UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21226
Eaton Vance California Municipal Bond Fund II
(formerly, Eaton Vance Insured California Municipal Bond Fund II)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(registrant’s Telephone Number)
(registrant’s Telephone Number)
September 30
Date of Fiscal Year End
Date of Fiscal Year End
March 31, 2010
Date of Reporting Period
Date of Reporting Period
Item 1. Reports to Stockholders
IMPORTANT
NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING
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, Boston
Management and Research, and Eaton Vance Distributors, Inc.
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
adviser/broker-dealer, it is likely that only such
adviser’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 (the “SEC”) permits funds to
deliver only one copy of shareholder documents, including
prospectuses, proxy statements and shareholder reports, to fund
investors with multiple accounts at the same residential or post
office box address. This practice is often called
“householding” and it helps eliminate duplicate
mailings to shareholders.
Eaton Vance, or your financial adviser, may household the
mailing of your documents indefinitely unless you instruct Eaton
Vance, or your financial adviser, otherwise.
If you would prefer that your Eaton Vance documents not be
householded, please contact Eaton Vance at
1-800-262-1122,
or contact your financial adviser.
Your instructions that householding not apply to delivery of
your Eaton Vance documents will be effective within 30 days
of receipt by Eaton Vance or your financial adviser.
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.
This description is also available on the SEC’s website at
www.sec.gov.
Eaton Vance Municipal Bond Funds as of March 31, 2010
TABLE OF CONTENTS
| 2 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| 7 | ||||
| 8 | ||||
| 9 | ||||
| 10 | ||||
| 11 | ||||
Financial Statements |
12 | |||
Notice to Shareholders |
73 | |||
Special Meeting of Shareholders |
74 | |||
Board of Trustees’ Annual Approval
of the Investment Advisory Agreements |
75 | |||
Officers and Trustees |
79 |
1
Eaton Vance Municipal Bond Funds as of March 31, 2010
INVESTMENT UPDATE
Eaton Vance Municipal Bond Funds (the “Funds”) are closed-end funds traded on the NYSE Amex, which
are designed to provide current income exempt from regular federal income tax, federal alternative
minimum tax and, in state specific funds, state personal income taxes. On January 29, 2010,
shareholders of the Funds approved a modification to each Fund’s 80 percent policy to eliminate the
requirement to invest primarily in insured municipal obligations and to eliminate “Insured” from
each Fund’s name. Under normal market conditions, the Funds are now required to invest at least 80
percent of net assets in municipal obligations rated A or better by Moody’s Investors Service,
Inc., Standard & Poor’s Ratings Group or Fitch Ratings.
Economic and Market Conditions
During the six months ending March 31, 2010, the U.S. economy and the capital markets remained
relatively stable, despite continued high unemployment and concerns over the U.S. budget. The
economy grew at an annualized rate of 5.7% in the fourth quarter of 2009 and an estimated 3.2% in
the first quarter of 2010, according to the U.S. Department of Commerce.
During the six-month
period, the municipal bond market’s performance was relatively flat, with slightly negative returns
in the fourth quarter of 2009 being offset by positive performance of just over 1% in the first
quarter of 2010. For the period, the Barclays Capital Municipal Bond
Index (the Index) — a
broad-based index of municipal bonds — gained 0.28%.1 This performance followed one of
the best calendar year periods for municipals in many years, however. Moreover, economic
fundamentals continued to improve and demand for municipals remained strong.
The significant performance disparities among the municipal market’s segments, which became
historically wide during 2008 and the first three quarters of 2009, began to dissipate during the
six-month period. For the first time in almost two years, we witnessed a period in which there were
not significant differences in muni performance by maturity, credit quality and sector. In the face
of limited tax-exempt supply, due to the success of the Build America Bond program, demand from
municipal investors remained positive during the period, though the gusto with which they purchased
municipal funds waned from 2009 levels. We believe lighter inflows were likely driven by lower
yields, a continuation of credit-related headline “noise” and investor preparation for tax bills in
March and April.
Management Discussion
During the six months ending March 31, 2010, the Funds underperformed their respective benchmark
indices at net asset value.1 Given the combination of our Funds’ objective of providing
tax-exempt income and the municipal yield curve’s historically upward slope, our Funds generally
hold longer-maturity bonds relative to the broad market and many of our competitors. Our bias
toward long maturities was the basis for much of our significant relative outperformance in the
first three quarters of 2009, though it detracted slightly from relative performance during the
six-month period.
Management employed leverage in some of the Funds, through which additional exposure to the
municipal market was achieved. Leverage has the impact of magnifying a Fund’s exposure to its
underlying investments in both up and down markets.
As we move ahead, we recognize that many state and local governments face significant budget
deficits that are driven primarily by a steep decline in tax revenues. We will continue to monitor
any new developments as state and local officials formulate solutions to address these fiscal
problems. As in all environments, we maintain our long-term perspective on the markets against the
backdrop of relatively short periods of market volatility. We will continue to actively manage the
Funds with the same income-focused, relative value approach we have always employed. We believe
that this approach, which is based on credit research and decades of experience in the municipal
market, will serve municipal investors well over the long term.
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.
| 1 | It is not possible to invest directly in an Index. The Indices’ total returns do not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. | |
| Past performance is no guarantee of future results. |
The views expressed throughout this report are those of the portfolio managers and are current only
through the end of the period of the report as stated on the cover. These views are subject to
change at any time based upon market or other conditions, and the investment adviser disclaims any
responsibility to update such views. These views may not be relied on as investment advice and,
because investment decisions for a fund are based on many factors, may not be relied on as an
indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in
the report may not be representative of the Funds’ current or future investments and may change due
to active management.
2
Eaton Vance Municipal Bond Funds as of March 31, 2010
INVESTMENT UPDATE
As of February 19, 2010, Craig R. Brandon became the portfolio manager of Eaton Vance Massachusetts
Municipal Bond Fund and Adam A. Weigold became the portfolio manager of Eaton Vance New Jersey
Municipal Bond Fund. Mr. Brandon is a Vice President of Eaton Vance and manages other Eaton Vance
municipal portfolios. He has been employed by Eaton Vance since 1998. Mr. Weigold is a Vice
President of Eaton Vance and manages other Eaton Vance municipal portfolios. He has been employed
by Eaton Vance since 1998.
A Note Regarding The Use Of Leverage
The Funds employ leverage through the issuance of Auction Preferred Shares (APS) and for certain
funds, the use of residual interest bond (RIB) financing.1 Each Fund’s APS leverage
percentage and RIB percentage leverage, if applicable, as of March 31, 2010, is reflected on the
Fund-specific pages following this letter. The leverage created by APS and RIB investments provides
an opportunity for increased income but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of the common shares).
| 1 | See Note 1H to the Financial Statements for more information on RIB investments. |
3
Eaton Vance Municipal Bond Fund II as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | EIV | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
5.25 | % | ||
One Year |
28.15 | |||
Five Years |
4.64 | |||
Life of Fund (11/29/02) |
6.09 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-2.43 | % | ||
One Year |
30.14 | |||
Five Years |
2.11 | |||
Life of Fund (11/29/02) |
4.47 | |||
Premium/(Discount) to NAV |
11.93 | % | ||
Market Yields
Market Yield2 |
6.99 | % | ||
Taxable-Equivalent Market Yield3 |
10.75 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital Long (22+) Municipal Bond Index | ||||
Six Months |
-0.43 | % | ||
One Year |
17.35 | |||
Five Years |
3.96 | |||
Life of Fund (11/30/02) |
4.96 | |||
Lipper Averages5 (Average Annual Total Returns)
| Lipper General Municipal Debt Funds (Leveraged) Classification (by net asset value) | ||||
Six Months |
0.39 | % | ||
One Year |
25.99 | |||
Five Years |
3.83 | |||
Life of Fund (11/30/02) |
5.19 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
32.5 | % | ||
AA |
35.7 | % | ||
A |
21.3 | % | ||
BBB |
8.5 | % | ||
CCC |
0.5 | % | ||
Not Rated |
1.5 | % |
Fund Statistics7
• Number of Issues: |
105 | |||
• Average Maturity: |
26.1 | years | ||
• Average Effective Maturity: |
16.7 | years | ||
• Average Call Protection: |
9.0 | years | ||
• Average Dollar Price: |
$ | 91.08 | ||
• APS Leverage**: |
20.1 | % | ||
• RIB Leverage**: |
25.8 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper General Municipal Debt Funds (Leveraged) Classification (closed-end) contained 64, 62, 60 and 57 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
4
Eaton Vance California Municipal Bond Fund II as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Cynthia J. Clemson
Performance1
| NYSE Amex Symbol | EIA | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
0.90 | % | ||
One Year |
25.89 | |||
Five Years |
2.25 | |||
Life of Fund (11/29/02) |
4.02 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-4.78 | % | ||
One Year |
25.30 | |||
Five Years |
2.00 | |||
Life of Fund (11/29/02) |
3.69 | |||
Premium/(Discount) to NAV |
2.36 | % | ||
Market Yields
Market Yield2 |
7.08 | % | ||
Taxable-Equivalent Market Yield3 |
12.18 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper California Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
-1.07 | % | ||
One Year |
22.22 | % | ||
Five Years |
3.03 | |||
Life of Fund (11/30/02) |
4.44 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
26.6 | % | ||
AA |
42.8 | % | ||
A |
26.8 | % | ||
BBB |
2.5 | % | ||
Not Rated |
1.3 | % |
Fund Statistics7
• Number of Issues: |
64 | |||
• Average Maturity: |
22.9 | years | ||
• Average Effective Maturity: |
15.2 | years | ||
• Average Call Protection: |
6.8 | years | ||
• Average Dollar Price: |
$ | 86.08 | ||
• APS Leverage**: |
31.6 | % | ||
• RIB Leverage**: |
11.8 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 41.86% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification (closed-end) contained 25, 24, 24 and 24 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
5
Eaton Vance Massachusetts Municipal Bond Fund as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Craig R. Brandon, CFA
Performance1
| NYSE Amex Symbol | MAB | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
-3.66 | % | ||
One Year |
29.09 | |||
Five Years |
2.37 | |||
Life of Fund (11/29/02) |
5.82 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-2.82 | % | ||
One Year |
22.97 | |||
Five Years |
3.84 | |||
Life of Fund (11/29/02) |
5.37 | |||
Premium/(Discount) to NAV |
3.13 | % | ||
Market Yields
Market Yield2 |
5.89 | % | ||
Taxable-Equivalent Market Yield3 |
9.57 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Other States Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
0.52 | % | ||
One Year |
19.03 | |||
Five Years |
4.28 | |||
Life of Fund (11/30/02) |
5.35 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
29.6 | % | ||
AA
|
30.4 | % | ||
A
|
28.0 | % | ||
BBB
|
2.8 | % | ||
Not Rated
|
9.2 | % |
Fund Statistics7
• Number of Issues: |
48 | |||
• Average Maturity: |
25.3 | years | ||
• Average Effective Maturity: |
16.1 | years | ||
• Average Call Protection: |
11.4 | years | ||
• Average Dollar Price: |
$ | 101.99 | ||
• APS Leverage**: |
33.6 | % | ||
• RIB Leverage**: |
6.1 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 45, 45, 45 and 45 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
6
Eaton Vance Michigan Municipal Bond Fund as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | MIW | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
5.20 | % | ||
One Year |
40.59 | |||
Five Years |
2.45 | |||
Life of Fund (11/29/02) |
5.73 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-1.94 | % | ||
One Year |
21.16 | |||
Five Years |
4.61 | |||
Life of Fund (11/29/02) |
5.56 | |||
Premium/(Discount) to NAV |
1.24 | % | ||
Market Yields
Market Yield2 |
6.21 | % | ||
Taxable-Equivalent Market Yield3 |
9.99 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Michigan Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
-1.02 | % | ||
One Year |
17.82 | |||
Five Years |
3.84 | |||
Life of Fund (11/30/02) |
5.06 | |||
Rating Distribution*6
By total investments
| * | There were no special purpose vehicles in which the Fund held a residual interest as of 3/31/10. |
Fund Statistics
• Number of Issues: |
40 | |||
• Average Maturity: |
20.4 | years | ||
• Average Effective Maturity: |
10.9 | years | ||
• Average Call Protection: |
6.0 | years | ||
• Average Dollar Price: |
$ | 92.12 | ||
• APS Leverage**: |
38.7 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding, which is a form of investment leverage. Use of leverage creates an opportunity for income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification (closed-end) contained 5, 5, 5 and 5 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. |
7
Eaton Vance New Jersey Municipal Bond Fund as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Adam A. Weigold, CFA
Performance1
| NYSE Amex Symbol | EMJ | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
7.67 | % | ||
One Year |
36.38 | |||
Five Years |
6.60 | |||
Life of Fund (11/29/02) |
7.54 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-2.95 | % | ||
One Year |
27.51 | |||
Five Years |
4.38 | |||
Life of Fund (11/29/02) |
5.92 | |||
Premium/(Discount) to NAV |
11.79 | % | ||
Market Yields
Market Yield2 |
5.99 | % | ||
Taxable-Equivalent Market Yield3 |
10.33 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper New Jersey Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
-0.07 | % | ||
One Year |
23.90 | |||
Five Years |
4.18 | |||
Life of Fund (11/30/02) |
5.56 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
29.0 | % | ||
AA |
43.3 | % | ||
A |
19.2 | % | ||
BBB |
8.5 | % |
Fund Statistics7
• Number of Issues: |
62 | |||
• Average Maturity: |
22.3 | years | ||
• Average Effective Maturity: |
14.3 | years | ||
• Average Call Protection: |
10.5 | years | ||
• Average Dollar Price: |
$ | 88.68 | ||
• APS Leverage**: |
31.9 | % | ||
• RIB Leverage**: |
10.3 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 41.99% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification (closed-end) contained 12, 11, 11 and 11 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
8
Eaton Vance New York Municipal Bond Fund II as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Craig R. Brandon, CFA
Performance1
| NYSE Amex Symbol | NYH | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
5.56 | % | ||
One Year |
35.43 | |||
Five Years |
5.59 | |||
Life of Fund (11/29/02) |
6.31 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-1.74 | % | ||
One Year |
29.22 | |||
Five Years |
3.43 | |||
Life of Fund (11/29/02) |
5.29 | |||
Premium/(Discount) to NAV |
7.34 | % | ||
Market Yields
Market Yield2 |
6.35 | % | ||
Taxable-Equivalent Market Yield3 |
10.73 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper New York Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
1.02 | % | ||
One Year |
22.22 | |||
Five Years |
3.51 | |||
Life of Fund (11/30/02) |
4.92 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
23.2 | % | ||
AA |
42.1 | % | ||
A |
23.8 | % | ||
BBB |
8.5 | % | ||
Not Rated |
2.4 | % |
Fund Statistics7
• Number of Issues: |
72 | |||
• Average Maturity: |
23.4 | years | ||
• Average Effective Maturity: |
13.7 | years | ||
• Average Call Protection: |
8.7 | years | ||
• Average Dollar Price: |
$ | 94.43 | ||
• APS Leverage**: |
23.0 | % | ||
• RIB Leverage**: |
19.6 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Municipal Debt Funds Classification (closed-end) contained 19, 18, 18 and 19 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
9
Eaton Vance Ohio Municipal Bond Fund as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | EIO | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
4.53 | % | ||
One Year |
34.72 | |||
Five Years |
3.15 | |||
Life of Fund (11/29/02) |
4.77 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-1.71 | % | ||
One Year |
27.96 | |||
Five Years |
1.94 | |||
Life of Fund (11/29/02) |
3.61 | |||
Premium/(Discount) to NAV |
8.56 | % | ||
Market Yields
Market Yield2 |
5.74 | % | ||
Taxable-Equivalent Market Yield3 |
9.42 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Other States Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
0.52 | % | ||
One Year |
19.03 | |||
Five Years |
4.28 | |||
Life of Fund (11/30/02) |
5.35 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
37.5 | % | ||
AA |
20.8 | % | ||
A |
32.2 | % | ||
BBB |
3.6 | % | ||
Not Rated |
5.9 | % |
Fund Statistics7
• Number of Issues: |
55 | |||
• Average Maturity: |
22.0 | years | ||
• Average Effective Maturity: |
13.5 | years | ||
• Average Call Protection: |
8.4 | years | ||
• Average Dollar Price: |
$ | 89.03 | ||
• APS Leverage**: |
33.6 | % | ||
• RIB Leverage**: |
4.6 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect the effect of RIBs purchased in secondary market transactions. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 39.06% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed-end) contained 45, 45, 45 and 45 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
10
Eaton Vance Pennsylvania Municipal Bond Fund as of March 31, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Adam A. Weigold, CFA
Performance1
| NYSE Amex Symbol | EIP | |||
| Average Annual Total Returns (by market price) | ||||
Six Months |
-2.79 | % | ||
One Year |
28.46 | |||
Five Years |
4.84 | |||
Life of Fund (11/29/02) |
6.03 | |||
| Average Annual Total Returns (by net asset value) | ||||
Six Months |
-4.28 | % | ||
One Year |
26.06 | |||
Five Years |
4.16 | |||
Life of Fund (11/29/02) |
5.10 | |||
Premium/(Discount) to NAV |
6.67 | % | ||
Market Yields
Market Yield2 |
6.13 | % | ||
Taxable-Equivalent Market Yield3 |
9.73 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
Six Months |
0.28 | % | -0.43 | % | ||||
One Year |
9.69 | 17.35 | ||||||
Five Years |
4.58 | 3.96 | ||||||
Life of Fund (11/30/02) |
4.75 | 4.96 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value) | ||||
Six Months |
0.01 | % | ||
One Year |
22.40 | % | ||
Five Years |
3.81 | |||
Life of Fund (11/30/02) |
5.00 | |||
Rating Distribution*6
By total investments
| * | The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution as of 3/31/10 is as follows: |
AAA |
23.0 | % | ||
AA |
27.2 | % | ||
A |
32.4 | % | ||
BBB |
3.5 | % | ||
Not Rated |
13.9 | % |
Fund Statistics7
• Number of Issues: |
62 | |||
• Average Maturity: |
22.2 | years | ||
• Average Effective Maturity: |
14.4 | years | ||
• Average Call Protection: |
8.9 | years | ||
• Average Dollar Price: |
$ | 91.99 | ||
• APS Leverage**: |
34.7 | % | ||
• RIB Leverage**: |
4.6 | % | ||
Past performance is no guarantee of future results.
Returns are historical and are calculated by
determining the percentage change in net asset value or
market price (as applicable) with all distributions
reinvested. 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,
the Fund’s current performance may be lower or higher
than the quoted return. Fund performance during certain
periods reflects the strong bond market performance
and/or the strong performance of bonds held during
those periods. This performance is not typical and may
not be repeated. Bond values decline as interest rates
rise. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and RIB Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding as of 3/31/10 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Six-month returns are cumulative. Other returns are presented on an average annual basis. Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the last regular dividend per common share in the period (annualized) by the market price at the end of the period. 3 Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. 4 It is not possible to invest directly in an Index. The Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. Index performance is available as of month end only. 5 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification (closed-end) contained 9, 8, 8 and 8 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only. 6 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency 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. If securities are rated differently by the rating agencies, the higher rating is applied. 7 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. |
11
Eaton Vance
Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 183.9% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 0.6% | ||||||||||
| $ | 1,600 | Sabine River Authority, TX, (TXU Energy Co. LLC), 5.20%, 5/1/28 | $ | 771,888 | ||||||
| $ | 771,888 | |||||||||
| General Obligations — 3.0% | ||||||||||
| $ | 3,500 | New York, NY, 5.25%, 1/15/33(1) | $ | 3,586,100 | ||||||
| $ | 3,586,100 | |||||||||
| Hospital — 5.5% | ||||||||||
| $ | 60 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/25 | $ | 53,603 | ||||||
| 900 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35 | 741,249 | ||||||||
| 750 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27 | 677,497 | ||||||||
| 500 | Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33 | 500,100 | ||||||||
| 1,285 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36 | 1,288,482 | ||||||||
| 1,850 | Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38 | 334,961 | ||||||||
| 5,000 | Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39 | 852,200 | ||||||||
| 960 | Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 | 953,693 | ||||||||
| 1,440 | Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38 | 1,258,258 | ||||||||
| $ | 6,660,043 | |||||||||
| Industrial Development Revenue — 7.7% | ||||||||||
| $ | 4,750 | Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1) | $ | 4,810,382 | ||||||
| 4,790 | St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37 | 4,517,257 | ||||||||
| $ | 9,327,639 | |||||||||
| Insured-Electric Utilities — 11.9% | ||||||||||
| $ | 1,000 | American Municipal Power-Ohio, Inc., OH, (Prairie State Energy), (AGC), 5.75%, 2/15/39 | $ | 1,061,240 | ||||||
| 12,430 | Chelan County, WA, Public Utility District No. 1, (Columbia River), (NPFG), 0.00%, 6/1/23 | 6,514,190 | ||||||||
| 2,900 | JEA, FL, Electric System Revenue, (AGM), 5.00%, 10/1/34 | 2,900,696 | ||||||||
| 2,400 | Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41 | 2,173,104 | ||||||||
| 1,595 | South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38 | 1,728,996 | ||||||||
| $ | 14,378,226 | |||||||||
| Insured-Escrowed / Prerefunded — 0.1% | ||||||||||
| $ | 35 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36 | $ | 41,085 | ||||||
| 82 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36(1) | 95,691 | ||||||||
| $ | 136,776 | |||||||||
| Insured-General Obligations — 19.6% | ||||||||||
| $ | 2,300 | Butler County, KS, Unified School District No. 394, (AGM), 3.50%, 9/1/24 | $ | 2,251,930 | ||||||
| 12,165 | Chabot-Las Positas, CA, Community College District, (AMBAC), 0.00%, 8/1/43 | 1,311,995 | ||||||||
| 17,000 | Coast Community College District, CA, (Election of 2002), (AGM), 0.00%, 8/1/33 | 3,856,280 | ||||||||
| 2,765 | District of Columbia, (FGIC), (NPFG), 4.75%, 6/1/33 | 2,779,848 | ||||||||
| 1,500 | Goodyear, AZ, (NPFG), 3.00%, 7/1/26 | 1,318,680 | ||||||||
| 2,000 | Los Angeles, CA, Unified School District, (AGC), 5.00%, 1/1/34 | 2,023,480 | ||||||||
| 2,750 | Palm Springs, CA, Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33 | 2,830,438 | ||||||||
| 1,250 | Philadelphia, PA, (AGC), 7.00%, 7/15/28 | 1,433,400 | ||||||||
| 5,500 | Washington, (AGM), 5.00%, 7/1/25(1) | 5,860,305 | ||||||||
| $ | 23,666,356 | |||||||||
| Insured-Hospital — 27.8% | ||||||||||
| $ | 1,750 | Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32 | $ | 1,820,088 | ||||||
| 1,500 | California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1) | 1,508,055 | ||||||||
| 1,695 | Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.125%, 11/15/39 | 1,764,275 | ||||||||
| 450 | Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44 | 468,036 | ||||||||
| 2,200 | Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1) | 2,207,128 | ||||||||
| 3,418 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1) | 3,491,055 | ||||||||
| 1,485 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36 | 1,516,527 | ||||||||
12
Eaton Vance
Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Hospital (continued)
|
||||||||||
| $ | 1,490 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35 | $ | 1,450,038 | ||||||
| 2,500 | Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1) | 2,500,174 | ||||||||
| 2,500 | Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1) | 2,551,025 | ||||||||
| 2,090 | Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32 | 2,153,306 | ||||||||
| 1,000 | New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1) | 1,025,510 | ||||||||
| 1,385 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38 | 1,394,196 | ||||||||
| 500 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1) | 503,320 | ||||||||
| 2,245 | New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38 | 2,364,524 | ||||||||
| 2,750 | New York Dormitory Authority, (Health Quest Systems), (AGC), 5.125%, 7/1/37(1) | 2,809,042 | ||||||||
| 1,545 | Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), 6.00%, 8/15/39 | 1,644,390 | ||||||||
| 2,300 | Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33 | 2,375,923 | ||||||||
| $ | 33,546,612 | |||||||||
| Insured-Industrial Development Revenue — 1.1% | ||||||||||
| $ | 1,340 | Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania Inc. Project), (BHAC), 5.00%, 10/1/39 | $ | 1,375,684 | ||||||
| $ | 1,375,684 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 9.1% | ||||||||||
| $ | 1,000 | Essex County, NJ, Improvement Authority, (NPFG), 5.50%, 10/1/30 | $ | 1,121,480 | ||||||
| 4,600 | Hudson Yards Infrastructure Corp., NY, (NPFG), 4.50%, 2/15/47 | 3,987,740 | ||||||||
| 875 | New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34 | 953,435 | ||||||||
| 3,250 | San Diego County, CA, Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1) | 3,308,240 | ||||||||
| 1,500 | Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1) | 1,565,415 | ||||||||
| $ | 10,936,310 | |||||||||
|
Insured-Other
Revenue — 3.1%
|
||||||||||
| $ | 2,540 | Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34 | $ | 467,893 | ||||||
| 2,185 | Massachusetts Development Finance Agency, (100 Cambridge Street Redevelopment), (NPFG), 5.125%, 2/1/34 | 2,110,492 | ||||||||
| 1,000 | New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49 | 1,151,430 | ||||||||
| $ | 3,729,815 | |||||||||
| Insured-Private Education — 5.4% | ||||||||||
| $ | 2,000 | Massachusetts Development Finance Agency, (Boston University), (AMBAC), (BHAC), 5.00%, 10/1/35 | $ | 2,045,320 | ||||||
| 2,500 | Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 | 2,798,125 | ||||||||
| 1,555 | Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31 | 1,597,483 | ||||||||
| $ | 6,440,928 | |||||||||
| Insured-Public Education — 3.3% | ||||||||||
| $ | 3,900 | University of South Alabama, (BHAC), 5.00%, 8/1/38 | $ | 4,012,164 | ||||||
| $ | 4,012,164 | |||||||||
| Insured-Solid Waste — 1.0% | ||||||||||
| $ | 740 | Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24 | $ | 795,892 | ||||||
| 425 | Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26 | 452,438 | ||||||||
| $ | 1,248,330 | |||||||||
| Insured-Special Tax Revenue — 13.4% | ||||||||||
| $ | 5,350 | Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 0.00%, 12/15/34 | $ | 1,221,138 | ||||||
| 4,000 | Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 5.25%, 6/15/42(2) | 4,045,480 | ||||||||
| 3,000 | Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 0.00%, 10/1/39 | 1,811,130 | ||||||||
| 2,500 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45 | 2,352,925 | ||||||||
| 2,060 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44 | 2,023,270 | ||||||||
| 29,695 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 1,770,119 | ||||||||
| 6,075 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 740,239 | ||||||||
13
Eaton Vance
Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Special
Tax Revenue (continued)
|
||||||||||
| $ | 12,035 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | $ | 1,362,723 | ||||||
| 7,595 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 795,880 | ||||||||
| $ | 16,122,904 | |||||||||
| Insured-Student Loan — 2.1% | ||||||||||
| $ | 2,395 | Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27 | $ | 2,489,531 | ||||||
| $ | 2,489,531 | |||||||||
| Insured-Transportation — 28.4% | ||||||||||
| $ | 1,585 | Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39 | $ | 1,605,383 | ||||||
| 7,800 | E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22 | 3,627,000 | ||||||||
| 1,305 | Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30 | 1,319,107 | ||||||||
| 10,000 | Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1) | 10,527,400 | ||||||||
| 1,000 | Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/24 | 1,082,910 | ||||||||
| 535 | Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/29 | 560,974 | ||||||||
| 4,260 | Minneapolis and St. Paul, MN, Metropolitan Airports Commission, (FGIC), (NPFG), 4.50%, 1/1/32 | 4,184,300 | ||||||||
| 13,885 | Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20 | 2,463,893 | ||||||||
| 1,040 | New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38 | 1,130,542 | ||||||||
| 255 | North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29 | 272,116 | ||||||||
| 290 | North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39 | 308,833 | ||||||||
| 1,750 | North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48 | 1,847,702 | ||||||||
| 5,555 | Texas Turnpike Authority, (Central Texas Turnpike System), (AMBAC), 5.00%, 8/15/42 | 5,281,583 | ||||||||
| $ | 34,211,743 | |||||||||
| Insured-Water and Sewer — 14.9% | ||||||||||
| $ | 1,490 | Atlanta, GA, Water and Wastewater, (NPFG), 5.00%, 11/1/39 | $ | 1,434,304 | ||||||
| 670 | Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26 | 725,831 | ||||||||
| 420 | Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27 | 452,806 | ||||||||
| 660 | Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38 | 703,791 | ||||||||
| 1,910 | Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38 | 2,027,255 | ||||||||
| 1,250 | District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1) | 1,269,900 | ||||||||
| 435 | Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33 | 449,446 | ||||||||
| 2,205 | New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40 | 2,488,960 | ||||||||
| 10,145 | Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31 | 8,368,205 | ||||||||
| $ | 17,920,498 | |||||||||
| Insured-Water Revenue — 21.6% | ||||||||||
| $ | 7,000 | Contra Costa, CA, Water District, (AGM), 5.00%, 10/1/32(1) | $ | 7,090,031 | ||||||
| 5,500 | Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1) | 5,533,880 | ||||||||
| 1,000 | Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35 | 1,120,760 | ||||||||
| 6,110 | Massachusetts Water Resources Authority, (AMBAC), 4.00%, 8/1/40 | 5,395,069 | ||||||||
| 6,750 | Metropolitan Water District, CA, Water and Sewer Systems, (BHAC), (FGIC), 5.00%, 10/1/36(1) | 6,881,153 | ||||||||
| $ | 26,020,893 | |||||||||
| Private Education — 1.3% | ||||||||||
| $ | 1,000 | Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36 | $ | 1,112,670 | ||||||
| 440 | New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40 | 465,168 | ||||||||
| $ | 1,577,838 | |||||||||
| Public Education — 1.3% | ||||||||||
| $ | 1,500 | University of Virginia, 5.00%, 6/1/40(3) | $ | 1,581,615 | ||||||
| $ | 1,581,615 | |||||||||
| Transportation — 0.8% | ||||||||||
| $ | 420 | Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/35 | $ | 426,367 | ||||||
| 505 | Orlando-Orange County, FL, Expressway Authority, 5.00%, 7/1/40 | 511,429 | ||||||||
| $ | 937,796 | |||||||||
14
Eaton Vance
Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Water and Sewer — 0.9% | ||||||||||
| $ | 205 | Marco Island, FL, Utility System, 5.00%, 10/1/34(4) | $ | 205,000 | ||||||
| 910 | Marco Island, FL, Utility System, 5.00%, 10/1/40(4) | 907,170 | ||||||||
| $ | 1,112,170 | |||||||||
|
Total
Tax-Exempt Investments — 183.9%
|
||||||||||
|
(identified
cost $230,365,667)
|
$ | 221,791,859 | ||||||||
| Short-Term Investments — 1.4% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| $ | 1,694 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 1,694,494 | ||||||
|
Total
Short-Term Investments — 1.4%
|
||||||||||
|
(identified
cost $1,694,494)
|
$ | 1,694,494 | ||||||||
|
Total
Investments — 185.3%
|
||||||||||
|
(identified
cost $232,060,161)
|
$ | 223,486,353 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(37.1)%
|
$ | (44,703,356 | ) | |||||||
|
Other
Assets, Less Liabilities — (48.2)%
|
$ | (58,166,574 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 120,616,423 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
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.
At March 31, 2010, the concentration of the Fund’s
investments in the various states, determined as a percentage of
total investments, is as follows:
|
California
|
15.4% | |||
|
New York
|
10.6% | |||
|
Others, representing less than 10% individually
|
74.0% |
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, 2010, 87.8% 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 ranged from 2.2% to 22.6% of
total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been segregated to cover payable for when-issued securities. | |
| (3) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. | |
| (4) | When-issued security. |
15
Eaton Vance
California Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 176.5% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 1.5% | ||||||||||
| $ | 675 | Vernon, Electric System Revenue, 5.125%, 8/1/21 | $ | 700,718 | ||||||
| $ | 700,718 | |||||||||
| Hospital — 15.1% | ||||||||||
| $ | 1,330 | California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32 | $ | 1,353,115 | ||||||
| 1,445 | California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34 | 1,393,384 | ||||||||
| 1,475 | California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35 | 1,386,338 | ||||||||
| 500 | California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36 | 476,745 | ||||||||
| 1,900 | California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45 | 1,835,096 | ||||||||
| 555 | Washington Township Health Care District, 5.00%, 7/1/32 | 506,965 | ||||||||
| $ | 6,951,643 | |||||||||
| Insured-Electric Utilities — 9.0% | ||||||||||
| $ | 1,475 | Glendale Electric, (NPFG), 5.00%, 2/1/32 | $ | 1,485,355 | ||||||
| 1,500 | Los Angeles Department of Water and Power, (AMBAC), (BHAC), 5.00%, 7/1/26(1) | 1,587,210 | ||||||||
| 1,000 | Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27 | 1,057,380 | ||||||||
| $ | 4,129,945 | |||||||||
| Insured-Escrowed / Prerefunded — 8.3% | ||||||||||
| $ | 1,025 | California Infrastructure & Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36 | $ | 1,189,195 | ||||||
| 3,130 | Clovis Unified School District, (FGIC), (NPFG), Escrowed to Maturity, 0.00%, 8/1/20 | 2,173,409 | ||||||||
| 395 | Orange County Water District, Certificates of Participation, (NPFG), Escrowed to Maturity, 5.00%, 8/15/34 | 437,245 | ||||||||
| $ | 3,799,849 | |||||||||
| Insured-General Obligations — 46.2% | ||||||||||
| $ | 740 | Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39 | $ | 758,034 | ||||||
| 7,125 | Arcadia Unified School District, (AGM), 0.00%, 8/1/38 | 1,186,170 | ||||||||
| 3,115 | Arcadia Unified School District, (AGM), 0.00%, 8/1/40 | 456,534 | ||||||||
| 3,270 | Arcadia Unified School District, (AGM), 0.00%, 8/1/41 | 446,192 | ||||||||
| 1,500 | Carlsbad Unified School District, (Election of 2006), (NPFG), 5.25%, 8/1/32 | 1,586,790 | ||||||||
| 19,350 | Chabot-Las Positas Community College District, (AMBAC), 0.00%, 8/1/43 | 2,086,897 | ||||||||
| 6,675 | Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35 | 1,319,380 | ||||||||
| 1,080 | El Camino Hospital District, (NPFG), 4.45%, 8/1/36 | 999,454 | ||||||||
| 2,350 | Long Beach Unified School District, (Election of 1999), (AGM), 5.00%, 8/1/31 | 2,359,165 | ||||||||
| 2,075 | Los Angeles Community College District, (Election of 2001), (AGM), (FGIC), 5.00%, 8/1/32 | 2,106,664 | ||||||||
| 1,000 | Mount Diablo Unified School District, (AGM), 5.00%, 8/1/25 | 1,024,050 | ||||||||
| 1,250 | Palm Springs Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33 | 1,286,563 | ||||||||
| 4,300 | San Mateo County Community College District, (Election of 2001), (FGIC), (NPFG), 0.00%, 9/1/21 | 2,432,467 | ||||||||
| 1,600 | Santa Clara Unified School District, (Election of 2004), (AGM), 4.375%, 7/1/30 | 1,530,432 | ||||||||
| 3,200 | Union Elementary School District, (FGIC), (NPFG), 0.00%, 9/1/22 | 1,676,832 | ||||||||
| $ | 21,255,624 | |||||||||
| Insured-Hospital — 6.6% | ||||||||||
| $ | 1,250 | California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1) | $ | 1,254,388 | ||||||
| 1,750 | California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1) | 1,759,397 | ||||||||
| $ | 3,013,785 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 16.6% | ||||||||||
| $ | 3,520 | California Public Works Board, (Department of General Services), (AMBAC), 5.00%, 12/1/27 | $ | 3,280,992 | ||||||
| 1,250 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,501,075 | ||||||||
| 1,750 | San Diego County Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1) | 1,781,360 | ||||||||
| 1,075 | San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 | 1,080,181 | ||||||||
| $ | 7,643,608 | |||||||||
| Insured-Private Education — 1.7% | ||||||||||
| $ | 785 | California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32 | $ | 784,945 | ||||||
| $ | 784,945 | |||||||||
| Insured-Public Education — 13.2% | ||||||||||
| $ | 2,000 | California State University, (AGM), (BHAC), 5.00%, 11/1/39(1) | $ | 2,048,000 | ||||||
| 4,000 | California State University, (AMBAC), 5.00%, 11/1/33(2) | 4,023,880 | ||||||||
| $ | 6,071,880 | |||||||||
16
Eaton Vance
California Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Special Assessment Revenue — 17.1% | ||||||||||
| $ | 2,500 | Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG), 5.00%, 8/1/33 | $ | 2,251,700 | ||||||
| 2,500 | Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (NPFG), 5.00%, 8/1/33 | 2,251,700 | ||||||||
| 1,000 | Irvine Public Facility and Infrastructure Authority, (AMBAC), 5.00%, 9/2/26 | 924,940 | ||||||||
| 1,795 | Los Osos Community Services District, (Wastewater Assessment District No. 1), (NPFG), 5.00%, 9/2/33 | 1,568,632 | ||||||||
| 945 | Murrieta Redevelopment Agency Tax, (NPFG), 5.00%, 8/1/32 | 850,935 | ||||||||
| $ | 7,847,907 | |||||||||
| Insured-Special Tax Revenue — 12.0% | ||||||||||
| $ | 2,195 | Hesperia Public Financing Authority, (Redevelopment and Housing Projects), (XLCA), 5.00%, 9/1/37 | $ | 1,792,832 | ||||||
| 11,485 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 684,621 | ||||||||
| 2,320 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 282,692 | ||||||||
| 4,600 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 520,858 | ||||||||
| 2,905 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 304,415 | ||||||||
| 245 | Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28 | 270,703 | ||||||||
| 375 | Sacramento Area Flood Control Agency, (BHAC), 5.625%, 10/1/37 | 408,671 | ||||||||
| 260 | San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31 | 264,521 | ||||||||
| 985 | San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36 | 1,001,716 | ||||||||
| $ | 5,531,029 | |||||||||
| Insured-Transportation — 2.0% | ||||||||||
| $ | 3,520 | San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27 | $ | 904,464 | ||||||
| $ | 904,464 | |||||||||
| Insured-Utilities — 3.0% | ||||||||||
| $ | 1,390 | Los Angeles Department of Water and Power, (FGIC), (NPFG), 5.125%, 7/1/41 | $ | 1,397,937 | ||||||
| $ | 1,397,937 | |||||||||
| Insured-Water Revenue — 18.2% | ||||||||||
| $ | 1,235 | Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37 | $ | 1,238,890 | ||||||
| 2,500 | Contra Costa Water District, (AGM), 5.00%, 10/1/32(1) | 2,532,264 | ||||||||
| 100 | East Bay Municipal Utility District, Water System Revenue, (AGM), (FGIC), 5.00%, 6/1/32 | 104,933 | ||||||||
| 1,430 | East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32 | 1,500,542 | ||||||||
| 1,500 | Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30 | 1,160,070 | ||||||||
| 445 | Riverside, Water Revenue, (AGM), 5.00%, 10/1/38 | 454,265 | ||||||||
| 1,475 | Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28 | 1,350,658 | ||||||||
| $ | 8,341,622 | |||||||||
| Private Education — 3.6% | ||||||||||
| $ | 750 | California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39 | $ | 768,638 | ||||||
| 380 | California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30 | 380,000 | ||||||||
| 500 | California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(3) | 500,920 | ||||||||
| $ | 1,649,558 | |||||||||
| Transportation — 2.4% | ||||||||||
| $ | 1,075 | Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(4) | $ | 1,097,210 | ||||||
| $ | 1,097,210 | |||||||||
|
Total
Tax-Exempt Investments — 176.5%
|
||||||||||
|
(identified
cost $85,917,520)
|
$ | 81,121,724 | ||||||||
| Short-Term Investments — 1.2% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 561 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 561,395 | ||||||
|
Total
Short-Term Investments — 1.2%
|
||||||||||
|
(identified
cost $561,395)
|
$ | 561,395 | ||||||||
|
Total
Investments — 177.7%
|
||||||||||
|
(identified
cost $86,478,915)
|
$ | 81,683,119 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(55.9)%
|
$ | (25,702,251 | ) | |||||||
|
Other
Assets, Less Liabilities — (21.8)%
|
$ | (10,003,524 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 45,977,344 | ||||||||
17
Eaton Vance
California Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
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.
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, 2010, 86.6% 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 ranged
from 1.6% to 30.0% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been segregated to cover payable for when-issued securities. | |
| (3) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. | |
| (4) | When-issued security. |
18
Eaton Vance
Massachusetts Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 168.6% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Escrowed / Prerefunded — 5.2% | ||||||||||
| $ | 500 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), Prefunded to 7/31/13, 5.75%, 7/1/33 | $ | 575,625 | ||||||
| 600 | Massachusetts Development Finance Agency, (Western New England College), Prefunded to 12/1/12, 6.125%, 12/1/32 | 684,630 | ||||||||
| $ | 1,260,255 | |||||||||
| Hospital — 4.7% | ||||||||||
| $ | 775 | Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37 | $ | 781,456 | ||||||
| 370 | Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29 | 370,181 | ||||||||
| $ | 1,151,637 | |||||||||
| Insured-Electric Utilities — 4.8% | ||||||||||
| $ | 1,095 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23 | $ | 1,158,258 | ||||||
| $ | 1,158,258 | |||||||||
| Insured-Escrowed / Prerefunded — 6.0% | ||||||||||
| $ | 2,900 | Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26 | $ | 1,469,894 | ||||||
| $ | 1,469,894 | |||||||||
| Insured-General Obligations — 18.3% | ||||||||||
| $ | 1,900 | Massachusetts, (AMBAC), 5.50%, 8/1/30 | $ | 2,235,388 | ||||||
| 910 | Milford, (AGM), 4.25%, 12/15/46 | 878,459 | ||||||||
| 1,000 | Revere, (AGC), 5.00%, 4/1/39 | 1,029,210 | ||||||||
| 300 | Tewksbury, (AGM), 4.625%, 3/15/27 | 316,746 | ||||||||
| $ | 4,459,803 | |||||||||
| Insured-Hospital — 2.1% | ||||||||||
| $ | 260 | Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.00%, 11/15/25 | $ | 259,706 | ||||||
| 140 | Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.00%, 11/15/31 | 138,713 | ||||||||
| 125 | Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare, Inc.), (AGC), 5.125%, 11/15/35 | 123,848 | ||||||||
| $ | 522,267 | |||||||||
|
Insured-Lease
Revenue / Certificates of
Participation — 11.1%
|
||||||||||
| $ | 1,000 | Plymouth County Correctional Facility, (AMBAC), 5.00%, 4/1/22 | $ | 1,028,690 | ||||||
| 495 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 482,571 | ||||||||
| 1,000 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,200,860 | ||||||||
| $ | 2,712,121 | |||||||||
| Insured-Other Revenue — 7.6% | ||||||||||
| $ | 470 | Massachusetts Development Finance Agency, (100 Cambridge Street Redevelopment), (NPFG), 5.125%, 2/1/34 | $ | 453,973 | ||||||
| 1,315 | Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42 | 1,401,093 | ||||||||
| $ | 1,855,066 | |||||||||
| Insured-Private Education — 21.2% | ||||||||||
| $ | 1,250 | Massachusetts Development Finance Agency, (Boston College), (NPFG), 5.00%, 7/1/38 | $ | 1,288,213 | ||||||
| 1,105 | Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 | 1,236,771 | ||||||||
| 750 | Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1) | 844,855 | ||||||||
| 750 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), 5.00%, 7/1/35 | 763,800 | ||||||||
| 1,000 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), 5.00%, 7/1/37 | 1,021,880 | ||||||||
| $ | 5,155,519 | |||||||||
| Insured-Public Education — 19.5% | ||||||||||
| $ | 260 | Massachusetts College Building Authority, (AGC), 5.00%, 5/1/33 | $ | 271,315 | ||||||
| 320 | Massachusetts College Building Authority, (AGC), 5.00%, 5/1/38 | 331,498 | ||||||||
| 700 | Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 | 786,464 | ||||||||
| 1,000 | Massachusetts Health and Educational Facilities Authority, (University of Massachusetts), (FGIC), (NPFG), 5.125%, 10/1/34 | 1,005,000 | ||||||||
| 1,250 | Massachusetts Health and Educational Facilities Authority, (Worcester City Campus Corp.), (FGIC), (NPFG), 4.75%, 10/1/36 | 1,218,725 | ||||||||
| 1,150 | Massachusetts Health and Educational Facilities Authority, (Worcester State College), (AMBAC), 5.00%, 11/1/32 | 1,139,201 | ||||||||
| $ | 4,752,203 | |||||||||
19
Eaton Vance
Massachusetts Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Special Tax Revenue — 24.0% | ||||||||||
| $ | 1,225 | Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32 | $ | 1,240,998 | ||||||
| 750 | Massachusetts, Special Obligation, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29 | 849,375 | ||||||||
| 305 | Massachusetts Bay Transportation Authority, Assessment Bonds, (NPFG), 4.00%, 7/1/33 | 287,548 | ||||||||
| 400 | Massachusetts Bay Transportation Authority, Sales Tax Revenue, (NPFG), 5.50%, 7/1/28 | 473,144 | ||||||||
| 2,000 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37 | 2,081,780 | ||||||||
| 5,265 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 313,847 | ||||||||
| 1,725 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 210,191 | ||||||||
| 2,090 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 236,651 | ||||||||
| 1,325 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 138,847 | ||||||||
| $ | 5,832,381 | |||||||||
| Insured-Transportation — 5.3% | ||||||||||
| $ | 1,300 | Massachusetts Turnpike Authority, Metropolitan Highway System, (AMBAC), 5.00%, 1/1/39 | $ | 1,290,094 | ||||||
| $ | 1,290,094 | |||||||||
| Insured-Water Revenue — 10.8% | ||||||||||
| $ | 1,075 | Massachusetts Water Resources Authority, (AGM), 5.00%, 8/1/32(2) | $ | 1,096,382 | ||||||
| 560 | Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/36 | 625,313 | ||||||||
| 975 | Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40 | 915,427 | ||||||||
| $ | 2,637,122 | |||||||||
| Private Education — 21.1% | ||||||||||
| $ | 750 | Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 | $ | 756,525 | ||||||
| 2,000 | Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1) | 2,111,900 | ||||||||
| 750 | Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36 | 834,503 | ||||||||
| 1,350 | Massachusetts Health and Educational Facilities Authority, (Massachusetts Institute of Technology), 5.00%, 7/1/38 | 1,423,291 | ||||||||
| $ | 5,126,219 | |||||||||
|
Special
Tax Revenue — 4.4%
|
||||||||||
| $ | 1,000 | Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.00%, 7/1/35(3) | $ | 1,058,750 | ||||||
| $ | 1,058,750 | |||||||||
| Senior Living / Life Care — 2.5% | ||||||||||
| $ | 745 | Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31 | $ | 607,801 | ||||||
| $ | 607,801 | |||||||||
|
Total
Tax-Exempt Investments — 168.6%
|
||||||||||
|
(identified
cost $40,289,039)
|
$ | 41,049,390 | ||||||||
| Short-Term Investments — 3.3% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 793 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 792,537 | ||||||
|
Total
Short-Term Investments — 3.3%
|
||||||||||
|
(identified
cost $792,537)
|
$ | 792,537 | ||||||||
|
Total
Investments — 171.9%
|
||||||||||
|
(identified
cost $41,081,576)
|
$ | 41,841,927 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(55.8)%
|
$ | (13,576,020 | ) | |||||||
|
Other
Assets, Less Liabilities — (16.1)%
|
$ | (3,922,909 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 24,342,998 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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
20
Eaton Vance
Massachusetts Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
reduce the risk associated with such economic developments, at
March 31, 2010, 76.1% 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 ranged from 1.2% to 32.7% of
total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been segregated to cover payable for when-issued securities. | |
| (3) | When-issued security. |
21
Eaton Vance
Michigan Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 157.8% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 2.9% | ||||||||||
| $ | 620 | Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 | $ | 621,643 | ||||||
| $ | 621,643 | |||||||||
| Escrowed / Prerefunded — 9.9% | ||||||||||
| $ | 400 | Michigan Hospital Finance Authority, (Chelsea Community Hospital), Prerefunded to 5/15/15, 5.00%, 5/15/30 | $ | 460,580 | ||||||
| 1,500 | Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36 | 1,630,320 | ||||||||
| $ | 2,090,900 | |||||||||
| Hospital — 7.7% | ||||||||||
| $ | 1,000 | Michigan Hospital Finance Authority, (Oakwood Hospital System), 5.75%, 4/1/32 | $ | 996,290 | ||||||
| 640 | Michigan Hospital Finance Authority, (Trinity Health), 5.375%, 12/1/30 | 636,397 | ||||||||
| $ | 1,632,687 | |||||||||
| Insured-Electric Utilities — 7.3% | ||||||||||
| $ | 500 | Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 | $ | 499,300 | ||||||
| 1,000 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | 1,049,140 | ||||||||
| $ | 1,548,440 | |||||||||
| Insured-Escrowed / Prerefunded — 42.2% | ||||||||||
| $ | 750 | Detroit School District, (School Bond Loan Fund), (AGM), Prerefunded to 5/1/12, 5.125%, 5/1/31 | $ | 812,565 | ||||||
| 1,250 | Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31 | 1,319,750 | ||||||||
| 1,500 | Lansing Building Authority, (NPFG), Prerefunded to 6/1/13, 5.00%, 6/1/29 | 1,676,325 | ||||||||
| 1,150 | Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 | 1,156,072 | ||||||||
| 1,750 | Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/22 | 1,028,562 | ||||||||
| 2,615 | Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23 | 1,455,117 | ||||||||
| 1,300 | Reed City Public Schools, (AGM), Prerefunded to 5/1/14, 5.00%, 5/1/29 | 1,480,050 | ||||||||
| $ | 8,928,441 | |||||||||
|
Insured-General
Obligations — 22.1%
|
||||||||||
| $ | 1,960 | Grand Rapids and Kent County Joint Building Authority, (DeVos Place), (NPFG), 0.00%, 12/1/27(1) | $ | 839,135 | ||||||
| 750 | Greenville Public Schools, (NPFG), 5.00%, 5/1/25 | 774,338 | ||||||||
| 1,330 | Okemos Public School District, (NPFG), 0.00%, 5/1/19 | 889,344 | ||||||||
| 1,000 | Pinconning Area Schools, (AGM), 5.00%, 5/1/33 | 1,016,050 | ||||||||
| 1,000 | Royal Oak, (AGC), 6.25%, 10/1/28 | 1,149,130 | ||||||||
| $ | 4,667,997 | |||||||||
| Insured-Hospital — 6.5% | ||||||||||
| $ | 500 | Michigan Hospital Finance Authority, (Mid-Michigan Obligation Group), (AMBAC), 5.00%, 4/15/32 | $ | 475,015 | ||||||
| 975 | Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35 | 900,178 | ||||||||
| $ | 1,375,193 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 8.2% | ||||||||||
| $ | 1,000 | Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29 | $ | 336,030 | ||||||
| 3,100 | Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30 | 906,688 | ||||||||
| 495 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 482,571 | ||||||||
| $ | 1,725,289 | |||||||||
| Insured-Public Education — 15.1% | ||||||||||
| $ | 750 | Central Michigan University, (AMBAC), 5.05%, 10/1/32 | $ | 754,777 | ||||||
| 435 | Ferris State University, (AGC), 5.125%, 10/1/33 | 451,539 | ||||||||
| 750 | Lake Superior State University, (AMBAC), 5.125%, 11/15/26 | 750,240 | ||||||||
| 1,200 | Wayne University, (NPFG), 5.00%, 11/15/37 | 1,227,408 | ||||||||
| $ | 3,183,964 | |||||||||
| Insured-Sewer Revenue — 2.0% | ||||||||||
| $ | 500 | Detroit Sewer Disposal System, (NPFG), 4.50%, 7/1/35 | $ | 430,325 | ||||||
| $ | 430,325 | |||||||||
| Insured-Special Tax Revenue — 13.1% | ||||||||||
| $ | 6,100 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | $ | 363,621 | ||||||
| 1,465 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 178,510 | ||||||||
| 1,670 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 189,094 | ||||||||
22
Eaton Vance
Michigan Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Special
Tax Revenue (continued)
|
||||||||||
| $ | 1,115 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | $ | 116,841 | ||||||
| 1,000 | Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (NPFG), 5.00%, 12/1/30 | 913,290 | ||||||||
| 1,000 | Ypsilanti Community Utilities Authority, (Sanitary Sewer System), (FGIC), (NPFG), 5.00%, 5/1/32 | 1,005,850 | ||||||||
| $ | 2,767,206 | |||||||||
| Insured-Utilities — 7.3% | ||||||||||
| $ | 1,000 | Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (AGM), 5.00%, 7/1/25 | $ | 1,025,380 | ||||||
| 510 | Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (AGM), 5.00%, 7/1/26 | 521,465 | ||||||||
| $ | 1,546,845 | |||||||||
| Insured-Water Revenue — 11.5% | ||||||||||
| $ | 1,425 | Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30 | $ | 1,382,521 | ||||||
| 1,000 | Grand Rapids Water Supply System, (AGC), 5.00%, 1/1/29 | 1,043,860 | ||||||||
| $ | 2,426,381 | |||||||||
| Private Education — 2.0% | ||||||||||
| $ | 450 | Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35 | $ | 426,663 | ||||||
| $ | 426,663 | |||||||||
|
Total
Tax-Exempt Investments — 157.8%
|
||||||||||
|
(identified
cost $32,788,239)
|
$ | 33,371,974 | ||||||||
| Short-Term Investments — 3.3% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 699 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 698,907 | ||||||
|
Total
Short-Term Investments — 3.3%
|
||||||||||
|
(identified
cost $698,907)
|
$ | 698,907 | ||||||||
|
Total
Investments — 161.1%
|
||||||||||
|
(identified
cost $33,487,146)
|
$ | 34,070,881 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(63.0)%
|
$ | (13,325,162 | ) | |||||||
|
Other
Assets, Less Liabilities — 1.9%
|
$ | 402,647 | ||||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 21,148,366 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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, 2010, 83.9% 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 ranged from 1.4% to 36.6% of
total investments.
| (1) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
23
Eaton Vance New
Jersey Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 170.3% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 10.0% | ||||||||||
| $ | 180 | Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35 | $ | 148,250 | ||||||
| 1,300 | Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34 | 1,198,691 | ||||||||
| 600 | New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37 | 593,784 | ||||||||
| 250 | New Jersey Health Care Facilities Financing Authority, (Hunterdon Medical Center), 5.125%, 7/1/35 | 238,905 | ||||||||
| 1,425 | New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46 | 1,351,513 | ||||||||
| $ | 3,531,143 | |||||||||
| Insured-Electric Utilities — 3.0% | ||||||||||
| $ | 1,000 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | $ | 1,049,140 | ||||||
| $ | 1,049,140 | |||||||||
| Insured-General Obligations — 39.1% | ||||||||||
| $ | 2,415 | Bayonne, (AGM), 0.00%, 7/1/23 | $ | 1,274,903 | ||||||
| 1,000 | Bayonne, (AGM), 5.50%, 7/1/39 | 1,059,380 | ||||||||
| 320 | Delaware Township, Hunterdon County, (AGC), 5.00%, 10/15/35 | 336,563 | ||||||||
| 340 | Delaware Township, Hunterdon County, (AGC), 5.10%, 10/15/36 | 360,108 | ||||||||
| 360 | Delaware Township, Hunterdon County, (AGC), 5.15%, 10/15/37 | 381,935 | ||||||||
| 382 | Delaware Township, Hunterdon County, (AGC), 5.20%, 10/15/38 | 405,504 | ||||||||
| 1,500 | Egg Harbor Township School District, (AGM), 3.50%, 4/1/28 | 1,380,810 | ||||||||
| 2,000 | Hudson County Improvement Authority, (NPFG), 0.00%, 12/15/38 | 382,120 | ||||||||
| 5,500 | Irvington Township, (AGM), 0.00%, 7/15/26 | 2,568,335 | ||||||||
| 2,590 | Jackson Township School District, (NPFG), 2.50%, 6/15/27 | 2,065,344 | ||||||||
| 1,000 | Jersey City, (AGM), 5.00%, 1/15/29 | 1,054,470 | ||||||||
| 700 | Lakewood Township, (AGC), 5.75%, 11/1/31 | 788,774 | ||||||||
| 1,115 | Monroe Township Board of Education, Middlesex County, (AGC), 4.75%, 3/1/34 | 1,148,706 | ||||||||
| 210 | Nutley School District, (NPFG), 4.75%, 7/15/30 | 217,978 | ||||||||
| 410 | Nutley School District, (NPFG), 4.75%, 7/15/31 | 423,382 | ||||||||
| $ | 13,848,312 | |||||||||
| Insured-Hospital — 18.4% | ||||||||||
| $ | 2,000 | New Jersey Health Care Facilities Financing Authority, (Englewood Hospital), (NPFG), 5.00%, 8/1/31 | $ | 2,008,160 | ||||||
| 2,000 | New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1) | 2,051,020 | ||||||||
| 625 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38 | 629,150 | ||||||||
| 250 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1) | 251,660 | ||||||||
| 1,500 | New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38 | 1,579,860 | ||||||||
| $ | 6,519,850 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 19.2% | ||||||||||
| $ | 1,000 | Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30 | $ | 1,121,480 | ||||||
| 445 | Gloucester County Improvement Authority, (NPFG), 4.75%, 9/1/30 | 457,166 | ||||||||
| 1,250 | Middlesex County, Certificates of Participation, (NPFG), 5.00%, 8/1/31 | 1,262,600 | ||||||||
| 1,300 | New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34 | 1,416,532 | ||||||||
| 500 | New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 9/1/28 | 550,865 | ||||||||
| 495 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 482,571 | ||||||||
| 1,250 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,501,075 | ||||||||
| $ | 6,792,289 | |||||||||
| Insured-Other Revenue — 4.5% | ||||||||||
| $ | 1,500 | Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39 | $ | 1,587,195 | ||||||
| $ | 1,587,195 | |||||||||
| Insured-Public Education — 14.4% | ||||||||||
| $ | 1,945 | New Jersey Educational Facilities Authority, (College of New Jersey), (AGM), 5.00%, 7/1/35(1) | $ | 2,005,871 | ||||||
| 500 | New Jersey Educational Facilities Authority, (Montclair State University), (NPFG), 3.75%, 7/1/24 | 468,870 | ||||||||
| 1,000 | New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/27 | 816,070 | ||||||||
| 465 | New Jersey Educational Facilities Authority, (Rowan University), (AGM), (FGIC), 3.00%, 7/1/28 | 370,795 | ||||||||
| 1,145 | New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 4.75%, 7/1/34 | 1,146,855 | ||||||||
| 275 | New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 5.00%, 7/1/38 | 281,702 | ||||||||
| $ | 5,090,163 | |||||||||
24
Eaton Vance New
Jersey Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Sewer Revenue — 2.1% | ||||||||||
| $ | 1,975 | Rahway Valley Sewerage Authority, (NPFG), 0.00%, 9/1/27 | $ | 741,454 | ||||||
| $ | 741,454 | |||||||||
| Insured-Special Tax Revenue — 13.7% | ||||||||||
| $ | 1,000 | Garden State Preservation Trust, (AGM), 0.00%, 11/1/21 | $ | 615,990 | ||||||
| 500 | Garden State Preservation Trust, (AGM), 5.80%, 11/1/21 | 578,085 | ||||||||
| 1,000 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27 | 1,031,170 | ||||||||
| 2,390 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26 | 1,011,830 | ||||||||
| 1,120 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27 | 444,472 | ||||||||
| 7,675 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 457,507 | ||||||||
| 1,520 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 185,212 | ||||||||
| 3,005 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 340,256 | ||||||||
| 1,900 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 199,101 | ||||||||
| $ | 4,863,623 | |||||||||
| Insured-Transportation — 24.0% | ||||||||||
| $ | 1,560 | New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), (BHAC), 0.00%, 12/15/26 | $ | 670,301 | ||||||
| 3,235 | New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31 | 992,563 | ||||||||
| 1,500 | New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29 | 1,734,780 | ||||||||
| 3,875 | Port Authority of New York and New Jersey, (AGM), 5.00%, 11/1/27(1) | 4,092,842 | ||||||||
| 795 | Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/33 | 828,780 | ||||||||
| 180 | South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33 | 195,485 | ||||||||
| $ | 8,514,751 | |||||||||
| Insured-Water and Sewer — 6.7% | ||||||||||
| $ | 4,500 | Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24 | $ | 1,815,345 | ||||||
| 970 | Passaic Valley Sewerage Commissioners, (FGIC), (NPFG), 2.50%, 12/1/32 | 575,986 | ||||||||
| $ | 2,391,331 | |||||||||
|
Lease
Revenue / Certificates of
Participation — 2.1%
|
||||||||||
| $ | 750 | New Jersey Health Care Facilities Financing Authority, (Contract Hospital Asset Transportation Program), 5.25%, 10/1/38 | $ | 753,570 | ||||||
| $ | 753,570 | |||||||||
| Private Education — 5.5% | ||||||||||
| $ | 2,000 | New Jersey Educational Facilities Authority, (Princeton University), 4.25%, 7/1/40(2) | $ | 1,958,180 | ||||||
| $ | 1,958,180 | |||||||||
| Other Revenue — 3.8% | ||||||||||
| $ | 1,300 | New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48 | $ | 1,357,252 | ||||||
| $ | 1,357,252 | |||||||||
| Transportation — 3.8% | ||||||||||
| $ | 1,325 | South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 | $ | 1,333,665 | ||||||
| $ | 1,333,665 | |||||||||
|
Total
Tax-Exempt Investments — 170.3%
|
||||||||||
|
(identified
cost $59,561,991)
|
$ | 60,331,918 | ||||||||
| Short-Term Investments — 1.5% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 556 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 555,683 | ||||||
|
Total
Short-Term Investments — 1.5%
|
||||||||||
|
(identified
cost $555,683)
|
$ | 555,683 | ||||||||
|
Total
Investments — 171.8%
|
||||||||||
|
(identified
cost $60,117,674)
|
$ | 60,887,601 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(55.3)%
|
$ | (19,600,475 | ) | |||||||
|
Other
Assets, Less Liabilities — (16.5)%
|
$ | (5,859,052 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 35,428,074 | ||||||||
25
Eaton Vance New
Jersey Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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, 2010, 84.4% 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 ranged from 0.8% to 30.2% of
total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
26
Eaton Vance New
York Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 167.8% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 2.3% | ||||||||||
| $ | 750 | Suffolk County Industrial Development Agency, (Huntington Hospital), 5.875%, 11/1/32 | $ | 754,320 | ||||||
| $ | 754,320 | |||||||||
| Industrial Development Revenue — 2.5% | ||||||||||
| $ | 220 | Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35 | $ | 222,790 | ||||||
| 600 | Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1) | 607,627 | ||||||||
| $ | 830,417 | |||||||||
| Insured-Electric Utilities — 6.1% | ||||||||||
| $ | 500 | Long Island Power Authority, (BHAC), 5.50%, 5/1/33 | $ | 546,670 | ||||||
| 500 | Long Island Power Authority, (BHAC), 6.00%, 5/1/33 | 572,240 | ||||||||
| 910 | New York Power Authority, (NPFG), 4.50%, 11/15/47(2) | 901,956 | ||||||||
| $ | 2,020,866 | |||||||||
| Insured-Escrowed / Prerefunded — 1.8% | ||||||||||
| $ | 1,385 | New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30 | $ | 587,517 | ||||||
| $ | 587,517 | |||||||||
| Insured-General Obligations — 26.0% | ||||||||||
| $ | 535 | Brentwood Union Free School District, (AGC), 4.75%, 11/15/23 | $ | 583,867 | ||||||
| 560 | Brentwood Union Free School District, (AGC), 5.00%, 11/15/24 | 623,885 | ||||||||
| 200 | Freeport Union Free School District, (AGC), 4.00%, 4/1/23 | 205,560 | ||||||||
| 200 | Freeport Union Free School District, (AGC), 4.00%, 4/1/24 | 205,238 | ||||||||
| 310 | Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24 | 313,082 | ||||||||
| 250 | Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23 | 253,375 | ||||||||
| 185 | Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23 | 189,057 | ||||||||
| 190 | Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24 | 194,229 | ||||||||
| 110 | New Rochelle City School District, (AGC), 3.75%, 11/15/19 | 112,951 | ||||||||
| 160 | New Rochelle City School District, (AGC), 4.00%, 11/15/20 | 166,032 | ||||||||
| 1,000 | New York, (AGM), 5.00%, 4/1/22 | 1,066,500 | ||||||||
| 1,795 | New York Dormitory Authority, (School Districts Financing Program), (NPFG), 5.00%, 10/1/30 | 1,812,627 | ||||||||
| 545 | Oneida County, (AGC), 4.00%, 4/15/21 | 551,992 | ||||||||
| 100 | Plattsburgh, (AGC), 4.25%, 11/15/19 | 105,911 | ||||||||
| 300 | Plattsburgh, (AGC), 4.25%, 11/15/20 | 318,603 | ||||||||
| 410 | Sachem Central School District, (FGIC), (NPFG), 4.25%, 10/15/28 | 411,390 | ||||||||
| 235 | Syracuse, (AGC), 5.00%, 6/15/19 | 261,235 | ||||||||
| 185 | Wantagh Union Free School District, (AGC), 4.50%, 11/15/19 | 202,562 | ||||||||
| 190 | Wantagh Union Free School District, (AGC), 4.50%, 11/15/20 | 205,422 | ||||||||
| 210 | Wantagh Union Free School District, (AGC), 4.75%, 11/15/22 | 227,466 | ||||||||
| 220 | Wantagh Union Free School District, (AGC), 4.75%, 11/15/23 | 236,467 | ||||||||
| 350 | William Floyd Union Free School District, (AGC), 4.00%, 12/15/24 | 355,201 | ||||||||
| $ | 8,602,652 | |||||||||
| Insured-Hospital — 6.4% | ||||||||||
| $ | 500 | New York City Health and Hospitals Corp., (AGM), 5.50%, 2/15/20 | $ | 562,335 | ||||||
| 1,000 | New York Dormitory Authority, (Health Quest Systems), (AGC), 5.125%, 7/1/37(1) | 1,021,470 | ||||||||
| 500 | New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36 | 521,890 | ||||||||
| $ | 2,105,695 | |||||||||
| Insured-Housing — 3.0% | ||||||||||
| $ | 1,000 | New York City Housing Corp., (NPFG), 4.95%, 11/1/33 | $ | 1,013,040 | ||||||
| $ | 1,013,040 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 10.7% | ||||||||||
| $ | 2,330 | Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47 | $ | 2,019,877 | ||||||
| 950 | New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38(3) | 1,039,813 | ||||||||
| 495 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 482,571 | ||||||||
| $ | 3,542,261 | |||||||||
27
Eaton Vance New
York Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Other Revenue — 16.6% | ||||||||||
| $ | 1,360 | New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44 | $ | 1,385,418 | ||||||
| 2,500 | New York City Cultural Resource Trust, (Museum of Modern Art), (AMBAC), (BHAC), 5.125%, 7/1/31(1) | 2,548,450 | ||||||||
| 1,720 | New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46 | 1,555,740 | ||||||||
| $ | 5,489,608 | |||||||||
| Insured-Private Education — 33.9% | ||||||||||
| $ | 1,440 | New York Dormitory Authority, (Barnard College), (FGIC), (NPFG), 5.00%, 7/1/24 | $ | 1,506,686 | ||||||
| 1,925 | New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30 | 1,927,406 | ||||||||
| 2,250 | New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1) | 2,348,730 | ||||||||
| 85 | New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38 | 88,730 | ||||||||
| 1,000 | New York Dormitory Authority, (New York University), (AMBAC), (BHAC), 5.00%, 7/1/31(1) | 1,008,610 | ||||||||
| 345 | New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34 | 355,278 | ||||||||
| 835 | New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39 | 865,753 | ||||||||
| 500 | New York Dormitory Authority, (Skidmore College), (FGIC), (NPFG), 5.00%, 7/1/33 | 509,925 | ||||||||
| 850 | New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37 | 867,382 | ||||||||
| 5,425 | Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/32 | 1,754,608 | ||||||||
| $ | 11,233,108 | |||||||||
| Insured-Public Education — 3.2% | ||||||||||
| $ | 1,075 | New York Dormitory Authority, (City University), (AMBAC), 5.25%, 7/1/30 | $ | 1,055,199 | ||||||
| $ | 1,055,199 | |||||||||
| Insured-Special Tax Revenue — 15.8% | ||||||||||
| $ | 690 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45 | $ | 649,407 | ||||||
| 705 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44 | 692,430 | ||||||||
| 1,700 | Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35 | 293,556 | ||||||||
| 13,970 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 1,702,245 | ||||||||
| 3,200 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 362,336 | ||||||||
| 2,105 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 220,583 | ||||||||
| 575 | Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29 | 602,876 | ||||||||
| 690 | Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32 | 715,033 | ||||||||
| $ | 5,238,466 | |||||||||
| Insured-Transportation — 20.8% | ||||||||||
| $ | 2,000 | Metropolitan Transportation Authority, (AGC), (FGIC), 5.25%, 11/15/31 | $ | 2,064,320 | ||||||
| 1,000 | Metropolitan Transportation Authority, (AGM), (NPFG), 5.00%, 11/15/31 | 1,031,780 | ||||||||
| 510 | New York Thruway Authority, (AMBAC), 5.50%, 4/1/20 | 591,473 | ||||||||
| 2,500 | Port Authority of New York and New Jersey, (AGM), 5.00%, 11/1/27(1) | 2,641,006 | ||||||||
| 555 | Triborough Bridge and Tunnel Authority, (NPFG), 5.00%, 11/15/32 | 564,235 | ||||||||
| $ | 6,892,814 | |||||||||
| Insured-Water and Sewer — 11.5% | ||||||||||
| $ | 905 | Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28 | $ | 1,001,545 | ||||||
| 2,750 | New York City Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), (BHAC), 5.00%, 6/15/38(1) | 2,798,648 | ||||||||
| $ | 3,800,193 | |||||||||
| Insured-Water Revenue — 1.1% | ||||||||||
| $ | 350 | Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25 | $ | 357,521 | ||||||
| $ | 357,521 | |||||||||
| Other Revenue — 0.9% | ||||||||||
| $ | 1,100 | Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31 | $ | 291,280 | ||||||
| $ | 291,280 | |||||||||
| Private Education — 2.9% | ||||||||||
| $ | 500 | New York City Industrial Development Agency, (St. Francis College), 5.00%, 10/1/34 | $ | 477,575 | ||||||
| 460 | New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40 | 486,312 | ||||||||
| $ | 963,887 | |||||||||
28
Eaton Vance New
York Municipal Bond
Fund II as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Transportation — 2.3% | ||||||||||
| $ | 350 | Nassau County Bridge Authority, 5.00%, 10/1/35(4) | $ | 354,568 | ||||||
| 65 | Nassau County Bridge Authority, 5.00%, 10/1/40(4) | 65,157 | ||||||||
| 340 | Triborough Bridge and Tunnel Authority, 5.00%, 11/15/37 | 354,970 | ||||||||
| $ | 774,695 | |||||||||
|
Total
Tax-Exempt Investments — 167.8%
|
||||||||||
|
(identified
cost $55,729,736)
|
$ | 55,553,539 | ||||||||
| Short-Term Investments — 2.5% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 846 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 846,281 | ||||||
|
Total
Short-Term Investments — 2.5%
|
||||||||||
|
(identified
cost $846,281)
|
$ | 846,281 | ||||||||
|
Total
Investments — 170.3%
|
||||||||||
|
(identified
cost $56,576,017)
|
$ | 56,399,820 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(40.0)%
|
$ | (13,250,161 | ) | |||||||
|
Other
Assets, Less Liabilities — (30.3)%
|
$ | (10,042,266 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 33,107,393 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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, 2010, 92.1% 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 ranged from 0.9% to 32.9% of
total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been segregated to cover payable for when-issued securities. | |
| (3) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. | |
| (4) | When-issued security. |
29
Eaton Vance Ohio
Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 152.6% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| General Obligations — 1.7% | ||||||||||
| $ | 500 | County of Franklin, 5.00%, 12/1/27(1) | $ | 543,540 | ||||||
| $ | 543,540 | |||||||||
| Hospital — 4.5% | ||||||||||
| $ | 500 | Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26 | $ | 500,305 | ||||||
| 1,000 | Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.), 4.75%, 1/15/46 | 901,800 | ||||||||
| $ | 1,402,105 | |||||||||
| Insured-Electric Utilities — 19.3% | ||||||||||
| $ | 700 | American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.25%, 2/15/33 | $ | 729,260 | ||||||
| 2,750 | Cleveland Public Power System, (NPFG), 0.00%, 11/15/27 | 1,061,747 | ||||||||
| 1,000 | Cleveland Public Power System, (NPFG), 0.00%, 11/15/38 | 194,990 | ||||||||
| 1,670 | Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25 | 763,775 | ||||||||
| 5,000 | Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/27 | 2,011,600 | ||||||||
| 755 | Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34 | 739,643 | ||||||||
| 500 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | 524,570 | ||||||||
| $ | 6,025,585 | |||||||||
| Insured-General Obligations — 41.7% | ||||||||||
| $ | 320 | Bowling Green City School District, (AGM), 5.00%, 12/1/34 | $ | 327,718 | ||||||
| 200 | Brookfield Local School District, (AGM), 5.00%, 1/15/30 | 208,766 | ||||||||
| 1,000 | Cleveland Municipal School District, (AGM), 5.00%, 12/1/27 | 1,032,550 | ||||||||
| 900 | Clyde-Green Springs Exempted Village School District, (AGM), 4.50%, 12/1/31 | 895,014 | ||||||||
| 1,575 | Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32 | 1,602,310 | ||||||||
| 1,000 | Milford Exempt Village School District, (AGC), 5.25%, 12/1/36 | 1,051,800 | ||||||||
| 1,400 | Olentangy Local School District, (AGC), 5.00%, 12/1/36 | 1,463,378 | ||||||||
| 280 | Olentangy Local School District, (AGM), 4.50%, 12/1/32 | 277,822 | ||||||||
| 385 | Pickerington Local School District, (NPFG), 4.25%, 12/1/34 | 376,626 | ||||||||
| 2,400 | Plain School District, (FGIC), (NPFG), 0.00%, 12/1/27 | 907,248 | ||||||||
| 750 | St. Mary’s School District, (AGM), 5.00%, 12/1/35 | 765,068 | ||||||||
| 500 | Sylvania City School District, (AGC), 5.00%, 12/1/26 | 528,625 | ||||||||
| 1,000 | Sylvania City School District, (AGC), 5.00%, 12/1/32 | 1,031,520 | ||||||||
| 500 | Tecumseh School District, (FGIC), (NPFG), 4.75%, 12/1/31 | 502,045 | ||||||||
| 2,000 | Wapakoneta City School District, (AGM), 4.75%, 12/1/35 | 2,041,000 | ||||||||
| $ | 13,011,490 | |||||||||
| Insured-Hospital — 12.5% | ||||||||||
| $ | 820 | Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32 | $ | 798,541 | ||||||
| 1,500 | Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28 | 1,503,495 | ||||||||
| 440 | Lorain County, (Catholic Healthcare Partners), (AGM), Variable Rate, 14.656%, 2/1/29(2)(3)(4) | 463,320 | ||||||||
| 1,250 | Ohio Higher Educational Facility Commission, (University Hospital Health Systems, Inc.), (AMBAC), 4.75%, 1/15/46 | 1,127,250 | ||||||||
| $ | 3,892,606 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 4.8% | ||||||||||
| $ | 495 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | $ | 482,571 | ||||||
| 235 | Puerto Rico Public Buildings Authority, Government Facilities Revenue, (XLCA), 5.25%, 7/1/36 | 229,099 | ||||||||
| 1,000 | Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 | 799,510 | ||||||||
| $ | 1,511,180 | |||||||||
| Insured-Public Education — 31.8% | ||||||||||
| $ | 2,000 | Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28 | $ | 1,959,820 | ||||||
| 1,000 | Kent State University, (AGC), 5.00%, 5/1/26 | 1,054,450 | ||||||||
| 360 | Kent State University, (AGC), 5.00%, 5/1/29 | 372,470 | ||||||||
| 2,000 | Miami University, (AGM), (AMBAC), 3.25%, 9/1/26 | 1,697,400 | ||||||||
| 500 | Ohio University, (AGM), 5.00%, 12/1/33 | 513,115 | ||||||||
| 1,170 | Ohio University, (AGM), 5.25%, 12/1/23 | 1,237,930 | ||||||||
| 1,000 | University of Akron, (AGM), 5.00%, 1/1/38 | 1,031,680 | ||||||||
| 1,000 | University of Cincinnati, (AMBAC), 5.00%, 6/1/31 | 1,012,870 | ||||||||
| 1,000 | Youngstown State University, (AGC), 5.50%, 12/15/33 | 1,053,040 | ||||||||
| $ | 9,932,775 | |||||||||
30
Eaton Vance Ohio
Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Sewer Revenue — 3.9% | ||||||||||
| $ | 615 | Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46 | $ | 609,471 | ||||||
| 625 | Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47 | 619,000 | ||||||||
| $ | 1,228,471 | |||||||||
| Insured-Special Tax Revenue — 10.3% | ||||||||||
| $ | 1,335 | Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23 | $ | 689,995 | ||||||
| 3,665 | Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24 | 1,779,064 | ||||||||
| 8,430 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 502,512 | ||||||||
| 1,525 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 172,676 | ||||||||
| 705 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 73,877 | ||||||||
| $ | 3,218,124 | |||||||||
| Insured-Transportation — 8.0% | ||||||||||
| $ | 1,965 | Cleveland Airport System, (AGM), 5.00%, 1/1/31 | $ | 1,966,710 | ||||||
| 500 | Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(5) | 514,808 | ||||||||
| $ | 2,481,518 | |||||||||
| Pooled Loans — 6.9% | ||||||||||
| $ | 1,335 | Cuyahoga County Port Authority, (Garfield Heights), 5.25%, 5/15/23 | $ | 983,268 | ||||||
| 1,140 | Rickenbacker Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5) | 1,182,362 | ||||||||
| $ | 2,165,630 | |||||||||
| Private Education — 7.2% | ||||||||||
| $ | 850 | Ohio Higher Educational Facilities Authority, (John Carroll University), 5.25%, 11/15/33 | $ | 852,720 | ||||||
| 1,000 | Ohio Higher Educational Facilities Authority, (Oberlin College), 5.00%, 10/1/33 | 1,025,950 | ||||||||
| 350 | Ohio Higher Educational Facility Commission, (Kenyon College), 5.00%, 7/1/44 | 353,892 | ||||||||
| $ | 2,232,562 | |||||||||
|
Total
Tax-Exempt Investments — 152.6%
|
||||||||||
|
(identified
cost $47,148,114)
|
$ | 47,645,586 | ||||||||
| Short-Term Investments — 3.2% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 1,004 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 1,003,709 | ||||||
|
Total
Short-Term Investments — 3.2%
|
||||||||||
|
(identified
cost $1,003,709)
|
$ | 1,003,709 | ||||||||
|
Total
Investments — 155.8%
|
||||||||||
|
(identified
cost $48,151,823)
|
$ | 48,649,295 | ||||||||
|
Auction
Preferred Shares Plus Cumulative
|
||||||||||
|
Unpaid
Dividends — (54.4)%
|
$ | (17,001,064 | ) | |||||||
|
Other
Assets, Less Liabilities — (1.4)%
|
$ | (420,773 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 31,227,458 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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, 2010, 84.9% 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 ranged from 2.1% to 25.6% of
total investments.
| (1) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial contracts. | |
| (2) | Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2010. | |
| (3) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions and remain exempt from registration, normally to qualified institutional buyers. At March 31, 2010, the aggregate value of these securities is $463,320 or 1.5% of the Fund’s net assets applicable to common shares. |
31
Eaton Vance Ohio
Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
| (4) | Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $1,320,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater. | |
| (5) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
32
Eaton Vance
Pennsylvania Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 161.1% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 10.9% | ||||||||||
| $ | 500 | Lancaster County Hospital Authority, (Lancaster General Hospital), 4.50%, 3/15/36 | $ | 461,815 | ||||||
| 1,455 | Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 | 1,445,441 | ||||||||
| 750 | Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31 | 790,417 | ||||||||
| 675 | Pennsylvania Higher Educational Facilties Authority, (University of Pittsburgh Medical Center), 5.00%, 5/15/31 | 674,960 | ||||||||
| 820 | Philadelphia Hospitals and Higher Education Facilities Authority, (Children’s Hospital), 4.50%, 7/1/37 | 765,068 | ||||||||
| $ | 4,137,701 | |||||||||
| Insured-Electric Utilities — 7.2% | ||||||||||
| $ | 1,990 | Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), (NPFG), 4.75%, 2/15/27 | $ | 1,964,886 | ||||||
| 750 | Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/35 | 756,233 | ||||||||
| $ | 2,721,119 | |||||||||
| Insured-Escrowed / Prerefunded — 0.7% | ||||||||||
| $ | 270 | Southcentral General Authority, (Wellspan Health), (NPFG), Escrowed to Maturity, 5.25%, 5/15/31 | $ | 286,292 | ||||||
| $ | 286,292 | |||||||||
| Insured-General Obligations — 31.7% | ||||||||||
| $ | 1,650 | Armstrong County, (NPFG), 5.40%, 6/1/31 | $ | 1,659,124 | ||||||
| 1,250 | Bethlehem Area School District, (AGM), 5.25%, 1/15/25 | 1,327,550 | ||||||||
| 660 | Centennial School District, (AGM), 5.25%, 12/15/37 | 688,519 | ||||||||
| 1,350 | Central Greene School District, (AGM), 5.00%, 2/15/35 | 1,382,562 | ||||||||
| 1,000 | Erie School District, (AMBAC), 0.00%, 9/1/30 | 349,210 | ||||||||
| 500 | Harrisburg School District, (AGC), 5.00%, 11/15/33 | 515,490 | ||||||||
| 2,555 | McKeesport School District, (NPFG), 0.00%, 10/1/21 | 1,546,286 | ||||||||
| 1,500 | Norwin School District, (AGM), 3.25%, 4/1/27 | 1,288,530 | ||||||||
| 1,500 | Reading School District, (AGM), 5.00%, 3/1/35 | 1,538,265 | ||||||||
| 1,000 | Scranton School District, (AGM), 5.00%, 7/15/38 | 1,019,960 | ||||||||
| 2,550 | Shaler Area School District, (XLCA), 0.00%, 9/1/33 | 720,324 | ||||||||
| $ | 12,035,820 | |||||||||
| Insured-Hospital — 8.8% | ||||||||||
| $ | 250 | Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24 | $ | 285,985 | ||||||
| 500 | Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44 | 520,040 | ||||||||
| 1,620 | Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (AGM), 5.00%, 7/1/35(1) | 1,610,709 | ||||||||
| 1,000 | Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 | 912,960 | ||||||||
| $ | 3,329,694 | |||||||||
| Insured-Industrial Development Revenue — 3.1% | ||||||||||
| $ | 150 | Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39 | $ | 153,995 | ||||||
| 1,000 | Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39(1) | 1,026,630 | ||||||||
| $ | 1,180,625 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 4.6% | ||||||||||
| $ | 500 | Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31 | $ | 518,580 | ||||||
| 1,215 | Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (AGM), 4.75%, 2/15/27 | 1,244,597 | ||||||||
| $ | 1,763,177 | |||||||||
| Insured-Private Education — 12.9% | ||||||||||
| $ | 1,000 | Chester County Industrial Development Authority, Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 | $ | 1,002,910 | ||||||
| 1,675 | Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37 | 1,692,839 | ||||||||
| 1,755 | Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36 | 1,689,889 | ||||||||
| 500 | Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37 | 511,185 | ||||||||
| $ | 4,896,823 | |||||||||
| Insured-Public Education — 11.3% | ||||||||||
| $ | 500 | Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37 | $ | 521,000 | ||||||
| 1,200 | Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 | 1,134,024 | ||||||||
| 1,000 | Pennsylvania Higher Educational Facilities Authority, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 | 820,250 | ||||||||
| 500 | State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/27 | 529,030 | ||||||||
33
Eaton Vance
Pennsylvania Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Public
Education (continued)
|
||||||||||
| $ | 375 | State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/29 | $ | 392,610 | ||||||
| 875 | State Public School Building Authority, (Delaware County Community College), (AGM), 5.00%, 10/1/32 | 904,715 | ||||||||
| $ | 4,301,629 | |||||||||
| Insured-Sewer Revenue — 17.0% | ||||||||||
| $ | 300 | Allegheny County Sanitation Authority, (BHAC), (FGIC), 5.00%, 12/1/32 | $ | 309,270 | ||||||
| 1,500 | Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22 | 1,591,065 | ||||||||
| 1,000 | Ambridge Borough Municipal Authority, Sewer Revenue, (AGM), 4.60%, 10/15/41 | 941,660 | ||||||||
| 1,920 | Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 | 705,293 | ||||||||
| 1,455 | Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25 | 572,775 | ||||||||
| 2,155 | Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25 | 848,338 | ||||||||
| 1,500 | University Area Joint Authority, (NPFG), 5.00%, 11/1/26 | 1,501,965 | ||||||||
| $ | 6,470,366 | |||||||||
| Insured-Special Tax Revenue — 14.6% | ||||||||||
| $ | 3,725 | Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/29 | $ | 3,401,893 | ||||||
| 22,015 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 1,312,314 | ||||||||
| 1,770 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 215,675 | ||||||||
| 3,510 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 397,437 | ||||||||
| 2,220 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 232,634 | ||||||||
| $ | 5,559,953 | |||||||||
| Insured-Transportation — 20.6% | ||||||||||
| $ | 2,000 | Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/25 | $ | 2,028,000 | ||||||
| 1,000 | Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/29 | 1,009,590 | ||||||||
| 2,075 | Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30 | 2,306,985 | ||||||||
| 295 | Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29 | 310,529 | ||||||||
| 2,100 | Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1) | 2,162,191 | ||||||||
| $ | 7,817,295 | |||||||||
|
Insured-Utilities — 2.2%
|
||||||||||
| $ | 915 | Philadelphia Gas Works Revenue, (AMBAC), 5.00%, 10/1/37 | $ | 825,412 | ||||||
| $ | 825,412 | |||||||||
| Insured-Water and Sewer — 0.4% | ||||||||||
| $ | 150 | Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35 | $ | 151,677 | ||||||
| $ | 151,677 | |||||||||
| Insured-Water Revenue — 3.6% | ||||||||||
| $ | 1,500 | Philadelphia Water and Wastewater, (AMBAC), 4.25%, 11/1/31 | $ | 1,373,955 | ||||||
| $ | 1,373,955 | |||||||||
| Private Education — 10.7% | ||||||||||
| $ | 625 | Pennsylvania Higher Educational Facilities Authority, (Thomas Jefferson University), 5.00%, 3/1/40 | $ | 633,763 | ||||||
| 2,900 | Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35 | 2,915,428 | ||||||||
| 500 | Washington County Industrial Development Authority, (Washington and Jefferson College), 5.25%, 11/1/30 | 517,800 | ||||||||
| $ | 4,066,991 | |||||||||
| Senior Living / Life Care — 0.5% | ||||||||||
| $ | 200 | Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24 | $ | 192,736 | ||||||
| $ | 192,736 | |||||||||
| Special Tax Revenue — 0.3% | ||||||||||
| $ | 110 | Virgin Islands Public Finance Authority, 6.75%, 10/1/37 | $ | 119,713 | ||||||
| $ | 119,713 | |||||||||
|
Total
Tax-Exempt Investments — 161.1%
|
||||||||||
|
(identified
cost $63,124,312)
|
$ | 61,230,978 | ||||||||
34
Eaton Vance
Pennsylvania Municipal Bond
Fund as
of March 31, 2010
PORTFOLIO OF
INVESTMENTS (Unaudited) CONT’D
| Short-Term Investments — 1.8% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 682 | State Street Bank and Trust Euro Time Deposit, 0.01%, 4/1/10 | $ | 682,191 | ||||||
|
Total
Short-Term Investments — 1.8%
|
||||||||||
|
(identified
cost $682,191)
|
$ | 682,191 | ||||||||
|
Total
Investments — 162.9%
|
||||||||||
|
(identified
cost $63,806,503)
|
$ | 61,913,169 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(57.2)%
|
$ | (21,726,632 | ) | |||||||
|
Other
Assets, Less Liabilities — (5.7)%
|
$ | (2,175,912 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 38,010,625 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
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, 2010, 85.1% 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 ranged
from 2.5% to 27.2% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
35
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited)
Statements
of Assets and Liabilities
| As of March 31, 2010 | Municipal Fund II | California Fund II | Massachusetts Fund | Michigan Fund | ||||||||||||||
| Assets | ||||||||||||||||||
|
Investments —
|
||||||||||||||||||
|
Identified cost
|
$ | 232,060,161 | $ | 86,478,915 | $ | 41,081,576 | $ | 33,487,146 | ||||||||||
|
Unrealized appreciation (depreciation)
|
(8,573,808 | ) | (4,795,796 | ) | 760,351 | 583,735 | ||||||||||||
|
Investments, at value
|
$ | 223,486,353 | $ | 81,683,119 | $ | 41,841,927 | $ | 34,070,881 | ||||||||||
|
Interest receivable
|
$ | 2,875,464 | $ | 801,974 | $ | 535,449 | $ | 475,684 | ||||||||||
|
Receivable for investments sold
|
— | — | 170,629 | — | ||||||||||||||
|
Deferred debt issuance costs
|
132,080 | 24,350 | 5,942 | — | ||||||||||||||
|
Total assets
|
$ | 226,493,897 | $ | 82,509,443 | $ | 42,553,947 | $ | 34,546,565 | ||||||||||
| Liabilities | ||||||||||||||||||
|
Payable for floating rate notes issued
|
$ | 57,365,000 | $ | 9,575,000 | $ | 2,460,000 | $ | — | ||||||||||
|
Payable for investments purchased
|
2,254,979 | — | 1,036,064 | — | ||||||||||||||
|
Payable for when-issued securities
|
1,105,563 | 1,091,136 | 1,054,010 | — | ||||||||||||||
|
Payable for variation margin on open financial futures contracts
|
66,406 | 20,157 | — | 4,063 | ||||||||||||||
|
Payable for open swap contracts
|
79,232 | 42,983 | 20,336 | 16,198 | ||||||||||||||
|
Payable to affiliates:
|
||||||||||||||||||
|
Investment adviser fee
|
97,719 | 37,354 | 18,679 | 16,212 | ||||||||||||||
|
Interest expense and fees payable
|
135,847 | 21,558 | 6,491 | — | ||||||||||||||
|
Accrued expenses
|
69,372 | 41,660 | 39,349 | 36,564 | ||||||||||||||
|
Total liabilities
|
$ | 61,174,118 | $ | 10,829,848 | $ | 4,634,929 | $ | 73,037 | ||||||||||
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
$ | 44,703,356 | $ | 25,702,251 | $ | 13,576,020 | $ | 13,325,162 | ||||||||||
|
Net assets applicable to common shares
|
$ | 120,616,423 | $ | 45,977,344 | $ | 24,342,998 | $ | 21,148,366 | ||||||||||
| Sources of Net Assets | ||||||||||||||||||
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
$ | 99,610 | $ | 38,714 | $ | 17,607 | $ | 15,120 | ||||||||||
|
Additional paid-in capital
|
141,176,086 | 54,853,852 | 24,946,069 | 21,415,488 | ||||||||||||||
|
Accumulated net realized loss
|
(13,624,000 | ) | (4,502,160 | ) | (1,497,045 | ) | (1,017,861 | ) | ||||||||||
|
Accumulated undistributed net investment income
|
1,625,991 | 401,681 | 136,352 | 166,617 | ||||||||||||||
|
Net unrealized appreciation (depreciation)
|
(8,661,264 | ) | (4,814,743 | ) | 740,015 | 569,002 | ||||||||||||
|
Net assets applicable to common shares
|
$ | 120,616,423 | $ | 45,977,344 | $ | 24,342,998 | $ | 21,148,366 | ||||||||||
|
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
|
1,788 | 1,028 | 543 | 533 | ||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||
| 9,961,028 | 3,871,379 | 1,760,651 | 1,511,977 | |||||||||||||||
| Net Asset Value Per Common Share | ||||||||||||||||||
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
$ | 12.11 | $ | 11.88 | $ | 13.83 | $ | 13.99 | ||||||||||
36
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Assets and Liabilities
| As of March 31, 2010 | New Jersey Fund | New York Fund II | Ohio Fund | Pennsylvania Fund | ||||||||||||||
| Assets | ||||||||||||||||||
|
Investments —
|
||||||||||||||||||
|
Identified cost
|
$ | 60,117,674 | $ | 56,576,017 | $ | 48,151,823 | $ | 63,806,503 | ||||||||||
|
Unrealized appreciation (depreciation)
|
769,927 | (176,197 | ) | 497,472 | (1,893,334 | ) | ||||||||||||
|
Investments, at value
|
$ | 60,887,601 | $ | 56,399,820 | $ | 48,649,295 | $ | 61,913,169 | ||||||||||
|
Interest receivable
|
$ | 624,607 | $ | 785,368 | $ | 632,192 | $ | 738,009 | ||||||||||
|
Receivable for investments sold
|
— | 1,049,896 | 60,000 | 28,820 | ||||||||||||||
|
Deferred debt issuance costs
|
8,047 | 21,575 | — | — | ||||||||||||||
|
Total assets
|
$ | 61,520,255 | $ | 58,256,659 | $ | 49,341,487 | $ | 62,679,998 | ||||||||||
| Liabilities | ||||||||||||||||||
|
Payable for floating rate notes issued
|
$ | 6,346,000 | $ | 11,335,000 | $ | 1,010,000 | $ | 2,850,000 | ||||||||||
|
Payable for when-issued securities
|
— | 415,750 | — | — | ||||||||||||||
|
Payable for variation margin on open financial futures contracts
|
30,469 | 14,063 | 20,156 | — | ||||||||||||||
|
Payable for open swap contracts
|
29,484 | 43,863 | 19,717 | 9,682 | ||||||||||||||
|
Payable to affiliates:
|
||||||||||||||||||
|
Investment adviser fee
|
27,253 | 26,066 | 23,156 | 29,618 | ||||||||||||||
|
Interest expense and fees payable
|
17,532 | 23,340 | 2,119 | 5,753 | ||||||||||||||
|
Accrued expenses
|
40,968 | 41,023 | 37,817 | 47,688 | ||||||||||||||
|
Total liabilities
|
$ | 6,491,706 | $ | 11,899,105 | $ | 1,112,965 | $ | 2,942,741 | ||||||||||
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
$ | 19,600,475 | $ | 13,250,161 | $ | 17,001,064 | $ | 21,726,632 | ||||||||||
|
Net assets applicable to common shares
|
$ | 35,428,074 | $ | 33,107,393 | $ | 31,227,458 | $ | 38,010,625 | ||||||||||
| Sources of Net Assets | ||||||||||||||||||
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
$ | 25,781 | $ | 25,595 | $ | 25,224 | $ | 29,485 | ||||||||||
|
Additional paid-in capital
|
36,531,293 | 36,257,840 | 35,720,016 | 41,778,950 | ||||||||||||||
|
Accumulated net realized loss
|
(2,290,915 | ) | (3,286,440 | ) | (5,230,411 | ) | (2,309,134 | ) | ||||||||||
|
Accumulated undistributed net investment income
|
297,793 | 313,688 | 238,830 | 414,340 | ||||||||||||||
|
Net unrealized appreciation (depreciation)
|
864,122 | (203,290 | ) | 473,799 | (1,903,016 | ) | ||||||||||||
|
Net assets applicable to common shares
|
$ | 35,428,074 | $ | 33,107,393 | $ | 31,227,458 | $ | 38,010,625 | ||||||||||
|
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
|
784 | 530 | 680 | 869 | ||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||
| 2,578,086 | 2,559,451 | 2,522,366 | 2,948,530 | |||||||||||||||
| Net Asset Value Per Common Share | ||||||||||||||||||
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
$ | 13.74 | $ | 12.94 | $ | 12.38 | $ | 12.89 | ||||||||||
37
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Operations
| For the Six Months Ended March 31, 2010 | Municipal Fund II | California Fund II | Massachusetts Fund | Michigan Fund | ||||||||||||||
| Investment Income | ||||||||||||||||||
|
Interest
|
$ | 5,752,079 | $ | 2,113,111 | $ | 958,720 | $ | 859,381 | ||||||||||
|
Total investment income
|
$ | 5,752,079 | $ | 2,113,111 | $ | 958,720 | $ | 859,381 | ||||||||||
| Expenses | ||||||||||||||||||
|
Investment adviser fee
|
$ | 569,593 | $ | 219,383 | $ | 109,460 | $ | 95,142 | ||||||||||
|
Trustees’ fees and expenses
|
3,680 | 1,568 | 910 | 824 | ||||||||||||||
|
Custodian fee
|
50,327 | 19,142 | 12,941 | 12,158 | ||||||||||||||
|
Transfer and dividend disbursing agent fees
|
6,579 | 5,162 | 5,301 | 5,379 | ||||||||||||||
|
Legal and accounting services
|
26,298 | 17,847 | 14,153 | 13,114 | ||||||||||||||
|
Printing and postage
|
25,014 | 6,207 | 6,222 | 6,404 | ||||||||||||||
|
Interest expense and fees
|
216,166 | 37,443 | 8,266 | — | ||||||||||||||
|
Preferred shares service fee
|
33,472 | 19,245 | 10,165 | 9,977 | ||||||||||||||
|
Miscellaneous
|
29,648 | 22,606 | 19,294 | 18,692 | ||||||||||||||
|
Total expenses
|
$ | 960,777 | $ | 348,603 | $ | 186,712 | $ | 161,690 | ||||||||||
|
Deduct —
|
||||||||||||||||||
|
Reduction of custodian fee
|
$ | 246 | $ | 84 | $ | 90 | $ | 54 | ||||||||||
|
Allocation of expenses to affiliate
|
16,776 | 6,532 | 3,233 | 2,810 | ||||||||||||||
|
Total expense reductions
|
$ | 17,022 | $ | 6,616 | $ | 3,323 | $ | 2,864 | ||||||||||
|
Net expenses
|
$ | 943,755 | $ | 341,987 | $ | 183,389 | $ | 158,826 | ||||||||||
|
Net investment income
|
$ | 4,808,324 | $ | 1,771,124 | $ | 775,331 | $ | 700,555 | ||||||||||
| Realized and Unrealized Gain (Loss) | ||||||||||||||||||
|
Net realized gain (loss) —
|
||||||||||||||||||
|
Investment transactions
|
$ | 353,088 | $ | (76,816 | ) | $ | (277,433 | ) | $ | (130,235 | ) | |||||||
|
Financial futures contracts
|
(37,940 | ) | 24,593 | — | (6,307 | ) | ||||||||||||
|
Swap contracts
|
220,800 | 83,792 | 38,676 | 33,144 | ||||||||||||||
|
Net realized gain (loss)
|
$ | 535,948 | $ | 31,569 | $ | (238,757 | ) | $ | (103,398 | ) | ||||||||
|
Change in unrealized appreciation (depreciation) —
|
||||||||||||||||||
|
Investments
|
$ | (8,852,586 | ) | $ | (4,489,696 | ) | $ | (1,309,821 | ) | $ | (1,124,090 | ) | ||||||
|
Financial futures contracts
|
331,904 | 109,179 | — | 24,538 | ||||||||||||||
|
Swap contracts
|
259,576 | 152,316 | 72,372 | 56,901 | ||||||||||||||
|
Net change in unrealized appreciation (depreciation)
|
$ | (8,261,106 | ) | $ | (4,228,201 | ) | $ | (1,237,449 | ) | $ | (1,042,651 | ) | ||||||
|
Net realized and unrealized loss
|
$ | (7,725,158 | ) | $ | (4,196,632 | ) | $ | (1,476,206 | ) | $ | (1,146,049 | ) | ||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (86,599 | ) | $ | (49,087 | ) | $ | (25,832 | ) | $ | (25,297 | ) | ||||||
|
Net decrease in net assets from operations
|
$ | (3,003,433 | ) | $ | (2,474,595 | ) | $ | (726,707 | ) | $ | (470,791 | ) | ||||||
38
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Operations
| For the Six Months Ended March 31, 2010 | New Jersey Fund | New York Fund II | Ohio Fund | Pennsylvania Fund | ||||||||||||||
| Investment Income | ||||||||||||||||||
|
Interest
|
$ | 1,489,511 | $ | 1,367,766 | $ | 1,265,089 | $ | 1,557,504 | ||||||||||
|
Total investment income
|
$ | 1,489,511 | $ | 1,367,766 | $ | 1,265,089 | $ | 1,557,504 | ||||||||||
| Expenses | ||||||||||||||||||
|
Investment adviser fee
|
$ | 159,301 | $ | 152,730 | $ | 135,842 | $ | 171,393 | ||||||||||
|
Trustees’ fees and expenses
|
1,210 | 1,171 | 1,072 | 1,279 | ||||||||||||||
|
Custodian fee
|
17,316 | 18,088 | 14,832 | 18,169 | ||||||||||||||
|
Transfer and dividend disbursing agent fees
|
5,729 | 5,112 | 5,062 | 5,034 | ||||||||||||||
|
Legal and accounting services
|
18,476 | 19,737 | 18,349 | 16,749 | ||||||||||||||
|
Printing and postage
|
8,925 | 9,344 | 4,864 | 10,457 | ||||||||||||||
|
Interest expense and fees
|
28,143 | 44,419 | 1,946 | 12,628 | ||||||||||||||
|
Preferred shares service fee
|
14,676 | 9,921 | 12,729 | 16,267 | ||||||||||||||
|
Miscellaneous
|
21,215 | 19,116 | 18,272 | 24,766 | ||||||||||||||
|
Total expenses
|
$ | 274,991 | $ | 279,638 | $ | 212,968 | $ | 276,742 | ||||||||||
|
Deduct —
|
||||||||||||||||||
|
Reduction of custodian fee
|
$ | 140 | $ | 213 | $ | 53 | $ | 118 | ||||||||||
|
Allocation of expenses to affiliate
|
4,638 | 4,503 | 4,002 | 5,053 | ||||||||||||||
|
Total expense reductions
|
$ | 4,778 | $ | 4,716 | $ | 4,055 | $ | 5,171 | ||||||||||
|
Net expenses
|
$ | 270,213 | $ | 274,922 | $ | 208,913 | $ | 271,571 | ||||||||||
|
Net investment income
|
$ | 1,219,298 | $ | 1,092,844 | $ | 1,056,176 | $ | 1,285,933 | ||||||||||
| Realized and Unrealized Gain (Loss) | ||||||||||||||||||
|
Net realized gain (loss) —
|
||||||||||||||||||
|
Investment transactions
|
$ | 106,532 | $ | (375,259 | ) | $ | 21,927 | $ | (462,622 | ) | ||||||||
|
Financial futures contracts
|
— | 18,330 | (18,733 | ) | — | |||||||||||||
|
Swap contracts
|
56,172 | 56,253 | 54,281 | 127,382 | ||||||||||||||
|
Net realized gain (loss)
|
$ | 162,704 | $ | (300,676 | ) | $ | 57,475 | $ | (335,240 | ) | ||||||||
|
Change in unrealized appreciation (depreciation) —
|
||||||||||||||||||
|
Investments
|
$ | (2,650,836 | ) | $ | (1,641,311 | ) | $ | (1,814,042 | ) | $ | (2,815,904 | ) | ||||||
|
Financial futures contracts
|
123,679 | 75,469 | 101,526 | — | ||||||||||||||
|
Swap contracts
|
104,899 | 164,780 | 64,811 | 164,483 | ||||||||||||||
|
Net change in unrealized appreciation (depreciation)
|
$ | (2,422,258 | ) | $ | (1,401,062 | ) | $ | (1,647,705 | ) | $ | (2,651,421 | ) | ||||||
|
Net realized and unrealized loss
|
$ | (2,259,554 | ) | $ | (1,701,738 | ) | $ | (1,590,230 | ) | $ | (2,986,661 | ) | ||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (38,046 | ) | $ | (25,546 | ) | $ | (32,910 | ) | $ | (40,986 | ) | ||||||
|
Net decrease in net assets from operations
|
$ | (1,078,302 | ) | $ | (634,440 | ) | $ | (566,964 | ) | $ | (1,741,714 | ) | ||||||
39
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Changes in Net Assets
| For the Six Months Ended March 31, 2010 | ||||||||||||||||||
| Increase (Decrease) in Net Assets | Municipal Fund II | California Fund II | Massachusetts Fund | Michigan Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 4,808,324 | $ | 1,771,124 | $ | 775,331 | $ | 700,555 | ||||||||||
|
Net realized gain (loss) from investment transactions, financial
futures contracts and swap contracts
|
535,948 | 31,569 | (238,757 | ) | (103,398 | ) | ||||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
(8,261,106 | ) | (4,228,201 | ) | (1,237,449 | ) | (1,042,651 | ) | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(86,599 | ) | (49,087 | ) | (25,832 | ) | (25,297 | ) | ||||||||||
|
Net decrease in net assets from operations
|
$ | (3,003,433 | ) | $ | (2,474,595 | ) | $ | (726,707 | ) | $ | (470,791 | ) | ||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (4,634,343 | ) | $ | (1,653,222 | ) | $ | (733,113 | ) | $ | (656,945 | ) | ||||||
|
Total distributions to common shareholders
|
$ | (4,634,343 | ) | $ | (1,653,222 | ) | $ | (733,113 | ) | $ | (656,945 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 104,513 | $ | 24,778 | $ | 32,229 | $ | — | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 104,513 | $ | 24,778 | $ | 32,229 | $ | — | ||||||||||
|
Net decrease in net assets
|
$ | (7,533,263 | ) | $ | (4,103,039 | ) | $ | (1,427,591 | ) | $ | (1,127,736 | ) | ||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of period
|
$ | 128,149,686 | $ | 50,080,383 | $ | 25,770,589 | $ | 22,276,102 | ||||||||||
|
At end of period
|
$ | 120,616,423 | $ | 45,977,344 | $ | 24,342,998 | $ | 21,148,366 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of period
|
$ | 1,625,991 | $ | 401,681 | $ | 136,352 | $ | 166,617 | ||||||||||
40
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Changes in Net Assets
| For the Six Months Ended March 31, 2010 | ||||||||||||||||||
| Increase (Decrease) in Net Assets | New Jersey Fund | New York Fund II | Ohio Fund | Pennsylvania Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 1,219,298 | $ | 1,092,844 | $ | 1,056,176 | $ | 1,285,933 | ||||||||||
|
Net realized gain (loss) from investment transactions, financial
futures contracts and swap contracts
|
162,704 | (300,676 | ) | 57,475 | (335,240 | ) | ||||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
(2,422,258 | ) | (1,401,062 | ) | (1,647,705 | ) | (2,651,421 | ) | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(38,046 | ) | (25,546 | ) | (32,910 | ) | (40,986 | ) | ||||||||||
|
Net decrease in net assets from operations
|
$ | (1,078,302 | ) | $ | (634,440 | ) | $ | (566,964 | ) | $ | (1,741,714 | ) | ||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (1,172,276 | ) | $ | (1,119,967 | ) | $ | (948,017 | ) | $ | (1,227,720 | ) | ||||||
|
Total distributions to common shareholders
|
$ | (1,172,276 | ) | $ | (1,119,967 | ) | $ | (948,017 | ) | $ | (1,227,720 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 50,630 | $ | 14,901 | $ | 32,332 | $ | 23,669 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 50,630 | $ | 14,901 | $ | 32,332 | $ | 23,669 | ||||||||||
|
Net decrease in net assets
|
$ | (2,199,948 | ) | $ | (1,739,506 | ) | $ | (1,482,649 | ) | $ | (2,945,765 | ) | ||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of period
|
$ | 37,628,022 | $ | 34,846,899 | $ | 32,710,107 | $ | 40,956,390 | ||||||||||
|
At end of period
|
$ | 35,428,074 | $ | 33,107,393 | $ | 31,227,458 | $ | 38,010,625 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of period
|
$ | 297,793 | $ | 313,688 | $ | 238,830 | $ | 414,340 | ||||||||||
41
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2009 | ||||||||||||||||||
| Increase (Decrease) in Net Assets | Municipal Fund II | California Fund II | Massachusetts Fund | Michigan Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 9,377,413 | $ | 3,390,514 | $ | 1,583,454 | $ | 1,399,076 | ||||||||||
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
(10,730,783 | ) | (3,248,977 | ) | (1,136,806 | ) | (480,219 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
28,703,972 | 9,442,700 | 5,497,042 | 3,670,791 | ||||||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(578,404 | ) | (325,864 | ) | (174,091 | ) | (170,213 | ) | ||||||||||
|
Net increase in net assets from operations
|
$ | 26,772,198 | $ | 9,258,373 | $ | 5,769,599 | $ | 4,419,435 | ||||||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (8,437,461 | ) | $ | (2,954,634 | ) | $ | (1,332,810 | ) | $ | (1,152,527 | ) | ||||||
|
Total distributions to common shareholders
|
$ | (8,437,461 | ) | $ | (2,954,634 | ) | $ | (1,332,810 | ) | $ | (1,152,527 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 167,262 | $ | 58,277 | $ | 22,988 | $ | 1,776 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 167,262 | $ | 58,277 | $ | 22,988 | $ | 1,776 | ||||||||||
|
Net increase in net assets
|
$ | 18,501,999 | $ | 6,362,016 | $ | 4,459,777 | $ | 3,268,684 | ||||||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 109,647,687 | $ | 43,718,367 | $ | 21,310,812 | $ | 19,007,418 | ||||||||||
|
At end of year
|
$ | 128,149,686 | $ | 50,080,383 | $ | 25,770,589 | $ | 22,276,102 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 1,538,609 | $ | 332,866 | $ | 119,966 | $ | 148,304 | ||||||||||
42
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2009 | ||||||||||||||||||
| Increase (Decrease) in Net Assets | New Jersey Fund | New York Fund II | Ohio Fund | Pennsylvania Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 2,382,638 | $ | 2,191,347 | $ | 2,130,212 | $ | 2,618,797 | ||||||||||
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
(2,484,603 | ) | (2,557,907 | ) | (4,193,790 | ) | (1,622,894 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
9,526,226 | 7,911,044 | 8,199,680 | 7,883,733 | ||||||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(227,579 | ) | (168,414 | ) | (254,584 | ) | (210,410 | ) | ||||||||||
|
From net realized gain
|
(40,658 | ) | — | — | (132,368 | ) | ||||||||||||
|
Net increase in net assets from operations
|
$ | 9,156,024 | $ | 7,376,070 | $ | 5,881,518 | $ | 8,536,858 | ||||||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (2,106,960 | ) | $ | (2,014,492 | ) | $ | (1,729,034 | ) | $ | (2,217,812 | ) | ||||||
|
From net realized gain
|
(264,989 | ) | — | — | (803,880 | ) | ||||||||||||
|
Total distributions to common shareholders
|
$ | (2,371,949 | ) | $ | (2,014,492 | ) | $ | (1,729,034 | ) | $ | (3,021,692 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 68,403 | $ | 26,563 | $ | 63,002 | $ | 28,342 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 68,403 | $ | 26,563 | $ | 63,002 | $ | 28,342 | ||||||||||
|
Net increase in net assets
|
$ | 6,852,478 | $ | 5,388,141 | $ | 4,215,486 | $ | 5,543,508 | ||||||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 30,775,544 | $ | 29,458,758 | $ | 28,494,621 | $ | 35,412,882 | ||||||||||
|
At end of year
|
$ | 37,628,022 | $ | 34,846,899 | $ | 32,710,107 | $ | 40,956,390 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 288,817 | $ | 366,357 | $ | 163,581 | $ | 397,113 | ||||||||||
43
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS (Unaudited) CONT’D
Statements
of Cash Flows
| For the Six Months Ended March 31, 2010 | ||||||||||||||||||
| Cash Flows From Operating Activities | Municipal Fund II | California Fund II | New Jersey Fund | New York Fund II | ||||||||||||||
|
Net decrease in net assets from operations
|
$ | (3,003,433 | ) | $ | (2,474,595 | ) | $ | (1,078,302 | ) | $ | (634,440 | ) | ||||||
|
Distributions to preferred shareholders
|
86,599 | 49,087 | 38,046 | 25,546 | ||||||||||||||
|
Net decrease in net assets from operations excluding
distributions to preferred shareholders
|
$ | (2,916,834 | ) | $ | (2,425,508 | ) | $ | (1,040,256 | ) | $ | (608,894 | ) | ||||||
|
Adjustments to reconcile net decrease in net assets from
operations to net
cash provided by operating activities: |
||||||||||||||||||
|
Investments purchased
|
(13,873,404 | ) | (2,971,375 | ) | (4,120,303 | ) | (3,244,293 | ) | ||||||||||
|
Investments sold
|
12,604,620 | 2,416,380 | 5,632,235 | 4,817,975 | ||||||||||||||
|
Increase in short-term investments, net
|
(1,694,494 | ) | (561,395 | ) | (555,683 | ) | (846,281 | ) | ||||||||||
|
Net accretion/amortization of premium (discount)
|
(1,010,028 | ) | (480,714 | ) | (339,298 | ) | (139,669 | ) | ||||||||||
|
Amortization of deferred debt issuance costs
|
11,078 | 4,373 | 243 | 4,750 | ||||||||||||||
|
Decrease (increase) in interest receivable
|
(62,414 | ) | (3,408 | ) | 40,104 | 36,768 | ||||||||||||
|
Decrease (increase) in receivable for investments sold
|
740,951 | — | 222,703 | (1,049,896 | ) | |||||||||||||
|
Decrease in receivable for variation margin on open financial
futures contracts
|
27,094 | 10,750 | — | 7,500 | ||||||||||||||
|
Increase (decrease) in payable for investments purchased
|
2,254,979 | — | (1,356,300 | ) | — | |||||||||||||
|
Increase in payable for when-issued securities
|
1,105,563 | 1,091,136 | — | 415,750 | ||||||||||||||
|
Increase in payable for variation margin on open financial
futures contracts
|
66,406 | 20,157 | 30,469 | 14,063 | ||||||||||||||
|
Decrease in payable for open swap contracts
|
(259,576 | ) | (152,316 | ) | (104,899 | ) | (164,780 | ) | ||||||||||
|
Increase in payable to affiliate for investment adviser fee
|
14,539 | 3,879 | 3,446 | 3,425 | ||||||||||||||
|
Decrease in interest expense and fees payable
|
(43,106 | ) | (8,595 | ) | (4,245 | ) | (5,640 | ) | ||||||||||
|
Decrease in accrued expenses
|
(36,050 | ) | (27,320 | ) | (15,822 | ) | (14,748 | ) | ||||||||||
|
Net change in unrealized (appreciation) depreciation from
investments
|
8,852,586 | 4,489,696 | 2,650,836 | 1,641,311 | ||||||||||||||
|
Net realized (gain) loss from investments
|
(353,088 | ) | 76,816 | (106,532 | ) | 375,259 | ||||||||||||
|
Net cash provided by operating activities
|
$ | 5,428,822 | $ | 1,482,556 | $ | 936,698 | $ | 1,242,600 | ||||||||||
| Cash Flows From Financing Activities | ||||||||||||||||||
|
Distributions paid to common shareholders, net of reinvestments
|
$ | (4,529,830 | ) | $ | (1,628,444 | ) | $ | (1,121,646 | ) | $ | (1,105,066 | ) | ||||||
|
Cash distributions paid to preferred shareholders
|
(86,692 | ) | (49,612 | ) | (38,126 | ) | (25,567 | ) | ||||||||||
|
Decrease in due to custodian
|
(812,300 | ) | — | — | (111,967 | ) | ||||||||||||
|
Net cash used in financing activities
|
$ | (5,428,822 | ) | $ | (1,678,056 | ) | $ | (1,159,772 | ) | $ | (1,242,600 | ) | ||||||
|
Net decrease in cash
|
$ | — | $ | (195,500 | ) | $ | (223,074 | ) | $ | — | ||||||||
|
Cash at beginning of period
|
$ | — | $ | 195,500 | $ | 223,074 | $ | — | ||||||||||
|
Cash at end of period
|
$ | — | $ | — | $ | — | $ | — | ||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||||||
|
Noncash financing activities not included herein consist of:
|
||||||||||||||||||
|
Reinvestment of dividends and distributions
|
$ | 104,513 | $ | 24,778 | $ | 50,630 | $ | 14,901 | ||||||||||
|
Cash paid for interest and fees
|
248,194 | 41,665 | 32,145 | 45,309 | ||||||||||||||
44
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Municipal Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 12.880 | $ | 11.030 | $ | 15.470 | $ | 15.860 | $ | 15.310 | $ | 15.030 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.483 | $ | 0.943 | $ | 1.037 | $ | 1.048 | $ | 1.058 | $ | 1.094 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.779 | ) | 1.813 | (4.159 | ) | (0.383 | ) | 0.605 | 0.359 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.009 | ) | (0.058 | ) | (0.168 | ) | (0.303 | ) | (0.265 | ) | (0.169 | ) | ||||||||||||||
|
From net realized gain
|
— | — | (0.117 | ) | — | — | — | (2) | ||||||||||||||||||
|
Total income (loss) from operations
|
$ | (0.305 | ) | $ | 2.698 | $ | (3.407 | ) | $ | 0.362 | $ | 1.398 | $ | 1.284 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.465 | ) | $ | (0.848 | ) | $ | (0.747 | ) | $ | (0.752 | ) | $ | (0.848 | ) | $ | (1.001 | ) | ||||||||
|
From net realized gain
|
— | — | (0.286 | ) | — | — | (0.003 | ) | ||||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.465 | ) | $ | (0.848 | ) | $ | (1.033 | ) | $ | (0.752 | ) | $ | (0.848 | ) | $ | (1.004 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 12.110 | $ | 12.880 | $ | 11.030 | $ | 15.470 | $ | 15.860 | $ | 15.310 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 13.560 | $ | 13.370 | $ | 11.650 | $ | 14.550 | $ | 15.310 | $ | 16.170 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(3)
|
(2.43 | )%(4) | 26.08 | % | (23.08 | )% | 2.43 | %(5) | 9.56 | % | 8.77 | % | ||||||||||||||
|
Total Investment Return on Market
Value(3)
|
5.25 | %(4) | 23.88 | % | (13.61 | )% | (0.20 | )%(5) | 0.13 | % | 16.51 | % | ||||||||||||||
45
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Municipal Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 120,616 | $ | 128,150 | $ | 109,648 | $ | 153,612 | $ | 157,463 | $ | 151,937 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares):(6) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.22 | %(7) | 1.28 | % | 1.09 | % | 1.00 | %(8) | 1.02 | % | 1.03 | % | ||||||||||||||
|
Interest and fee
expense(9)
|
0.36 | %(7) | 0.87 | % | 0.93 | % | 0.99 | % | 0.91 | % | 0.62 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.58 | %(7) | 2.15 | % | 2.02 | % | 1.99 | %(8) | 1.93 | % | 1.65 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.22 | %(7) | 1.27 | % | 1.05 | % | 0.99 | %(8) | 1.01 | % | 1.02 | % | ||||||||||||||
|
Net investment income
|
8.03 | %(7) | 9.05 | % | 7.40 | % | 6.62 | % | 6.87 | % | 7.11 | % | ||||||||||||||
|
Portfolio Turnover
|
6 | %(4) | 22 | % | 54 | % | 31 | % | 26 | % | 10 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(6) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.89 | %(7) | 0.89 | % | 0.69 | % | 0.64 | %(8) | 0.65 | % | 0.65 | % | ||||||||||||||
|
Interest and fee
expense(9)
|
0.26 | %(7) | 0.61 | % | 0.60 | % | 0.64 | % | 0.58 | % | 0.40 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.15 | %(7) | 1.50 | % | 1.29 | % | 1.28 | %(8) | 1.23 | % | 1.05 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.89 | %(7) | 0.89 | % | 0.67 | % | 0.63 | %(8) | 0.64 | % | 0.65 | % | ||||||||||||||
|
Net investment income
|
5.85 | %(7) | 6.32 | % | 4.73 | % | 4.25 | % | 4.37 | % | 4.52 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
1,788 | 1,788 | 1,788 | 3,500 | 3,500 | 3,500 | ||||||||||||||||||||
|
Asset coverage per preferred
share(10)
|
$ | 92,461 | $ | 96,674 | $ | 86,356 | $ | 68,894 | $ | 69,992 | $ | 68,411 | ||||||||||||||
|
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) | Equal to less than $0.001 per share. | |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (4) | Not annualized. | |
| (5) | During the year ended September 30, 2007, the investment adviser fully reimbursed the Fund for a realized loss on the disposal of an investment security which did not meet investment guidelines. The loss had no effect on total return. | |
| (6) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (7) | Annualized. | |
| (8) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (9) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (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. |
46
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| California Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 12.940 | $ | 11.310 | $ | 15.020 | $ | 15.330 | $ | 14.810 | $ | 14.510 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.458 | $ | 0.877 | $ | 0.983 | $ | 0.981 | $ | 0.989 | $ | 1.008 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(1.078 | ) | 1.601 | (3.583 | ) | (0.301 | ) | 0.547 | 0.360 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.013 | ) | (0.084 | ) | (0.233 | ) | (0.282 | ) | (0.243 | ) | (0.145 | ) | ||||||||||||||
|
From net realized gain
|
— | — | (0.053 | ) | — | — | — | |||||||||||||||||||
|
Total income (loss) from operations
|
$ | (0.633 | ) | $ | 2.394 | $ | (2.886 | ) | $ | 0.398 | $ | 1.293 | $ | 1.223 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.427 | ) | $ | (0.764 | ) | $ | (0.693 | ) | $ | (0.708 | ) | $ | (0.773 | ) | $ | (0.923 | ) | ||||||||
|
From net realized gain
|
— | — | (0.131 | ) | — | — | — | |||||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.427 | ) | $ | (0.764 | ) | $ | (0.824 | ) | $ | (0.708 | ) | $ | (0.773 | ) | $ | (0.923 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 11.880 | $ | 12.940 | $ | 11.310 | $ | 15.020 | $ | 15.330 | $ | 14.810 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 12.160 | $ | 12.500 | $ | 10.250 | $ | 14.250 | $ | 14.635 | $ | 14.770 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(4.78 | )%(3) | 23.06 | % | (19.81 | )% | 2.75 | % | 9.15 | % | 8.65 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
0.90 | %(3) | 31.17 | % | (23.40 | )% | 2.11 | % | 4.49 | % | 7.84 | % | ||||||||||||||
47
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| California Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 45,977 | $ | 50,080 | $ | 43,718 | $ | 58,010 | $ | 59,199 | $ | 57,187 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(4)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.33 | %(5) | 1.51 | % | 1.23 | % | 1.11 | %(6) | 1.13 | % | 1.10 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.16 | %(5) | 0.37 | % | 0.42 | % | 0.50 | % | 0.48 | % | 0.31 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.49 | %(5) | 1.88 | % | 1.65 | % | 1.61 | %(6) | 1.61 | % | 1.41 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.33 | %(5) | 1.50 | % | 1.19 | % | 1.09 | %(6) | 1.11 | % | 1.06 | % | ||||||||||||||
|
Net investment income
|
7.69 | %(5) | 8.23 | % | 7.11 | % | 6.42 | % | 6.66 | % | 6.81 | % | ||||||||||||||
|
Portfolio Turnover
|
3 | %(3) | 17 | % | 22 | % | 37 | % | 13 | % | 13 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(4) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.85 | %(5) | 0.93 | % | 0.76 | % | 0.71 | %(6) | 0.71 | % | 0.69 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.10 | %(5) | 0.23 | % | 0.26 | % | 0.32 | % | 0.30 | % | 0.20 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
0.95 | %(5) | 1.16 | % | 1.02 | % | 1.03 | %(6) | 1.01 | % | 0.89 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.85 | %(5) | 0.93 | % | 0.74 | % | 0.69 | %(6) | 0.70 | % | 0.67 | % | ||||||||||||||
|
Net investment income
|
4.94 | %(5) | 5.07 | % | 4.42 | % | 4.09 | % | 4.19 | % | 4.28 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
1,028 | 1,028 | 1,028 | 1,350 | 1,350 | 1,350 | ||||||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 69,727 | $ | 73,719 | $ | 67,578 | $ | 67,980 | $ | 68,858 | $ | 67,364 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Not annualized. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | Annualized. | |
| (6) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (8) | 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. | |
| (9) | Plus accumulated and unpaid dividends. |
48
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Massachusetts Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 14.660 | $ | 12.130 | $ | 15.090 | $ | 15.640 | $ | 15.100 | $ | 14.870 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.441 | $ | 0.901 | $ | 0.981 | $ | 0.969 | $ | 0.983 | $ | 1.031 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.839 | ) | 2.486 | (2.981 | ) | (0.540 | ) | 0.613 | 0.290 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.015 | ) | (0.099 | ) | (0.289 | ) | (0.293 | ) | (0.256 | ) | (0.143 | ) | ||||||||||||||
|
Total income (loss) from operations
|
$ | (0.413 | ) | $ | 3.288 | $ | (2.289 | ) | $ | 0.136 | $ | 1.340 | $ | 1.178 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.417 | ) | $ | (0.758 | ) | $ | (0.671 | ) | $ | (0.686 | ) | $ | (0.800 | ) | $ | (0.948 | ) | ||||||||
|
Total distributions to common shareholders
|
$ | (0.417 | ) | $ | (0.758 | ) | $ | (0.671 | ) | $ | (0.686 | ) | $ | (0.800 | ) | $ | (0.948 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 13.830 | $ | 14.660 | $ | 12.130 | $ | 15.090 | $ | 15.640 | $ | 15.100 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 14.260 | $ | 15.250 | $ | 13.780 | $ | 14.820 | $ | 16.090 | $ | 17.350 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(2.82 | )%(3) | 28.42 | % | (15.70 | )% | 0.88 | %(4) | 9.14 | % | 7.74 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
(3.66 | )%(3) | 17.59 | % | (2.46 | )% | (3.72 | )%(4) | (2.28 | )% | 18.23 | % | ||||||||||||||
49
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Massachusetts Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 24,343 | $ | 25,771 | $ | 21,311 | $ | 26,476 | $ | 27,419 | $ | 26,441 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(5)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.44 | %(6) | 1.69 | % | 1.41 | % | 1.25 | %(7) | 1.29 | % | 1.25 | % | ||||||||||||||
|
Interest and fee
expense(8)
|
0.07 | %(6) | 0.23 | % | 0.71 | % | 0.98 | % | 1.54 | % | 1.26 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.51 | %(6) | 1.92 | % | 2.12 | % | 2.23 | %(7) | 2.83 | % | 2.51 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.44 | %(6) | 1.68 | % | 1.38 | % | 1.25 | %(7) | 1.26 | % | 1.24 | % | ||||||||||||||
|
Net investment income
|
6.38 | %(6) | 7.41 | % | 6.83 | % | 6.27 | % | 6.50 | % | 6.79 | % | ||||||||||||||
|
Portfolio Turnover
|
9 | %(3) | 43 | % | 12 | % | 15 | % | 15 | % | 11 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(5) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.93 | %(6) | 1.03 | % | 0.88 | % | 0.81 | %(7) | 0.81 | % | 0.79 | % | ||||||||||||||
|
Interest and fee
expense(8)
|
0.04 | %(6) | 0.14 | % | 0.45 | % | 0.62 | % | 0.97 | % | 0.80 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
0.97 | %(6) | 1.17 | % | 1.33 | % | 1.43 | %(7) | 1.78 | % | 1.59 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.93 | %(6) | 1.03 | % | 0.87 | % | 0.80 | %(7) | 0.80 | % | 0.78 | % | ||||||||||||||
|
Net investment income
|
4.10 | %(6) | 4.53 | % | 4.27 | % | 3.99 | % | 4.10 | % | 4.29 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
543 | 543 | 543 | 620 | 620 | 620 | ||||||||||||||||||||
|
Asset coverage per preferred
share(9)
|
$ | 69,832 | $ | 72,462 | $ | 64,287 | $ | 67,711 | $ | 69,229 | $ | 67,649 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(10)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(10)
|
$ | 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. | |
| (3) | Not annualized. | |
| (4) | During the year ended September 30, 2007, the Fund realized a gain on the disposal of an investment security which did not meet investment guidelines. The gain was less than $0.01 per share and had no effect on total return. | |
| (5) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (6) | Annualized. | |
| (7) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (8) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (9) | 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. | |
| (10) | Plus accumulated and unpaid dividends. |
50
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Michigan Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 14.730 | $ | 12.570 | $ | 15.150 | $ | 15.430 | $ | 15.000 | $ | 14.840 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.463 | $ | 0.925 | $ | 0.975 | $ | 0.985 | $ | 0.991 | $ | 1.039 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.752 | ) | 2.110 | (2.590 | ) | (0.309 | ) | 0.462 | 0.233 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.017 | ) | (0.113 | ) | (0.295 | ) | (0.288 | ) | (0.252 | ) | (0.164 | ) | ||||||||||||||
|
Total income (loss) from operations
|
$ | (0.306 | ) | $ | 2.922 | $ | (1.910 | ) | $ | 0.388 | $ | 1.201 | $ | 1.108 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.434 | ) | $ | (0.762 | ) | $ | (0.670 | ) | $ | (0.668 | ) | $ | (0.771 | ) | $ | (0.948 | ) | ||||||||
|
Total distributions to common shareholders
|
$ | (0.434 | ) | $ | (0.762 | ) | $ | (0.670 | ) | $ | (0.668 | ) | $ | (0.771 | ) | $ | (0.948 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 13.990 | $ | 14.730 | $ | 12.570 | $ | 15.150 | $ | 15.430 | $ | 15.000 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 14.160 | $ | 13.900 | $ | 10.400 | $ | 14.030 | $ | 14.190 | $ | 16.200 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(1.94 | )%(3) | 25.29 | % | (12.66 | )%(4) | 2.81 | % | 8.44 | % | 7.52 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
5.20 | %(3) | 42.90 | % | (21.97 | )%(4) | 3.53 | % | (7.67 | )% | 11.26 | % | ||||||||||||||
51
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Michigan Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 21,148 | $ | 22,276 | $ | 19,007 | $ | 22,912 | $ | 23,335 | $ | 22,670 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(5)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.49 | %(6) | 1.70 | % | 1.49 | % | 1.29 | %(7) | 1.32 | % | 1.28 | % | ||||||||||||||
|
Interest and fee
expense(8)
|
— | (6) | — | 0.54 | % | 0.98 | % | 0.90 | % | 0.60 | % | |||||||||||||||
|
Total expenses before custodian fee reduction
|
1.49 | %(6) | 1.70 | % | 2.03 | % | 2.27 | %(7) | 2.22 | % | 1.88 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.49 | %(6) | 1.69 | % | 1.48 | % | 1.27 | %(7) | 1.30 | % | 1.27 | % | ||||||||||||||
|
Net investment income
|
6.58 | %(6) | 7.30 | % | 6.72 | % | 6.43 | % | 6.62 | % | 6.88 | % | ||||||||||||||
|
Portfolio Turnover
|
— | (3) | 9 | % | 11 | % | 6 | % | 6 | % | 5 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(5) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.92 | %(6) | 1.00 | % | 0.93 | % | 0.81 | %(7) | 0.83 | % | 0.81 | % | ||||||||||||||
|
Interest and fee
expense(8)
|
— | (6) | — | 0.33 | % | 0.62 | % | 0.56 | % | 0.38 | % | |||||||||||||||
|
Expenses before custodian fee reduction
|
0.92 | %(6) | 1.00 | % | 1.26 | % | 1.43 | %(7) | 1.39 | % | 1.19 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.92 | %(6) | 1.00 | % | 0.92 | % | 0.80 | %(7) | 0.82 | % | 0.80 | % | ||||||||||||||
|
Net investment income
|
4.05 | %(6) | 4.30 | % | 4.16 | % | 4.06 | % | 4.15 | % | 4.32 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
533 | 533 | 540 | 540 | 540 | 540 | ||||||||||||||||||||
|
Asset coverage per preferred
share(9)
|
$ | 64,678 | $ | 66,794 | $ | 60,199 | $ | 67,442 | $ | 68,222 | $ | 66,986 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(10)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(10)
|
$ | 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. | |
| (3) | Not annualized. | |
| (4) | During the year ended September 30, 2008, the adviser fully reimbursed the Fund for a realized loss on the disposal of an investment security which did not meet investment guidelines. The loss had no effect on total return. | |
| (5) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (6) | Annualized. | |
| (7) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (8) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (9) | 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. | |
| (10) | Plus accumulated and unpaid dividends. |
52
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| New Jersey Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 14.620 | $ | 11.980 | $ | 15.690 | $ | 15.840 | $ | 15.240 | $ | 14.990 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.473 | $ | 0.926 | $ | 0.982 | $ | 0.996 | $ | 1.002 | $ | 1.039 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.883 | ) | 2.740 | (3.393 | ) | (0.150 | ) | 0.671 | 0.330 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.015 | ) | (0.088 | ) | (0.196 | ) | (0.286 | ) | (0.253 | ) | (0.159 | ) | ||||||||||||||
|
From net realized gain
|
— | (0.016 | ) | (0.114 | ) | — | — | — | ||||||||||||||||||
|
Total income (loss) from operations
|
$ | (0.425 | ) | $ | 3.562 | $ | (2.721 | ) | $ | 0.560 | $ | 1.420 | $ | 1.210 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.455 | ) | $ | (0.819 | ) | $ | (0.706 | ) | $ | (0.710 | ) | $ | (0.820 | ) | $ | (0.960 | ) | ||||||||
|
From net realized gain
|
— | (0.103 | ) | (0.283 | ) | — | — | — | ||||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.455 | ) | $ | (0.922 | ) | $ | (0.989 | ) | $ | (0.710 | ) | $ | (0.820 | ) | $ | (0.960 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 13.740 | $ | 14.620 | $ | 11.980 | $ | 15.690 | $ | 15.840 | $ | 15.240 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 15.360 | $ | 14.730 | $ | 11.880 | $ | 14.790 | $ | 16.400 | $ | 16.240 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(2.95 | )%(3) | 31.84 | % | (18.15 | )% | 3.64 | % | 9.65 | % | 8.18 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
7.67 | %(3) | 33.95 | % | (13.88 | )% | (5.66 | )% | 6.53 | % | 11.56 | % | ||||||||||||||
53
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| New Jersey Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 35,428 | $ | 37,628 | $ | 30,776 | $ | 40,262 | $ | 40,620 | $ | 39,032 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(4)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.37 | %(5) | 1.53 | % | 1.33 | % | 1.14 | %(6) | 1.19 | % | 1.15 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.16 | %(5) | 0.46 | % | 1.16 | % | 0.92 | % | 0.86 | % | 0.59 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.53 | %(5) | 1.99 | % | 2.49 | % | 2.06 | %(6) | 2.05 | % | 1.74 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.37 | %(5) | 1.52 | % | 1.28 | % | 1.11 | %(6) | 1.16 | % | 1.14 | % | ||||||||||||||
|
Net investment income
|
6.88 | %(5) | 7.81 | % | 6.72 | % | 6.29 | % | 6.59 | % | 6.78 | % | ||||||||||||||
|
Portfolio Turnover
|
7 | %(3) | 39 | % | 48 | % | 27 | % | 22 | % | 15 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(4) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.88 | %(5) | 0.93 | % | 0.84 | % | 0.73 | %(6) | 0.75 | % | 0.73 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.10 | %(5) | 0.28 | % | 0.73 | % | 0.59 | % | 0.55 | % | 0.38 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
0.98 | %(5) | 1.21 | % | 1.57 | % | 1.32 | %(6) | 1.30 | % | 1.11 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.88 | %(5) | 0.92 | % | 0.81 | % | 0.72 | %(6) | 0.73 | % | 0.72 | % | ||||||||||||||
|
Net investment income
|
4.43 | %(5) | 4.75 | % | 4.24 | % | 4.05 | % | 4.18 | % | 4.31 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
784 | 784 | 812 | 900 | 900 | 900 | ||||||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 70,189 | $ | 72,996 | $ | 62,907 | $ | 69,751 | $ | 70,144 | $ | 68,375 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Not annualized. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | Annualized. | |
| (6) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (8) | 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. | |
| (9) | Plus accumulated and unpaid dividends. |
54
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| New York Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 13.620 | $ | 11.530 | $ | 15.240 | $ | 15.760 | $ | 15.300 | $ | 14.910 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.427 | $ | 0.857 | $ | 0.938 | $ | 0.969 | $ | 0.990 | $ | 1.008 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.659 | ) | 2.087 | (3.483 | ) | (0.256 | ) | 0.542 | 0.462 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.010 | ) | (0.066 | ) | (0.237 | ) | (0.209 | ) | (0.240 | ) | (0.148 | ) | ||||||||||||||
|
From net realized gain
|
— | — | (0.049 | ) | (0.079 | ) | (0.015 | ) | — | |||||||||||||||||
|
Total income (loss) from operations
|
$ | (0.242 | ) | $ | 2.878 | $ | (2.831 | ) | $ | 0.425 | $ | 1.277 | $ | 1.322 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.438 | ) | $ | (0.788 | ) | $ | (0.699 | ) | $ | (0.697 | ) | $ | (0.732 | ) | $ | (0.932 | ) | ||||||||
|
From net realized gain
|
— | — | (0.180 | ) | (0.248 | ) | (0.085 | ) | — | |||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.438 | ) | $ | (0.788 | ) | $ | (0.879 | ) | $ | (0.945 | ) | $ | (0.817 | ) | $ | (0.932 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 12.940 | $ | 13.620 | $ | 11.530 | $ | 15.240 | $ | 15.760 | $ | 15.300 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 13.890 | $ | 13.610 | $ | 10.580 | $ | 14.440 | $ | 14.420 | $ | 14.570 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(1.74 | )%(3) | 26.71 | % | (19.25 | )% | 3.00 | % | 9.02 | % | 9.17 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
5.56 | %(3) | 37.98 | % | (21.80 | )% | 6.66 | % | 4.75 | % | 7.19 | % | ||||||||||||||
55
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| New York Fund II | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 33,107 | $ | 34,847 | $ | 29,459 | $ | 38,947 | $ | 40,263 | $ | 39,101 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(4)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.39 | %(5) | 1.51 | % | 1.33 | % | 1.16 | %(6) | 1.14 | % | 1.21 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.27 | %(5) | 0.63 | % | 0.46 | % | 0.46 | % | 0.42 | % | 0.28 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.66 | %(5) | 2.14 | % | 1.79 | % | 1.62 | %(6) | 1.56 | % | 1.49 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.39 | %(5) | 1.50 | % | 1.28 | % | 1.14 | %(6) | 1.11 | % | 1.19 | % | ||||||||||||||
|
Net investment income
|
6.61 | %(5) | 7.67 | % | 6.67 | % | 6.24 | % | 6.48 | % | 6.60 | % | ||||||||||||||
|
Portfolio Turnover
|
6 | %(3) | 30 | % | 44 | % | 38 | % | 26 | % | 29 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(4) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.00 | %(5) | 1.03 | % | 0.83 | % | 0.74 | %(6) | 0.72 | % | 0.77 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.19 | %(5) | 0.43 | % | 0.29 | % | 0.29 | % | 0.27 | % | 0.18 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.19 | %(5) | 1.46 | % | 1.12 | % | 1.03 | %(6) | 0.99 | % | 0.95 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.00 | %(5) | 1.02 | % | 0.80 | % | 0.73 | %(6) | 0.71 | % | 0.76 | % | ||||||||||||||
|
Net investment income
|
4.72 | %(5) | 5.24 | % | 4.17 | % | 3.98 | % | 4.11 | % | 4.18 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
530 | 530 | 530 | 900 | 900 | 900 | ||||||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 87,467 | $ | 90,749 | $ | 80,583 | $ | 68,285 | $ | 69,746 | $ | 68,450 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Not annualized. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | Annualized. | |
| (6) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (8) | 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. | |
| (9) | Plus accumulated and unpaid dividends. |
56
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Ohio Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 12.980 | $ | 11.330 | $ | 14.970 | $ | 15.330 | $ | 14.830 | $ | 14.640 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.419 | $ | 0.846 | $ | 0.948 | $ | 0.966 | $ | 0.978 | $ | 1.006 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(0.630 | ) | 1.592 | (3.665 | ) | (0.361 | ) | 0.497 | 0.219 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.013 | ) | (0.101 | ) | (0.298 | ) | (0.301 | ) | (0.263 | ) | (0.173 | ) | ||||||||||||||
|
Total income (loss) from operations
|
$ | (0.224 | ) | $ | 2.337 | $ | (3.015 | ) | $ | 0.304 | $ | 1.212 | $ | 1.052 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.376 | ) | $ | (0.687 | ) | $ | (0.625 | ) | $ | (0.664 | ) | $ | (0.712 | ) | $ | (0.862 | ) | ||||||||
|
Total distributions to common shareholders
|
$ | (0.376 | ) | $ | (0.687 | ) | $ | (0.625 | ) | $ | (0.664 | ) | $ | (0.712 | ) | $ | (0.862 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 12.380 | $ | 12.980 | $ | 11.330 | $ | 14.970 | $ | 15.330 | $ | 14.830 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 13.440 | $ | 13.250 | $ | 11.250 | $ | 13.710 | $ | 14.600 | $ | 14.510 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(1.71 | )%(3) | 22.05 | % | (20.51 | )% | 2.17 | % | 8.58 | % | 7.29 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
4.53 | %(3) | 25.48 | % | (13.81 | )% | (1.75 | )% | 5.69 | % | 1.11 | % | ||||||||||||||
57
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Ohio Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 31,227 | $ | 32,710 | $ | 28,495 | $ | 37,617 | $ | 38,532 | $ | 37,255 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(4)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.32 | %(5) | 1.57 | % | 1.35 | % | 1.16 | %(6) | 1.19 | % | 1.18 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.01 | %(5) | 0.10 | % | 0.29 | % | 0.53 | % | 0.41 | % | 0.25 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.33 | %(5) | 1.67 | % | 1.64 | % | 1.69 | %(6) | 1.60 | % | 1.43 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.32 | %(5) | 1.57 | % | 1.33 | % | 1.14 | %(6) | 1.16 | % | 1.16 | % | ||||||||||||||
|
Net investment income
|
6.73 | %(5) | 7.87 | % | 6.82 | % | 6.33 | % | 6.56 | % | 6.76 | % | ||||||||||||||
|
Portfolio Turnover
|
4 | %(3) | 18 | % | 22 | % | 30 | % | 16 | % | 8 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(4) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.85 | %(5) | 0.95 | % | 0.83 | % | 0.74 | %(6) | 0.75 | % | 0.74 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.01 | %(5) | 0.06 | % | 0.18 | % | 0.34 | % | 0.26 | % | 0.16 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
0.86 | %(5) | 1.01 | % | 1.01 | % | 1.08 | %(6) | 1.01 | % | 0.90 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.85 | %(5) | 0.95 | % | 0.82 | % | 0.72 | %(6) | 0.73 | % | 0.73 | % | ||||||||||||||
|
Net investment income
|
4.37 | %(5) | 4.77 | % | 4.19 | % | 4.03 | % | 4.14 | % | 4.26 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
680 | 680 | 875 | 875 | 875 | 875 | ||||||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 70,924 | $ | 73,104 | $ | 57,579 | $ | 67,991 | $ | 69,036 | $ | 67,586 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Not annualized. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | Annualized. | |
| (6) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (8) | 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. | |
| (9) | Plus accumulated and unpaid dividends. |
58
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Pennsylvania Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
|
Net asset value — Beginning of period (Common shares)
|
$ | 13.900 | $ | 12.030 | $ | 15.270 | $ | 15.470 | $ | 14.930 | $ | 14.410 | ||||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.436 | $ | 0.889 | $ | 0.995 | $ | 0.995 | $ | 0.994 | $ | 1.019 | ||||||||||||||
|
Net realized and unrealized gain (loss)
|
(1.015 | ) | 2.123 | (3.047 | ) | (0.209 | ) | 0.559 | 0.587 | |||||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||||||
|
From net investment income
|
(0.014 | ) | (0.071 | ) | (0.236 | ) | (0.291 | ) | (0.266 | ) | (0.173 | ) | ||||||||||||||
|
From net realized gain
|
— | (0.045 | ) | (0.076 | ) | — | — | — | ||||||||||||||||||
|
Total income (loss) from operations
|
$ | (0.593 | ) | $ | 2.896 | $ | (2.364 | ) | $ | 0.495 | $ | 1.287 | $ | 1.433 | ||||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||||||
|
From net investment income
|
$ | (0.417 | ) | $ | (0.753 | ) | $ | (0.693 | ) | $ | (0.695 | ) | $ | (0.747 | ) | $ | (0.913 | ) | ||||||||
|
From net realized gain
|
— | (0.273 | ) | (0.183 | ) | — | — | — | ||||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.417 | ) | $ | (1.026 | ) | $ | (0.876 | ) | $ | (0.695 | ) | $ | (0.747 | ) | $ | (0.913 | ) | ||||||||
|
Net asset value — End of period (Common shares)
|
$ | 12.890 | $ | 13.900 | $ | 12.030 | $ | 15.270 | $ | 15.470 | $ | 14.930 | ||||||||||||||
|
Market value — End of period (Common shares)
|
$ | 13.750 | $ | 14.600 | $ | 13.400 | $ | 14.150 | $ | 15.020 | $ | 15.540 | ||||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
(4.28 | )%(3) | 27.36 | % | (16.07 | )% | 3.44 | % | 9.00 | % | 10.01 | % | ||||||||||||||
|
Total Investment Return on Market
Value(2)
|
(2.79 | )%(3) | 20.09 | % | 0.88 | % | (1.28 | )% | 1.68 | % | 10.15 | % | ||||||||||||||
59
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
FINANCIAL
STATEMENTS CONT’D
Selected data for
a common share outstanding during the periods stated
| Pennsylvania Fund | ||||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended September 30, | |||||||||||||||||||||||||
|
March 31,
2010 |
||||||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||||||
|
Net assets applicable to common shares, end of period
(000’s omitted)
|
$ | 38,011 | $ | 40,956 | $ | 35,413 | $ | 44,955 | $ | 45,516 | $ | 43,920 | ||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to
common shares):(4)
|
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.34 | %(5) | 1.52 | % | 1.30 | % | 1.15 | %(6) | 1.18 | % | 1.16 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.07 | %(5) | 0.17 | % | 1.03 | % | 0.83 | % | 0.78 | % | 0.41 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
1.41 | %(5) | 1.69 | % | 2.33 | % | 1.98 | %(6) | 1.96 | % | 1.57 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.34 | %(5) | 1.51 | % | 1.28 | % | 1.12 | %(6) | 1.15 | % | 1.15 | % | ||||||||||||||
|
Net investment income
|
6.67 | %(5) | 7.80 | % | 6.86 | % | 6.45 | % | 6.64 | % | 6.91 | % | ||||||||||||||
|
Portfolio Turnover
|
7 | %(3) | 8 | % | 28 | % | 24 | % | 22 | % | 19 | % | ||||||||||||||
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
||||||||||||||||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred shares):(4) |
||||||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.86 | %(5) | 0.91 | % | 0.81 | % | 0.73 | %(6) | 0.74 | % | 0.73 | % | ||||||||||||||
|
Interest and fee
expense(7)
|
0.04 | %(5) | 0.10 | % | 0.64 | % | 0.53 | % | 0.49 | % | 0.26 | % | ||||||||||||||
|
Total expenses before custodian fee reduction
|
0.90 | %(5) | 1.01 | % | 1.45 | % | 1.26 | %(6) | 1.23 | % | 0.99 | % | ||||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.86 | %(5) | 0.90 | % | 0.80 | % | 0.71 | %(6) | 0.72 | % | 0.72 | % | ||||||||||||||
|
Net investment income
|
4.27 | %(5) | 4.68 | % | 4.26 | % | 4.10 | % | 4.17 | % | 4.32 | % | ||||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||||||
|
Total preferred shares outstanding
|
869 | 869 | 1,040 | 1,040 | 1,040 | 1,040 | ||||||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 68,743 | $ | 72,133 | $ | 59,091 | $ | 68,233 | $ | 68,770 | $ | 67,232 | ||||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Not annualized. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | Annualized. | |
| (6) | The investment adviser was allocated a portion of the Fund’s operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower. | |
| (7) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (8) | 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. | |
| (9) | Plus accumulated and unpaid dividends. |
60
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited)
1 Significant
Accounting Policies
Eaton Vance Municipal Bond Fund II (formerly, Eaton Vance
Insured Municipal Bond Fund II) (Municipal Fund II),
Eaton Vance California Municipal Bond Fund II (formerly,
Eaton Vance Insured California Municipal Bond Fund II)
(California Fund II), Eaton Vance Massachusetts Municipal
Bond Fund (formerly, Eaton Vance Insured Massachusetts Municipal
Bond Fund) (Massachusetts Fund), Eaton Vance Michigan Municipal
Bond Fund (formerly, Eaton Vance Insured Michigan Municipal Bond
Fund) (Michigan Fund), Eaton Vance New Jersey Municipal Bond
Fund (formerly, Eaton Vance Insured New Jersey Municipal Bond
Fund) (New Jersey Fund), Eaton Vance New York Municipal Bond
Fund II (formerly, Eaton Vance Insured New York Municipal
Bond Fund II) (New York Fund II), Eaton Vance Ohio
Municipal Bond Fund (formerly, Eaton Vance Insured Ohio
Municipal Bond) (Ohio Fund) and Eaton Vance Pennsylvania
Municipal Bond Fund (formerly, Eaton Vance Insured 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.
Each Fund seeks 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.
A Investment
Valuation — Debt obligations (including
short-term obligations with a remaining maturity of more than
sixty days) are generally valued on the basis of valuations
furnished by third party pricing services, as derived from such
services’ pricing models. Inputs to the models may include,
but are not limited to, reported trades, executable bid and
asked prices, broker/dealer quotations, prices or yields of
securities with similar characteristics, benchmark curves or
information pertaining to the issuer, as well as industry and
economic events. The pricing services may use a matrix approach,
which considers information regarding securities with similar
characteristics to determine the valuation for a security.
Short-term obligations, maturing in sixty days or less, are
generally valued at amortized cost, which approximates market
value. Financial futures contracts are valued at the closing
settlement price established by the board of trade or exchange
on which they are traded. Interest rate swaps are normally
valued using valuations provided by a third party pricing
service. Such pricing service valuations are based on the
present value of fixed and projected floating rate cash flows
over the term of the swap contract. Future cash flows are
discounted to their present value using swap curves provided by
electronic data services or by broker/dealers. 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 most fairly reflects the
security’s value, or the amount that the 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 all 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 municipal obligations, which are exempt from
regular federal income tax when received by each Fund, as
exempt-interest dividends.
At September 30, 2009, the following Funds, for federal
income tax purposes, had capital loss carryforwards which will
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 will
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. The amounts and expiration dates
of the capital loss carryforwards are as follows:
61
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
| Fund | Amount | Expiration Date | ||||||||
|
Municipal II
|
$ | 658,427 | September 30, 2016 | |||||||
| 2,011,041 | September 30, 2017 | |||||||||
|
California II
|
$ | 52,500 | September 30, 2016 | |||||||
| 1,365,711 | September 30, 2017 | |||||||||
|
Massachusetts
|
$ | 179,329 | September 30, 2013 | |||||||
| 94,578 | September 30, 2017 | |||||||||
|
Michigan
|
$ | 384,407 | September 30, 2013 | |||||||
| 1,883 | September 30, 2016 | |||||||||
|
New Jersey
|
$ | 244,927 | September 30, 2017 | |||||||
|
New York II
|
$ | 41,818 | September 30, 2016 | |||||||
| 1,233,356 | September 30, 2017 | |||||||||
|
Ohio
|
$ | 321,978 | September 30, 2013 | |||||||
| 83,319 | September 30, 2016 | |||||||||
| 1,620,085 | September 30, 2017 | |||||||||
Additionally, at September 30, 2009, the Municipal
Fund II, California Fund II, Massachusetts Fund,
Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund
and Pennsylvania Fund had net capital losses of $11,660,513,
$3,404,426, $1,057,708, $579,640, $2,262,820, $1,660,342,
$3,402,294 and $1,901,230, respectively, attributable to
security transactions incurred after October 31, 2008.
These net capital losses are treated as arising on the first day
of the Funds’ taxable year ending September 30, 2010.
As of March 31, 2010, the Funds had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. Each of the Funds’ federal
tax returns filed in the
3-year
period ended September 30, 2009 remains subject to
examination by the Internal Revenue Service.
D Expense
Reduction — State Street Bank and
Trust Company (SSBT) serves as custodian of the Funds.
Pursuant to the respective custodian agreements, SSBT receives a
fee reduced by credits, which are determined based on the
average daily cash balance each Fund maintains with SSBT. All
credit balances, if any, used to reduce each Fund’s
custodian fees are reported as a reduction of expenses in the
Statements of Operations.
E Legal
Fees — Legal fees and other related expenses
incurred as part of negotiations of the terms and requirement of
capital infusions, or that are expected to result in the
restructuring of, or a plan of reorganization for, an investment
are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
F Use
of Estimates — The preparation of the financial
statements in conformity with accounting principles generally
accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during
the reporting period. Actual results could differ from those
estimates.
G Indemnifications —
Under each 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 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.
H Floating
Rate Notes Issued in Conjunction with Securities
Held — The Funds may invest in inverse floating
rate securities, also referred to as residual interest bonds,
whereby a Fund may sell a fixed rate bond to a broker for cash.
At the same time, the Fund buys a residual interest in the
assets and cash flows of a Special-Purpose Vehicle (the SPV),
(which is generally organized as a trust), set up by the broker,
often referred to as an inverse floating rate obligation
(Inverse Floater). The broker deposits a fixed rate bond into
the SPV with the same CUSIP number as the fixed rate bond sold
to the broker by the Fund, and which may have been, but is not
required to be, the fixed rate bond purchased from the Fund (the
Fixed Rate Bond). The SPV also issues floating rate notes
(Floating Rate Notes) which are sold to third-parties.
The Inverse Floater held by a Fund gives the Fund the right
(1) to cause the holders of the Floating Rate Notes to
tender their notes at par, and (2) to have the broker
transfer the Fixed Rate Bond held by the SPV to the Fund,
thereby terminating the SPV. Should the Fund exercise such
right, it would pay the broker the par amount due on the
Floating Rate Notes and exchange the Inverse Floater for the
underlying Fixed Rate 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 Fixed Rate Bond in
62
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
their Portfolio of Investments and the Floating Rate Notes as a
liability under the caption “Payable for floating rate
notes issued” in their Statement of Assets and Liabilities.
The Floating Rate Notes have interest rates that generally reset
weekly and their holders have the option to tender their notes
to the broker for redemption at par at each reset date. Interest
expense related to the Funds’ 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 broker upon
the occurrence of certain termination events as defined in the
trust agreement, such as a downgrade in the credit quality of
the underlying bond, bankruptcy of or payment failure by the
issuer of the underlying bond, the inability to remarket
Floating Rate Notes that have been tendered due to insufficient
buyers in the market, or the failure by the SPV to obtain
renewal of the liquidity agreement under which liquidity support
is provided for the Floating Rate Notes up to one year.
Structuring fees paid to the liquidity provider upon the
creation of an SPV have been recorded as debt issuance costs and
are being amortized as interest expense to the expected maturity
of the related trust. At March 31, 2010, the amounts of the
Funds’ Floating Rate Notes and related interest rates and
collateral were as follows:
|
Collateral |
||||||||||||
|
Floating |
Interest Rate |
for Floating |
||||||||||
|
Rate |
or Range of |
Rate |
||||||||||
|
Notes |
Interest |
Notes |
||||||||||
| Fund | Outstanding | Rates (%) | Outstanding | |||||||||
|
Municipal II
|
$ | 57,365,000 | 0.29 – 0.33 | $ | 67,123,806 | |||||||
|
California II
|
9,575,000 | 0.29 – 0.31 | 10,962,619 | |||||||||
|
Massachusetts
|
2,460,000 | 0.30 – 0.31 | 2,956,755 | |||||||||
|
Michigan
|
— | — | — | |||||||||
|
New Jersey
|
6,346,000 | 0.29 – 0.33 | 8,401,393 | |||||||||
|
New York II
|
11,335,000 | 0.29 – 0.31 | 12,974,541 | |||||||||
|
Ohio
|
1,010,000 | 0.33 – 0.47 | 1,697,170 | |||||||||
|
Pennsylvania
|
2,850,000 | 0.30 – 0.49 | 4,799,530 | |||||||||
For the six months ended March 31, 2010, 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:
|
Average |
||||||||||
|
Floating |
||||||||||
|
Rate |
||||||||||
|
Notes |
Average |
|||||||||
| Fund | Outstanding | Interest Rate | ||||||||
|
Municipal II
|
$ | 57,365,000 | 0.76 | % | ||||||
|
California II
|
9,575,000 | 0.78 | ||||||||
|
Massachusetts
|
2,460,000 | 0.67 | ||||||||
|
Michigan
|
— | — | ||||||||
|
New Jersey
|
6,346,000 | 0.89 | ||||||||
|
New York II
|
11,335,000 | 0.79 | ||||||||
|
Ohio
|
1,010,000 | 0.39 | ||||||||
|
Pennsylvania
|
2,088,462 | 1.21 | ||||||||
The Funds may enter into shortfall and forbearance agreements
with the broker by which a Fund agrees to reimburse the broker,
in certain circumstances, for the difference between the
liquidation value of the Fixed Rate 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, 2010.
The Funds may also purchase Inverse Floaters from brokers in a
secondary market transaction without first owning the underlying
fixed rate bond. Such transactions are not required to be
treated as secured borrowings. Shortfall agreements, if any,
related to Inverse Floaters purchased in a secondary market
transaction are disclosed in the Portfolio of Investments. The
Funds’ investment policies and restrictions expressly
permit investments in Inverse Floaters. Inverse floating rate
securities 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 inverse floating rate securities 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. Inverse
Floaters held by the Funds are securities exempt from
registration under Rule 144A of the Securities Act of 1933.
I Financial
Futures Contracts — The Funds may enter into
financial futures contracts. The Funds’ investment in
financial futures contracts is designed for hedging against
63
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
changes in interest rates or as a substitute for the purchase of
securities. 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
purchase price (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.
J Interest
Rate Swaps — The Funds may enter into interest
rate swap agreements to enhance return, to hedge against
fluctuations in securities prices or interest rates, or as
substitution for the purchase or sale of securities. Pursuant to
these agreements, a Fund makes periodic payments at a fixed
interest rate and, in exchange, receives payments based on the
interest rate of a benchmark industry index. During the term of
the outstanding swap agreement, changes in the underlying value
of the swap are recorded as unrealized gains or losses. The
value of the swap is determined by changes in the relationship
between two rates of interest. A Fund is exposed to credit loss
in the event of non-performance by the swap counterparty. Risk
may also arise from movements in interest rates.
K 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
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.
L 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 cash on hand at its custodian and does not include any
short-term investments.
M Interim
Financial Statements — The interim financial
statements relating to March 31, 2010 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.
2 Auction
Preferred Shares
Each Fund issued Auction Preferred Shares (APS) on
January 15, 2003 in a public offering. The underwriting
discounts and other offering costs incurred in connection with
the offering were recorded as a reduction of the paid-in capital
of the common shares of each respective Fund. 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. Series of
APS are identical in all respects except for the reset dates of
the dividend rates.
The number of APS issued and outstanding as of March 31,
2010 are as follows:
| Fund | APS Issued and Outstanding | |||||
|
Municipal II
|
||||||
|
Series A
|
894 | |||||
|
Series B
|
894 | |||||
|
California II
|
1,028 | |||||
|
Massachusetts
|
543 | |||||
|
Michigan
|
533 | |||||
|
New Jersey
|
784 | |||||
|
New York II
|
530 | |||||
|
Ohio
|
680 | |||||
|
Pennsylvania
|
869 | |||||
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 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 with respect to the APS. If the
dividends on the APS remain unpaid in an amount equal to two
full years’ dividends, the holders of the APS as a class
have the right to elect a majority of the Board of Trustees. In
general, the holders of the APS and the common shares have equal
voting rights of one vote per share, except that
64
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
the holders of the APS, as a separate class, have the right to
elect at least two members of the Board of Trustees. The APS
have a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends. Each Fund is required to
maintain certain asset coverage with respect to the APS as
defined in the Funds’ By-laws and the 1940 Act. 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%.
3 Distributions
to Shareholders
Each Fund intends to make monthly distributions of net
investment income to common shareholders, after payment of any
dividends on any outstanding APS. In addition, at least
annually, each Fund intends to distribute all or substantially
all of its net realized capital gains, (reduced by available
capital loss carryforwards from prior years, if any).
Distributions to common shareholders are recorded on the
ex-dividend date. Distributions to preferred shareholders are
recorded daily and are payable at the end of each dividend
period. The dividend rates for APS at March 31, 2010, and
the amount of dividends paid (including capital gains, if any)
to APS shareholders, average APS dividend rates, and dividend
rate ranges for the six months then ended were as follows:
|
APS |
Dividends |
Average APS |
Dividend |
|||||||||||||
|
Dividend Rates
at |
Paid to APS |
Dividend |
Rate |
|||||||||||||
| Fund | March 31, 2010 | Shareholders | Rates | Ranges (%) | ||||||||||||
|
Municipal II
|
||||||||||||||||
|
Series A
|
0.46 | % | $ | 42,689 | 0.38 | % | 0.24 – 0.56 | |||||||||
|
Series B
|
0.46 | 43,910 | 0.39 | 0.24 – 0.56 | ||||||||||||
|
California II
|
0.46 | 49,087 | 0.38 | 0.24 – 0.56 | ||||||||||||
|
Massachusetts
|
0.46 | 25,832 | 0.38 | 0.24 – 0.56 | ||||||||||||
|
Michigan
|
0.44 | 25,297 | 0.38 | 0.26 – 0.50 | ||||||||||||
|
New Jersey
|
0.44 | 38,046 | 0.39 | 0.26 – 0.62 | ||||||||||||
|
New York II
|
0.44 | 25,546 | 0.39 | 0.26 – 0.58 | ||||||||||||
|
Ohio
|
0.46 | 32,910 | 0.39 | 0.24 – 0.56 | ||||||||||||
|
Pennsylvania
|
0.46 | 40,986 | 0.38 | 0.24 – 0.50 | ||||||||||||
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, 2010.
The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Accounting principles generally
accepted in the United States of America require that only
distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital. For tax
purposes, distributions from short-term capital gains are
considered to be from ordinary income.
4 Investment
Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management
(EVM) as compensation for investment advisory services rendered
to each 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
APS 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 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.
In addition, EVM has contractually agreed to reimburse the Funds
for fees and other expenses at an annual rate of 0.15% of
average weekly gross assets of each Fund during the first five
full years of its operations, 0.10% of a Fund’s average
weekly gross assets in year six, and 0.05% in year seven. The
Funds concluded their first seven full years of operations on
November 29, 2009. For the six months ended March 31,
2010, the investment adviser fee and expenses contractually
reduced by EVM were as follows:
|
Investment |
Expenses |
|||||||||
| Fund | Adviser Fee | Reduced by EVM | ||||||||
|
Municipal II
|
$ | 569,593 | $ | 16,776 | ||||||
|
California II
|
219,383 | 6,532 | ||||||||
|
Massachusetts
|
109,460 | 3,233 | ||||||||
|
Michigan
|
95,142 | 2,810 | ||||||||
|
New Jersey
|
159,301 | 4,638 | ||||||||
|
New York II
|
152,730 | 4,503 | ||||||||
|
Ohio
|
135,842 | 4,002 | ||||||||
|
Pennsylvania
|
171,393 | 5,053 | ||||||||
Except for Trustees of the Funds who are not members of
EVM’s organization, officers and Trustees receive
remuneration for their services to the Funds out of the
investment adviser fee. Trustees of the Funds who are not
affiliated with the investment adviser may elect to defer
receipt of all or a percentage of their annual fees in
accordance with the terms of the Trustees Deferred
65
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
Compensation Plan. For the six months ended March 31, 2010,
no significant amounts have been deferred. Certain officers and
Trustees of the Funds are officers of EVM.
5 Purchases
and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, for the six months ended March 31, 2010 were
as follows:
| Fund | Purchases | Sales | ||||||||
|
Municipal II
|
$ | 13,873,404 | $ | 12,604,620 | ||||||
|
California II
|
2,971,375 | 2,416,380 | ||||||||
|
Massachusetts
|
5,208,028 | 3,564,552 | ||||||||
|
Michigan
|
— | 924,948 | ||||||||
|
New Jersey
|
4,120,303 | 5,632,235 | ||||||||
|
New York II
|
3,244,293 | 4,817,975 | ||||||||
|
Ohio
|
1,762,271 | 1,839,196 | ||||||||
|
Pennsylvania
|
4,531,063 | 4,310,947 | ||||||||
6 Common
Shares of Beneficial Interest
Common shares issued pursuant to the Funds’ dividend
reinvestment plan for the six months ended March 31, 2010
and the year ended September 30, 2009 were as follows:
|
Six Months
Ended |
||||||||||
|
March 31,
2010 |
Year Ended |
|||||||||
| Fund | (Unaudited) | September 30, 2009 | ||||||||
|
Municipal II
|
8,364 | 15,775 | ||||||||
|
California II
|
2,096 | 5,322 | ||||||||
|
Massachusetts
|
2,250 | 1,835 | ||||||||
|
Michigan
|
— | 132 | ||||||||
|
New Jersey
|
3,589 | 5,648 | ||||||||
|
New York II
|
1,144 | 2,353 | ||||||||
|
Ohio
|
2,583 | 5,911 | ||||||||
|
Pennsylvania
|
1,779 | 2,397 | ||||||||
7 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of each Fund at March 31, 2010, as determined
on a federal income tax basis, were as follows:
|
Municipal Fund II
|
||||||
|
Aggregate cost
|
$ | 174,926,958 | ||||
|
Gross unrealized appreciation
|
$ | 5,349,516 | ||||
|
Gross unrealized depreciation
|
(14,155,121 | ) | ||||
|
Net unrealized depreciation
|
$ | (8,805,605 | ) | |||
|
California Fund II
|
||||||
|
Aggregate cost
|
$ | 76,689,988 | ||||
|
Gross unrealized appreciation
|
$ | 1,982,273 | ||||
|
Gross unrealized depreciation
|
(6,564,142 | ) | ||||
|
Net unrealized depreciation
|
$ | (4,581,869 | ) | |||
|
Massachusetts Fund
|
||||||
|
Aggregate cost
|
$ | 38,589,511 | ||||
|
Gross unrealized appreciation
|
$ | 1,617,253 | ||||
|
Gross unrealized depreciation
|
(824,837 | ) | ||||
|
Net unrealized appreciation
|
$ | 792,416 | ||||
|
Michigan Fund
|
||||||
|
Aggregate cost
|
$ | 33,482,150 | ||||
|
Gross unrealized appreciation
|
$ | 1,557,039 | ||||
|
Gross unrealized depreciation
|
(968,308 | ) | ||||
|
Net unrealized appreciation
|
$ | 588,731 | ||||
|
New Jersey Fund
|
||||||
|
Aggregate cost
|
$ | 53,738,101 | ||||
|
Gross unrealized appreciation
|
$ | 2,542,850 | ||||
|
Gross unrealized depreciation
|
(1,739,350 | ) | ||||
|
Net unrealized appreciation
|
$ | 803,500 | ||||
|
New York Fund II
|
||||||
|
Aggregate cost
|
$ | 45,413,164 | ||||
|
Gross unrealized appreciation
|
$ | 1,851,199 | ||||
|
Gross unrealized depreciation
|
(2,199,543 | ) | ||||
|
Net unrealized depreciation
|
$ | (348,344 | ) | |||
|
Ohio Fund
|
||||||
|
Aggregate cost
|
$ | 48,061,282 | ||||
|
Gross unrealized appreciation
|
$ | 1,087,572 | ||||
|
Gross unrealized depreciation
|
(1,509,559 | ) | ||||
|
Net unrealized depreciation
|
$ | (421,987 | ) | |||
66
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
|
Pennsylvania Fund
|
||||||
|
Aggregate cost
|
$ | 61,017,067 | ||||
|
Gross unrealized appreciation
|
$ | 832,458 | ||||
|
Gross unrealized depreciation
|
(2,786,356 | ) | ||||
|
Net unrealized depreciation
|
$ | (1,953,898 | ) | |||
8 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 interest rate swaps 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, 2010 is as follows:
| Futures Contracts | ||||||||||||||||||||
|
Net |
||||||||||||||||||||
|
Unrealized |
||||||||||||||||||||
|
Expiration |
Aggregate |
Appreciation |
||||||||||||||||||
| Fund | Date | Contracts | Position | Cost | Value | (Depreciation) | ||||||||||||||
| Municipal II | 6/10 |
61 U.S. 10-Year Treasury Note |
Short | $ | (7,062,442 | ) | $ | (7,091,250 | ) | $ | (28,808 | ) | ||||||||
| 6/10 |
101 U.S. 30-Year Treasury Bond |
Short | (11,749,209 | ) | (11,728,625 | ) | 20,584 | |||||||||||||
| California II | 6/10 |
43 U.S. 30-Year Treasury Bond |
Short | $ | (5,017,412 | ) | $ | (4,993,376 | ) | $ | 24,036 | |||||||||
| Michigan | 6/10 |
4 U.S. 10-Year Treasury Note |
Short | $ | (463,111 | ) | $ | (465,000 | ) | $ | (1,889 | ) | ||||||||
| 6/10 |
6 U.S. 30-Year Treasury Bond |
Short | (700,104 | ) | (696,750 | ) | 3,354 | |||||||||||||
| New Jersey | 6/10 |
65 U.S. 30-Year Treasury Bond |
Short | $ | (7,671,804 | ) | $ | (7,548,125 | ) | $ | 123,679 | |||||||||
| New York II | 6/10 |
30 U.S. 30-Year Treasury Bond |
Short | $ | (3,500,520 | ) | $ | (3,483,750 | ) | $ | 16,770 | |||||||||
| Ohio | 6/10 |
21 U.S. 10-Year Treasury Note |
Short | $ | (2,431,333 | ) | $ | (2,441,250 | ) | $ | (9,917 | ) | ||||||||
| 6/10 |
29 U.S. 30-Year Treasury Bond |
Short | (3,373,586 | ) | (3,367,625 | ) | 5,961 | |||||||||||||
| Interest Rate Swaps | ||||||||||||||||
| Municipal Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 3,000,000 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (21,718 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
3,000,000 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(57,514 | ) | ||||||||||
| $ | (79,232 | ) | ||||||||||||||
| California Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 1,137,500 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (8,235 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
1,812,500 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(34,748 | ) | ||||||||||
| $ | (42,983 | ) | ||||||||||||||
| Massachusetts Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 525,000 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (3,801 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
862,500 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(16,535 | ) | ||||||||||
| $ | (20,336 | ) | ||||||||||||||
| Michigan Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 450,000 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (3,258 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
675,000 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(12,940 | ) | ||||||||||
| $ | (16,198 | ) | ||||||||||||||
67
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
| New Jersey Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 762,500 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (5,520 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
1,250,000 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(23,964 | ) | ||||||||||
| $ | (29,484 | ) | ||||||||||||||
| New York Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 762,500 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (5,520 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
2,000,000 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(38,343 | ) | ||||||||||
| $ | (43,863 | ) | ||||||||||||||
| Ohio Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 737,500 | 4.609% |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
$ | (5,339 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
750,000 | 4.665 |
3-month USD-LIBOR-BBA |
May 24, 2010/ May 24, 2040 |
(14,378 | ) | ||||||||||
| $ | (19,717 | ) | ||||||||||||||
| Pennsylvania Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
Barclays Bank PLC |
$ | 3,000,000 | 4.532% |
3-month USD-LIBOR-BBA |
April 21, 2010/ July 27, 2039 |
$ | (4,433 | ) | ||||||||
|
JPMorgan Chase Co. |
725,000 | 4.609 |
3-month USD-LIBOR-BBA |
June 15, 2010/ June 15, 2040 |
(5,249 | ) | ||||||||||
| $ | (9,682 | ) | ||||||||||||||
The effective date represents the date on which a Fund and the
counterparty to the interest rate swap contract begin interest
payment accruals.
At March 31, 2010, 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 objectives. Because the Funds hold
fixed rate bonds, the value of these bonds may decrease if
interest rates rise. To hedge against this risk, each Fund may
enter into interest rate swap contracts. The Funds may also
purchase and sell U.S. Treasury futures contracts to hedge
against changes in interest rates.
The Funds enter into interest rate swap contracts that may
contain provisions whereby the counterparty may terminate the
contract under certain conditions, including but not limited to
a decline in a Fund’s net assets below a certain level over
a certain period of time, which would trigger a payment by the
Fund for those swaps in a liability position. At March 31,
2010, the fair value of interest rate swaps with credit-related
contingent features in a net liability position was equal to the
fair value of the liability derivative related to interest rate
swaps included in the table below for each respective Fund. The
value of securities pledged as collateral, if any, for open
interest rate swap contracts at March 31, 2010 is disclosed
in a note to each Fund’s Portfolio of Investments.
The non-exchange traded derivatives in which a Fund invests,
including swap contracts, are subject to the risk that the
counterparty to the contract fails to perform its obligations
under the contract. At March 31, 2010, the maximum amount
of loss the Funds would incur due to counterparty risk was equal
to the fair value of the asset derivative related to interest
rate swaps included in the table below for each respective Fund.
Counterparties may be required to pledge collateral in the form
of cash, U.S. Government securities or highly-rated bonds for
the benefit of a Fund if the net amount due from the
counterparty with respect to a derivative contract exceeds a
certain threshold. The amount of collateral posted by the
counterparties with respect to such contracts would also reduce
the amount of any loss incurred.
The fair value of 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, 2010 was as follows:
| Fair Value | ||||||||||
| Asset Derivative | Liability Derivative | |||||||||
|
Municipal Fund II
|
||||||||||
|
Futures Contracts
|
$ | 20,584 | (1) | $ | (28,808 | )(2) | ||||
|
Interest Rate Swaps
|
— | (79,232 | )(3) | |||||||
|
Total
|
$ | 20,584 | $ | (108,040 | ) | |||||
|
California Fund II
|
||||||||||
|
Futures Contracts
|
$ | 24,036 | (1) | $ | — | |||||
|
Interest Rate Swaps
|
— | (42,983 | )(3) | |||||||
|
Total
|
$ | 24,036 | $ | (42,983 | ) | |||||
68
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
| Fair Value | ||||||||||
| Asset Derivative | Liability Derivative | |||||||||
|
Massachusetts Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | — | ||||||
|
Interest Rate Swaps
|
— | (20,336 | )(3) | |||||||
|
Total
|
$ | — | $ | (20,336 | ) | |||||
|
Michigan Fund
|
||||||||||
|
Futures Contracts
|
$ | 3,354 | (1) | $ | (1,889 | )(2) | ||||
|
Interest Rate Swaps
|
— | (16,198 | )(3) | |||||||
|
Total
|
$ | 3,354 | $ | (18,087 | ) | |||||
|
New Jersey Fund
|
||||||||||
|
Futures Contracts
|
$ | 123,679 | (1) | $ | — | |||||
|
Interest Rate Swaps
|
— | (29,484 | )(3) | |||||||
|
Total
|
$ | 123,679 | $ | (29,484 | ) | |||||
|
New York Fund II
|
||||||||||
|
Futures Contracts
|
$ | 16,770 | (1) | $ | — | |||||
|
Interest Rate Swaps
|
— | (43,863 | )(3) | |||||||
|
Total
|
$ | 16,770 | $ | (43,863 | ) | |||||
|
Ohio Fund
|
||||||||||
|
Futures Contracts
|
$ | 5,961 | (1) | $ | (9,917 | )(2) | ||||
|
Interest Rate Swaps
|
— | (19,717 | )(3) | |||||||
|
Total
|
$ | 5,961 | $ | (29,634 | ) | |||||
|
Pennsylvania Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | — | ||||||
|
Interest Rate Swaps
|
— | (9,682 | )(3) | |||||||
|
Total
|
$ | — | $ | (9,682 | ) | |||||
| (1) | Amount represents cumulative unrealized appreciation on futures contracts in the Futures Contracts table above. 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. | |
| (2) | Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. 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. | |
| (3) | Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized appreciation (depreciation). |
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, 2010 was as follows:
|
Change in |
||||||||||
|
Unrealized |
||||||||||
|
Realized Gain |
Appreciation |
|||||||||
|
(Loss) on |
(Depreciation)
on |
|||||||||
|
Derivatives |
Derivatives |
|||||||||
|
Recognized |
Recognized in |
|||||||||
| Fund | in Income(1) | Income(2) | ||||||||
|
Municipal II
|
$ | 182,860 | $ | 591,480 | ||||||
|
California II
|
108,385 | 261,495 | ||||||||
|
Massachusetts
|
38,676 | 72,372 | ||||||||
|
Michigan
|
26,837 | 81,439 | ||||||||
|
New Jersey
|
56,172 | 228,578 | ||||||||
|
New York II
|
74,583 | 240,249 | ||||||||
|
Ohio
|
35,548 | 166,337 | ||||||||
|
Pennsylvania
|
127,382 | 164,483 | ||||||||
| (1) | Statement of Operations location: Net realized gain (loss) – Financial futures contracts and swap contracts. | |
| (2) | Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts and swap contracts. |
The average notional amounts of futures contracts and interest
rate swaps outstanding during the six months ended
March 31, 2010, which are indicative of the volume of these
derivative types, were approximately as follows:
| Average Notional Amount | ||||||||||
|
Futures |
Interest Rate |
|||||||||
| Fund | Contracts | Swaps | ||||||||
|
Municipal II
|
$ | 17,029,000 | $ | 6,000,000 | ||||||
|
California II
|
4,300,000 | 2,950,000 | ||||||||
|
Massachusetts
|
— | 1,387,500 | ||||||||
|
Michigan
|
1,057,000 | 1,125,000 | ||||||||
|
New Jersey
|
929,000 | 2,012,500 | ||||||||
|
New York II
|
3,000,000 | 2,762,500 | ||||||||
|
Ohio
|
5,329,000 | 1,487,500 | ||||||||
|
Pennsylvania
|
— | 3,725,000 | ||||||||
9 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.) |
69
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
| • | Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities.
At March 31, 2010, the inputs used in valuing the
Funds’ investments, which are carried at value, were as
follows:
| Municipal Fund II | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 221,791,859 | $ | — | $ | 221,791,859 | ||||||||
|
Short-Term Investments
|
— | 1,694,494 | — | 1,694,494 | ||||||||||||
|
Total Investments
|
$ | — | $ | 223,486,353 | $ | — | $ | 223,486,353 | ||||||||
|
Futures Contracts
|
$ | 20,584 | $ | — | $ | — | $ | 20,584 | ||||||||
|
Total
|
$ | 20,584 | $ | 223,486,353 | $ | — | $ | 223,506,937 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Futures Contracts
|
$ | (28,808 | ) | $ | — | $ | — | $ | (28,808 | ) | ||||||
|
Interest Rate Swaps
|
— | (79,232 | ) | — | (79,232 | ) | ||||||||||
|
Total
|
$ | (28,808 | ) | $ | (79,232 | ) | $ | — | $ | (108,040 | ) | |||||
| California Fund II | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 81,121,724 | $ | — | $ | 81,121,724 | ||||||||
|
Short-Term Investments
|
— | 561,395 | — | 561,395 | ||||||||||||
|
Total Investments
|
$ | — | $ | 81,683,119 | $ | — | $ | 81,683,119 | ||||||||
|
Futures Contracts
|
$ | 24,036 | $ | — | $ | — | $ | 24,036 | ||||||||
|
Total
|
$ | 24,036 | $ | 81,683,119 | $ | — | $ | 81,707,155 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (42,983 | ) | $ | — | $ | (42,983 | ) | ||||||
|
Total
|
$ | — | $ | (42,983 | ) | $ | — | $ | (42,983 | ) | ||||||
| Massachusetts Fund | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 41,049,390 | $ | — | $ | 41,049,390 | ||||||||
|
Short-Term Investments
|
— | 792,537 | — | 792,537 | ||||||||||||
|
Total Investments
|
$ | — | $ | 41,841,927 | $ | — | $ | 41,841,927 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (20,336 | ) | $ | — | $ | (20,336 | ) | ||||||
|
Total
|
$ | — | $ | (20,336 | ) | $ | — | $ | (20,336 | ) | ||||||
| Michigan Fund | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 33,371,974 | $ | — | $ | 33,371,974 | ||||||||
|
Short-Term Investments
|
— | 698,907 | — | 698,907 | ||||||||||||
|
Total Investments
|
$ | — | $ | 34,070,881 | $ | — | $ | 34,070,881 | ||||||||
|
Futures Contracts
|
$ | 3,354 | $ | — | $ | – | $ | 3,354 | ||||||||
|
Total
|
$ | 3,354 | $ | 34,070,881 | $ | — | $ | 34,074,235 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Futures Contracts
|
$ | (1,889 | ) | $ | — | $ | — | $ | (1,889 | ) | ||||||
|
Interest Rate Swaps
|
— | (16,198 | ) | — | (16,198 | ) | ||||||||||
|
Total
|
$ | (1,889 | ) | $ | (16,198 | ) | $ | — | $ | (18,087 | ) | |||||
70
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
| New Jersey Fund | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 60,331,918 | $ | — | $ | 60,331,918 | ||||||||
|
Short-Term Investments
|
— | 555,683 | — | 555,683 | ||||||||||||
|
Total Investments
|
$ | — | $ | 60,887,601 | $ | — | $ | 60,887,601 | ||||||||
|
Futures Contracts
|
$ | 123,679 | $ | — | $ | — | $ | 123,679 | ||||||||
|
Total
|
$ | 123,679 | $ | 60,887,601 | $ | — | $ | 61,011,280 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (29,484 | ) | $ | — | $ | (29,484 | ) | ||||||
|
Total
|
$ | — | $ | (29,484 | ) | $ | — | $ | (29,484 | ) | ||||||
| New York Fund II | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 55,553,539 | $ | — | $ | 55,553,539 | ||||||||
|
Short-Term Investments
|
— | 846,281 | — | 846,281 | ||||||||||||
|
Total Investments
|
$ | — | $ | 56,399,820 | $ | — | $ | 56,399,820 | ||||||||
|
Futures Contracts
|
$ | 16,770 | $ | — | $ | — | $ | 16,770 | ||||||||
|
Total
|
$ | 16,770 | $ | 56,399,820 | $ | — | $ | 56,416,590 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (43,863 | ) | $ | — | $ | (43,863 | ) | ||||||
|
Total
|
$ | — | $ | (43,863 | ) | $ | — | $ | (43,863 | ) | ||||||
| Ohio Fund | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 47,645,586 | $ | — | $ | 47,645,586 | ||||||||
|
Short-Term Investments
|
— | 1,003,709 | — | 1,003,709 | ||||||||||||
|
Total Investments
|
$ | — | $ | 48,649,295 | $ | — | $ | 48,649,295 | ||||||||
|
Futures Contracts
|
$ | 5,961 | $ | — | $ | — | $ | 5,961 | ||||||||
|
Total
|
$ | 5,961 | $ | 48,649,295 | $ | — | $ | 48,655,256 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Futures Contracts
|
$ | (9,917 | ) | $ | — | $ | — | $ | (9,917 | ) | ||||||
|
Interest Rate Swaps
|
— | (19,717 | ) | — | (19,717 | ) | ||||||||||
|
Total
|
$ | (9,917 | ) | $ | (19,717 | ) | $ | — | $ | (29,634 | ) | |||||
| Pennsylvania Fund | ||||||||||||||||
|
Quoted |
||||||||||||||||
|
Prices in |
||||||||||||||||
|
Active |
Significant |
|||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 61,230,978 | $ | — | $ | 61,230,978 | ||||||||
|
Short-Term Investments
|
— | 682,191 | — | 682,191 | ||||||||||||
|
Total Investments
|
$ | — | $ | 61,913,169 | $ | — | $ | 61,913,169 | ||||||||
|
Liability Description
|
||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (9,682 | ) | $ | — | $ | (9,682 | ) | ||||||
|
Total
|
$ | — | $ | (9,682 | ) | $ | — | $ | (9,682 | ) | ||||||
The Funds held no investments or other financial instruments as
of September 30, 2009 whose fair value was determined using
Level 3 inputs.
10 Name Change
Effective February 1, 2010, the names of Eaton Vance
Municipal Bond Fund II, Eaton Vance California Municipal
Bond Fund II, Eaton Vance Massachusetts Municipal Bond
Fund, Eaton Vance Michigan Municipal Bond Fund, Eaton Vance New
Jersey Municipal Bond Fund, Eaton Vance New York Municipal Bond
Fund II, Eaton Vance Ohio Municipal Bond Fund and Eaton
Vance Pennsylvania Municipal Bond Fund were changed from Eaton
Vance Insured Municipal Bond Fund II, Eaton Vance Insured
71
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTES TO FINANCIAL
STATEMENTS (Unaudited) CONT’D
California Municipal Bond Fund II, Eaton Vance Insured
Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan
Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal
Bond Fund, Eaton Vance Insured New York Municipal Bond
Fund II, Eaton Vance Insured Ohio Municipal Bond Fund and
Eaton Vance Insured Pennsylvania Municipal Bond Fund,
respectively. The name changes resulted from a modification to
each Fund’s 80 percent policy to eliminate the
requirement to invest primarily in insured municipal
obligations, which was approved by the Funds’ shareholders.
72
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
NOTICE TO
SHAREHOLDERS (Unaudited)
At a joint Special Meeting of Shareholders held on
January 29, 2010, shareholders of the Funds approved a
modification to each Fund’s 80 percent policy to
eliminate the requirement to invest primarily in insured
municipal obligations. Effective February 1, 2010, the
Funds are required, under normal market conditions, to invest at
least 80 percent of net assets in municipal obligations
rated A or better by Moody’s, S&P or Fitch and each
Fund eliminated “Insured” from its name. For purposes
of the Funds’ 80 percent requirement, the rating of
insured obligations will be deemed to be the higher of the
claims-paying rating of the insurer and the rating of the
underlying issue.
73
Eaton Vance
Municipal Bond
Funds as
of March 31, 2010
SPECIAL MEETING OF
SHAREHOLDERS (Unaudited)
The Funds held a joint Special Meeting of Shareholders on
January 29, 2010. The following action was taken by the
shareholders of each Fund:
Item 1: To approve a modification to each
Fund’s investment policy to eliminate the requirement that
the Fund invest at least 80 percent of its net assets in
municipal obligations that are insured as to the payment of
principal and interest.
| Number of Shares | ||||||||||||||
| For | Against | Abstain | ||||||||||||
|
Municipal Bond Fund II:
|
4,539,103 | 686,564 | 197,725 | |||||||||||
|
California Municipal Bond Fund II:
|
1,794,683 | 326,964 | 64,030 | |||||||||||
|
Massachusetts Municipal Bond Fund:
|
814,949 | 195,598 | 24,107 | |||||||||||
|
Michigan Municipal Bond Fund:
|
638,976 | 157,791 | 25,675 | |||||||||||
|
New Jersey Municipal Bond Fund:
|
1,120,887 | 175,042 | 50,653 | |||||||||||
|
New York Municipal Bond Fund II:
|
1,026,793 | 202,655 | 52,457 | |||||||||||
|
Ohio Municipal Bond Fund:
|
1,089,835 | 205,273 | 70,505 | |||||||||||
|
Pennsylvania Municipal Bond Fund:
|
1,348,242 | 212,063 | 48,444 | |||||||||||
Results are rounded to the nearest whole number.
74
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS
Overview
of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940
Act”), provides, in substance, that each investment
advisory agreement between a fund and its investment adviser
will continue in effect from year to year only if its
continuance is approved at least annually by the fund’s
board of trustees, including by a vote of a majority of the
trustees who are not “interested persons” of the fund
(“Independent Trustees”), cast in person at a meeting
called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a
“Board”) of the Eaton Vance group of mutual funds (the
“Eaton Vance Funds”) held on April 27, 2009, the
Board, including a majority of the Independent Trustees, voted
to approve continuation of existing advisory and
sub-advisory
agreements for the Eaton Vance Funds for an additional
one-year
period. In voting its approval, the Board relied upon the
affirmative recommendation of the Contract Review Committee of
the Board (formerly the Special Committee), which is a committee
comprised exclusively of Independent Trustees. Prior to making
its recommendation, the Contract Review Committee reviewed
information furnished for a series of meetings of the Contract
Review Committee held in February, March and April 2009.
Such information included, among other things, the following:
Information
about Fees, Performance and Expenses
| • | An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds; | |
| • | An independent report comparing each fund’s total expense ratio and its components to comparable funds; | |
| • | An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods; | |
| • | Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices; | |
| • | Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund; | |
| • | Profitability analyses for each adviser with respect to each fund; |
Information
about Portfolio Management
| • | Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed, and any changes in portfolio management processes and personnel; | |
| • | Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through “soft dollar” benefits received in connection with the funds’ brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds; | |
| • | Data relating to portfolio turnover rates of each fund; | |
| • | The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes; |
Information
about each Adviser
| • | Reports detailing the financial results and condition of each adviser; | |
| • | Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts; | |
| • | Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes; | |
| • | Copies of or descriptions of each adviser’s proxy voting policies and procedures; | |
| • | Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions; | |
| • | Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates; |
Other
Relevant Information
| • | Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates; | |
| • | Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and |
75
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENTS CONT’D
| • | The terms of each advisory agreement. |
In addition to the information identified above, the Contract
Review Committee considered information provided from time to
time by each adviser throughout the year at meetings of the
Board and its committees. Over the course of the twelve-month
period ended April 30, 2009, the Board met eighteen times
and the Contract Review Committee, the Audit Committee, the
Governance Committee, the Portfolio Management Committee and the
Compliance Reports and Regulatory Matters Committee, each of
which is a Committee comprised solely of Independent Trustees,
met seven, five, six, six and six times, respectively. At such
meetings, the Trustees received, among other things,
presentations by the portfolio managers and other investment
professionals of each adviser relating to the investment
performance of each fund and the investment strategies used in
pursuing the fund’s investment objective.
For funds that invest through one or more underlying portfolios,
the Board considered similar information about the portfolio(s)
when considering the approval of advisory agreements. In
addition, in cases where the fund’s investment adviser has
engaged a
sub-adviser,
the Board considered similar information about the
sub-adviser
when considering the approval of any
sub-advisory
agreement.
The Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
Committee relied upon the advice of such counsel and their own
business judgment in determining the material factors to be
considered in evaluating each advisory and
sub-advisory
agreement and the weight to be given to each such factor. The
conclusions reached with respect to each advisory and
sub-advisory
agreement were based on a comprehensive evaluation of all the
information provided and not any single factor. Moreover, each
member of the Contract Review Committee may have placed varying
emphasis on particular factors in reaching conclusions with
respect to each advisory and
sub-advisory
agreement.
Results
of the Process
Based on its consideration of the foregoing, and such other
information as it deemed relevant, including the factors and
conclusions described below, the Contract Review Committee
concluded that the continuance of the investment advisory
agreements of the following funds:
| • | Eaton Vance Insured Municipal Bond Fund II | |
| • | Eaton Vance Insured California Municipal Bond Fund II | |
| • | Eaton Vance Insured Massachusetts Municipal Bond Fund | |
| • | Eaton Vance Insured Michigan Municipal Bond Fund | |
| • | Eaton Vance Insured New Jersey Municipal Bond Fund | |
| • | Eaton Vance Insured New York Municipal Bond Fund II | |
| • | Eaton Vance Insured Ohio Municipal Bond Fund | |
| • | Eaton Vance Insured Pennsylvania Municipal Bond Fund |
(the “Funds”), each with Eaton Vance Management (the
“Adviser”), including their fee structures, is in the
interests of shareholders and, therefore, the Contract Review
Committee recommended to the Board approval of each agreement.
The Board accepted the recommendation of the Contract Review
Committee as well as the factors considered and conclusions
reached by the Contract Review Committee with respect to each
agreement. Accordingly, the Board, including a majority of the
Independent Trustees, voted to approve continuation of the
investment advisory agreement for each Fund.
Nature,
Extent and Quality of Services
In considering whether to approve the investment advisory
agreements of the Funds, the Board evaluated the nature, extent
and quality of services provided to the Funds by the Adviser.
The Board considered the Adviser’s management capabilities
and investment process with respect to the types of investments
held by each Fund, including the education, experience and
number of its investment professionals and other personnel who
provide portfolio management, investment research, and similar
services to the Funds, and recent changes in the identity of
such personnel with respect to certain Funds. In particular, the
Board evaluated, where relevant, the abilities and experience of
such investment personnel in analyzing factors such as credit
risk, tax efficiency, and special considerations relevant to
investing in municipal bonds. The Board considered the
Adviser’s large municipal bond team, which includes
portfolio managers and credit specialists who provide services
to
76
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENTS CONT’D
the Funds. The Board also took into account the resources
dedicated to portfolio management and other services, including
the compensation paid to recruit and retain investment
personnel, and the time and attention devoted to each Fund by
senior management.
The Board also reviewed the compliance programs of the Adviser
and relevant affiliates thereof. Among other matters, the Board
considered compliance and reporting matters relating to personal
trading by investment personnel, selective disclosure of
portfolio holdings, late trading, frequent trading, portfolio
valuation, business continuity and the allocation of investment
opportunities. The Board also evaluated the responses of the
Adviser and its affiliates to requests from regulatory
authorities such as the Securities and Exchange Commission and
the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative
services provided or managed by Eaton Vance Management and its
affiliates, including transfer agency and accounting services.
The Board evaluated the benefits to shareholders of investing in
a fund that is a part of a large family of funds.
The Board considered the Adviser’s recommendations for
Board action and other steps taken in response to the
unprecedented dislocations experienced in the capital markets
over recent periods, including sustained periods of high
volatility, credit disruption and government intervention. In
particular, the Board considered the Adviser’s efforts and
expertise with respect to each of the following matters as they
relate to the Funds
and/or other
funds within the Eaton Vance family of funds:
(i) negotiating and maintaining the availability of bank
loan facilities and other sources of credit used for investment
purposes or to satisfy liquidity needs; (ii) establishing
the fair value of securities and other instruments held in
investment portfolios during periods of market volatility and
issuer-specific disruptions; and (iii) the ongoing
monitoring of investment management processes and risk controls.
In addition, the Board considered the Adviser’s actions
with respect to the Auction Preferred Shares (“APS”)
issued by the Funds, including the Adviser’s efforts to
seek alternative forms of debt and other leverage that may over
time reduce financing costs associated with APS and enable the
Funds to restore liquidity for APS holders.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser, taken as a whole, are appropriate and
consistent with the terms of the respective investment advisory
agreements.
Fund Performance
The Board compared each Fund’s investment performance to a
relevant universe of similarly managed funds identified by an
independent data provider and appropriate benchmark indices. The
Board reviewed comparative performance data for the
one-,
three-, and
five-year
periods ended September 30, 2008 for each Fund in operation
over such periods. The Board considered the impact of
extraordinary market conditions during 2008 on each Fund’s
performance relative to its peer universe in light of, among
other things, the Adviser’s strategy of generating current
income through investments in higher quality (including insured)
municipal bonds with longer maturities. On the basis of the
foregoing and other relevant information, the Board concluded
that, under the circumstances, the performance of each Fund was
satisfactory.
Management
Fees and Expenses
The Board reviewed contractual investment advisory fee rates,
including any administrative fee rates, payable by each Fund
(referred to collectively as “management fees”). As
part of its review, the Board considered each Fund’s
management fee and total expense ratio for the year ended
September 30, 2008, as compared to a group of similarly
managed funds selected by an independent data provider.
After reviewing the foregoing information, and in light of the
nature, extent and quality of the services provided by the
Adviser, the Board concluded with respect to each Fund that the
management fees charged to the Fund for advisory and related
services and the total expense ratio of the Fund are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser
and relevant affiliates thereof in providing investment advisory
and administrative services to each Fund and to all Eaton Vance
Funds as a group. The Board considered the level of profits
realized with and without regard to revenue sharing or other
payments by the Adviser and its affiliates to third parties in
respect of distribution services. The Board also considered
other direct or indirect benefits received by the Adviser in
connection with its relationship with the Funds.
77
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENTS CONT’D
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the
profits realized by the Adviser and its affiliates are
reasonable.
Economies
of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates,
on the one hand, and each Fund, on the other hand, can expect to
realize benefits from economies of scale as the assets of the
Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from the economies
of scale with respect to the management of any specific fund or
group of funds. The Board also considered the fact that none of
the Funds is continuously offered and concluded that, in light
of the level of the Adviser’s profits with respect to each
Fund, the implementation of breakpoints in the advisory fee
schedule is not appropriate at this time. Based upon the
foregoing, the Board concluded that the benefits from economies
of scale are currently being shared equitably by the Adviser and
its affiliates and each Fund.
78
Eaton Vance
Municipal Bond Funds
OFFICERS AND TRUSTEES
|
Officers
Cynthia J. Clemson President of EIA, MIW, NYH, EIO and EIP; Vice President of MAB, EIV and EMJ Thomas M. Metzold President of MAB, EIV and EMJ; Vice President of EIA and EIP William H. Ahern, Jr. Vice President of MIW, EIV and EIO Craig R. Brandon Vice President of EIA and NYH Adam A. Weigold Vice President of EIP Barbara E. Campbell Treasurer Maureen A. Gemma Secretary and Chief Legal Officer Paul M. O’Neil Chief Compliance Officer |
Trustees
Ralph F. Verni Chairman Benjamin C. Esty Thomas E. Faust Jr. Allen R. Freedman William H. Park Ronald A. Pearlman Helen Frame Peters Heidi L. Steiger Lynn A. Stout |
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 non-diversified, closed-end management investment company
and has no employees.
Number of Shareholders
As of March 31, 2010, our records indicate that there are
66, 25, 18, 22, 22, 36, 48 and 94 registered shareholders for
Municipal Bond Fund II, California Municipal Bond
Fund II, Massachusetts Municipal Bond Fund, Michigan
Municipal Bond Fund, New Jersey Municipal Bond Fund, New York
Municipal Bond Fund II, Ohio Municipal Bond Fund and
Pennsylvania Municipal Bond Fund, respectively, and
approximately 4,334, 1,329, 803, 893, 1,275, 1,209, 1,358 and
1,698 shareholders owning the Fund shares in street name, such
as through brokers, banks and financial intermediaries for
Municipal Bond Fund II, California Municipal Bond
Fund II, Massachusetts Municipal Bond Fund, Michigan
Municipal Bond Fund, New Jersey Municipal Bond Fund, New York
Municipal Bond Fund II, Ohio Municipal Bond Fund and
Pennsylvania Municipal Bond 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 Amex symbols
|
||||||||
|
Municipal Bond Fund II
|
EIV | New Jersey Municipal Bond Fund | EMJ | |||||
|
California Municipal Bond Fund II
|
EIA | New York Municipal Bond Fund II | NYH | |||||
|
Massachusetts Municipal Bond Fund
|
MAB | Ohio Municipal Bond Fund | EIO | |||||
|
Michigan Municipal Bond Fund
|
MIW | Pennsylvania Municipal Bond Fund | EIP |
79
This Page Intentionally Left Blank
Investment
Adviser and Administrator of
Eaton Vance
Municipal Bond Funds
Eaton Vance
Management
Two International
Place
Boston, MA 02110
State Street
Bank and Trust Company
200 Clarendon
Street
Boston, MA 02116
American Stock
Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Two
International Place
Boston, MA
02110
1557-5/10
CE-8IMBIISRC
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by calling
1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit
committee financial expert. Mr. Park is a certified public accountant who is the Vice Chairman of
Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President
and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as
Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an
institutional investment management firm) and as a Senior Manager at Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public accounting firm).
Item 4. Principal Accountant Fees and Services
Not required in this filing.
Item 5. Audit Committee of Listed registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of
this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund
Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s
investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the
“Policies”) which are described below. The Trustees will review the Fund’s proxy voting records
from time to time and will annually consider approving the Policies for the upcoming year. In the
event that a conflict of interest arises between the Fund’s shareholders and the investment
adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment
adviser will generally refrain from voting the proxies related to the companies giving rise to such
conflict until it consults with the Board’s Special Committee except as contemplated under the Fund
Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate
course of action.
The Policies are designed to promote accountability of a company’s management to its shareholders
and to align the interests of management with those shareholders. An independent proxy
voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to
assist in the voting of proxies through the provision of vote analysis, implementation and
recordkeeping and disclosure services. The investment adviser will generally vote proxies through
the Agent. The Agent is required to vote all proxies and/or refer then back to the investment
adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in
accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser
proxies relating to mergers and restructurings, and the disposition of assets, termination,
liquidation and mergers contained in mutual fund proxies. The investment adviser will normally
vote against anti-takeover measures and other proposals designed to limit the ability of
shareholders to act on possible transactions, except in the case of closed-end management
investment companies. The investment adviser generally supports management on social and
environmental proposals. The investment adviser may abstain from voting from time to time where it
determines that the costs associated with voting a proxy outweighs the benefits derived from
exercising the right to vote or the economic effect on shareholders interests or the value of the
portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of
interest between the Fund’s shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund by maintaining a list of significant existing and
prospective corporate clients. The investment adviser’s personnel responsible for reviewing and
voting proxies on behalf of
the Fund will report any proxy received or expected to be received from a company included on that
list to the personal of the investment adviser identified in the Policies. If such personnel
expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of
the Policies or the recommendation of the Agent, the personnel will consult with members of senior
management of the investment adviser to determine if a material conflict of interests exists. If
it is determined that a material conflict does exist, the investment adviser will seek instruction
on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent
12 month period ended June 30 is available (1) without charge, upon request, by calling
1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
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 California Municipal Bond Fund II
By:
|
/s/ Cynthia J. Clemson | |||
| Cynthia J. Clemson | ||||
| President | ||||
Date:
|
May 7, 2010 |
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/ Barbara E. Campbell | |||
| Barbara E. Campbell | ||||
| Treasurer | ||||
Date:
|
May 7, 2010 | |||
By:
|
/s/ Cynthia J. Clemson | |||
| Cynthia J. Clemson | ||||
| President | ||||
Date:
|
May 7, 2010 |