N-CSRS 1 d381571dncsrs.htm EATON VANCE MASSACHUSETTS MUNICIPAL BOND FUND Eaton Vance Massachusetts Municipal Bond Fund

 

 

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: 811-21225

 

 

Eaton Vance Massachusetts Municipal Bond Fund

(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

(Registrant’s Telephone Number)

September 30

Date of Fiscal Year End

March 31, 2017

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


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Eaton Vance

Municipal Bond Funds

Semiannual Report

March 31, 2017

 

 

 

Municipal II (EIV)    •    California II (EIA)    •    Massachusetts (MAB)    •    Michigan (MIW)

New Jersey (EMJ)    •    New York II (NYH)    •    Ohio (EIO)    •    Pennsylvania (EIP)

 

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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 Fund’s 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 March 31, 2017

Eaton Vance

Municipal Bond Funds

Table of Contents

 

Performance and Fund Profile

  
  

Municipal Bond Fund II

     2  

California Municipal Bond Fund II

     3  

Massachusetts Municipal Bond Fund

     4  

Michigan Municipal Bond Fund

     5  

New Jersey Municipal Bond Fund

     6  

New York Municipal Bond Fund II

     7  

Ohio Municipal Bond Fund

     8  

Pennsylvania Municipal Bond Fund

     9  
  

Endnotes and Additional Disclosures

     10  

Financial Statements

     11  

Officers and Trustees

     77  

Important Notices

     78  


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Performance1,2

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      Six Months      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002        –3.46      –0.68      7.03      4.81

Fund at Market Price

            –6.79        –4.37        2.48        3.90  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –8.15
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.302  

Distribution Rate at NAV

                 4.46

Taxable-Equivalent Distribution Rate at NAV

                 7.88

Distribution Rate at Market Price

                 4.86

Taxable-Equivalent Distribution Rate at Market Price

                 8.59
              
% Total Leverage5                                        

Auction Preferred Shares (APS)

                 2.15

Institutional MuniFund Term Preferred (iMTP) Shares

                 18.06  

Residual Interest Bond (RIB) Financing

                 19.25  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

California Municipal Bond Fund II

March 31, 2017

 

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

     11/29/2002        –2.97      –0.84      6.02      4.42

Fund at Market Price

            –9.60        –9.15        4.03        3.50  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –10.15
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.265  

Distribution Rate at NAV

                 4.14

Taxable-Equivalent Distribution Rate at NAV

                 8.44

Distribution Rate at Market Price

                 4.61

Taxable-Equivalent Distribution Rate at Market Price

                 9.39
              
% Total Leverage5                                        

APS

                 1.09

iMTP Shares

                 29.98  

RIB Financing

                 8.76  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

Massachusetts Municipal Bond Fund

March 31, 2017

 

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

     11/29/2002        –4.65      –1.35      5.33      5.08

Fund at Market Price

            –9.51        –6.12        2.43        4.04  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –9.82
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.293  

Distribution Rate at NAV

                 3.73

Taxable-Equivalent Distribution Rate at NAV

                 6.94

Distribution Rate at Market Price

                 4.14

Taxable-Equivalent Distribution Rate at Market Price

                 7.71
              
% Total Leverage5                                        

APS

                 1.54

iMTP Shares

                 31.88  

RIB Financing

                 1.23  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

Michigan Municipal Bond Fund

March 31, 2017

 

Performance1,2

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      Six Months      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002        –3.03      0.59      6.29      5.63

Fund at Market Price

            –8.70        –3.91        3.26        5.04  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –10.76
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.310  

Distribution Rate at NAV

                 4.05

Taxable-Equivalent Distribution Rate at NAV

                 7.47

Distribution Rate at Market Price

                 4.54

Taxable-Equivalent Distribution Rate at Market Price

                 8.38
              
% Total Leverage5                                        

APS

                 7.79

iMTP Shares

                 29.30  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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 Jersey Municipal Bond Fund

March 31, 2017

 

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

     11/29/2002        –5.29      –1.70      5.60      4.86

Fund at Market Price

            –12.76        –7.10        2.24        3.76  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –11.27
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.320  

Distribution Rate at NAV

                 4.53

Taxable-Equivalent Distribution Rate at NAV

                 8.79

Distribution Rate at Market Price

                 5.11

Taxable-Equivalent Distribution Rate at Market Price

                 9.92
              
% Total Leverage5                                        

APS

                 3.73

iMTP Shares

                 29.09  

RIB Financing

                 6.26  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

New York Municipal Bond Fund II

March 31, 2017

 

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

     11/29/2002        –3.76      –1.65      4.94      4.15

Fund at Market Price

            –11.17        –6.62        2.48        3.13  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –9.03
              
Distributions4                                        

Total Distributions per share for the period

               $ 0.293  

Distribution Rate at NAV

                 4.53

Taxable-Equivalent Distribution Rate at NAV

                 8.78

Distribution Rate at Market Price

                 4.98

Taxable-Equivalent Distribution Rate at Market Price

                 9.65
              
% Total Leverage5                                        

APS

                 3.16

iMTP Shares

                 20.73  

RIB Financing

                 16.41  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

Ohio Municipal Bond Fund

March 31, 2017

 

Performance1,2

 

Portfolio Manager Cynthia J. Clemson

 

% Average Annual Total Returns    Inception Date      Six Months      One Year      Five Years      Ten Years  

Fund at NAV

     11/29/2002        –4.11      –0.81      6.62      4.52

Fund at Market Price

            –12.94        –5.02        3.40        3.88  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –7.66
              
Distribution Rate at NAV4                                        

Total Distributions per share for the period

               $ 0.301  

Distribution Rate at NAV

                 4.36

Taxable-Equivalent Distribution Rate at NAV

                 8.11

Distribution Rate at Market Price

                 4.72

Taxable-Equivalent Distribution Rate at Market Price

                 8.78
              
% Total Leverage5                                        

APS

                 4.15

iMTP Shares

                 27.20  

RIB Financing

                 3.91  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 or equal to 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

Pennsylvania Municipal Bond Fund

March 31, 2017

 

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

     11/29/2002        –3.34      0.39      6.41      5.49

Fund at Market Price

            –10.15        –5.68        4.24        4.74  

Bloomberg Barclays Long (22+) Year Municipal Bond Index

            –3.29      0.39      4.51      4.67
              
% Premium/Discount to NAV3                                        
                 –9.87
              
Distribution Rate at NAV4                                        

Total Distributions per share for the period

               $ 0.326  

Distribution Rate at NAV

                 4.63

Taxable-Equivalent Distribution Rate at NAV

                 8.44

Distribution Rate at Market Price

                 5.14

Taxable-Equivalent Distribution Rate at Market Price

                 9.37
              
% Total Leverage5                                        

APS

                 1.91

iMTP Shares

                 30.61  

RIB Financing

                 5.07  

Fund Profile

 

 

Credit Quality (% of total investments)6,7

 

 

 

LOGO

 

 

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 include 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 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 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.

 

  9  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Endnotes and Additional Disclosures

 

 

1 

Bloomberg Barclays Long (22+) Year Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S. with maturities of 22 years or more. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

2 

Performance results reflect the effects of leverage. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable. Included in the average annual total return at NAV for the five and ten year periods is the impact of the tender and repurchase of a portion of the Fund’s APS at 95.5% of the Fund’s APS per share liquidation preference. Had this transaction not occurred, the total return at NAV would be lower for the Fund.

 

3 

The shares of the Fund often trade at a discount or premium from their net asset value. The discount or premium of the Fund may vary over time and may be higher or lower than what is quoted in this report. For up-to-date premium/discount information, please refer to http://eatonvance.com/closedend.

 

4 

The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be comprised of amounts characterized for federal income tax purposes as tax-exempt income, qualified and non-qualified ordinary dividends, capital gains and nondividend distributions, also known as return of capital. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year- end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at eatonvance.com. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for Funds that employ leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes. Subsequent distributions declared, but not reflected in Fund Performance, reflect a reduction of the monthly distribution for Municipal Bond Fund II, Massachusetts Municipal Bond Fund, Michigan Municipal Bond Fund, New York Municipal Bond Fund II and Ohio Municipal Bond Fund.

5 

Fund employs RIB financing and/or APS and iMTP Shares leverage. The leverage created by RIB investments, APS and iMTP Shares provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater price volatility). The cost of leverage rises and falls with changes in short- term interest rates. See “Floating Rate Notes Issued in Conjunction with Securities Held” in the notes to the financial statements for more information about RIB financing. RIB leverage represents the amount of Floating Rate Notes outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. APS leverage represents the liquidation value of the Fund’s APS outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. iMTP Shares leverage represents the liquidation value of the Fund’s iMTP Shares outstanding at period end as a percentage of Fund net assets applicable to common shares plus APS, iMTP Shares and Floating Rate Notes. The Fund may be required to maintain prescribed asset coverage for its leverage and may be required to reduce its leverage at an inopportune time.

 

6 

Ratings are based on Moody’s, S&P or Fitch, as applicable. If securities are rated differently by the ratings agencies, the higher rating is applied. Ratings, which are subject to change, apply to the creditworthiness of the issuers of the underlying securities and not to the Fund or its shares. Credit ratings measure the quality of a bond based on the issuer’s creditworthiness, with ratings ranging from AAA, being the highest, to D, being the lowest based on S&P’s measures. Ratings of BBB or higher by S&P or Fitch (Baa or higher by Moody’s) are considered to be investment- grade quality. Credit ratings are based largely on the ratings agency’s analysis at the time of rating. The rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition and does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. Holdings designated as “Not Rated” are not rated by the national ratings agencies stated above.

 

7 

The chart includes the municipal bonds held by a trust that issues residual interest bonds, consistent with the Portfolio of Investments.

 

  Fund profile subject to change due to active management.
 

 

  10  


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 162.1%  
   
Security   Principal
Amount
(000’s omitted)
    Value  

Education — 5.7%

 

Connecticut Health and Educational Facilities Authority, (Fairfield University), 5.00%, 7/1/46

  $ 1,500     $ 1,651,485  

Houston Higher Education Finance Corp., TX, (St. John’s School), 5.25%, 9/1/33

    565       620,692  

Houston Higher Education Finance Corp., TX, (William Marsh Rice University), 5.00%, 5/15/35

    1,745       1,924,595  

Massachusetts Development Finance Agency, (Northeastern University), 5.25%, 3/1/37

    1,650       1,851,812  

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)

    1,500       1,622,655  
                 
    $ 7,671,239  
                 

Electric Utilities — 4.9%

 

Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/40

  $ 330     $ 371,785  

Pima County Industrial Development Authority, AZ, (Tucson Electric Power Co.), 5.25%, 10/1/40

    1,300       1,420,692  

Public Power Generation Agency, NE, (Whelan Energy Center Unit 2), 5.00%, 1/1/28

    3,000       3,416,460  

Unified Government of Wyandotte County/Kansas City Board of Public Utilities, KS, 5.00%, 9/1/36

    685       758,288  

Utility Debt Securitization Authority, NY, 5.00%, 12/15/35

    500       572,065  
                 
    $ 6,539,290  
                 

Escrowed / Prerefunded — 11.5%

 

Connecticut Health and Educational Facilities Authority, (Wesleyan University), Prerefunded to 7/1/20, 5.00%, 7/1/39(1)

  $ 2,200     $ 2,459,666  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/29

    1,545       1,787,287  

Hawaii, Prerefunded to 12/1/21, 5.00%, 12/1/30

    620       717,229  

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), Prerefunded to 1/1/21, 6.125%, 1/1/30

    235       274,670  

Massachusetts Health and Educational Facilities Authority, (Harvard University), Prerefunded to 11/15/18, 5.50%, 11/15/36

    665       713,472  

Massachusetts Health and Educational Facilities Authority, (Harvard University), Prerefunded to 11/15/18, 5.50%, 11/15/36

    2,045       2,194,060  

North Carolina Capital Facilities Finance Agency, (Duke University), Prerefunded to 4/1/19, 5.00%, 10/1/38(1)

    500       539,040  

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

    110       118,484  

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

    1,310       1,411,040  
Security   Principal
Amount
(000’s omitted)
    Value  

Escrowed / Prerefunded (continued)

 

Tennessee School Bond Authority, Prerefunded to 5/1/18, 5.50%, 5/1/38

  $ 1,000     $ 1,049,590  

Triborough Bridge and Tunnel Authority, NY, Prerefunded to 5/15/18, 5.00%, 11/15/37

    2,500       2,614,775  

University of Virginia, Prerefunded to 6/1/18, 5.00%, 6/1/40

    1,500       1,571,100  
                 
    $ 15,450,413  
                 

General Obligations — 19.9%

 

California, 5.00%, 12/1/30

  $ 610     $ 702,751  

California, 5.00%, 10/1/33

    2,150       2,471,124  

Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)

    1,680       1,804,454  

Clark County, NV, 5.00%, 7/1/33

    500       561,415  

Delaware Valley Regional Finance Authority, PA, 5.75%, 7/1/32

    2,500       3,053,625  

Hawaii, 5.00%, 12/1/29

    955       1,083,677  

Hawaii, 5.00%, 12/1/30

    380       427,606  

Kane, Cook and DuPage Counties School District No. 46, IL, 5.00%, 1/1/33

    2,000       2,201,600  

Mississippi, 5.00%, 10/1/36(1)

    1,725       1,938,935  

New York, 5.00%, 2/15/34(1)

    2,750       3,092,925  

New York, NY, 5.00%, 8/1/31

    2,000       2,281,740  

Oregon, 5.00%, 8/1/36

    1,000       1,123,800  

Washington, 5.00%, 2/1/35(1)

    5,250       5,949,667  
                 
  $ 26,693,319  
                 

Hospital — 6.3%

 

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.50%, 7/1/38

  $ 360     $ 406,112  

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.25%, 7/1/35

    615       684,034  

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.00%, 1/1/32

    1,550       1,746,168  

Vermont Educational and Health Buildings Financing Agency, (University of Vermont Medical Center), 5.00%, 12/1/33

    2,500       2,785,550  

Wisconsin Health and Educational Facilities Authority, (Ascension Senior Credit Group), 4.50%, 11/15/39

    2,695       2,873,436  
                 
  $ 8,495,300  
                 

Industrial Development Revenue — 0.5%

 

Maricopa County Pollution Control Corp., AZ, (El Paso Electric Co.), 4.50%, 8/1/42

  $ 595     $ 607,697  
                 
  $ 607,697  
                 
 

 

  11   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  

Insured – Electric Utilities — 4.6%

 

Chelan County Public Utility District No. 1, WA, (Columbia River), (NPFG), 0.00%, 6/1/23

  $ 6,335     $ 5,399,447  

Louisiana Energy and Power Authority, (AGM), 5.25%, 6/1/38

    735       817,813  
                 
  $ 6,217,260  
                 

Insured – Escrowed / Prerefunded — 19.9%

 

American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), Prerefunded to 2/15/19, 5.75%, 2/15/39

  $ 1,000     $ 1,086,950  

Arizona Health Facilities Authority, (Banner Health), (BHAC), Prerefunded to 1/1/18, 5.375%, 1/1/32

    1,750       1,809,325  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/26

    670       712,183  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/27

    420       446,443  

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.50%, 10/1/38

    660       704,002  

Colorado Health Facilities Authority, (Catholic Health), (AGM), Prerefunded to 4/29/18, 5.10%, 10/1/41(1)

    2,200       2,299,154  

District of Columbia Water and Sewer Authority, (AGC), Prerefunded to 10/1/18, 5.00%, 10/1/34(1)

    1,250       1,324,925  

Maricopa County Industrial Development Authority, AZ, (Catholic Healthcare West), (BHAC), Prerefunded to 7/1/17, 5.25%, 7/1/32

    2,090       2,110,691  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    305       328,229  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    565       608,030  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.50%, 1/1/29

    255       274,622  

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), Prerefunded to 1/1/19, 5.75%, 1/1/39

    290       313,568  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/24

    210       229,622  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/26

    425       464,712  

Palm Springs Unified School District, CA, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

    2,750       2,998,683  

San Diego County Water Authority, CA, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

    3,250       3,395,373  

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

    130       140,027  

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

    1,465       1,577,996  
Security   Principal
Amount
(000’s omitted)
    Value  

Insured – Escrowed / Prerefunded (continued)

 

University of South Alabama, (BHAC), Prerefunded to 8/1/18, 5.00%, 8/1/38

  $ 3,900     $ 4,108,104  

Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), Prerefunded to 8/15/19, 6.00%, 8/15/39

    1,545       1,717,824  
                 
  $ 26,650,463  
                 

Insured – General Obligations — 0.7%

 

Cincinnati City School District, OH, (AGM), (FGIC), 5.25%, 12/1/30

  $ 750     $ 937,223  
                 
  $ 937,223  
                 

Insured – Hospital — 6.7%

 

California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)

  $ 1,500     $ 1,556,190  

Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)

    2,500       2,603,624  

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    2,245       2,418,000  

Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33

    2,300       2,431,491  
                 
  $ 9,009,305  
                 

Insured – Industrial Development Revenue — 1.1%

 

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39

  $ 1,340     $ 1,446,423  
                 
  $ 1,446,423  
                 

Insured – Lease Revenue / Certificates of Participation — 1.0%

 

Essex County Improvement Authority, NJ, (NPFG), 5.50%, 10/1/30

  $ 1,000     $ 1,273,290  
                 
  $ 1,273,290  
                 

Insured – Other Revenue — 1.7%

 

Harris County-Houston Sports Authority, TX, (AGM), (NPFG), 0.00%, 11/15/34

  $ 2,540     $ 1,138,377  

New York City Industrial Development Agency, NY, (Yankee Stadium), (AGC), 7.00%, 3/1/49

    1,000       1,106,820  
                 
  $ 2,245,197  
                 

Insured – Solid Waste — 0.4%

 

Palm Beach County Solid Waste Authority, FL, (BHAC), 5.00%, 10/1/24

  $ 530     $ 578,972  
                 
  $ 578,972  
                 
 

 

  12   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  

Insured – Special Tax Revenue — 5.5%

 

Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39

  $ 3,000     $ 3,445,350  

Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30

    2,540       3,072,079  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    4,440       851,104  
                 
  $ 7,368,533  
                 

Insured – Student Loan — 0.8%

 

Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27

  $ 1,000     $ 1,068,750  
                 
  $ 1,068,750  
                 

Insured – Transportation — 19.4%

 

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/29

  $ 260     $ 295,797  

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/30

    400       450,304  

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/31

    180       201,924  

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/32

    100       112,472  

Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39

    1,585       1,718,124  

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22

    7,800       6,765,174  

Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30

    1,305       1,351,314  

Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1)

    10,000       10,476,900  

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/24

    1,000       1,088,520  

Metropolitan Washington Airports Authority, D.C., (BHAC), 5.00%, 10/1/29

    535       579,608  

New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38

    1,040       1,096,815  

North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48

    210       217,012  

North Texas Tollway Authority, (BHAC), Prerefunded to 1/1/18, 5.75%, 1/1/48

    1,540       1,596,272  
                 
  $ 25,950,236  
                 

Insured – Water and Sewer — 5.9%

 

Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38

  $ 1,635     $ 1,677,951  

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), 5.00%, 11/15/33

    105       107,476  

Houston, TX, Combined Utility System Revenue, (AGM), (BHAC), Prerefunded to 11/15/17, 5.00%, 11/15/33

    330       338,514  

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35

    1,000       1,253,940  
Security   Principal
Amount
(000’s omitted)
    Value  

Insured – Water and Sewer (continued)

 

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/32

  $ 230     $ 258,329  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/33

    195       218,076  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/35

    240       266,760  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/37

    195       216,078  

New York City Municipal Water Finance Authority, NY, (BHAC), 5.75%, 6/15/40

    2,205       2,325,481  

Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31

    1,220       1,220,708  
                 
  $ 7,883,313  
                 

Lease Revenue / Certificates of Participation — 10.6%

 

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31

  $ 2,235     $ 2,388,768  

North Carolina, Capital Improvement Limited Obligation Bonds, 5.00%, 5/1/30

    5,000       5,611,100  

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26(1)

    5,250       6,199,253  
                 
  $ 14,199,121  
                 

Other Revenue — 1.3%

 

Oregon Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30

  $ 1,300     $ 1,457,261  

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/30

    260       278,886  
                 
  $ 1,736,147  
                 

Special Tax Revenue — 10.7%

 

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, 5.00%, 11/1/30(1)

  $ 1,850     $ 2,189,567  

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/35

    405       460,388  

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/36

    215       243,933  

Homewood City Board of Education, AL, 5.00%, 4/1/32

    1,880       2,086,687  

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/33

    750       944,693  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 3.00%, 2/1/39(1)

    1,750       1,571,745  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 5.50%, 11/1/35(1)

    2,145       2,439,165  

New York City Transitional Finance Authority, NY, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(1)

    1,655       1,897,138  
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  

Special Tax Revenue (continued)

 

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

  $ 465     $ 524,557  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/35

    1,710       1,927,016  
                 
  $ 14,284,889  
                 

Transportation — 17.8%

 

Austin, TX, Airport System Revenue, 5.00%, 11/15/41

  $ 2,110     $ 2,384,996  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/33

    1,750       1,964,515  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/34

    1,000       1,113,200  

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/30

    640       742,976  

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/31

    990       1,145,836  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

    1,715       1,864,445  

Los Angeles Department of Airports, CA, (Los Angeles International Airport), 5.25%, 5/15/28

    465       521,744  

Metropolitan Transportation Authority, NY, 5.25%, 11/15/32

    620       721,357  

Metropolitan Transportation Authority, NY, 5.25%, 11/15/38

    865       982,424  

Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41

    2,095       2,264,758  

Miami-Dade County, FL, Aviation Revenue, 5.00%, 10/1/37

    1,385       1,543,222  

New Jersey Transportation Trust Fund Authority, (Transportation Program), 5.00%, 6/15/38

    130       130,381  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.25%, 12/15/23

    1,000       1,078,050  

New York Liberty Development Corp., (4 World Trade Center), 5.00%, 11/15/31

    1,070       1,200,968  

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/35

    90       98,185  

Orlando-Orange County Expressway Authority, FL, 5.00%, 7/1/40

    230       250,767  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

    330       368,168  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

    145       161,771  

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

    2,040       2,329,782  

South Carolina Transportation Infrastructure Bank, 5.25%, 10/1/40

    1,000       1,081,420  

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/37

    1,500       1,631,820  

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/42

    265       287,040  
                 
  $ 23,867,825  
                 
Security   Principal
Amount
(000’s omitted)
    Value  

Water and Sewer — 5.2%

 

Detroit, MI, Sewage Disposal System, 5.00%, 7/1/32

  $ 1,555     $ 1,672,854  

Detroit, MI, Sewage Disposal System, 5.25%, 7/1/39

    380       409,917  

Detroit, MI, Water Supply System, 5.25%, 7/1/41

    300       326,106  

New York City Municipal Water Finance Authority, NY, (Water and Sewer System), 5.00%, 6/15/36

    4,000       4,531,400  
                 
  $ 6,940,277  
                 

Total Tax-Exempt Investments — 162.1%
(identified cost $202,440,066)

 

  $ 217,114,482  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (3.5)%

    $ (4,750,669
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (29.7)%

 

  $ (39,754,257
                 

Other Assets, Less Liabilities — (28.9)%

 

  $ (38,681,205
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 133,928,351  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

At March 31, 2017, the concentration of the Fund’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

New York      14.6%  
Others, representing less than 10% individually      85.4%  

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 41.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.4% to 15.2% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

  14   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Futures Contracts  
Description   Contracts      Position      Expiration
Month/Year
     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     29        Short        Jun-17      $ (4,406,586    $ (4,374,469    $ 32,117  
       $ 32,117  

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.

 

  15   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 164.5%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 10.5%

 

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31

  $ 395     $ 447,156  

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36

    160       181,126  

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/22

    70       79,608  

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30

    380       410,955  

California Educational Facilities Authority, (Santa Clara University), 5.00%, 2/1/29

    890       975,244  

California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36

    115       135,115  

California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30

    330       367,854  

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31

    210       234,799  

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35

    145       162,320  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26

    405       463,433  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27

    425       483,370  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28

    450       509,112  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    165       179,370  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    550       597,899  
                 
    $ 5,227,361
                 

Electric Utilities — 5.9%

 

Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32

  $ 745     $ 785,133  

Sacramento Municipal Utility District, 5.00%, 8/15/30

    420       477,906  

Sacramento Municipal Utility District, 5.00%, 8/15/31

    125       142,234  

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/30

    1,000       1,107,570  

Vernon, Electric System Revenue, 5.125%, 8/1/21

    405       436,039  
                 
    $ 2,948,882  
                 

Escrowed / Prerefunded — 14.5%

 

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/19, 5.00%, 1/1/39

  $ 1,370     $ 1,464,557  

California Educational Facilities Authority, (University of Southern California), Prerefunded to 10/1/18, 5.25%, 10/1/39

    1,200       1,277,220  
Security  

Principal

Amount

(000’s omitted)

    Value  

Escrowed / Prerefunded (continued)

 

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), Prerefunded to 8/15/19, 5.00%, 8/15/39

  $ 1,400     $ 1,528,450  

San Diego Community College District, (Election of 2002), Prerefunded to 8/1/21, 5.00%, 8/1/32

    720       828,540  

San Diego Community College District, (Election of 2006), Prerefunded to 8/1/21, 5.00%, 8/1/31

    455       523,591  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/27

    350       417,809  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/28

    590       704,307  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    285       309,821  

Vernon, Electric System Revenue, Prerefunded to 8/1/19, 5.125%, 8/1/21

    170       181,075  
                 
    $ 7,235,370  
                 

General Obligations — 31.1%

 

California, 5.00%, 10/1/31

  $ 565     $ 655,609  

California, 5.50%, 11/1/35

    1,300       1,478,763  

Castro Valley Unified School District, (Election of 2016), 5.00%, 8/1/41

    1,000       1,141,600  

Jurupa Unified School District, (Election of 2014), 5.00%, 8/1/37

    1,150       1,328,676  

Montebello Unified School District, (Election of 2016), 5.00%, 8/1/41

    1,000       1,138,140  

Mountain View Whisman School District, (Election of 2012), 4.00%, 9/1/42(1)

    2,000       2,077,960  

Palo Alto, (Election of 2008), 5.00%, 8/1/40

    1,850       2,049,208  

San Bernardino Community College District, 4.00%, 8/1/30

    1,510       1,616,485  

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

    410       465,108  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/27

    335       394,717  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

    580       678,820  

Torrance Unified School District, (Election of 2008), 5.00%, 8/1/35

    1,125       1,266,289  

Ventura County Community College District, 5.00%, 8/1/29

    1,000       1,161,230  
                 
    $ 15,452,605  
                 

Hospital — 10.6%

 

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/34

  $ 775     $ 887,840  

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/32

    335       373,636  

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/35

    475       526,390  
 

 

  16   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Hospital (continued)

 

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/27

  $ 750     $ 854,055  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/33

    600       675,912  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/37

    280       312,701  

California Statewide Communities Development Authority, (Cottage Health System), 5.25%, 11/1/30

    1,000       1,093,430  

Washington Township Health Care District, 5.00%, 7/1/32

    555       557,786  
                 
    $ 5,281,750  
                 

Insured – Electric Utilities — 3.5%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/34

  $ 1,035     $ 1,081,699  

Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27

    610       643,337  
                 
    $ 1,725,036  
                 

Insured – Escrowed / Prerefunded — 25.3%

 

Antelope Valley Community College District, (Election of 2004), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/39

  $ 725     $ 736,078  

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/33

    1,150       1,442,951  

California Infrastructure and Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36

    525       658,739  

Carlsbad Unified School District, (Election of 2006), (NPFG), Prerefunded to 8/1/17, 5.25%, 8/1/32

    1,500       1,522,875  

Clovis Unified School District, (NPFG), Escrowed to Maturity, 0.00%, 8/1/20

    3,130       2,992,374  

East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), Prerefunded to 6/1/17, 5.00%, 6/1/32

    100       100,734  

Orange County Water District, Certificates of Participation, (NPFG), Prerefunded to 8/15/32, 5.00%, 8/15/34

    395       488,398  

Palm Springs Unified School District, (Election of 2008), (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/33

    1,250       1,363,037  

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

    1,040       1,055,028  

Sacramento Municipal Utility District, (AGM), Prerefunded to 8/15/18, 5.00%, 8/15/27

    390       411,813  

San Diego County Water Authority, Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

    1,750       1,828,277  
                 
    $ 12,600,304  
                 

Insured – General Obligations — 15.3%

 

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/38

  $ 7,125     $ 2,510,992  
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – General Obligations (continued)

 

Arcadia Unified School District, (Election of 2006), (AGM), 0.00%, 8/1/40

  $ 2,525     $ 804,819  

Coalinga-Huron Joint Unified School District, (Election of 2016), (BAM), 5.00%, 8/1/41(2)

    1,265       1,435,218  

Union Elementary School District, (Election of 1999), (NPFG), 0.00%, 9/1/22

    3,200       2,865,280  
                 
    $ 7,616,309  
                 

Insured – Hospital — 3.7%

 

California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)

  $ 1,750     $ 1,815,555  
                 
    $ 1,815,555
                 

Insured – Special Tax Revenue — 4.1%

 

Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37

  $ 1,535     $ 1,541,278  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    2,675       512,771  
                 
    $ 2,054,049  
                 

Insured – Transportation — 5.5%

 

San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27

  $ 3,520     $ 2,411,798  

San Jose, Airport Revenue, (AMBAC), 5.00%, 3/1/33

    330       330,396  
                 
    $ 2,742,194  
                 

Insured – Water and Sewer — 0.9%

 

Riverside, Water System Revenue, (AGM), 5.00%, 10/1/38

  $ 445     $ 470,561  
                 
    $ 470,561  
                 

Lease Revenue / Certificates of Participation — 1.1%

 

California Public Works Board, 5.00%, 11/1/38

  $ 480     $ 538,171  
                 
    $ 538,171  
                 

Special Tax Revenue — 9.5%

 

Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/31

  $ 1,490     $ 1,558,778  

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

    1,300       1,441,583  

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/29

    500       572,595  

Successor Agency to San Diego Redevelopment Agency, 5.00%, 9/1/31

    1,000       1,164,770  
                 
    $ 4,737,726  
                 
 

 

  17   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation — 11.5%

 

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29

  $ 1,190     $ 1,289,282  

Long Beach, Harbor Revenue, 5.00%, 5/15/27

    540       601,247  

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)

    1,060       1,171,480  

Los Angeles Harbor Department, 5.00%, 8/1/25

    1,250       1,429,075  

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35

    635       694,677  

San Jose, Airport Revenue, 5.00%, 3/1/20

    500       553,185  
                 
    $ 5,738,946  
                 

Water and Sewer — 11.5%

 

Metropolitan Water District of Southern California, 5.00%, 1/1/39

  $ 1,050     $ 1,119,626  

Rancho California Water District Financing Authority, 5.00%, 8/1/46(1)

    2,000       2,297,100  

San Diego Public Facilities Financing Authority, Sewer Revenue, 5.00%, 5/15/38

    2,000       2,299,860  
                 
    $ 5,716,586  
                 

Total Tax-Exempt Investments — 164.5%
(identified cost $76,763,242)

 

  $ 81,901,405  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (1.8)%

    $ (900,067
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (49.5)%

 

  $ (24,672,204
                 

Other Assets, Less Liabilities — (13.2)%

 

  $ (6,560,812
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 49,768,322  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 35.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.1% to 16.7% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

(2) 

When-issued security.

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net Unrealized

Appreciation

(Depreciation)

 

Interest Rate Futures

                
U.S. 10-Year Treasury Note     15        Short        Jun-17      $ (1,863,371    $ (1,868,438    $ (5,067
U.S. Long Treasury Bond     15        Short        Jun-17        (2,279,268      (2,262,656      16,612  
                                                 $ 11,545  

 

  18   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BAM     Build America Mutual Assurance Co.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  19   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 148.4%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Bond Bank — 5.8%

 

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/33

  $ 585     $ 734,046  

Massachusetts Water Pollution Abatement Trust, 5.25%, 8/1/34

    640       803,706  
                 
    $ 1,537,752  
                 

Education — 11.0%

 

Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35

  $ 750     $ 826,800  

Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35

    870       955,173  

University of Massachusetts Building Authority, 5.00%, 11/1/39

    1,000       1,134,700  
                 
    $ 2,916,673
                 

Escrowed / Prerefunded — 13.3%

 

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

  $ 25     $ 26,345  

Massachusetts Bay Transportation Authority, Prerefunded to 7/1/18, 5.25%, 7/1/34

    70       73,767  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/25

    320       345,818  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/29

    490       529,533  

Massachusetts Health and Educational Facilities Authority, (Lahey Clinic Medical Center), Prerefunded to 8/15/17, 5.25%, 8/15/28

    400       406,680  

Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), Prerefunded to 7/1/18, 5.50%, 7/1/36

    1,000       1,057,030  

Massachusetts Health and Educational Facilities Authority, (Tufts University), Prerefunded to 8/15/18, 5.375%, 8/15/38

    1,025       1,086,828  
                 
    $ 3,526,001  
                 

General Obligations — 10.3%

 

Boston, 4.00%, 4/1/24

  $ 200     $ 217,938  

Danvers, 5.25%, 7/1/36

    565       640,557  

Plymouth, 5.00%, 5/1/26

    250       281,920  

Plymouth, 5.00%, 5/1/31

    225       250,312  

Plymouth, 5.00%, 5/1/32

    205       228,063  

Wayland, 5.00%, 2/1/33

    340       377,614  

Wayland, 5.00%, 2/1/36

    510       565,422  

Winchester, 5.00%, 4/15/36

    160       178,496  
                 
    $ 2,740,322  
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Hospital — 22.1%

 

Massachusetts Development Finance Agency, (CareGroup), 5.00%, 7/1/33

  $ 120     $ 132,977  

Massachusetts Development Finance Agency, (Children’s Hospital), 5.00%, 10/1/31

    525       606,102  

Massachusetts Development Finance Agency, (Lahey Health System Obligated Group), 5.00%, 8/15/40

    750       825,285  

Massachusetts Development Finance Agency, (South Shore Hospital), 5.00%, 7/1/41

    1,000       1,095,250  

Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37

    775       817,098  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/34

    500       538,800  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), 5.00%, 7/1/39

    750       806,640  

Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29

    1,000       1,052,420  
                 
    $ 5,874,572  
                 

Insured – Education — 12.2%

 

Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39

  $ 700     $ 917,231  

Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59

    1,105       1,381,106  

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)

    750       929,708  
                 
    $ 3,228,045  
                 

Insured – Electric Utilities — 4.4%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23

  $ 1,095     $ 1,161,258  
                 
    $ 1,161,258  
                 

Insured – Escrowed / Prerefunded — 16.5%

 

Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26

  $ 2,900     $ 2,306,573  

Massachusetts Development Finance Agency, (Boston College), (NPFG), Prerefunded to 7/1/17, 5.00%, 7/1/38

    750       757,935  

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25

    220       241,710  

Revere, (AGC), Prerefunded to 4/1/19, 5.00%, 4/1/39

    1,000       1,077,770  
                 
    $ 4,383,988  
                 

Insured – General Obligations — 9.2%

 

Massachusetts, (AMBAC), 5.50%, 8/1/30

  $ 1,900     $ 2,444,996  
                 
    $ 2,444,996  
                 
 

 

  20   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Lease Revenue / Certificates of Participation — 4.6%

 

Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27

  $ 1,000     $ 1,234,790  
                 
    $ 1,234,790  
                 

Insured – Other Revenue — 2.1%

 

Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42

  $ 415     $ 545,937  
                 
    $ 545,937  
                 

Insured – Special Tax Revenue — 12.0%

 

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/25

  $ 555     $ 656,338  

Martha’s Vineyard Land Bank, (BAM), 5.00%, 5/1/28

    805       931,586  

Massachusetts Bay Transportation Authority, Sales Tax Revenue, (NPFG), 5.50%, 7/1/28

    400       510,708  

Massachusetts, Special Obligation, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29

    750       944,670  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    770       147,601  
                 
    $ 3,190,903  
                 

Insured – Water and Sewer — 4.6%

 

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/36

  $ 960     $ 1,208,534  
                 
    $ 1,208,534  
                 

Special Tax Revenue — 5.0%

 

Massachusetts Bay Transportation Authority, 5.00%, 7/1/35

  $ 1,210     $ 1,330,468  
                 
    $ 1,330,468  
                 

Transportation — 12.2%

 

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/32

  $ 1,000     $ 1,089,960  

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37

    500       541,325  
Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation (continued)

 

Massachusetts Port Authority, 5.00%, 7/1/28

  $ 250     $ 278,575  

Massachusetts Port Authority, 5.00%, 7/1/34

    435       477,587  

Massachusetts Port Authority, 5.00%, 7/1/45

    750       851,242  
                 
    $ 3,238,689  
                 

Water and Sewer — 3.1%

 

Boston Water & Sewer Commission, Prerefunded to 11/1/19, 5.00%, 11/1/27

  $ 750     $ 822,667  
                 
    $ 822,667  
                 

Total Tax-Exempt Investments — 148.4%
(identified cost $35,583,918)

 

  $ 39,385,595  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (2.4)%

    $ (625,024
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (48.5)%

 

  $ (12,872,359
                 

Other Assets, Less Liabilities — 2.5%

 

  $ 658,273  
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 26,546,485  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 44.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 3.1% to 14.8% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     9        Short        Jun-17      $ (1,367,561    $ (1,357,594    $ 9,967  
                                                 $ 9,967  

 

  21   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BAM     Build America Mutual Assurance Co.
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.

 

  22   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 156.9%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 5.8%

 

Michigan Technological University, 4.00%, 10/1/36

  $ 570     $ 581,451  

Wayne State University, 5.00%, 11/15/40

    675       741,049  
                 
    $ 1,322,500  
                 

Electric Utilities — 7.5%

 

Holland, Electric Utility System, 5.00%, 7/1/39

  $ 865     $ 969,648  

Michigan Public Power Agency, 5.00%, 1/1/43

    700       734,601  
                 
    $ 1,704,249  
                 

Escrowed / Prerefunded — 2.2%

 

Kalamazoo Hospital Finance Authority, (Bronson Healthcare Group), Prerefunded to 5/15/21, 5.25%, 5/15/33

  $ 430     $ 493,575  
                 
    $ 493,575  
                 

General Obligations — 35.4%

 

Battle Creek, 5.00%, 12/1/41

  $ 750     $ 844,178  

Buchanan Community Schools, 4.00%, 5/1/31

    500       519,585  

Comstock Park Public Schools, 5.125%, 5/1/31

    205       226,773  

Comstock Park Public Schools, 5.25%, 5/1/33

    165       184,549  

East Grand Rapids Public Schools, 5.00%, 5/1/39

    665       736,754  

Grass Lake Community Schools, 5.00%, 5/1/30

    430       491,094  

Lakeview School District, 5.00%, 5/1/40

    650       723,684  

Lansing Community College, 5.00%, 5/1/30

    1,000       1,119,810  

Plymouth-Canton Community Schools, 4.00%, 5/1/33

    750       771,615  

Rockford Public Schools, 5.00%, 5/1/44

    500       555,035  

Walled Lake Consolidated School District, 5.00%, 5/1/34

    635       711,549  

Watervliet Public Schools, 5.00%, 5/1/38

    1,000       1,108,570  
                 
    $ 7,993,196  
                 

Hospital — 21.2%

 

Grand Traverse Hospital, 5.375%, 7/1/35

  $ 750     $ 810,892  

Kent Hospital Finance Authority, (Spectrum Health System), 5.00%, 1/15/31

    750       811,545  

Michigan Finance Authority, (McLaren Health Care), 5.00%, 6/1/35

    750       810,075  

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

    500       541,945  

Michigan Hospital Finance Authority, (Trinity Health Corp.), 5.00%, 12/1/48

    700       746,109  

Royal Oak Hospital Finance Authority, (William Beaumont Hospital), 5.00%, 9/1/39

    1,000       1,081,200  
                 
    $ 4,801,766  
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Bond Bank — 3.2%

 

Puerto Rico Municipal Finance Agency, (AGM), 5.00%, 8/1/27

  $ 700     $ 720,230  
                 
    $ 720,230  
                 

Insured – Electric Utilities — 2.9%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

  $ 610     $ 648,534  
                 
    $ 648,534  
                 

Insured – Escrowed / Prerefunded — 32.7%

 

Battle Creek, (BAM), Prerefunded to 6/1/18, 5.00%, 6/1/33

  $ 250     $ 261,820  

Ferris State University, (AGC), Prerefunded to 10/1/18, 5.125%, 10/1/33

    435       461,748  

Grand Rapids Water Supply System, (AGC), Prerefunded to 1/1/19, 5.00%, 1/1/29

    1,000       1,068,300  

Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28

    1,135       1,227,911  

Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23

    2,615       2,276,567  

Pinconning Area Schools, (AGM), Prerefunded to 5/1/17, 5.00%, 5/1/33

    1,000       1,003,610  

Royal Oak, (AGC), Prerefunded to 10/1/18, 6.25%, 10/1/28

    1,000       1,078,510  
                 
    $ 7,378,466  
                 

Insured – General Obligations — 21.3%

 

Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38

  $ 500     $ 559,940  

Livonia Public Schools, (AGM), 5.00%, 5/1/43

    750       816,713  

Okemos Public Schools, (NPFG), 0.00%, 5/1/19

    1,330       1,281,668  

South Haven Public Schools, (AGM), 5.00%, 5/1/40

    500       552,395  

South Haven Public Schools, (BAM), 5.00%, 5/1/41

    950       1,048,087  

Westland Tax Increment Finance Authority, (BAM), 5.25%, 4/1/34

    500       554,405  
                 
    $ 4,813,208  
                 

Insured – Special Tax Revenue — 1.5%

 

Puerto Rico Sales Tax Financing Corp., (AGM), 0.00%, 8/1/33

  $ 560     $ 233,055  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    615       117,890  
                 
    $ 350,945  
                 

Insured – Water and Sewer — 9.1%

 

Michigan Finance Authority, (Detroit Water & Sewerage Department), (AGM), 5.00%, 7/1/31

  $ 1,500     $ 1,693,065  

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

    355       363,939  
                 
    $ 2,057,004  
                 
 

 

  23   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Lease Revenue / Certificates of Participation — 4.6%

 

Michigan Strategic Fund, (Facility for Rare Isotope Beams), 4.00%, 3/1/30

  $ 1,000     $ 1,044,010  
                 
    $ 1,044,010  
                 

Special Tax Revenue — 5.0%

 

Michigan Trunk Line Fund, 5.00%, 11/15/36

  $ 1,000     $ 1,122,460  
                 
    $ 1,122,460  
                 

Water and Sewer — 4.5%

 

Grand Rapids, Sanitary Sewer System, 5.00%, 1/1/28

  $ 605     $ 738,481  

Port Huron, Water Supply System, 5.25%, 10/1/31

    250       268,070  
                 
    $ 1,006,551  
                 

Total Tax-Exempt Investments — 156.9%
(identified cost $33,176,136)

 

  $ 35,456,694  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (12.4)%

    $ (2,800,313
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (46.2)%

 

  $ (10,455,185
                 

Other Assets, Less Liabilities — 1.7%

 

  $ 394,309  
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 22,595,505  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 45.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 5.8% to 14.2% of total investments.

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BAM     Build America Mutual Assurance Co.
NPFG     National Public Finance Guaranty Corp.
 

 

  24   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 162.0%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 4.9%

 

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/33

  $ 340     $ 382,112  

New Jersey Educational Facilities Authority, (Montclair State University), 5.00%, 7/1/34

    210       235,141  

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/37

    360       392,890  

New Jersey Educational Facilities Authority, (Ramapo College), 5.00%, 7/1/40

    690       755,288  
                 
    $ 1,765,431  
                 

Escrowed / Prerefunded — 6.1%

 

Monmouth County Improvement Authority, Prerefunded to 1/15/21, 5.00%, 1/15/27

  $ 1,115     $ 1,262,838  

New Jersey Health Care Facilities Financing Authority, (AtlantiCare Regional Medical Center), Prerefunded to 7/1/17, 5.00%, 7/1/37

    515       520,212  

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), Prerefunded to 10/1/18, 5.25%, 10/1/38

    135       143,625  

North Hudson Sewerage Authority, Prerefunded to 6/1/22, 5.00%, 6/1/29

    30       34,953  

Rutgers State University, Prerefunded to 5/1/19, 5.00%, 5/1/39

    250       270,152  
                 
    $ 2,231,780  
                 

General Obligations — 0.8%

 

Monmouth County Improvement Authority, 5.00%, 1/15/27

  $ 260     $ 290,482  
                 
    $ 290,482  
                 

Hospital — 16.8%

 

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/42

  $ 250     $ 277,095  

New Jersey Health Care Facilities Financing Authority, (Barnabas Health Obligated Group), 4.25%, 7/1/44

    450       462,703  

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/26

    295       331,686  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), 5.25%, 7/1/31

    615       678,542  

New Jersey Health Care Facilities Financing Authority, (Palisades Medical Center), Prerefunded to 7/1/23, 5.25%, 7/1/31

    135       161,841  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/32

    400       450,748  

New Jersey Health Care Facilities Financing Authority, (Princeton HealthCare System), 5.00%, 7/1/39

    1,085       1,192,795  
Security  

Principal

Amount

(000’s omitted)

    Value  

Hospital (continued)

 

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.00%, 7/1/34

  $ 1,200     $ 1,328,076  

New Jersey Health Care Facilities Financing Authority, (RWJ Barnabas Health Obligated Group), 4.00%, 7/1/35

    675       685,942  

New Jersey Health Care Facilities Financing Authority, (RWJ Barnabas Health Obligated Group), 5.00%, 7/1/33

    500       560,905  
                 
    $ 6,130,333  
                 

Housing — 2.7%

 

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), 4.375%, 4/1/28

  $ 925     $ 971,999  
                 
    $ 971,999  
                 

Insured – Education — 2.8%

 

New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/27

  $ 920     $ 920,488  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 4.75%, 7/1/34

    85       88,294  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 5.00%, 7/1/38

    20       20,859  
                 
    $ 1,029,641  
                 

Insured – Electric Utilities — 2.8%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

  $ 615     $ 653,850  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/35

    335       349,425  
                 
    $ 1,003,275  
                 

Insured – Escrowed / Prerefunded — 24.1%

 

Bayonne, (AGM), Prerefunded to 7/1/19, 5.50%, 7/1/39

  $ 1,000     $ 1,096,800  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.00%, 10/15/35

    320       339,779  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.10%, 10/15/36

    340       361,532  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.15%, 10/15/37

    360       383,072  

Delaware Township, Hunterdon County, (AGC), Prerefunded to 10/15/18, 5.20%, 10/15/38

    382       406,773  

Jersey City, (AGM), Prerefunded to 1/15/19, 5.00%, 1/15/29

    1,000       1,069,890  

Lakewood Township, (AGC), Prerefunded to 11/1/18, 5.75%, 11/1/31

    700       752,437  

Monroe Township Board of Education, Middlesex County, (AGC), Prerefunded to 3/1/18, 4.75%, 3/1/34

    1,015       1,050,596  

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

    450       484,272  
 

 

  25   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Escrowed / Prerefunded (continued)

 

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

  $ 840     $ 903,975  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 4.75%, 7/1/34

    1,060       1,109,651  

New Jersey Educational Facilities Authority, (William Paterson University), (AGC), Prerefunded to 7/1/18, 5.00%, 7/1/38

    255       267,735  

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/30

    110       111,280  

Nutley School District, (NPFG), Prerefunded to 7/15/17, 4.75%, 7/15/31

    410       414,772  
                 
    $ 8,752,564  
                 

Insured – General Obligations — 22.8%

 

Bayonne, (AGM), 0.00%, 7/1/23

  $ 2,415     $ 2,026,040  

Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39

    1,500       1,594,080  

Hudson County Improvement Authority, (Harrison Redevelopment), (NPFG), 0.00%, 12/15/38

    2,000       842,120  

Irvington Township, (AGM), 0.00%, 7/15/26

    5,235       3,832,177  
                 
    $ 8,294,417  
                 

Insured – Hospital — 4.9%

 

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series II, (AGC), 5.00%, 7/1/38

  $ 170     $ 176,195  

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

    1,500       1,615,590  
                 
    $ 1,791,785  
                 

Insured – Lease Revenue / Certificates of Participation — 6.2%

 

Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30

  $ 1,000     $ 1,273,290  

New Jersey Economic Development Authority, (School Facilities Construction), (AGM), 5.00%, 6/15/33

    360       391,003  

New Jersey Economic Development Authority, (School Facilities Construction), (NPFG), 5.50%, 9/1/28

    500       583,505  
                 
    $ 2,247,798  
                 

Insured – Special Tax Revenue — 13.9%

 

Garden State Preservation Trust, (AGM), 0.00%, 11/1/21

  $ 1,000     $ 882,190  

Garden State Preservation Trust, (AGM), 5.75%, 11/1/28

    500       612,965  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27

    975       978,198  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26

    2,380       1,649,245  

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27

    1,120       739,222  
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Special Tax Revenue (continued)

 

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

  $ 1,105     $ 211,818  
                 
    $ 5,073,638  
                 

Insured – Transportation — 9.6%

 

New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), 0.00%, 12/15/28

  $ 1,200     $ 716,676  

New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29

    1,500       1,862,340  

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33

    720       731,470  

South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33

    180       195,496  
                 
    $ 3,505,982  
                 

Insured – Water and Sewer — 11.2%

 

Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24

  $ 4,500     $ 3,545,100  

Passaic Valley Sewerage Commissioners, (NPFG), 2.50%, 12/1/32

    635       536,848  
                 
    $ 4,081,948  
                 

Lease Revenue / Certificates of Participation — 1.3%

 

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.25%, 10/1/38

  $ 465     $ 468,060  
                 
    $ 468,060  
                 

Senior Living / Life Care — 1.9%

 

New Jersey Economic Development Authority, (United Methodist Homes of New Jersey), 5.00%, 7/1/34

  $ 675     $ 704,369  
                 
    $ 704,369  
                 

Student Loan — 2.8%

 

New Jersey Higher Education Student Assistance Authority, 5.625%, 6/1/30

  $ 965     $ 1,034,026  
                 
    $ 1,034,026  
                 

Transportation — 23.1%

 

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

  $ 590     $ 641,413  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

    210       228,123  

New Jersey Transportation Trust Fund Authority, 5.00%, 6/15/29

    750       767,325  

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.50%, 6/15/31

    1,150       1,202,946  

Port Authority of New York and New Jersey, 5.00%, 10/15/35(1)

    2,675       3,066,674  
 

 

  26   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation (continued)

 

Port Authority of New York and New Jersey, 5.00%, 10/15/41(1)

  $ 2,000     $ 2,265,500  

South Jersey Transportation Authority, 5.00%, 11/1/39

    200       214,316  
                 
    $ 8,386,297  
                 

Water and Sewer — 3.3%

 

North Hudson Sewerage Authority, 5.00%, 6/1/29

  $ 695     $ 747,910  

Sussex County Municipal Utilities Authority, 0.00%, 12/1/37

    1,000       442,880  
                 
    $ 1,190,790  
                 

Total Tax-Exempt Investments — 162.0%
(identified cost $55,003,137)

 

  $ 58,954,615  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (6.1)%

    $ (2,225,332
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (47.5)%

 

  $ (17,277,004
                 

Other Assets, Less Liabilities — (8.4)%

 

  $ (3,067,303
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 36,384,976  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 60.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.6% to 22.8% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     14        Short        Jun-17      $ (2,127,318    $ (2,111,813    $ 15,505  
                                                 $ 15,505  

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.
 

 

  27   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 164.9%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Bond Bank — 10.4%

 

New York Environmental Facilities Corp., 5.00%, 10/15/39

  $ 750     $ 821,318  

New York Environmental Facilities Corp., Clean Water and Drinking Water, 4.00%, 6/15/46(1)

    2,500       2,615,600  
                 
    $ 3,436,918
                 

Education — 24.7%

 

Geneva Development Corp., (Hobart and William Smith Colleges), 5.00%, 9/1/33

  $ 110     $ 121,939  

Geneva Development Corp., (Hobart and William Smith Colleges), Series 2012, 5.00%, 9/1/32

    605       675,319  

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41

    1,275       1,425,909  

New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37(1)

    1,275       1,412,585  

New York Dormitory Authority, (New York University), 5.00%, 7/1/37

    500       565,095  

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/34

    100       113,916  

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40

    610       659,880  

New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/28

    325       365,726  

New York Dormitory Authority, (The New School), 5.00%, 7/1/46

    1,000       1,109,860  

New York Dormitory Authority, (The New School), Prerefunded to 7/1/20, 5.50%, 7/1/40

    1,000       1,131,500  

Onondaga County Cultural Resources Trust, (Syracuse University), 5.00%, 12/1/38

    515       581,775  
                 
    $ 8,163,504  
                 

Electric Utilities — 4.0%

 

Utility Debt Securitization Authority, 5.00%, 12/15/33

  $ 1,160     $ 1,335,647  
                 
    $ 1,335,647  
                 

Escrowed / Prerefunded — 3.1%

 

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), Prerefunded to 5/1/17, 5.00%, 5/1/26

  $ 335     $ 336,223  

Triborough Bridge and Tunnel Authority, Prerefunded to 5/15/18, 5.00%, 11/15/37

    340       355,609  

Triborough Bridge and Tunnel Authority, Prerefunded to 11/15/18, 5.00%, 11/15/38(1)

    300       319,411  
                 
    $ 1,011,243  
                 

General Obligations — 9.6%

 

Long Beach City School District, 4.50%, 5/1/26

  $ 500     $ 546,875  
Security  

Principal

Amount

(000’s omitted)

    Value  

General Obligations (continued)

 

New York, 5.00%, 2/15/34(1)

  $ 1,000     $ 1,124,700  

New York City, 5.00%, 8/1/34(1)

    1,350       1,517,886  
                 
    $ 3,189,461  
                 

Hospital — 9.7%

 

Dutchess County Local Development Corp., (Health Quest Systems, Inc.), 5.00%, 7/1/33

  $ 745     $ 833,864  

New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26

    135       146,348  

New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32

    180       193,927  

New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 4.375%, 7/1/34(1)

    500       524,665  

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/20

    235       260,316  

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28

    970       1,044,816  

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), Prerefunded to 7/1/21, 5.00%, 7/1/28

    165       189,055  
                 
    $ 3,192,991  
                 

Housing — 6.3%

 

New York City Housing Development Corp., 4.05%, 11/1/41

  $ 330     $ 336,956  

New York Housing Finance Agency, (FHLMC), (FNMA), (GNMA), 3.20%, 11/1/46

    500       442,895  

New York Mortgage Agency, 3.55%, 10/1/33

    495       497,114  

New York Mortgage Agency, 3.90%, 10/1/36

    810       819,955  
                 
    $ 2,096,920  
                 

Industrial Development Revenue — 1.8%

 

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

  $ 500     $ 602,405  
                 
    $ 602,405  
                 

Insured – Education — 18.2%

 

New York Dormitory Authority, (Barnard College), (NPFG), 5.00%, 7/1/24

  $ 290     $ 292,935  

New York Dormitory Authority, (Barnard College), (NPFG), Prerefunded to 7/1/17, 5.00%, 7/1/24

    1,150       1,162,167  

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19, 5.00%, 7/1/34

    345       374,894  

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19, 5.125%, 7/1/39

    545       593,740  

New York Dormitory Authority, (St. John’s University), (NPFG), Prerefunded to 7/1/17, 5.25%, 7/1/37

    850       859,741  
 

 

  28   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Education (continued)

 

Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/32

  $ 5,425     $ 2,724,706  
                 
    $ 6,008,183  
                 

Insured – Electric Utilities — 3.3%

 

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19, 5.50%, 5/1/33

  $ 500     $ 545,330  

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19, 6.00%, 5/1/33

    500       550,465  
                 
    $ 1,095,795  
                 

Insured – Escrowed / Prerefunded — 5.4%

 

Nassau County Sewer and Storm Water Finance Authority, (BHAC), Prerefunded to 11/1/18, 5.375%, 11/1/28

  $ 905     $ 967,771  

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.50%, 11/15/19

    185       189,268  

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.50%, 11/15/20

    190       194,383  

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.75%, 11/15/22

    210       215,210  

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.75%, 11/15/23

    220       225,458  
                 
    $ 1,792,090  
                 

Insured – General Obligations — 7.9%

 

Brentwood Union Free School District, (AGC), 4.75%, 11/15/23

  $ 535     $ 584,605  

Brentwood Union Free School District, (AGC), 5.00%, 11/15/24

    560       615,530  

Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23

    250       264,407  

Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23

    185       191,260  

Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24

    190       196,650  

Oyster Bay, (AGM), 4.00%, 8/1/28

    725       760,431  
                 
    $ 2,612,883  
                 

Insured – Hospital — 3.1%

 

New York City Health and Hospitals Corp., (AGM), 5.50%, 2/15/20

  $ 500     $ 519,450  

New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36

    500       507,015  
                 
    $ 1,026,465  
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Other Revenue — 3.0%

 

New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38

  $ 950     $ 1,003,105  
                 
    $ 1,003,105  
                 

Insured – Special Tax Revenue — 4.1%

 

New York Thruway Authority, Miscellaneous Tax Revenue, (AMBAC), 5.50%, 4/1/20

  $ 510     $ 573,867  

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35

    1,700       552,143  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    1,185       227,153  
                 
    $ 1,353,163  
                 

Other Revenue — 9.9%

 

Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31

  $ 1,100     $ 618,101  

Brooklyn Arena Local Development Corp., (Barclays Center), 5.00%, 7/15/42

    500       544,160  

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/32

    1,865       2,122,986  
                 
    $ 3,285,247  
                 

Special Tax Revenue — 18.7%

 

New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)

  $ 280     $ 318,399  

New York City Transitional Finance Authority, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(1)

    220       252,167  

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 6/15/31(1)

    2,750       3,162,253  

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 3/15/33

    650       727,532  

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

    1,020       1,150,642  

New York Thruway Authority, Miscellaneous Tax Revenue, 5.00%, 4/1/26

    530       585,655  
                 
    $ 6,196,648  
                 

Senior Living / Life Care — 0.9%

 

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.00%, 11/1/24

  $ 30     $ 33,911  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/25

    50       57,624  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/26

    55       63,471  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/36

    125       135,880  
                 
    $ 290,886  
                 
 

 

  29   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Transportation — 19.8%

 

Metropolitan Transportation Authority, 5.00%, 11/15/34

  $ 2,000     $ 2,225,100  

Nassau County Bridge Authority, 5.00%, 10/1/35

    350       379,026  

Nassau County Bridge Authority, 5.00%, 10/1/40

    65       70,164  

New York Thruway Authority, 5.00%, 1/1/37

    1,175       1,302,969  

Niagara Falls Bridge Commission, 5.00%, 10/1/26

    160       186,517  

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

    820       936,481  

Port Authority of New York and New Jersey, 5.00%, 11/15/41

    1,095       1,253,184  

Triborough Bridge and Tunnel Authority, 5.00%, 11/15/38(1)

    200       211,942  
                 
    $ 6,565,383
                 

Water and Sewer — 1.0%

 

New York City Municipal Water Finance Authority, (Water and Sewer System), 3.00%, 6/15/46

  $ 380     $ 328,692  
                 
    $ 328,692  
                 

Total Tax-Exempt Investments — 164.9%
(identified cost $51,837,648)

 

  $ 54,587,629  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (5.3)%

    $ (1,750,196
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (34.5)%

 

  $ (11,427,229
                 

Other Assets, Less Liabilities — (25.1)%

 

  $ (8,296,675
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 33,113,529  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 27.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 2.1% to 9.6% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     15        Short        Jun-17      $ (2,279,268    $ (2,262,656    $ 16,612  
                                                 $ 16,612  

 

  30   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
FHLMC     Federal Home Loan Mortgage Corp.
FNMA     Federal National Mortgage Association
GNMA     Government National Mortgage Association
NPFG     National Public Finance Guaranty Corp.
 

 

  31   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 153.6%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Bond Bank — 4.3%

 

Ohio Economic Development, (Ohio Enterprise Bond Fund), 6.00%, 12/1/34

  $ 700     $ 794,640  

Rickenbacker Port Authority, (OASBO Expanded Asset Pooled Financing Program), 5.375%, 1/1/32

    650       726,830  
                 
    $ 1,521,470  
                 

Education — 9.8%

 

Kent State University, 5.00%, 5/1/30

  $ 365     $ 427,514  

Miami University, 5.00%, 9/1/41

    500       567,870  

Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44

    200       217,466  

Ohio Higher Educational Facility Commission, (Oberlin College), 5.00%, 10/1/33

    500       564,640  

Ohio Higher Educational Facility Commission, (Oberlin College), 5.00%, 10/1/42(1)

    500       566,710  

Ohio State University, 5.00%, 12/1/30

    455       558,785  

Wright State University, 5.00%, 5/1/31

    500       552,325  
                 
    $ 3,455,310  
                 

Electric Utilities — 4.0%

 

American Municipal Power, Inc., (Meldahl Hydroelectric), 4.00%, 2/15/34

  $ 615     $ 630,701  

American Municipal Power, Inc., (Meldahl Hydroelectric), 5.00%, 2/15/33

    180       202,626  

Ohio Air Quality Development Authority, (Buckeye Power, Inc.), 6.00%, 12/1/40

    500       573,120  
                 
    $ 1,406,447  
                 

Escrowed / Prerefunded — 12.8%

 

Beavercreek City School District, Prerefunded to 6/1/19, 5.00%, 12/1/30

  $ 900     $ 975,168  

Canton Local School District, (School Facilities Construction and Improvement), Prerefunded to 5/1/21, 5.00%, 11/1/43

    1,000       1,141,540  

Franklin County, Prerefunded to 12/1/17, 5.00%, 12/1/27

    500       514,075  

Hamilton County, Sewer System, Prerefunded to 12/1/17, 5.00%, 12/1/32

    250       256,970  

Ohio Higher Educational Facility Commission, (Kenyon College), Prerefunded to 7/1/20, 5.00%, 7/1/44

    105       117,250  

Ohio Higher Educational Facility Commission, (Summa Health System), Prerefunded to 5/15/20, 5.75%, 11/15/40

    290       328,860  

Ohio Water Development Authority, Water Pollution Control Loan Fund, (Water Quality), Prerefunded to 12/1/19, 5.00%, 6/1/30

    1,040       1,144,115  
                 
    $ 4,477,978  
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

General Obligations — 3.7%

 

Apollo Career Center Joint Vocational School District, 5.25%, 12/1/33

  $ 270     $ 304,374  

Lakewood City School District, 5.00%, 11/1/39

    400       451,804  

Napoleon Area City School District, (School Facilities Construction and Improvement), 5.00%, 12/1/36

    500       547,260  
                 
    $ 1,303,438  
                 

Hospital — 15.3%

 

Akron, Bath and Copley Joint Township Hospital District, (Children’s Hospital Medical Center of Akron), 5.00%, 11/15/32

  $ 865     $ 941,405  

Akron, Bath and Copley Joint Township Hospital District, (Children’s Hospital Medical Center of Akron), 5.00%, 11/15/38

    440       474,060  

Hamilton County, (Cincinnati Children’s Hospital Medical Center), 5.00%, 5/15/34

    250       283,728  

Lucas County, (ProMedica Healthcare Obligated Group), 4.00%, 11/15/45

    260       261,690  

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/36

    500       537,580  

Middleburg Heights, (Southwest General Health Center), 5.25%, 8/1/41

    755       807,661  

Montgomery County, (Kettering Health Network Obligated Group), 4.00%, 8/1/47

    500       498,080  

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.00%, 1/1/32

    500       550,490  

Ohio Higher Educational Facility Commission, (Summa Health System), 5.75%, 11/15/40

    170       182,881  

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/27

    565       634,422  

Ohio Higher Educational Facility Commission, (University Hospitals Health System, Inc.), 5.00%, 1/15/29

    165       183,591  
                 
    $ 5,355,588  
                 

Insured – Education — 0.2%

 

Kent State University, (AGC), 5.00%, 5/1/26

  $ 80     $ 85,670  
                 
    $ 85,670  
                 

Insured – Electric Utilities — 18.3%

 

American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.25%, 2/15/33

  $ 40     $ 41,336  

Cleveland, Public Power System Revenue, (NPFG), 0.00%, 11/15/27

    2,750       1,935,093  

Cleveland, Public Power System Revenue, (NPFG), 0.00%, 11/15/38

    1,000       402,370  

Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/27

    5,000       3,703,050  
 

 

  32   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Electric Utilities (continued)

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

  $ 305     $ 324,267  
                 
    $ 6,406,116  
                 

Insured – Escrowed / Prerefunded — 32.6%

 

American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), Prerefunded to 2/15/18, 5.25%, 2/15/33

  $ 660     $ 685,159  

Kent State University, (AGC), Prerefunded to 5/1/19, 5.00%, 5/1/26

    920       995,486  

Kent State University, (AGC), Prerefunded to 5/1/19, 5.00%, 5/1/29

    330       357,076  

Miami University, (AGM), (AMBAC), Prerefunded to 9/1/17, 3.25%, 9/1/26

    2,000       2,020,280  

Milford Exempt Village School District, (AGC), Prerefunded to 12/1/18, 5.25%, 12/1/36

    1,000       1,070,430  

Ohio University, (AGM), Prerefunded to 6/1/18, 5.00%, 12/1/33

    500       523,580  

Olentangy, Local School District, (AGC), Prerefunded to 6/1/18, 5.00%, 12/1/36

    1,400       1,466,360  

St. Marys City School District, (AGM), Prerefunded to 6/1/18, 5.00%, 12/1/35

    150       157,092  

St. Marys City School District, (AGM), Prerefunded to 6/1/18, 5.00%, 12/1/35

    510       534,174  

Sylvania City School District, (AGC), Prerefunded to 6/1/17, 5.00%, 12/1/26

    500       503,600  

Sylvania City School District, (AGC), Prerefunded to 6/1/17, 5.00%, 12/1/32

    1,000       1,007,200  

University of Akron, Series 2008B, (AGM), Prerefunded to 1/1/18, 5.00%, 1/1/38

    360       371,196  

University of Akron, Series 2008B, (AGM), Prerefunded to 1/1/18, 5.00%, 1/1/38

    640       659,757  

Youngstown State University, (AGC), Prerefunded to 6/15/19, 5.50%, 12/15/33

    1,000       1,095,050  
                 
    $ 11,446,440  
                 

Insured – General Obligations — 14.3%

 

Brooklyn City School District, (AGM), 5.00%, 12/1/38

  $ 445     $ 489,224  

Cincinnati City School District, (AGM), (FGIC), 5.25%, 12/1/30

    500       624,815  

Plain School District, (NPFG), 0.00%, 12/1/27

    2,400       1,813,992  

Wapakoneta City School District, (AGM), Prerefunded to 6/1/18, 4.75%, 12/1/35

    2,000       2,089,020  
                 
    $ 5,017,051  
                 

Insured – Hospital — 5.2%

 

Lorain County, (Catholic Healthcare Partners), (AGM), 5.00%, 2/1/29(2)

  $ 1,760     $ 1,811,726  
                 
    $ 1,811,726  
                 
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Special Tax Revenue — 11.5%

 

Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23

  $ 1,245     $ 1,036,711  

Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24

    3,665       2,943,875  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    250       47,923  
                 
    $ 4,028,509  
                 

Insured – Transportation — 4.4%

 

Cleveland, Airport System Revenue, (AGM), 5.00%, 1/1/30

  $ 480     $ 528,211  

Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/41

    500       531,255  

Puerto Rico Highway and Transportation Authority, (AGM), 5.00%, 7/1/32

    475       479,627  
                 
    $ 1,539,093  
                 

Insured – Water and Sewer — 1.6%

 

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

  $ 535     $ 548,471  
                 
    $ 548,471  
                 

Other Revenue — 1.1%

 

Summit County Port Authority, 5.00%, 12/1/31

  $ 350     $ 391,632  
                 
    $ 391,632  
                 

Senior Living / Life Care — 4.0%

 

Franklin County, (Friendship Village of Dublin), 5.00%, 11/15/44

  $ 525     $ 558,820  

Hamilton County, (Life Enriching Communities), 5.00%, 1/1/32

    375       398,423  

Lorain County Port Authority, (Kendal at Oberlin), 5.00%, 11/15/30

    190       207,324  

Warren County, (Otterbein Homes Obligated Group), 5.75%, 7/1/33

    220       250,336  
                 
    $ 1,414,903  
                 

Special Tax Revenue — 1.6%

 

Cleveland, Income Tax Revenue, (Parks and Recreation Facilities Improvements), 5.00%, 10/1/35

  $ 500     $ 566,060  
                 
    $ 566,060  
                 

Transportation — 3.4%

 

Ohio Turnpike and Infrastructure Commission, 0.00%, 2/15/43

  $ 310     $ 103,509  

Ohio Turnpike Commission, 5.00%, 2/15/31

    1,000       1,091,160  
                 
    $ 1,194,669  
                 
 

 

  33   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Water and Sewer — 5.5%

 

Northeast Ohio Regional Sewer District, 4.00%, 11/15/33(2)

  $ 1,000     $ 1,036,800  

Northeast Ohio Regional Sewer District, 5.00%, 11/15/43

    500       558,495  

Toledo, Sewerage System Revenue, 5.00%, 11/15/28

    300       340,968  
                 
    $ 1,936,263  
                 

Total Tax-Exempt Investments — 153.6%
(identified cost $48,778,939)

 

  $ 53,906,834  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (6.4)%

    $ (2,250,389
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value
(net of unamortized deferred offering costs) — (41.8)%

 

  $ (14,663,011
                 

Other Assets, Less Liabilities — (5.4)%

 

  $ (1,884,498
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 35,108,936  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 57.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.2% to 19.1% of total investments.

 

(1) 

When-issued security.

 

(2) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
 

 

  34   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 158.4%  
   
Security  

Principal

Amount

(000’s omitted)

    Value  

Education — 31.0%

 

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/41

  $ 390     $ 432,888  

Delaware County Authority, (Villanova University), 5.00%, 8/1/35

    750       839,303  

General Authority of Southcentral Pennsylvania, (York College of Pennsylvania), 5.50%, 11/1/31

    1,500       1,694,805  

Lehigh County General Purpose Authority, (Muhlenberg College), 5.00%, 2/1/31

    755       868,159  

Northampton County General Purpose Authority, (Lafayette College), 5.00%, 11/1/32

    750       857,768  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/24

    95       107,250  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/25

    135       153,067  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/26

    285       324,361  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/27

    185       209,141  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/30

    270       299,211  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/31

    230       252,993  

Northampton County General Purpose Authority, (Moravian College), 5.00%, 10/1/40

    610       654,329  

Northeastern Pennsylvania Hospital and Education Authority, (Wilkes University), 5.00%, 3/1/26

    670       746,950  

Pennsylvania Higher Educational Facilities Authority, (Drexel University), 5.00%, 5/1/34

    530       594,453  

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 4.25%, 11/1/34

    1,740       1,774,139  

Pennsylvania Higher Educational Facilities Authority, (Saint Joseph’s University), 5.00%, 11/1/40

    440       482,055  

Pennsylvania State University, 5.00%, 9/1/34

    750       869,572  

State Public School Building Authority, (Northampton County Area Community College), 5.50%, 3/1/31

    750       840,143  

Swarthmore Borough Authority, (Swarthmore College), 5.00%, 9/15/38

    250       287,205  

Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30

    575       628,619  
                 
    $ 12,916,411  
                 

Escrowed / Prerefunded — 7.7%

 

Allegheny County Higher Education Building Authority, (Duquesne University), Prerefunded to 3/1/21, 5.50%, 3/1/31

  $ 1,050     $ 1,212,215  
Security  

Principal

Amount

(000’s omitted)

    Value  

Escrowed / Prerefunded (continued)

 

Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), Prerefunded to 3/1/20, 5.00%, 3/1/40

  $ 925     $ 1,023,947  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 5.35%, 12/1/30

    175       200,102  

Philadelphia, Water and Wastewater Revenue, Prerefunded to 1/1/19, 5.25%, 1/1/32

    715       767,188  
                 
    $ 3,203,452  
                 

General Obligations — 13.2%

 

Chester County, 4.00%, 7/15/29

  $ 250     $ 277,893  

Delaware Valley Regional Finance Authority, 5.75%, 7/1/32

    1,000       1,221,450  

Pennsylvania, 4.00%, 4/1/29(1)

    3,000       3,176,310  

West York Area School District, 5.00%, 4/1/33

    750       824,887  
                 
    $ 5,500,540  
                 

Hospital — 12.1%

 

Chester County Health and Education Facilities Authority, (Jefferson Health System), 5.00%, 5/15/40

  $ 750     $ 804,322  

Franklin County Industrial Development Authority, (The Chambersburg Hospital), 5.375%, 7/1/42

    1,000       1,084,930  

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 4.00%, 7/1/33

    500       509,470  

Monroeville Finance Authority, (UPMC Obligated Group), 5.00%, 2/15/42

    500       542,025  

Northampton County General Purpose Authority, (Saint Luke’s Hospital), 5.50%, 8/15/33

    250       272,410  

Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 5.00%, 5/15/31

    675       725,780  

Philadelphia Hospitals and Higher Education Facilities Authority, (The Children’s Hospital of Philadelphia), 5.00%, 7/1/32

    750       827,040  

South Fork Municipal Authority, (Conemaugh Health System), Prerefunded to 7/1/20, 5.50%, 7/1/29

    250       283,133  
                 
    $ 5,049,110  
                 

Housing — 1.6%

 

East Hempfield Township Industrial Development Authority, (Student Services, Inc.), 5.00%, 7/1/39

  $ 175     $ 182,308  

Pennsylvania Housing Finance Agency, SFMR, 4.00%, 10/1/38

    500       507,650  
                 
    $ 689,958  
                 

Insured – Education — 4.4%

 

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/27

  $ 500     $ 520,285  
 

 

  35   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – Education (continued)

 

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/29

  $ 375     $ 390,214  

State Public School Building Authority, (Delaware County Community College), (AGM), Prerefunded to 4/1/18, 5.00%, 10/1/32

    875       910,498  
                 
    $ 1,820,997  
                 

Insured – Electric Utilities — 3.1%

 

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/34

  $ 490     $ 512,109  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/35

    750       782,295  
                 
    $ 1,294,404  
                 

Insured – Escrowed / Prerefunded — 22.5%

 

Allegheny County Sanitation Authority, (BHAC), (FGIC), Prerefunded to 6/1/17, 5.00%, 12/1/32

  $ 300     $ 302,142  

Bethlehem Area School District, (AGM), Prerefunded to 1/15/20, 5.25%, 1/15/25

    1,250       1,387,862  

Centennial School District, (AGM), Prerefunded to 12/15/18, 5.25%, 12/15/37

    660       707,494  

Central Greene School District, (AGM), Prerefunded to 2/15/18, 5.00%, 2/15/35

    1,000       1,035,870  

Erie Sewer Authority, Series A, (AMBAC), Escrowed to Maturity, 0.00%, 12/1/25

    180       144,954  

Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), Prerefunded to 7/1/18, 5.00%, 7/1/35

    1,620       1,716,066  

Lycoming County Authority, (Pennsylvania College of Technology), (AGC), Prerefunded to 4/1/18, 5.50%, 10/1/37

    500       522,975  

Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), Prerefunded to 11/1/17, 5.00%, 5/1/37

    1,530       1,567,363  

Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), Prerefunded to 11/1/18, 5.00%, 11/1/37

    500       530,705  

Philadelphia Gas Works, (AMBAC), Prerefunded to 10/1/17, 5.00%, 10/1/37

    890       908,886  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    85       91,911  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    85       91,949  

State Public School Building Authority, (Harrisburg School District), (AGC), Prerefunded to 5/15/19, 5.00%, 11/15/33

    330       356,832  
                 
    $ 9,365,009  
                 

Insured – General Obligations — 22.4%

 

Erie School District, (AMBAC), 0.00%, 9/1/30

  $ 1,000     $ 561,000  

Laurel Highlands School District, (AGM), 5.00%, 2/1/37

    750       823,650  
Security  

Principal

Amount

(000’s omitted)

    Value  

Insured – General Obligations (continued)

 

Luzerne County, (AGM), 5.00%, 11/15/29

  $ 250     $ 275,712  

McKeesport School District, (NPFG), 0.00%, 10/1/21

    2,555       2,263,245  

Norwin School District, (AGM), 3.25%, 4/1/27

    1,475       1,475,088  

Reading School District, (AGM), 5.00%, 3/1/35

    1,500       1,573,515  

Scranton School District, (AGM), 5.00%, 7/15/38

    1,000       1,024,580  

Shaler Area School District, (XLCA), 0.00%, 9/1/33

    2,550       1,355,835  
                 
    $ 9,352,625  
                 

Insured – Hospital — 0.7%

 

Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24

  $ 250     $ 308,805  
                 
    $ 308,805  
                 

Insured – Industrial Development Revenue — 2.6%

 

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39(1)

  $ 1,000     $ 1,079,420  
                 
    $ 1,079,420  
                 

Insured – Lease Revenue / Certificates of Participation — 4.3%

 

Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31

  $ 500     $ 533,510  

Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27

    1,215       1,242,046  
                 
    $ 1,775,556  
                 

Insured – Special Tax Revenue — 3.2%

 

Pittsburgh and Allegheny County Sports & Exhibition Authority, Sales Tax Revenue, (AGM), 5.00%, 2/1/31

  $ 1,000     $ 1,096,420  

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    1,295       248,238  
                 
    $ 1,344,658  
                 

Insured – Transportation — 6.1%

 

Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29

  $ 295     $ 297,620  

Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/41

    2,100       2,231,271  
                 
    $ 2,528,891  
                 

Insured – Water and Sewer — 10.2%

 

Bucks County Water and Sewer Authority, (AGM), 5.00%, 12/1/35

  $ 500     $ 551,550  

Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25

    1,250       883,000  

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25

    2,155       1,522,292  

Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/26

    1,920       1,294,272  
                 
    $ 4,251,114  
                 
 

 

  36   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Security  

Principal

Amount

(000’s omitted)

    Value  

Special Tax Revenue — 4.1%

 

Allegheny County Port Authority, 5.75%, 3/1/29

  $ 1,500     $ 1,727,205  
                 
    $ 1,727,205  
                 

Transportation — 7.9%

 

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

  $ 465     $ 505,520  

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/40

    730       792,999  

Pennsylvania Turnpike Commission, 5.25%, 12/1/31

    1,000       1,101,380  

Pennsylvania Turnpike Commission, 5.35%, 12/1/30

    325       358,989  

Philadelphia, Airport Revenue, 5.25%, 6/15/27

    500       554,410  
                 
    $ 3,313,298  
                 

Water and Sewer — 1.3%

 

Philadelphia, Water and Wastewater Revenue, 5.00%, 1/1/36

  $ 500     $ 548,785  
                 
    $ 548,785  
                 

Total Tax-Exempt Investments — 158.4%
(identified cost $62,030,957)

 

  $ 66,070,238  
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (3.0)%

    $ (1,275,049
                 

Institutional MuniFund Term Preferred Shares, at Liquidation Value (net of unamortized deferred offering costs) — (48.8)%

 

  $ (20,340,094
                 

Other Assets, Less Liabilities — (6.6)%

 

  $ (2,751,322
                 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 41,703,773  
                 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2017, 50.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.5% to 22.3% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds (see Note 1G).

 

 

Futures Contracts  
Description   Contracts      Position     

Expiration

Month/Year

     Aggregate Cost      Value     

Net

Unrealized

Appreciation

 

Interest Rate Futures

                
U.S. Long Treasury Bond     20        Short        Jun-17      $ (3,039,025    $ (3,016,875    $ 22,150  
                                                 $ 22,150  

 

  37   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2017

 

Portfolio of Investments (Unaudited) — continued

 

 

Abbreviations:

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
SFMR     Single Family Mortgage Revenue
XLCA     XL Capital Assurance, Inc.
 

 

  38   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Assets and Liabilities (Unaudited)

 

 

    March 31, 2017  
Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Investments —

       

Identified cost

  $ 202,440,066     $ 76,763,242     $ 35,583,918     $ 33,176,136  

Unrealized appreciation

    14,674,416       5,138,163       3,801,677       2,280,558  

Investments, at value

  $ 217,114,482     $ 81,901,405     $ 39,385,595     $ 35,456,694  

Cash

  $     $ 106,564     $ 712,619     $  

Restricted cash*

    127,600       87,750       39,600        

Interest receivable

    2,851,291       791,708       457,139       496,266  

Receivable for investments sold

    1,570,286       1,225,000              

Total assets

  $ 221,663,659     $ 84,112,427     $ 40,594,953     $ 35,952,960  
Liabilities                                

Payable for floating rate notes issued (net of unamortized deferred debt issuance costs of $26,529, $8,357, $0 and $0, respectively)

  $ 42,568,471     $ 7,241,643     $ 500,000     $  

Institutional MuniFund Term Preferred Shares, at liquidation value (net of unamortized deferred offering costs of $195,743, $127,796, $77,641 and $69,815, respectively)

    39,754,257       24,672,204       12,872,359       10,455,185  

Payable for when-issued securities

          1,425,832              

Payable for variation margin on open financial futures contracts

    9,063       7,969       2,813        

Due to custodian

    320,215                   60,456  

Payable to affiliate:

       

Investment adviser fee

    103,042       38,538       18,903       16,714  

Interest expense and fees payable

    167,425       19,873       678        

Accrued expenses

    62,166       37,979       28,691       24,787  

Total liabilities

  $ 82,984,639     $ 33,444,038     $ 13,423,444     $ 10,557,142  

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 4,750,669     $ 900,067     $ 625,024     $ 2,800,313  

Net assets applicable to common shares

  $ 133,928,351     $ 49,768,322     $ 26,546,485     $ 22,595,505  
Sources of Net Assets                                

Common shares, $0.01 par value, unlimited number of shares authorized

  $ 100,134     $ 38,864     $ 17,685     $ 15,001  

Additional paid-in capital

    142,882,326       56,021,506       25,407,057       21,297,071  

Accumulated net realized loss

    (23,810,070     (11,677,448     (2,753,075     (1,067,571

Accumulated undistributed net investment income

    49,428       235,692       63,174       70,446  

Net unrealized appreciation

    14,706,533       5,149,708       3,811,644       2,280,558  

Net assets applicable to common shares

  $ 133,928,351     $ 49,768,322     $ 26,546,485     $ 22,595,505  
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    190 (1)      36       25       112  
Institutional MuniFund Term Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share)     1,598       992       518       421  
Common Shares Outstanding     10,013,381       3,886,356       1,768,514       1,500,065  
Net Asset Value Per Common Share                                

Net assets applicable to common shares ÷ common shares issued and outstanding

  $ 13.37     $ 12.81     $ 15.01     $ 15.06  

 

* Represents restricted cash on deposit at the broker for open financial futures contracts.

 

(1) 

Comprised of 62 Series A shares and 128 Series B shares.

 

  39   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Assets and Liabilities (Unaudited) — continued

 

 

    March 31, 2017  
Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

Investments —

       

Identified cost

  $ 55,003,137     $ 51,837,648     $ 48,778,939     $ 62,030,957  

Unrealized appreciation

    3,951,478       2,749,981       5,127,895       4,039,281  

Investments, at value

  $ 58,954,615     $ 54,587,629     $ 53,906,834     $ 66,070,238  

Cash

  $ 70,370     $ 142,283     $ 303,906     $  

Restricted cash*

    61,600       66,000             88,000  

Interest receivable

    615,500       648,889       562,058       780,476  

Receivable for investments sold

    15,000       40,000              

Total assets

  $ 59,717,085     $ 55,484,801     $ 54,772,798     $ 66,938,714  
Liabilities                                

Payable for floating rate notes issued

  $ 3,740,000     $ 9,100,000     $ 2,120,000     $ 3,390,000  

Institutional MuniFund Term Preferred Shares, at liquidation value (net of unamortized deferred offering costs of $97,996, $72,771, $86,989 and $109,906, respectively)

    17,277,004       11,427,229       14,663,011       20,340,094  

Payable for when-issued securities

                566,255        

Payable for variation margin on open financial futures contracts

    4,375       4,688             6,250  

Due to custodian

                      137,279  

Payable to affiliate:

       

Investment adviser fee

    27,378       25,846       25,248       31,132  

Interest expense and fees payable

    21,671       30,987       8,691       21,627  

Accrued expenses

    36,349       32,326       30,268       33,510  

Total liabilities

  $ 21,106,777     $ 20,621,076     $ 17,413,473     $ 23,959,892  

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 2,225,332     $ 1,750,196     $ 2,250,389     $ 1,275,049  

Net assets applicable to common shares

  $ 36,384,976     $ 33,113,529     $ 35,108,936     $ 41,703,773  
Sources of Net Assets                                

Common shares, $0.01 par value, unlimited number of shares authorized

  $ 25,792     $ 25,565     $ 25,379     $ 29,600  

Additional paid-in capital

    37,294,930       36,654,528       36,121,199       42,784,848  

Accumulated net realized loss

    (5,045,356     (6,438,760     (6,265,826     (5,350,041

Accumulated undistributed net investment income

    142,627       105,603       100,289       177,935  

Net unrealized appreciation

    3,966,983       2,766,593       5,127,895       4,061,431  

Net assets applicable to common shares

  $ 36,384,976     $ 33,113,529     $ 35,108,936     $ 41,703,773  
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    89       70       90       51  
Institutional MuniFund Term Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share)     695       460       590       818  
Common Shares Outstanding     2,579,166       2,556,510       2,537,940       2,960,040  
Net Asset Value Per Common Share                                

Net assets applicable to common shares ÷ common shares issued and outstanding

  $ 14.11     $ 12.95     $ 13.83     $ 14.09  

 

* Represents restricted cash on deposit at the broker for open financial futures contracts.

 

  40   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Operations (Unaudited)

 

 

    Six Months Ended March 31, 2017  
Investment Income   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Interest

  $ 4,476,008     $ 1,668,948     $ 830,398     $ 746,879  

Total investment income

  $ 4,476,008     $ 1,668,948     $ 830,398     $ 746,879  
Expenses                                

Investment adviser fee

  $ 610,659     $ 227,247     $ 114,230     $ 98,928  

Trustees’ fees and expenses

    6,812       2,698       1,480       1,313  

Custodian fee

    32,028       18,563       12,312       11,678  

Transfer and dividend disbursing agent fees

    9,394       9,624       9,354       9,344  

Legal and accounting services

    32,374       23,424       19,529       16,402  

Printing and postage

    11,057       4,679       3,722       4,077  

Interest expense and fees

    670,598       261,918       132,461       103,123  

Auction preferred shares service fee

    1,876       355       248       1,107  

Miscellaneous

    38,117       28,568       25,062       24,635  

Total expenses

  $ 1,412,915     $ 577,076     $ 318,398     $ 270,607  

Net investment income

  $ 3,063,093     $ 1,091,872     $ 512,000     $ 476,272  
Realized and Unrealized Gain (Loss)                                

Net realized gain (loss) —

       

Investment transactions

  $ (491,050   $ (463,763   $ 100,535     $ 39,418  

Financial futures contracts

    475,018       333,125       147,419        

Net realized gain (loss)

  $ (16,032   $ (130,638   $ 247,954     $ 39,418  

Change in unrealized appreciation (depreciation) —

       

Investments

  $ (8,077,850   $ (2,572,804   $ (2,116,211   $ (1,274,068

Financial futures contracts

    (49,979     (32,765     (15,511      

Net change in unrealized appreciation (depreciation)

  $ (8,127,829   $ (2,605,569   $ (2,131,722   $ (1,274,068

Net realized and unrealized loss

  $ (8,143,861   $ (2,736,207   $ (1,883,768   $ (1,234,650

Distributions to auction preferred shareholders

                               

From net investment income

  $ (27,114   $ (5,198   $ (3,556   $ (16,174

Net decrease in net assets from operations

  $ (5,107,882   $ (1,649,533   $ (1,375,324   $ (774,552

 

  41   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Operations (Unaudited) — continued

 

 

    Six Months Ended March 31, 2017  
Investment Income   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

Interest

  $ 1,255,096     $ 1,142,170     $ 1,163,460     $ 1,440,985  

Total investment income

  $ 1,255,096     $ 1,142,170     $ 1,163,460     $ 1,440,985  
Expenses                                

Investment adviser fee

  $ 163,091     $ 153,386     $ 149,881     $ 184,731  

Trustees’ fees and expenses

    2,001       1,901       1,859       2,234  

Custodian fee

    15,361       16,376       14,035       14,306  

Transfer and dividend disbursing agent fees

    9,364       9,344       9,360       9,574  

Legal and accounting services

    21,629       22,352       19,123       20,105  

Printing and postage

    4,713       4,116       4,971       5,483  

Interest expense and fees

    190,262       169,433       157,074       216,495  

Auction preferred shares service fee

    879       692       890       504  

Miscellaneous

    27,182       26,664       26,935       27,890  

Total expenses

  $ 434,482     $ 404,264     $ 384,128     $ 481,322  

Net investment income

  $ 820,614     $ 737,906     $ 779,332     $ 959,663  
Realized and Unrealized Gain (Loss)                                

Net realized gain (loss) —

       

Investment transactions

  $ 421,767     $ (501,370   $ (2,616   $ 13,626  

Financial futures contracts

    229,319       245,699             327,599  

Net realized gain (loss)

  $ 651,086     $ (255,671   $ (2,616   $ 341,225  

Change in unrealized appreciation (depreciation) —

       

Investments

  $ (3,610,138   $ (1,822,982   $ (2,313,252   $ (2,843,813

Financial futures contracts

    (24,127     (25,851           (34,468

Net change in unrealized appreciation (depreciation)

  $ (3,634,265   $ (1,848,833   $ (2,313,252   $ (2,878,281

Net realized and unrealized loss

  $ (2,983,179   $ (2,104,504   $ (2,315,868   $ (2,537,056

Distributions to auction preferred shareholders

                               

From net investment income

  $ (12,839   $ (10,109   $ (12,859   $ (7,252

Net decrease in net assets from operations

  $ (2,175,404   $ (1,376,707   $ (1,549,395   $ (1,584,645

 

  42   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Changes in Net Assets

 

 

    Six Months Ended March 31, 2017 (Unaudited)  
Increase (Decrease) in Net Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

From operations —

       

Net investment income

  $ 3,063,093     $ 1,091,872     $ 512,000     $ 476,272  

Net realized gain (loss) from investment transactions and financial futures contracts

    (16,032     (130,638     247,954       39,418  

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    (8,127,829     (2,605,569     (2,131,722     (1,274,068

Distributions to auction preferred shareholders —

       

From net investment income

    (27,114     (5,198     (3,556     (16,174

Net decrease in net assets from operations

  $ (5,107,882   $ (1,649,533   $ (1,375,324   $ (774,552

Distributions to common shareholders —

       

From net investment income

  $ (3,020,036   $ (1,030,662   $ (517,644   $ (464,720

Total distributions to common shareholders

  $ (3,020,036   $ (1,030,662   $ (517,644   $ (464,720

Net decrease in net assets

  $ (8,127,918   $ (2,680,195   $ (1,892,968   $ (1,239,272
Net Assets Applicable to Common Shares                                

At beginning of period

  $ 142,056,269     $ 52,448,517     $ 28,439,453     $ 23,834,777  

At end of period

  $ 133,928,351     $ 49,768,322     $ 26,546,485     $ 22,595,505  
Accumulated undistributed net investment income
included in net assets applicable to common shares
                               

At end of period

  $ 49,428     $ 235,692     $ 63,174     $ 70,446  

 

  43   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Changes in Net Assets — continued

 

 

    Six Months Ended March 31, 2017 (Unaudited)  
Increase (Decrease) in Net Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

From operations —

       

Net investment income

  $ 820,614     $ 737,906     $ 779,332     $ 959,663  

Net realized gain (loss) from investment transactions and financial futures contracts

    651,086       (255,671     (2,616     341,225  

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    (3,634,265     (1,848,833     (2,313,252     (2,878,281

Distributions to auction preferred shareholders —

       

From net investment income

    (12,839     (10,109     (12,859     (7,252

Net decrease in net assets from operations

  $ (2,175,404   $ (1,376,707   $ (1,549,395   $ (1,584,645

Distributions to common shareholders —

       

From net investment income

  $ (824,817   $ (750,080   $ (764,419   $ (966,157

Total distributions to common shareholders

  $ (824,817   $ (750,080   $ (764,419   $ (966,157

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $     $     $ 2,404     $  

Net increase in net assets from capital share transactions

  $     $     $ 2,404     $  

Net decrease in net assets

  $ (3,000,221   $ (2,126,787   $ (2,311,410   $ (2,550,802
Net Assets Applicable to Common Shares                                

At beginning of period

  $ 39,385,197     $ 35,240,316     $ 37,420,346     $ 44,254,575  

At end of period

  $ 36,384,976     $ 33,113,529     $ 35,108,936     $ 41,703,773  
Accumulated undistributed net investment income
included in net assets applicable to common shares
                               

At end of period

  $ 142,627     $ 105,603     $ 100,289     $ 177,935  

 

  44   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended September 30, 2016  
Increase (Decrease) in Net Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

From operations —

       

Net investment income

  $ 6,670,230     $ 2,373,303     $ 1,095,314     $ 1,023,537  

Net realized gain (loss) from investment transactions, extinguishment of debt and financial futures contracts

    (238,885     31,073       (177,504      

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    3,883,663       506,291       1,421,273       1,005,211  

Distributions to auction preferred shareholders —

       

From net investment income

    (34,297     (11,631     (6,274     (17,098

Discount on redemption and repurchase of auction preferred shares

    1,797,750       1,116,000       582,750       473,625  

Net increase in net assets from operations

  $ 12,078,461     $ 4,015,036     $ 2,915,559     $ 2,485,275  

Distributions to common shareholders —

       

From net investment income

  $ (6,729,703   $ (2,489,124   $ (1,163,327   $ (1,058,966

Total distributions to common shareholders

  $ (6,729,703   $ (2,489,124   $ (1,163,327   $ (1,058,966

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $     $ 8,111     $     $  

Net increase in net assets from capital share transactions

  $     $ 8,111     $     $  

Net increase in net assets

  $ 5,348,758     $ 1,534,023     $ 1,752,232     $ 1,426,309  
Net Assets Applicable to Common Shares                                

At beginning of year

  $ 136,707,511     $ 50,914,494     $ 26,687,221     $ 22,408,468  

At end of year

  $ 142,056,269     $ 52,448,517     $ 28,439,453     $ 23,834,777  
Accumulated undistributed net investment income
included in net assets applicable to common shares
                               

At end of year

  $ 33,485     $ 179,680     $ 72,374     $ 75,068  

 

  45   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended September 30, 2016  
Increase (Decrease) in Net Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

From operations —

       

Net investment income

  $ 1,741,730     $ 1,565,546     $ 1,664,272     $ 2,051,733  

Net realized gain (loss) from investment transactions and financial futures contracts

    (190,085     94,317       120,419       (337,929

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    2,189,782       527,952       1,395,985       2,175,874  

Distributions to auction preferred shareholders —

       

From net investment income

    (15,805     (12,081     (14,782     (11,340

Discount on redemption and repurchase of auction preferred shares

    781,875       517,500       663,750       920,250  

Net increase in net assets from operations

  $ 4,507,497     $ 2,693,234     $ 3,829,644     $ 4,798,588  

Distributions to common shareholders —

       

From net investment income

  $ (1,839,344   $ (1,692,030   $ (1,696,824   $ (2,228,821

Total distributions to common shareholders

  $ (1,839,344   $ (1,692,030   $ (1,696,824   $ (2,228,821

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $ 2,749     $ 6,563     $ 11,488     $  

Net increase in net assets from capital share transactions

  $ 2,749     $ 6,563     $ 11,488     $  

Net increase in net assets

  $ 2,670,902     $ 1,007,767     $ 2,144,308     $ 2,569,767  
Net Assets Applicable to Common Shares                                

At beginning of year

  $ 36,714,295     $ 34,232,549     $ 35,276,038     $ 41,684,808  

At end of year

  $ 39,385,197     $ 35,240,316     $ 37,420,346     $ 44,254,575  
Accumulated undistributed net investment income
included in net assets applicable to common shares
                               

At end of year

  $ 159,669     $ 127,886     $ 98,235     $ 191,681  

 

  46   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Cash Flows (Unaudited)

 

 

    Six Months Ended March 31, 2017  
Cash Flows From Operating Activities   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Net decrease in net assets from operations

  $ (5,107,882   $ (1,649,533   $ (1,375,324   $ (774,552

Distributions to auction preferred shareholders

    27,114       5,198       3,556       16,174  

Net decrease in net assets from operations excluding distributions to auction preferred shareholders

  $ (5,080,768   $ (1,644,335   $ (1,371,768   $ (758,378

Adjustments to reconcile net decrease in net assets from operations to net cash provided by (used in) operating activities:

       

Investments purchased

    (15,241,610     (11,164,994     (1,086,991     (2,286,858

Investments sold

    12,211,500       9,736,869       1,713,836       1,963,883  

Net amortization/accretion of premium (discount)

    131,133       (98,200     22,418       (35,984

Amortization of deferred debt issuance costs

    803       273              

Amortization of deferred offering costs on Institutional MuniFund Term Preferred Shares

    43,583       28,447       17,278       15,540  

Increase in restricted cash

    (9,600     (5,750     (2,600      

Decrease (increase) in interest receivable

    (3,308     (11,135     953       (32,257

Decrease in receivable for variation margin on open financial futures contracts

    42,594       28,359       13,219        

Increase in payable for variation margin on open financial futures contracts

    9,063       7,969       2,813        

Increase (decrease) in payable to affiliate for investment adviser fee

    (815     611       (738     (110

Increase (decrease) in interest expense and fees payable

    18,340       (558     (1,297      

Decrease in accrued expenses

    (57,744     (35,819     (29,227     (26,728

Net change in unrealized (appreciation) depreciation from investments

    8,077,850       2,572,804       2,116,211       1,274,068  

Net realized (gain) loss from investments

    491,050       463,763       (100,535     (39,418

Net cash provided by (used in) operating activities

  $ 632,071     $ (121,696   $ 1,293,572     $ 73,758  
Cash Flows From Financing Activities                                

Distributions paid to common shareholders, net of reinvestments

  $ (3,020,036   $ (1,030,662   $ (517,644   $ (464,720

Cash distributions paid to auction preferred shareholders

    (27,136     (5,198     (3,555     (16,174

Proceeds from secured borrowings

          1,600,000              

Repayment of secured borrowings

                (870,000      

Increase (decrease) in due to custodian

    320,215       (335,880           60,456  

Net cash provided by (used in) financing activities

  $ (2,726,957   $ 228,260     $ (1,391,199   $ (420,438

Net increase (decrease) in cash

  $ (2,094,886   $ 106,564     $ (97,627   $ (346,680

Cash at beginning of period

  $ 2,094,886     $     $ 810,246     $ 346,680  

Cash at end of period

  $     $ 106,564     $ 712,619     $  
Supplemental disclosure of cash flow information:                                

Cash paid for interest and fees on floating rate notes issued and Institutional MuniFund Term Preferred Shares

  $ 651,455     $ 262,203     $ 133,758     $ 103,123  

 

  47   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Statements of Cash Flows (Unaudited) — continued

 

 

    Six Months Ended March 31, 2017  
Cash Flows From Operating Activities   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

Net decrease in net assets from operations

  $ (2,175,404   $ (1,376,707   $ (1,549,395   $ (1,584,645

Distributions to auction preferred shareholders

    12,839       10,109       12,859       7,252  

Net decrease in net assets from operations excluding distributions to auction preferred shareholders

  $ (2,162,565   $ (1,366,598   $ (1,536,536   $ (1,577,393

Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:

       

Investments purchased

    (2,492,064     (7,571,736     (569,995     (2,336,856

Investments sold

    2,574,408       9,170,390       216,787       1,908,412  

Net amortization/accretion of premium (discount)

    (240,571     5,230       (222,332     (119,471

Amortization of deferred offering costs on Institutional MuniFund Term Preferred Shares

    21,813       16,194       19,363       24,463  

Increase in restricted cash

    (3,600     (5,000           (7,000

Decrease (increase) in interest receivable

    (8,813     3,040       348       13,587  

Decrease in receivable for variation margin on open financial futures contracts

    20,563       22,031             29,375  

Decrease in receivable from the transfer agent

                2,419        

Increase in payable for variation margin on open financial futures contracts

    4,375       4,688             6,250  

Decrease in payable to affiliate for investment adviser fee

    (627     (277     (336     (252

Increase (decrease) in interest expense and fees payable

    7,468       (209     2,062       4,697  

Decrease in accrued expenses

    (28,945     (35,719     (31,325     (33,334

Net change in unrealized (appreciation) depreciation from investments

    3,610,138       1,822,982       2,313,252       2,843,813  

Net realized (gain) loss from investments

    (421,767     501,370       2,616       (13,626

Net cash provided by operating activities

  $ 879,813     $ 2,566,386     $ 196,323     $ 742,665  
Cash Flows From Financing Activities                                

Distributions paid to common shareholders, net of reinvestments

  $ (824,817   $ (750,080   $ (762,015   $ (966,157

Cash distributions paid to auction preferred shareholders

    (12,839     (10,109     (12,874     (7,253

Repayment of secured borrowings

          (2,000,000            

Increase in due to custodian

                      137,279  

Net cash used in financing activities

  $ (837,656   $ (2,760,189   $ (774,889   $ (836,131

Net increase (decrease) in cash

  $ 42,157     $ (193,803   $ (578,566   $ (93,466

Cash at beginning of period

  $ 28,213     $ 336,086     $ 882,472     $ 93,466  

Cash at end of period

  $ 70,370     $ 142,283     $ 303,906     $  
Supplemental disclosure of cash flow information:                                

Noncash financing activities not included herein consist of:

       

Reinvestment of dividends and distributions

  $     $     $ 2,404     $  

Cash paid for interest and fees on floating rate notes issued and Institutional MuniFund Term Preferred Shares

  $ 182,794     $ 169,642     $ 155,012     $ 211,798  

 

  48   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights

 

Selected data for a common share outstanding during the periods stated

 

    Municipal Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 14.190     $ 13.650     $ 13.620     $ 11.840     $ 13.370     $ 12.040  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.306     $ 0.666     $ 0.739     $ 0.757     $ 0.752     $ 0.778  

Net realized and unrealized gain (loss)

    (0.821     0.369       0.046       1.785       (1.516     1.437  

Distributions to APS shareholders(1)

           

From net investment income

    (0.003     (0.003     (0.006     (0.005     (0.009     (0.011

Discount on redemption and repurchase of APS(1)

          0.180                          

Total income (loss) from operations

  $ (0.518   $ 1.212     $ 0.779     $ 2.537     $ (0.773   $ 2.204  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.302   $ (0.672   $ (0.749   $ (0.757   $ (0.757   $ (0.874

Total distributions to common shareholders

  $ (0.302   $ (0.672   $ (0.749   $ (0.757   $ (0.757   $ (0.874

Net asset value — End of period (Common shares)

  $ 13.370     $ 14.190     $ 13.650     $ 13.620     $ 11.840     $ 13.370  

Market value — End of period (Common shares)

  $ 12.280     $ 13.500     $ 12.550     $ 12.570     $ 11.200     $ 13.880  

Total Investment Return on Net Asset Value(2)

    (3.46 )%(3)      9.27 %(4)      6.30     22.61     (5.83 )%      18.56

Total Investment Return on Market Value(2)

    (6.79 )%(3)      13.07     5.89     19.62     (14.20 )%      11.59

 

  49   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Municipal Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 133,928     $ 142,056     $ 136,708     $ 136,398     $ 118,569     $ 133,772  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.10 %(7)      1.17     1.11     1.20     1.23     1.37

Interest and fee expense(8)

    1.00 %(7)      0.58     0.19     0.21     0.23     0.28

Total expenses(6)

    2.10 %(7)      1.75     1.30     1.41     1.46     1.65

Net investment income

    4.55 %(7)      4.71     5.37     6.01     5.83     6.14

Portfolio Turnover

    6 %(3)      7     6     10     7     16

Senior Securities:

           

Total preferred shares outstanding(9)

    1,788       1,788       1,788       1,788       1,788       1,788  

Asset coverage per preferred share(10)

  $ 99,795     $ 104,450     $ 101,459     $ 101,285     $ 91,314     $ 99,818  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 7.89%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.83        0.89        0.84        0.89        0.91        1.02

Interest and fee expense

    0.75        0.44        0.14        0.15        0.17        0.20

Total expenses

    1.58        1.33        0.98        1.04        1.08        1.22

Net investment income

    3.42        3.58        4.06        4.44        4.33        4.54

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  50   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    California Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 13.500     $ 13.100     $ 13.280     $ 11.770     $ 13.410     $ 11.730  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.281     $ 0.611     $ 0.754     $ 0.769     $ 0.756     $ 0.777  

Net realized and unrealized gain (loss)

    (0.705     0.146       (0.194     1.479       (1.632     1.712  

Distributions to APS shareholders(1)

           

From net investment income

    (0.001     (0.003     (0.009     (0.007     (0.013     (0.016

Discount on redemption and repurchase of APS(1)

          0.287                          

Total income (loss) from operations

  $ (0.425   $ 1.041     $ 0.551     $ 2.241     $ (0.889   $ 2.473  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.265   $ (0.641   $ (0.731   $ (0.731   $ (0.751   $ (0.793

Total distributions to common shareholders

  $ (0.265   $ (0.641   $ (0.731   $ (0.731   $ (0.751   $ (0.793

Net asset value — End of period (Common shares)

  $ 12.810     $ 13.500     $ 13.100     $ 13.280     $ 11.770     $ 13.410  

Market value — End of period (Common shares)

  $ 11.510     $ 13.020     $ 12.540     $ 12.080     $ 11.260     $ 13.630  

Total Investment Return on Net Asset Value(2)

    (2.97 )%(3)      8.18 %(4)      4.47     20.12     (6.75 )%      21.62

Total Investment Return on Market Value(2)

    (9.60 )%(3)      8.99     9.94     14.22     (12.29 )%      18.36

 

  51   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    California Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 49,768     $ 52,449     $ 50,914     $ 51,581     $ 45,732     $ 52,063  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.26 %(7)      1.36     1.27     1.32     1.34     1.36

Interest and fee expense(8)

    1.05 %(7)      0.54     0.11     0.12     0.13     0.14

Total expenses(6)

    2.31 %(7)      1.90     1.38     1.44     1.47     1.50

Net investment income

    4.37 %(7)      4.53     5.69     6.15     5.84     6.16

Portfolio Turnover

    12 %(3)      14     0     5     7     15

Senior Securities:

           

Total preferred shares outstanding(9)

    1,028       1,028       1,028       1,028       1,028       1,028  

Asset coverage per preferred share(10)

  $ 73,289     $ 76,020     $ 74,528     $ 75,176     $ 69,487     $ 75,645  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 5.88%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.84        0.91        0.85        0.86        0.88        0.89

Interest and fee expense

    0.69        0.36        0.07        0.08        0.09        0.09

Total expenses

    1.53        1.27        0.92        0.94        0.97        0.98

Net investment income

    2.89        3.04        3.80        4.02        3.86        4.04

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  52   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Massachusetts Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 16.080     $ 15.090     $ 15.190     $ 13.530     $ 15.920     $ 14.230  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.290     $ 0.619     $ 0.775     $ 0.788     $ 0.801     $ 0.821  

Net realized and unrealized gain (loss)

    (1.065     0.703       (0.105     1.641       (2.389     1.728  

Distributions to APS shareholders(1)

           

From net investment income

    (0.002     (0.004     (0.010     (0.009     (0.015     (0.019

Discount on redemption and repurchase of APS(1)

          0.330                          

Total income (loss) from operations

  $ (0.777   $ 1.648     $ 0.660     $ 2.420     $ (1.603   $ 2.530  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.293   $ (0.658   $ (0.760   $ (0.760   $ (0.787   $ (0.840

Total distributions to common shareholders

  $ (0.293   $ (0.658   $ (0.760   $ (0.760   $ (0.787   $ (0.840

Net asset value — End of period (Common shares)

  $ 15.010     $ 16.080     $ 15.090     $ 15.190     $ 13.530     $ 15.920  

Market value — End of period (Common shares)

  $ 13.540     $ 15.280     $ 13.650     $ 14.560     $ 12.510     $ 16.510  

Total Investment Return on Net Asset Value(2)

    (4.65 )%(3)      11.32 %(4)      4.76     18.82     (10.28 )%      18.26

Total Investment Return on Market Value(2)

    (9.51 )%(3)      16.93     (1.14 )%      23.19     (20.01 )%      21.87

 

  53   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Massachusetts Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 26,546     $ 28,439     $ 26,687     $ 26,870     $ 23,925     $ 28,138  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.39 %(7)      1.53     1.41     1.44     1.45     1.46

Interest and fee expense(8)

    0.99 %(7)      0.53     0.08     0.08     0.09     0.09

Total expenses(6)

    2.38 %(7)      2.06     1.49     1.52     1.54     1.55

Net investment income

    3.83 %(7)      3.90     5.11     5.50     5.31     5.44

Portfolio Turnover

    3 %(3)      2     7     1     3     2

Senior Securities:

           

Total preferred shares outstanding(9)

    543       543       543       543       543       543  

Asset coverage per preferred share(10)

  $ 73,746     $ 77,375     $ 74,148     $ 74,484     $ 69,061     $ 76,820  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 9.04%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.92        1.03        0.94        0.94        0.96        0.97

Interest and fee expense

    0.66        0.36        0.05        0.05        0.06        0.06

Total expenses

    1.58        1.39        0.99        0.99        1.02        1.03

Net investment income

    2.54        2.63        3.39        3.58        3.52        3.61

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  54   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Michigan Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 15.890     $ 14.940     $ 14.860     $ 13.160     $ 15.030     $ 14.040  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.318     $ 0.682     $ 0.793     $ 0.784     $ 0.789     $ 0.862  

Net realized and unrealized gain (loss)

    (0.827     0.669       0.070       1.660       (1.859     1.038  

Distributions to APS shareholders(1)

           

From net investment income

    (0.011     (0.011     (0.011     (0.010     (0.017     (0.021

Discount on redemption and repurchase of APS(1)

          0.316                          

Total income (loss) from operations

  $ (0.520   $ 1.656     $ 0.852     $ 2.434     $ (1.087   $ 1.879  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.310   $ (0.706   $ (0.789   $ (0.734   $ (0.783   $ (0.889

Total distributions to common shareholders

  $ (0.310   $ (0.706   $ (0.789   $ (0.734   $ (0.783   $ (0.889

Anti-dilutive effect of share repurchase program (see Note 7)(1)

  $     $     $ 0.017     $     $     $  

Net asset value — End of period (Common shares)

  $ 15.060     $ 15.890     $ 14.940     $ 14.860     $ 13.160     $ 15.030  

Market value — End of period (Common shares)

  $ 13.440     $ 15.060     $ 13.020     $ 13.010     $ 11.790     $ 16.000  

Total Investment Return on Net Asset Value(2)

    (3.03 )%(3)      11.59 %(4)      6.63     19.57     (7.29 )%      13.69

Total Investment Return on Market Value(2)

    (8.70 )%(3)      21.36     6.11     16.89     (21.98 )%      24.85

 

  55   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Michigan Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 22,596     $ 23,835     $ 22,408     $ 22,492     $ 19,931     $ 22,759  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.48 %(7)      1.65     1.48     1.54     1.55     1.54

Interest and fee expense(8)

    0.91 %(7)      0.47                        

Total expenses(6)

    2.39 %(7)      2.12     1.48     1.54     1.55     1.54

Net investment income

    4.21 %(7)      4.36     5.30     5.60     5.46     5.90

Portfolio Turnover

    5 %(3)            3     30     29     19

Senior Securities:

           

Total preferred shares outstanding(9)

    533       533       533       533       533       533  

Asset coverage per preferred share(10)

  $ 67,263     $ 69,719     $ 67,042     $ 67,199     $ 62,395     $ 67,701  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 9.37%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.94        1.06        0.93        0.95        0.96        0.96

Interest and fee expense

    0.57        0.30                                    

Total expenses

    1.51        1.36        0.93        0.95        0.96        0.96

Net investment income

    2.65        2.78        3.33        3.44        3.39        3.68

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  56   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New Jersey Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 15.270     $ 14.240     $ 14.480     $ 13.120     $ 14.640     $ 13.180  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.318     $ 0.675     $ 0.760     $ 0.755     $ 0.759     $ 0.820  

Net realized and unrealized gain (loss)

    (1.153     0.771       (0.261     1.318       (1.537     1.471  

Distributions to APS shareholders(1)

           

From net investment income

    (0.005     (0.006     (0.010     (0.009     (0.015     (0.019

Discount on redemption and repurchase of APS(1)

          0.303                          

Total income (loss) from operations

  $ (0.840   $ 1.743     $ 0.489     $ 2.064     $ (0.793   $ 2.272  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.320   $ (0.713   $ (0.750   $ (0.704   $ (0.727   $ (0.812

Total distributions to common shareholders

  $ (0.320   $ (0.713   $ (0.750   $ (0.704   $ (0.727   $ (0.812

Anti-dilutive effect of share repurchase program (see Note 7)(1)

  $     $     $ 0.021     $     $     $  

Net asset value — End of period (Common shares)

  $ 14.110     $ 15.270     $ 14.240     $ 14.480     $ 13.120     $ 14.640  

Market value — End of period (Common shares)

  $ 12.520     $ 14.710     $ 13.050     $ 12.540     $ 11.730     $ 15.090  

Total Investment Return on Net Asset Value(2)

    (5.29 )%(3)      12.67 %(4)      4.11     16.77     (5.48 )%      17.69

Total Investment Return on Market Value(2)

    (12.76 )%(3)      18.43     10.17     13.11     (18.01 )%      19.58

 

  57   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New Jersey Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 36,385     $ 39,385     $ 36,714     $ 37,789     $ 34,221     $ 38,140  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.33 %(7)      1.45     1.29     1.30     1.35     1.39

Interest and fee expense(8)

    1.03 %(7)      0.52     0.00 %(9)      0.01     0.04     0.12

Total expenses(6)

    2.36 %(7)      1.97     1.29     1.31     1.39     1.51

Net investment income

    4.46 %(7)      4.50     5.28     5.50     5.35     5.87

Portfolio Turnover

    4 %(3)      8     5     5     11     16

Senior Securities:

           

Total preferred shares outstanding(10)

    784       784       784       784       784       784  

Asset coverage per preferred share(11)

  $ 71,285     $ 75,237     $ 71,830     $ 73,201     $ 68,650     $ 73,649  

Involuntary liquidation preference per preferred share(12)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(12)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 10.43%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Amount is less than 0.005%.

 

(10) 

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(11) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(12) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015      2014      2013        2012  

Expenses excluding interest and fees

    0.86        0.96        0.84      0.84      0.88        0.90

Interest and fee expense

    0.68        0.35        0.00 %(9)       0.00 %(9)       0.03        0.08

Total expenses

    1.54        1.31        0.84      0.84      0.91        0.98

Net investment income

    2.91        2.99        3.46      3.55      3.50        3.81

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  58   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New York Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 13.780     $ 13.390     $ 13.460     $ 12.380     $ 13.900     $ 12.760  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.289     $ 0.612     $ 0.700     $ 0.736     $ 0.714     $ 0.775  

Net realized and unrealized gain (loss)

    (0.822     0.243       (0.083     1.037       (1.537     1.162  

Distributions to APS shareholders(1)

           

From net investment income

    (0.004     (0.005     (0.007     (0.006     (0.010     (0.013

Discount on redemption and repurchase of APS(1)

          0.202                          

Total income (loss) from operations

  $ (0.537   $ 1.052     $ 0.610     $ 1.767     $ (0.833   $ 1.924  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.293   $ (0.662   $ (0.687   $ (0.687   $ (0.687   $ (0.784

Total distributions to common shareholders

  $ (0.293   $ (0.662   $ (0.687   $ (0.687   $ (0.687   $ (0.784

Anti-dilutive effect of share repurchase program (see Note 7)(1)

  $     $     $ 0.007     $     $     $  

Net asset value — End of period (Common shares)

  $ 12.950     $ 13.780     $ 13.390     $ 13.460     $ 12.380     $ 13.900  

Market value — End of period (Common shares)

  $ 11.780     $ 13.590     $ 12.320     $ 11.840     $ 11.120     $ 13.970  

Total Investment Return on Net Asset Value(2)

    (3.76 )%(3)       8.28 %(4)      5.22     15.23     (6.01 )%      15.47

Total Investment Return on Market Value(2)

    (11.17 )%(3)       15.94     10.09     12.85     (16.01 )%      14.89

 

  59   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New York Fund II  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 33,114     $ 35,240     $ 34,233     $ 34,557     $ 31,779     $ 35,669  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.40 %(7)      1.49     1.37     1.39     1.40     1.42

Interest and fee expense(8)

    1.02 %(7)      0.54     0.16     0.17     0.17     0.22

Total expenses(6)

    2.42 %(7)      2.03     1.53     1.56     1.57     1.64

Net investment income

    4.43 %(7)      4.44     5.20     5.72     5.33     5.80

Portfolio Turnover

    14 %(3)      14     1     7     14     18

Senior Securities:

           

Total preferred shares outstanding(9)

    530       530       530       530       530       530  

Asset coverage per preferred share(10)

  $ 87,341     $ 91,492     $ 89,590     $ 90,203     $ 84,960     $ 92,301  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 6.69%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    1.01        1.09        1.00        1.00        1.01        1.02

Interest and fee expense

    0.73        0.39        0.11        0.12        0.12        0.16

Total expenses

    1.74        1.48        1.11        1.12        1.13        1.18

Net investment income

    3.17        3.23        3.75        4.08        3.85        4.18

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  60   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Ohio Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 14.750     $ 13.900     $ 13.770     $ 12.220     $ 13.800     $ 12.220  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.307     $ 0.656     $ 0.741     $ 0.742     $ 0.736     $ 0.762  

Net realized and unrealized gain (loss)

    (0.921     0.607       0.100       1.518       (1.584     1.606  

Distributions to APS shareholders(1)

           

From net investment income

    (0.005     (0.006     (0.009     (0.008     (0.013     (0.016

Discount on redemption and repurchase of APS(1)

          0.262                          

Total income (loss) from operations

  $ (0.619   $ 1.519     $ 0.832     $ 2.252     $ (0.861   $ 2.352  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.301   $ (0.669   $ (0.702   $ (0.702   $ (0.719   $ (0.772

Total distributions to common shareholders

  $ (0.301   $ (0.669   $ (0.702   $ (0.702   $ (0.719   $ (0.772

Net asset value — End of period (Common shares)

  $ 13.830     $ 14.750     $ 13.900     $ 13.770     $ 12.220     $ 13.800  

Market value — End of period (Common shares)

  $ 12.770     $ 15.000     $ 12.460     $ 12.500     $ 11.380     $ 15.200  

Total Investment Return on Net Asset Value(2)

    (4.11 )%(3)       11.24 %(4)      6.63     19.45     (6.46 )%      19.50

Total Investment Return on Market Value(2)

    (12.94 )%(3)       26.20     5.30     16.44     (20.91 )%      25.85

 

  61   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Ohio Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 35,109     $ 37,420     $ 35,276     $ 34,947     $ 30,995     $ 34,985  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.28 %(7)      1.38     1.27     1.32     1.33     1.35

Interest and fee expense(8)

    0.89 %(7)      0.46     0.01     0.03     0.02     0.01

Total expenses(6)

    2.17 %(7)      1.84     1.28     1.35     1.35     1.36

Net investment income

    4.41 %(7)      4.51     5.33     5.74     5.51     5.83

Portfolio Turnover

    0 %(3)(9)      5     4     12     12     12

Senior Securities:

           

Total preferred shares outstanding(10)

    680       680       680       680       680       680  

Asset coverage per preferred share(11)

  $ 76,503     $ 80,031     $ 76,877     $ 76,393     $ 70,581     $ 76,450  

Involuntary liquidation preference per preferred share(12)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(12)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 9.27%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Amount is less than 1%.

 

(10) 

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(11) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(12) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.87        0.95        0.86        0.87        0.89        0.89

Interest and fee expense

    0.60        0.31        0.01        0.02        0.01        0.01

Total expenses

    1.47        1.26        0.87        0.89        0.90        0.90

Net investment income

    2.98        3.09        3.60        3.78        3.67        3.85

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  62   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Pennsylvania Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
      2016     2015     2014     2013     2012  

Net asset value — Beginning of period (Common shares)

  $ 14.950     $ 14.080     $ 14.200     $ 12.710     $ 14.460     $ 13.180  
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.324     $ 0.693     $ 0.809     $ 0.834     $ 0.812     $ 0.829  

Net realized and unrealized gain (loss)

    (0.856     0.623       (0.147     1.437       (1.742     1.342  

Distributions to APS shareholders(1)

           

From net investment income

    (0.002     (0.004     (0.009     (0.008     (0.014     (0.018

Discount on redemption and repurchase of APS(1)

          0.311                          

Total income (loss) from operations

  $ (0.534   $ 1.623     $ 0.653     $ 2.263     $ (0.944   $ 2.153  
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.326   $ (0.753   $ (0.773   $ (0.773   $ (0.806   $ (0.873

Total distributions to common shareholders

  $ (0.326   $ (0.753   $ (0.773   $ (0.773   $ (0.806   $ (0.873

Net asset value — End of period (Common shares)

  $ 14.090     $ 14.950     $ 14.080     $ 14.200     $ 12.710     $ 14.460  

Market value — End of period (Common shares)

  $ 12.700     $ 14.500     $ 12.240     $ 12.850     $ 11.590     $ 15.780  

Total Investment Return on Net Asset Value(2)

    (3.34 )%(3)       12.08 %(4)      5.29     18.84     (6.69 )%      16.76

Total Investment Return on Market Value(2)

    (10.15 )%(3)       25.00     1.16     17.93     (22.03 )%      28.88

 

  63   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Pennsylvania Fund  
    Six Months Ended
March 31, 2017
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2016     2015     2014     2013     2012  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 41,704     $ 44,255     $ 41,685     $ 42,033     $ 37,619     $ 42,791  

Ratios (as a percentage of average daily net assets applicable to common shares):(5)

           

Expenses excluding interest and fees(6)

    1.26 %(7)      1.40     1.28     1.34     1.35     1.33

Interest and fee expense(8)

    1.03 %(7)      0.55     0.05     0.08     0.06     0.04

Total expenses(6)

    2.29 %(7)      1.95     1.33     1.42     1.41     1.37

Net investment income

    4.56 %(7)      4.71     5.69     6.21     5.83     5.98

Portfolio Turnover

    3 %(3)      7     4     2     14     11

Senior Securities:

           

Total preferred shares outstanding(9)

    869       869       869       869       869       869  

Asset coverage per preferred share(10)

  $ 72,864     $ 75,926     $ 72,969     $ 73,370     $ 68,290     $ 74,242  

Involuntary liquidation preference per preferred share(11)

  $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Approximate market value per preferred share(11)

  $ 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 Fund’s dividend reinvestment plan.

 

  (3)

Not annualized.

 

  (4)

The total return based on net asset value reflects the impact of the tender and repurchase by the Fund of a portion of its APS at 95.5% of the per share liquidation preference. Absent this transaction, the total return based on net asset value would have been 9.75%.

 

  (5)

Ratios do not reflect the effect of dividend payments to APS shareholders.

 

  (6)

Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

 

  (7)

Annualized.

 

  (8)

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1G) and iMTP Shares issued to redeem a portion of the Fund’s APS (see Note 3). Effective October 1, 2016, the ratio includes amortization of deferred offering costs for iMTP Shares which for the year ended September 30, 2016, were included in the ratio of expenses excluding interest and fees.

 

  (9)

Preferred shares represent iMTP Shares and APS as of March 31, 2017 and September 30, 2016 and APS as of September 30, 2015, 2014, 2013 and 2012.

 

(10) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(11) 

Plus accumulated and unpaid dividends.

 

Ratios based on net assets applicable to common shares plus preferred shares (iMTP Shares and APS, as applicable) are presented below. Ratios do not reflect the effect of dividend payments to APS shareholders and exclude the effect of custody fee credits, if any. Ratios for periods less than one year are annualized.

 

    Six Months Ended
March 31, 2017
(Unaudited)
       Year Ended September 30,  
         2016        2015        2014        2013        2012  

Expenses excluding interest and fees

    0.83        0.93        0.85        0.86        0.88        0.87

Interest and fee expense

    0.68        0.37        0.03        0.06        0.04        0.03

Total expenses

    1.51        1.30        0.88        0.92        0.92        0.90

Net investment income

    3.01        3.14        3.75        4.02        3.82        3.91

APS – Auction Preferred Shares

iMTP Shares – Institutional MuniFund Term Preferred Shares

 

  64   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited)

 

 

1  Significant Accounting Policies

Eaton Vance Municipal Bond Fund II (Municipal Fund II), Eaton Vance California Municipal Bond Fund II (California Fund II), Eaton Vance Massachusetts Municipal Bond Fund (Massachusetts Fund), Eaton Vance Michigan Municipal Bond Fund (Michigan Fund), Eaton Vance New Jersey Municipal Bond Fund (New Jersey Fund), Eaton Vance New York Municipal Bond Fund II (New York Fund II), Eaton Vance Ohio Municipal Bond Fund (Ohio Fund) and Eaton Vance Pennsylvania Municipal Bond Fund (Pennsylvania Fund), (each individually referred to as the Fund, and collectively, the Funds), 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, except for Municipal Fund II, which is a diversified, closed-end management investment company. The Funds’ investment objective is to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state.

The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Debt Obligations. Debt obligations 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, interest rates, anticipated prepayments, 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 for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair 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 Fund in a manner that fairly reflects the security’s value, or the amount that a Fund 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 security’s 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 entity’s 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 Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year 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 Fund 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 Fund, as exempt-interest dividends.

As of March 31, 2017, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Fund 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  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.

E  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP 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.

F  Indemnifications — Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Fund) could be deemed to have personal liability for the obligations of the Fund. However, each Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by

 

  65  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

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 Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.

G  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Fund may sell a variable or fixed rate bond for cash to a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), while at the same time, buying a residual interest in the assets and cash flows of the SPV. The bond is deposited into the SPV with the same CUSIP number as the bond sold to the SPV by the Fund, and which may have been, but is not required to be, the bond purchased from the Fund (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 Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the Bond held by the SPV transferred to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would generally pay the SPV 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 Funds account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes (net of unamortized deferred debt issuance costs) 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 SPV 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 March 31, 2017. Interest expense related to a Fund’s liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, as noted above, or by 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 March 31, 2017, the amounts of the Funds’ Floating Rate Notes and related interest rates and collateral were as follows:

 

    

Municipal

Fund II

    

California

Fund II

     Massachusetts
Fund
 

Floating Rate Notes Outstanding

  $ 42,595,000      $ 7,250,000      $ 500,000  

Interest Rate or Range of Interest Rates (%)

    0.94 - 1.41        0.94 - 0.95        1.04  

Collateral for Floating Rate Notes Outstanding

  $ 55,690,158      $ 9,190,372      $ 929,708  

 

     New Jersey
Fund
    

New York

Fund II

    

Ohio

Fund

     Pennsylvania
Fund
 

Floating Rate Notes Outstanding

  $ 3,740,000      $ 9,100,000      $ 2,120,000      $ 3,390,000  

Interest Rate or Range of Interest Rates (%)

    0.94        0.94        0.94 - 1.15        0.94 - 0.95  

Collateral for Floating Rate Notes Outstanding

  $ 5,332,174      $ 12,396,089      $ 2,848,526      $ 4,255,730  

For the six months ended March 31, 2017, the Funds’ average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:

 

    

Municipal

Fund II

    

California

Fund II

     Massachusetts
Fund
 

Average Floating Rate Notes Outstanding

  $ 42,595,000      $ 7,144,505      $ 1,094,341  

Average Interest Rate

    1.34      1.28      1.36

 

  66  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Average Floating Rate Notes Outstanding

  $ 3,740,000      $ 9,990,110      $ 2,120,000      $ 3,390,000  

Average Interest Rate

    1.28      1.33      1.42      1.29

In certain circumstances, the Funds may enter into shortfall and forbearance agreements with brokers by which a Fund agrees to reimburse the broker 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 Funds had no shortfalls as of March 31, 2017.

The Funds may also purchase residual interest bonds 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 Funds’ 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 Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ 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 Funds’ 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 Funds’ restrictions apply. Residual interest bonds held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

Final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, covered funds (such as SPVs), as defined in the rules. The compliance date for the Volcker Rule for certain covered funds was July 21, 2015 while for other covered funds the compliance date is July 21, 2017, as announced on July 7, 2016. The Volcker Rule precludes banking entities and their affiliates from (i) sponsoring residual interest bond programs and (ii) continuing relationships with or services for existing residual interest bond programs. As a result, residual interest bond trusts were restructured to comply with the Volcker Rule and all residual interest bonds held by the Funds at March 31, 2017 are Volcker Rule compliant. The effects of the Volcker Rule may make it more difficult for the Funds to maintain current or desired levels of leverage and may cause the Funds to incur additional expenses to maintain their leverage.

Legal and restructuring fees incurred in connection with the restructuring of residual interest bond trusts are recorded as interest expense.

H  Financial Futures Contracts — Upon entering into a financial futures contract, a Fund 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 Fund 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 Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund 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.

I  When-Issued Securities and Delayed Delivery Transactions — The Funds 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 Funds maintain cash and/or 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.

J  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the unrestricted cash on hand at its custodian and does not include any short-term investments.

K  Interim Financial Statements — The interim financial statements relating to March 31, 2017 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

L  New Accounting Pronouncement — During the six months ended March 31, 2017, the Funds adopted the FASB’s Accounting Standards Update No. 2015-03, which provides guidance to simplify the presentation of debt issuance costs and became effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Pursuant to the new standard, the Funds are required to present debt issuance costs in their Statement of Assets and Liabilities as a direct deduction from the carrying value of the related debt liability. Prior to the change, such costs were presented by the Funds as a deferred asset. This change in accounting had no impact on the Funds’ net assets.

 

  67  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

2  Auction Preferred Shares

Each Fund issued Auction Preferred Shares (APS) on January 15, 2003 in a public offering. Dividends on the APS, 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. Series of APS are identical in all respects except for the reset dates of the dividend rates.

The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS, with a Fund’s other preferred shares (see Note 3), are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Fund is in default for an extended period on its asset maintenance requirements, as defined in the Funds’ By-laws and the 1940 Act, with respect to the preferred shares. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund 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%.

On October 22, 2015, each Fund announced a tender offer to purchase up to 100% of its outstanding APS at a price per share equal to 95.5% of the APS liquidation preference of $25,000 per share (or $23,875 per share), plus any accrued but unpaid APS dividends. The tender offer expired on December 2, 2015. The number of APS accepted for repurchase pursuant to the tender offer and their liquidation preference were as follows:

 

     Municipal Fund II
(Series A)
     Municipal Fund II
(Series B)
    

California

Fund II

     Massachusetts
Fund
    

Michigan

Fund

 

APS Tendered and Redeemed

    832        766        992        518        421  

Redemption Amount

  $ 19,864,000      $ 18,288,250      $ 23,684,000      $ 12,367,250      $ 10,051,375  

 

    

New Jersey

Fund

    

New York

Fund II

    

Ohio

Fund

     Pennsylvania
Fund
 

APS Tendered and Redeemed

    695        460        590        818  

Redemption Amount

  $ 16,593,125      $ 10,982,500      $ 14,086,250      $ 19,529,750  

There were no transactions in APS during the six months ended March 31, 2017.

3  Institutional MuniFund Term Preferred Shares

On December 11, 2015, each Fund issued Institutional MuniFund Term Preferred Shares (iMTP Shares) in a private offering to finance the tender offer for its outstanding APS (see Note 2). The number of new iMTP Shares issued was equal to the APS accepted for payment pursuant to the tender offer. The number of iMTP Shares issued and outstanding at March 31, 2017 was as follows:

 

Fund  

iMTP Shares Issued and

Outstanding

 

Municipal Fund II

    1,598  

California Fund II

    992  

Massachusetts Fund

    518  

Michigan Fund

    421  

New Jersey Fund

    695  

New York Fund II

    460  

Ohio Fund

    590  

Pennsylvania Fund

    818  

The iMTP Shares are a form of preferred shares that represent stock of the Funds. The iMTP Shares have a par value of $0.01 per share, a liquidation preference of $25,000 per share, and a mandatory redemption date of July 1, 2019, unless earlier redeemed or repurchased by a Fund. Dividends on the

 

  68  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

iMTP Shares are determined weekly based upon the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index Rate plus a spread. Such spread to the SIFMA Municipal Swap Index Rate is determined based on the current credit rating of the iMTP Shares. At March 31, 2017, the spread to the SIFMA Municipal Swap Index Rate was 0.85% for California Fund II and New York Fund II, 1.00% for Massachusetts Fund, Michigan Fund, New Jersey Fund, Ohio Fund and Pennsylvania Fund, and 1.05% for Municipal Fund II.

The iMTP Shares are subject to optional and mandatory redemption in certain circumstances. After December 31, 2016, the iMTP Shares are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, plus an optional redemption premium. The iMTP Shares are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends (mandatory redemption price), if a Fund is in default for an extended period on its asset maintenance requirements with respect to its preferred shares. For so long as the iMTP Shares are outstanding, a Fund’s effective leverage ratio is not permitted to exceed 45%. In order to comply with this requirement, a Fund may have to redeem all or a portion of its iMTP Shares and APS at the mandatory redemption price.

The holders of the iMTP Shares, APS and common shares have equal voting rights of one vote per share except that the holders of the iMTP Shares and APS, voting as a class, are entitled to elect two Trustees of each Fund. If the dividends on the iMTP Shares and APS remain unpaid in an amount equal to two full years’ dividends, the holders of the iMTP Shares and APS voting as a class have the right to elect a majority of each Fund’s Trustees.

For financial reporting purposes, the liquidation value of the iMTP Shares (net of unamortized deferred offering costs) is presented as a liability on the Statements of Assets and Liabilities and unpaid dividends are included in interest expense and fees payable. Dividends accrued on iMTP Shares are treated as interest payments for financial reporting purposes and are included in interest expense and fees on the Statements of Operations. Costs incurred by each Fund in connection with its offering of iMTP Shares were capitalized as deferred offering costs and are being amortized to the mandatory redemption date of July 1, 2019.

The carrying amount of the iMTP Shares at March 31, 2017 represents its liquidation value, which approximates fair value. If measured at fair value, the iMTP Shares would have been considered as Level 2 in the fair value hierarchy (see Note 10) at March 31, 2017.

The average liquidation preference of the iMTP Shares during the six months ended March 31, 2017 was as follows:

 

    

Municipal

Fund II

    

California

Fund II

     Massachusetts
Fund
    

Michigan

Fund

 

Average Liquidation Preference of iMTP Shares

  $ 39,950,000      $ 24,800,000      $ 12,950,000      $ 10,525,000  

 

    

New Jersey

Fund

     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Average Liquidation Preference of iMTP Shares

  $ 17,375,000      $ 11,500,000      $ 14,750,000      $ 20,450,000  

4  Distributions to Shareholders and Income Tax Information

Each Fund intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS and iMTP Shares. In addition, at least annually, each Fund 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 APS and iMTP shareholders are recorded daily and are payable at the end of each dividend period.

 

  69  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

The dividend rates for APS at March 31, 2017, 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:

 

    

Municipal Fund II

(Series A)

    

Municipal Fund II

(Series B)

     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

APS Dividend Rates at March 31, 2017

    1.36      1.26      1.36      1.39      1.36

Dividends Accrued to APS Shareholders

  $ 8,825      $ 18,289      $ 5,198      $ 3,556      $ 16,174  

Average APS Dividend Rates

    1.14      1.15      1.16      1.14      1.16

Dividend Rate Ranges (%)

    0.95 - 1.48      0.95 - 1.48        0.95 - 1.61      0.95 - 1.48        0.95 - 1.61  

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

APS Dividend Rates at March 31, 2017

    1.36      1.36      1.26      1.39

Dividends Accrued to APS Shareholders

  $ 12,839      $ 10,109      $ 12,859      $ 7,252  

Average APS Dividend Rates

    1.16      1.16      1.15      1.14

Dividend Rate Ranges (%)

    0.95 - 1.61        0.95 - 1.61        0.95 - 1.48        0.95 - 1.48  

Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Funds’ 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 series as of March 31, 2017.

The dividend rates for iMTP Shares at March 31, 2017, and the amount of dividends accrued to iMTP shareholders and average iMTP dividend rates (annualized) for the six months then ended were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
    

Michigan

Fund

 

iMTP Dividend Rates at March 31, 2017

    1.96      1.76      1.91      1.91

Dividends Accrued to iMTP Shareholders

  $ 342,399      $ 187,821      $ 107,762      $ 87,583  

Average iMTP Dividend Rates

    1.72      1.52      1.67      1.67

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

iMTP Dividend Rates at March 31, 2017

    1.91      1.76      1.91      1.91

Dividends Accrued to iMTP Shareholders

  $ 144,584      $ 87,094      $ 122,740      $ 170,172  

Average iMTP Dividend Rates

    1.67      1.52      1.67      1.67

Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are 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.

At September 30, 2016, the following Funds, for federal income tax purposes, had capital loss carryforwards and deferred capital losses which would reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus would reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. Under tax regulations, capital losses incurred in taxable years beginning after December 2010 are considered deferred capital losses and are treated as arising on the first day of a Fund’s next taxable year, retaining the same short-term or long-term character as when originally deferred. Deferred capital losses are required to be used prior to capital loss carryforwards, which carry an expiration date. As a result of this

 

  70  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

ordering rule, capital loss carryforwards may be more likely to expire unused. The amounts and expiration dates of the capital loss carryforwards, whose character is short-term, and the amounts of the deferred capital losses are as follows:

 

Expiration Date  

Municipal

Fund II

    

California

Fund II

     Massachusetts
Fund
    

Michigan

Fund

 

September 30, 2017

  $ 2,011,041      $ 1,365,711      $ 94,578      $  

September 30, 2018

    11,539,291        3,330,399        1,054,999        579,696  

September 30, 2019

    1,277,303        1,539,887        225,669        515,704  

Total capital loss

carryforwards

  $ 14,827,635      $ 6,235,997      $ 1,375,246      $ 1,095,400  

Deferred capital losses:

          

Short-term

  $ 2,517,385      $ 1,478,614      $ 673,878      $ 91,108  

Long-term

  $ 6,781,853      $ 3,987,829      $ 949,914      $  

 

Expiration Date   New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

September 30, 2017

  $ 244,927      $ 1,233,356      $ 1,620,085      $  

September 30, 2018

    2,060,337        1,545,637        3,381,936        1,949,047  

September 30, 2019

    1,369,694        1,548,104        669,118        925,899  

Total capital loss

carryforwards

  $ 3,674,958      $ 4,327,097      $ 5,671,139      $ 2,874,946  

Deferred capital losses:

          

Short-term

  $ 932,752      $ 913,692      $ 613,512      $ 990,127  

Long-term

  $ 1,126,733      $ 1,001,362      $ 275,195      $ 1,979,556  

The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2017, as determined on a federal income tax basis, were as follows:

 

     Municipal
Fund II
    

California

Fund II

     Massachusetts
Fund
    

Michigan

Fund

 

Aggregate cost

  $ 159,400,505      $ 69,279,570      $ 34,976,757      $ 33,118,255  

Gross unrealized appreciation

  $ 15,649,669      $ 5,734,442      $ 3,949,161      $ 2,422,520  

Gross unrealized depreciation

    (530,692      (362,607      (40,323      (84,081

Net unrealized appreciation

  $ 15,118,977      $ 5,371,835      $ 3,908,838      $ 2,338,439  

 

    

New Jersey

Fund

    

New York

Fund II

    

Ohio

Fund

     Pennsylvania
Fund
 

Aggregate cost

  $ 51,165,550      $ 42,635,168      $ 46,350,303      $ 58,425,214  

Gross unrealized appreciation

  $ 4,451,554      $ 3,382,480      $ 5,547,077      $ 4,473,268  

Gross unrealized depreciation

    (402,489      (530,019      (110,546      (218,244

Net unrealized appreciation

  $ 4,049,065      $ 2,852,461      $ 5,436,531      $ 4,255,024  

 

  71  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

5  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 Fund. The fee is computed at an annual rate of 0.55% of each Fund’s average weekly gross assets and is payable monthly. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Fund, and the amount of any outstanding preferred shares issued by the Fund. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Fund’s APS and iMTP Shares then outstanding and the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Fund. EVM also serves as the administrator of each Fund, but receives no compensation. For the six months ended March 31, 2017, the investment adviser fees were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Investment Adviser Fee

  $ 610,659      $ 227,247      $ 114,230      $ 98,928  

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Investment Adviser Fee

  $ 163,091      $ 153,386      $ 149,881      $ 184,731  

Trustees and officers of the Funds who are members of EVM’s organization receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with EVM 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 March 31, 2017, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.

6  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the six months ended March 31, 2017 were as follows:

 

    

Municipal

Fund II

    

California

Fund II

     Massachusetts
Fund
    

Michigan

Fund

 

Purchases

  $ 15,241,610      $ 10,145,626      $ 1,086,991      $ 2,286,858  

Sales

  $ 13,781,786      $ 10,961,869      $ 1,713,836      $ 1,963,883  

 

     New Jersey
Fund
    

New York

Fund II

    

Ohio

Fund

     Pennsylvania
Fund
 

Purchases

  $ 2,492,064      $ 7,571,736      $ 1,136,250      $ 2,336,856  

Sales

  $ 2,589,408      $ 9,210,390      $ 216,787      $ 1,908,412  

7  Common Shares of Beneficial Interest

The Funds may issue common shares pursuant to their dividend reinvestment plans. For the six months ended March 31, 2017, the Ohio Fund issued 166 common shares pursuant to its dividend reinvestment plan and there were no common shares issued by the other Funds. For the year ended September 30, 2016, the California Fund II, New Jersey Fund, New York Fund II and Ohio Fund issued 597, 178, 469 and 775 common shares, respectively, pursuant to its dividend reinvestment plan and there were no common shares issued by the other Funds.

On November 11, 2013, the Boards of Trustees of the Funds authorized the repurchase by each Fund of up to 10% of its then currently outstanding common shares in open-market transactions at a discount to net asset value (NAV). The repurchase program does not obligate the Funds to purchase a specific amount of shares. There were no repurchases of common shares by the Funds for the six months ended March 31, 2017 and the year ended September 30, 2016.

 

  72  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

8  Overdraft Advances

Pursuant to the custodian agreement, State Street Bank and Trust Company (SSBT) may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds 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 Fund’s assets to the extent of any overdraft. At March 31, 2017, the Municipal Fund II, Michigan Fund and Pennsylvania Fund had a payment due to SSBT pursuant to the foregoing arrangement of $320,215, $60,456 and $137,279, respectively. 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 March 31, 2017. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 10) at March 31, 2017. The Funds’ average overdraft advances during the six months ended March 31, 2017 were not significant.

9  Financial Instruments

The Funds 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 Fund 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 March 31, 2017 is included in the Portfolio of Investments. At March 31, 2017, the Funds had sufficient cash and/or securities to cover commitments under these contracts.

Each Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Funds hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Funds enter into U.S. Treasury futures contracts to hedge against changes in interest rates.

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 March 31, 2017 were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
 

Asset Derivative:

    

Futures Contracts

  $ 32,117 (1)     $ 16,612 (1)     $ 9,967 (1) 

Total

  $ 32,117      $ 16,612      $ 9,967  

Liability Derivative:

    

Futures Contracts

  $      $ (5,067 )(1)     $  

Total

  $      $ (5,067    $  

 

     New Jersey
Fund
     New York
Fund II
     Pennsylvania
Fund
 

Asset Derivative:

    

Futures Contracts

  $ 15,505 (1)     $ 16,612 (1)     $ 22,150 (1) 

Total

  $ 15,505      $ 16,612      $ 22,150  

 

(1) 

Amount represents cumulative unrealized appreciation or (depreciation) on futures contracts. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.

 

  73  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

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 March 31, 2017 was as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ 475,018 (1)     $ 333,125 (1)     $ 147,419 (1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ (49,979 )(2)     $ (32,765 )(2)     $ (15,511 )(2) 

 

     New Jersey
Fund
     New York
Fund II
     Pennsylvania
Fund
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ 229,319 (1)     $ 245,699 (1)     $ 327,599 (1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ (24,127 )(2)     $ (25,851 )(2)     $ (34,468 )(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 cost of futures contracts outstanding during the six months ended March 31, 2017, which is indicative of the volume of this derivative type, was approximately as follows:

 

     Municipal
Fund II
    

California

Fund II

     Massachusetts
Fund
 

Average Notional Amount:

    

Futures Contracts — Short

  $ 4,566,000      $ 4,259,000      $ 1,417,000  

 

     New Jersey
Fund
    

New York

Fund II

     Pennsylvania
Fund
 

Average Notional Amount:

    

Futures Contracts — Short

  $ 2,204,000      $ 2,362,000      $ 3,149,000  

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 fund’s 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.

 

  74  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

At March 31, 2017, the hierarchy of inputs used in valuing the Funds’ investments and open derivative instruments, which are carried at value, were as follows:

 

Municipal Fund II

                          
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 217,114,482      $         —      $ 217,114,482  

Total Investments

  $      $ 217,114,482      $      $ 217,114,482  

Futures Contracts

  $ 32,117      $      $      $ 32,117  

Total

  $ 32,117      $ 217,114,482      $      $ 217,146,599  
          

California Fund II

                          
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 81,901,405      $      $ 81,901,405  

Total Investments

  $      $ 81,901,405      $      $ 81,901,405  

Futures Contracts

  $ 16,612      $      $      $ 16,612  

Total

  $ 16,612      $ 81,901,405      $      $ 81,918,017  

Liability Description

                                  

Futures Contracts

  $ (5,067    $      $      $ (5,067

Total

  $ (5,067    $      $      $ (5,067
          

Massachusetts Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 39,385,595      $      $ 39,385,595  

Total Investments

  $      $ 39,385,595      $      $ 39,385,595  

Futures Contracts

  $ 9,967      $      $      $ 9,967  

Total

  $ 9,967      $ 39,385,595      $      $ 39,395,562  
          

Michigan Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $         —      $ 35,456,694      $         —      $ 35,456,694  

Total Investments

  $      $ 35,456,694      $      $ 35,456,694  
          

New Jersey Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 58,954,615      $      $ 58,954,615  

Total Investments

  $      $ 58,954,615      $      $ 58,954,615  

Futures Contracts

  $ 15,505      $      $      $ 15,505  

Total

  $ 15,505      $ 58,954,615      $      $ 58,970,120  

 

  75  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Notes to Financial Statements (Unaudited) — continued

 

 

New York Fund II

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 54,587,629      $         —      $ 54,587,629  

Total Investments

  $      $ 54,587,629      $      $ 54,587,629  

Futures Contracts

  $ 16,612      $      $      $ 16,612  

Total

  $ 16,612      $ 54,587,629      $      $ 54,604,241  
          

Ohio Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 53,906,834      $      $ 53,906,834  

Total Investments

  $      $ 53,906,834      $      $ 53,906,834  
          

Pennsylvania Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $      $ 66,070,238      $      $ 66,070,238  

Total Investments

  $      $ 66,070,238      $      $ 66,070,238  

Futures Contracts

  $ 22,150      $      $      $ 22,150  

Total

  $ 22,150      $ 66,070,238      $      $ 66,092,388  

The Funds held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At March 31, 2017, there were no investments transferred between Level 1 and Level 2 during the six months then ended.

 

  76  


Eaton Vance

Municipal Bond Funds

March 31, 2017

 

Officers and Trustees

 

 

Officers of Eaton Vance Municipal Bond Funds

 

 

Payson F. Swaffield

President

Maureen A. Gemma

Vice President, Secretary and Chief Legal Officer

James F. Kirchner

Treasurer

Paul M. O’Neil

Chief Compliance Officer

 

 

Trustees of Eaton Vance Municipal Bond Funds

 

 

William H. Park

Chairperson

Scott E. Eston

Thomas E. Faust Jr.*

Mark R. Fetting**

Cynthia E. Frost

George J. Gorman

Valerie A. Mosley

Helen Frame Peters

Susan J. Sutherland

Harriett Tee Taggart

Ralph F. Verni

Scott E. Wennerholm**

 

 

* Interested Trustee
** Messrs. Fetting and Wennerholm began serving as Trustees effective September 1, 2016.

 

 

Number of Employees

Each Fund 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 March 31, 2017, Fund records indicate that there are 11, 4, 3, 5, 6, 11, 5 and 21 registered shareholders for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively, and approximately 3,838, 1,290, 776, 1,002, 1,144, 973, 1,370 and 1,731 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

NYSE MKT symbols

 

Municipal Bond Fund II    EIV
California Municipal Bond Fund II    EIA
Massachusetts Municipal Bond Fund    MAB
Michigan Municipal Bond Fund    MIW
New Jersey Municipal Bond Fund    EMJ
New York Municipal Bond Fund II    NYH
Ohio Municipal Bond Fund    EIO
Pennsylvania Municipal Bond Fund    EIP
 

 

  77  


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 customer’s 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 Management (International) Limited, Eaton Vance Management’s 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 customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s 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. American Stock Transfer & Trust Company, LLC (“AST”), the closed-end funds transfer agent, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct AST, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact AST or your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by AST 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 SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s 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 SEC’s website at www.sec.gov.

Share Repurchase Program.  The Funds’ Boards of Trustees have approved a share repurchase program authorizing each Fund to repurchase up to 10% of its outstanding common shares as of the approved date 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, is disclosed in the Funds’ annual and semi-annual reports to shareholders.

Additional Notice to Shareholders.  If applicable, a Fund may also 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. Other information about the funds is available on the website. 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”.

 

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Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Fund Offices

Two International Place

Boston, MA 02110

 


LOGO

7728    3.31.17


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

Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the “Loan Rule”) prohibits an accounting firm, such as the Fund’s principal accountant, Deloitte & Touche LLP (“D&T”), from having certain financial relationships with their audit clients and affiliated entities. Specifically, the Loan Rule provides, in relevant part, that an accounting firm generally would not be independent if it or a “covered person” of the accounting firm (within the meaning of applicable SEC rules relating to auditor independence) receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Based on information provided


to the Audit Committee of the Board of Trustees (the “Audit Committee”) of the Eaton Vance family of funds by D&T, certain relationships between D&T and its affiliates (“Deloitte Entities”) and one or more lenders who are record owners of shares of one or more funds within the Eaton Vance family of funds (the “Funds”) implicate the Loan Rule, calling into question D&T’s independence with respect to the Funds. The Funds are providing this disclosure to explain the facts and circumstances as well as D&T’s conclusions concerning D&T’s objectivity and impartiality with respect to the audits of the Funds notwithstanding the existence of one or more breaches of the Loan Rule.

On June 20, 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued no-action relief to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016) (the “No-Action Letter”)) related to an auditor independence issue arising under the Loan Rule. In the No-Action Letter, the SEC indicated that it would not recommend enforcement action against the fund group if the auditor is not in compliance with the Loan Rule provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the auditor’s non-compliance under the Loan Rule is with respect to certain lending relationships; and (3) notwithstanding such non-compliance, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The SEC has indicated that the no-action relief will expire 18 months from its issuance.

Based on information provided by D&T to the Audit Committee, the requirements of the No-Action Letter appear to be met with respect to D&T’s lending relationships described above. Among other things, D&T has advised the Audit Committee of its conclusion that the consequences of the breach of the Loan Rule have been satisfactorily addressed, that D&T’s objectivity and impartiality in the planning and conduct of the audits of the Fund’s financial statements has not been compromised and that, notwithstanding the breach, D&T is in a position to continue as the auditor for the Funds and D&T does not believe any actions need to be taken with respect to previously issued reports by D&T. D&T has advised the Audit Committee that these conclusions were based in part on its consideration of the No-Action Letter and other relevant information communicated to the Audit Committee.

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

Not required in this filing.

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 registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s 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 registrant’s internal control over financial reporting.

Item 12. Exhibits

 

(a)(1)   Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)   Treasurer’s Section 302 certification.
(a)(2)(ii)   President’s Section 302 certification.
(b)   Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Massachusetts Municipal Bond Fund

 

By:  

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   May 23, 2017

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:   May 23, 2017
By:  

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   May 23, 2017