UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-09153
Investment Company Act File Number
Eaton Vance Michigan Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
Alan R. Dynner, Esq.
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
November 30
Date of Fiscal Year End
February 28, 2007
Date of Reporting Period
Item 1. Schedule of Investments
Eaton Vance Michigan Municipal Income Trust
|
as of February 28, 2007 |
| Principal Amount (000’s omitted) |
|
Security |
|
Value |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Education — 5.9% |
|||||||||||
| $1,250 | Michigan Higher Education Facilities Authority, (Creative Studies), 5.90%, 12/1/27 |
$ | 1,334,712 | ||||||||
| 540 | Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35 |
561,832 | |||||||||
| $ | 1,896,544 | ||||||||||
Electric Utilities — 7.3% |
|||||||||||
| $1,250 | Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 |
$ | 1,315,037 | ||||||||
| 1,000 | Puerto Rico Electric Power Authority, 5.25%, 7/1/31 |
1,063,900 | |||||||||
| $ | 2,378,937 | ||||||||||
Escrowed / Prerefunded — 4.1% |
|||||||||||
| $ 500 | Kent Hospital Finance Authority, (Spectrum Health), Prerefunded to 7/15/11, 5.50%, 1/15/31 |
$ | 540,010 | ||||||||
| 750 | Michigan Hospital Finance Authority, (Ascension Health Care), Prerefunded to 11/15/09, 6.125%, 11/15/26 |
803,595 | |||||||||
| $ | 1,343,605 | ||||||||||
General Obligations — 12.2% |
|||||||||||
| $ 500 | East Grand Rapids, Public School District, 5.00%, 5/1/25 |
$ | 520,780 | ||||||||
| 500 | Garden City School District, Prerefunded to 5/1/11, 5.00%, 5/1/26 |
525,995 | |||||||||
| 1,000 | Manistee Area Public Schools, 5.00%, 5/1/24 |
1,041,560 | |||||||||
| 750 | Puerto Rico Public Buildings Authority, Commonwealth Guaranteed, 5.25%, 7/1/29 |
807,855 | |||||||||
| 1,000 | White Cloud, Public Schools, Prerefunded to 5/1/11, 5.125%, 5/1/31 |
1,041,950 | |||||||||
| $ | 3,938,140 | ||||||||||
Hospital — 28.9% |
|||||||||||
| $ 500 | Allegan Hospital Finance Authority, (Allegan General Hospital), 7.00%, 11/15/21 |
$ | 535,360 | ||||||||
| 125 | Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.20%, 1/1/25 |
131,509 | |||||||||
| 125 | Gaylord Hospital Finance Authority, (Otsego Memorial Hospital Association), 6.50%, 1/1/37 |
131,790 | |||||||||
| 560 | Macomb County Hospital Finance Authority, (Mount Clemens General Hospital), 5.875%, 11/15/34 |
596,473 | |||||||||
| 500 | Mecosta County, (Michigan General Hospital), 6.00%, 5/15/18 |
515,220 | |||||||||
| $1,000 | Michigan Hospital Finance Authority, (Central Michigan Community Hospital), 6.25%, 10/1/27 |
$ | 1,021,180 | ||||||||
| 750 | Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38 |
784,305 | |||||||||
| 1,000 | Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46 |
1,065,800 | |||||||||
| 1,000 | Michigan Hospital Finance Authority, (McLaren Healthcare), 5.00%, 8/1/35 |
1,042,180 | |||||||||
| 750 | Michigan Hospital Finance Authority, (Memorial Healthcare Center), 5.875%, 11/15/21 |
785,992 | |||||||||
| 750 | Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 |
800,062 | |||||||||
| 1,000 | Michigan Hospital Finance Authority, (Trinity Health), 6.00%, 12/1/27 |
1,079,690 | |||||||||
| 800 | Saginaw Hospital Finance Authority, (Covenant Medical Center), 6.50%, 7/1/30 |
867,760 | |||||||||
| $ | 9,357,321 | ||||||||||
Housing — 3.1% |
|||||||||||
| $1,000 | Michigan State Housing Development Authority, (Williams Pavilion), (AMT), 4.90%, 4/20/48 (1) |
$ | 1,011,420 | ||||||||
| $ | 1,011,420 | ||||||||||
Industrial Development Revenue — 7.7% |
|||||||||||
| $1,000 | Detroit Local Development Finance Authority, (Chrysler Corp.), 5.375%, 5/1/21 |
$ | 1,016,390 | ||||||||
| 800 | Dickinson County Electronic Devolpment Corp., (International Paper Co.), 5.75%, 6/1/16 |
856,928 | |||||||||
| 625 | Puerto Rico Port Authority, (American Airlines), (AMT), 6.25%, 6/1/26 |
632,794 | |||||||||
| $ | 2,506,112 | ||||||||||
Insured-Electric Utilities — 8.7% |
|||||||||||
| $1,000 | Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (MBIA), (AMT), 5.55%, 9/1/29 |
$ | 1,054,630 | ||||||||
| 500 | Michigan Strategic Fund, Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 |
530,030 | |||||||||
| 1,200 | Puerto Rico Electric Power Authority, (MBIA), 4.75%, 7/1/33 (2) |
1,244,808 | |||||||||
| $ | 2,829,468 | ||||||||||
Insured-Escrowed/Prerefunded — 19.4% |
|||||||||||
| $1,000 | Central Montcalm Public Schools, (MBIA), Prerefunded to 5/1/09, 6.00%, 5/1/29 |
$ | 1,049,180 | ||||||||
| 1,000 | Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31 |
1,058,890 | |||||||||
| 2,000 | Fenton Area Public Schools, (FGIC), Prerefunded to 5/1/08, 5.00%, 5/1/24 |
2,031,480 | |||||||||
| 2,000 | Novi Building Authority, (FSA), Prerefunded to 10/1/10, 5.50%, 10/1/25 (3) |
2,142,740 | |||||||||
| $ | 6,282,290 | ||||||||||
Insured-General Obligations — 17.7% |
|||||||||||
| $ 100 | Allen Park Public School District, (FSA), 4.25%, 5/1/29 |
$ | 99,781 | ||||||||
| 1,000 | Brandon School District, (FSA), 4.50%, 5/1/33 |
1,011,570 | |||||||||
| 500 | Brandon School District, (FSA), 4.50%, 5/1/35 |
505,410 | |||||||||
| 1,520 | Coopersville, Public Schools District, (FSA), 4.50%, 5/1/36 |
1,536,446 | |||||||||
| 650 | Detroit, School District, (FGIC), 4.75%, 5/1/28 (3) |
662,402 | |||||||||
| 750 | Detroit, School District, (FSA), 5.25%, 5/1/32 |
890,527 | |||||||||
| 200 | Eaton Rapids Public Schools, (MBIA), 4.75%, 5/1/25 |
202,730 | |||||||||
| 700 | Puerto Rico, (FSA), Variable Rate, 12.684%, 7/1/27 (4)(5) |
830,172 | |||||||||
| $ | 5,739,038 | ||||||||||
Insured-Hospital — 6.5% |
|||||||||||
| $1,000 | Royal Oak, Hospital Finance Authority Revenue, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 |
$ | 1,049,870 | ||||||||
| 1,000 | Saginaw Hospital Finance Authority, (Covenant Medical Center), (MBIA), 5.50%, 7/1/24 |
1,042,950 | |||||||||
| $ | 2,092,820 | ||||||||||
Insured-Lease Revenue / Certificates of Participation — 4.3% |
|||||||||||
| $4,300 | Michigan State Building Authority, (FGIC), 0.00%, 10/15/30 |
$ | 1,390,620 | ||||||||
| $ | 1,390,620 | ||||||||||
Insured-Special Tax Revenue — 7.3% |
|||||||||||
| $2,250 | Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30 |
$ | 2,362,793 | ||||||||
| $ | 2,362,793 | ||||||||||
Insured-Student Loan — 6.5% |
|||||||||||
| $1,000 | Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.00%, 3/1/31 |
$ | 1,048,580 | ||||||||
| 1,000 | Michigan Higher Education Student Loan Authority, (AMBAC), (AMT), 5.50%, 6/1/25 (6) |
1,043,990 | |||||||||
| $ | 2,092,570 | ||||||||||
Insured-Transportation — 12.8% |
|||||||||||
| $2,010 | Puerto Rico Highway and Transportation Authority, (AMBAC), 5.00%, 7/1/28 (2) |
$ | 2,066,133 | ||||||||
| 2,000 | Wayne Charter County Airport, Residual Certificates, (MBIA), (AMT), Variable Rate, 6.092%, 12/1/28 (4)(7) |
2,088,560 | |||||||||
| $ | 4,154,693 | ||||||||||
Insured-Water Revenue — 5.3% |
|||||||||||
| $1,650 | Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 |
$ | 1,709,417 | ||||||||
| $ | 1,709,417 | ||||||||||
Lease Revenue/Certificates of Participation — 0.8% |
|||||||||||
| $ 250 | Puerto Rico, (Guaynabo Municipal Government Center Lease), 5.625%, 7/1/22 |
$ | 254,863 | ||||||||
| $ | 254,863 | ||||||||||
Transportation — 4.7% |
|||||||||||
| $1,500 | Kent County Airport Facility, 5.00%, 1/1/25 (2) |
$ | 1,533,158 | ||||||||
| $ | 1,533,158 | ||||||||||
Total Tax-Exempt Investments — 163.2% |
|||||||||||
(identified cost $49,257,162) |
$ | 52,873,809 | |||||||||
Other Assets, Less Liabilities — (9.2)% |
$ | (2,973,318 | ) | ||||||||
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (54.0)% |
$ | (17,500,000 | ) | ||||||||
Net
Assets Applicable to Common Shares— 100.0% |
$ | 32,400,491 | |||||||||
AMBAC |
– | AMBAC Financial
Group, Inc. |
AMT |
– | Interest earned
from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax. |
FGIC |
– | Financial Guaranty
Insurance Company |
FSA |
– | Financial Security
Assurance, Inc. |
MBIA |
– | Municipal Bond
Insurance Association |
XLCA |
– | XL Capital
Assurance, Inc. |
(1) |
When-issued security. |
(2) |
Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust. |
(3) |
Security (or a portion thereof) has been segregated to cover when-issued securities. |
(4) |
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At February 28, 2007, the aggregate value of the securities is $2,918,732 or 9.0% of the Trust’s net assets applicable to common shares. |
(5) |
Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at February 28, 2007. |
(6) |
Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. |
(7) |
Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at February 28, 2007. |
A summary of financial instruments at February 28, 2007 is as follows:
Futures Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Expiration |
|
Contracts |
|
Position |
|
Aggregate |
|
Value |
|
Net Unrealized |
|
6/07 |
|
5 U.S. Treasury Note |
|
Short |
|
$ (538,498) |
|
$ (542,969) |
|
$ (4,471) |
|
|
|
|
|
|
|
|
|
|
|
$ (4,471) |
Interest Rate Swaps
At February 28, 2007, the Trust had entered into an interest rate swap agreement with Merrill Lynch Capital Services, Inc. whereby the Trust makes bi-annual payments at a fixed rate equal to 4.006% on the notional amount of $550,000. In exchange, the Trust receives bi-annual payments at a rate equal to the USD-BMA-Municipal Swap Index on the same notional amount. The effective date of the interest rate swap is August 7, 2007. The value of the contract, which terminates August 7, 2037, is recorded as a payable for open interest rate swap contracts of $9,727, on February 28, 2007.
At February 28, 2007, the Trust had entered into an interest rate swap agreement with Citibank N.A. whereby the Trust makes bi-annual payments at a fixed rate equal to 3.925% on the notional amount of $450,000. In exchange, the Trust receives bi-annual payments at a rate equal to the USD-BMA-Municipal Swap Index on the same notional amount. The effective date of the interest rate swap is August 16, 2007. The value of the contract, which terminates August 16, 2027, is recorded as a payable for open interest rate swap contracts of $4,949, on February 28, 2007.
At February 28, 2007, the Trust had sufficient cash and/or securities to cover commitments under these contracts.
The cost and unrealized appreciation (depreciation) in value of the investments owned at February 28, 2007 as computed on a federal income tax basis, were as follows:
|
|
Aggregate cost |
$ |
45,928,347 |
|
|
Gross unrealized appreciation |
$ |
3,680,599 |
|
|
Gross unrealized depreciation |
|
(137) |
|
|
Net unrealized appreciation |
$ |
3,680,462 |
Item 2. 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 on this Form N-Q 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 on this Form N-Q 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Michigan Municipal Income Trust
|
By: |
/s/ Cynthia J. Clemson | ||
|
|
Cynthia J. Clemson |
| |
|
|
President |
| |
|
Date: |
April 25, 2007 |
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/ Cynthia J. Clemson | |
|
|
Cynthia J. Clemson |
|
President
|
Date: |
April 25, 2007 |
|
By: |
/s/ Barbara E. Campbell | |
|
|
Barbara E. Campbell |
|
Treasurer
|
Date: |
April 25, 2007 |