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment
strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies which govern the investment advisers trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVMs portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVCs nonvoting common stock and/or restricted shares of EVCs nonvoting common stock. EVMs investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVMs employees. Compensation of EVMs investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio. Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a funds peer group as determined by Lipper or Morningstar is deemed by EVMs management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the funds success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other
investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVMs portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants 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 Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits
(a)(1) | Registrants Code of Ethics Not applicable (please see Item 2). | |
(a)(2)(i) |
Treasurers Section 302 certification. | |
(a)(2)(ii) |
Presidents 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/ Payson F. Swaffield | |
Payson F. Swaffield | ||
President | ||
Date: | July 15, 2014 |
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 F. Kirchner | |
James F. Kirchner | ||
Treasurer | ||
Date: | July 15, 2014 | |
By: | /s/ Payson F. Swaffield | |
Payson F. Swaffield | ||
President | ||
Date: | July 15, 2014 |
Eaton Vance Michigan Municipal Income Trust
FORM N-CSR
Exhibit 12(a)(2)(i)
CERTIFICATION
I, James F. Kirchner, certify that:
1. I have reviewed this report on Form N-CSR of Eaton Vance Michigan Municipal Income Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 15, 2014
/s/ James F. Kirchner |
James F. Kirchner |
Treasurer |
Eaton Vance Michigan Municipal Income Trust
FORM N-CSR
Exhibit 12(a)(2)(ii)
CERTIFICATION
I, Payson F. Swaffield, certify that:
1. I have reviewed this report on Form N-CSR of Eaton Vance Michigan Municipal Income Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 15, 2014
/s/ Payson F. Swaffield |
Payson F. Swaffield |
President |
Form N-CSR Item 12(b) Exhibit
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned hereby certify in their capacity as Treasurer and President, respectively, of Eaton Vance Michigan Municipal Income Trust (the Trust), that:
(a) | The Semi-Annual Report of the Trust on Form N-CSR for the period ended May 31, 2014 (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Trust for such period. |
A signed original of this written statement required by section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
Eaton Vance Michigan Municipal Income Trust
Date: July 15, 2014
/s/ James F. Kirchner |
James F. Kirchner |
Treasurer |
Date: July 15, 2014
/s/ Payson F. Swaffield |
Payson F. Swaffield |
President |
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