UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-09151
Eaton Vance Pennsylvania Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number)
November 30
Date of Fiscal Year End
November 30, 2012
Date of Reporting Period
Item 1. Reports to Stockholders
Eaton Vance Municipal Income Trusts
Annual Report November 30, 2012 |
|
California (CEV) Massachusetts (MMV) Michigan (EMI) New Jersey (EVJ)
New York (EVY) Ohio (EVO) Pennsylvania (EVP)
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.
Annual Report November 30, 2012
Eaton Vance
Municipal Income Trusts
Table of Contents
Managements Discussion of Fund Performance |
2 | |||
Performance and Fund Profile |
||||
California Municipal Income Trust |
4 | |||
Massachusetts Municipal Income Trust |
5 | |||
Michigan Municipal Income Trust |
6 | |||
New Jersey Municipal Income Trust |
7 | |||
New York Municipal Income Trust |
8 | |||
Ohio Municipal Income Trust |
9 | |||
Pennsylvania Municipal Income Trust |
10 | |||
Endnotes and Additional Disclosures |
11 | |||
Financial Statements |
12 | |||
Report of Independent Registered Public Accounting Firm |
60 | |||
Federal Tax Information |
61 | |||
Dividend Reinvestment Plan |
62 | |||
Management and Organization |
64 | |||
Important Notices |
67 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Managements Discussion of Fund Performance1
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
2 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Managements Discussion of Fund Performancecontinued
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
3 |
Eaton Vance
California Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager Cynthia J. Clemson
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 25.59 | % | 6.25 | % | 6.52 | % | |||||||||
Fund at Market Price |
| 22.22 | 9.26 | 7.24 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
0.15 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.839 | ||||||||||||||
Distribution Rate at NAV |
5.57 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
9.55 | % | ||||||||||||||
Distribution Rate at Market Price |
5.56 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
9.54 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
Auction Preferred Shares (APS) |
29.22 | % | ||||||||||||||
Residual Interest Bond (RIB) |
8.58 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
8.4 | % | BBB |
10.7 | % | |||||
AA |
54.3 | BB |
1.6 | |||||||
A |
20.8 | Not Rated |
4.2 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
4 |
Eaton Vance
Massachusetts Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager Craig R. Brandon, CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 22.28 | % | 8.14 | % | 7.31 | % | |||||||||
Fund at Market Price |
| 16.41 | 11.19 | 6.57 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
0.93 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.805 | ||||||||||||||
Distribution Rate at NAV |
4.91 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
7.98 | % | ||||||||||||||
Distribution Rate at Market Price |
4.87 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
7.91 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
APS |
28.86 | % | ||||||||||||||
RIB |
7.03 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
19.0 | % | BBB |
8.4 | % | |||||
AA |
41.5 | BB |
2.3 | |||||||
A |
27.8 | Not Rated |
1.0 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
5 |
Eaton Vance
Michigan Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager William H. Ahern, Jr., CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 20.92 | % | 7.78 | % | 6.94 | % | |||||||||
Fund at Market Price |
| 24.67 | 10.25 | 6.84 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
4.05 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.773 | ||||||||||||||
Distribution Rate at NAV |
5.02 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
8.07 | % | ||||||||||||||
Distribution Rate at Market Price |
5.23 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
8.41 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
APS |
35.08 | % |
Fund Profile
Credit Quality (% of total investments)6
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
6 |
Eaton Vance
New Jersey Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager Adam Weigold, CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 20.18 | % | 6.52 | % | 6.93 | % | |||||||||
Fund at Market Price |
| 29.62 | 12.13 | 7.77 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
10.75 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.797 | ||||||||||||||
Distribution Rate at NAV |
5.33 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
9.01 | % | ||||||||||||||
Distribution Rate at Market Price |
4.81 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
8.13 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
APS |
29.84 | % | ||||||||||||||
RIB |
8.44 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
12.1 | % | BB |
0.6 | % | |||||
AA |
28.9 | B |
2.1 | |||||||
A |
43.4 | Not Rated |
0.8 | |||||||
BBB |
12.1 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
7 |
Eaton Vance
New York Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager Craig R. Brandon, CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 24.30 | % | 7.32 | % | 7.00 | % | |||||||||
Fund at Market Price |
| 27.89 | 9.84 | 8.07 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
3.93 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.910 | ||||||||||||||
Distribution Rate at NAV |
5.86 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
9.89 | % | ||||||||||||||
Distribution Rate at Market Price |
5.63 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
9.50 | % | ||||||||||||||
% Total Leverage5 |
||||||||||||||||
APS |
24.43 | % | ||||||||||||||
RIB |
13.99 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
12.3 | % | BBB |
13.4 | % | |||||
AA |
37.0 | BB |
2.6 | |||||||
A |
27.2 | Not Rated |
7.5 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
8 |
Eaton Vance
Ohio Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager William H. Ahern, Jr., CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 24.71 | % | 7.83 | % | 7.37 | % | |||||||||
Fund at Market Price |
| 33.34 | 12.26 | 7.56 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV | ||||||||||||||||
5.99 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.831 | ||||||||||||||
Distribution Rate at NAV |
5.24 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
8.57 | % | ||||||||||||||
Distribution Rate at Market Price |
4.95 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
8.09 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
APS |
32.71 | % | ||||||||||||||
RIB |
2.09 |
Fund Profile
Credit Quality (% of total investments)6
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
9 |
Eaton Vance
Pennsylvania Municipal Income Trust
November 30, 2012
Performance2,3
Portfolio Manager Adam Weigold, CFA
% Average Annual Total Returns | Inception Date | One Year | Five Years | Ten Years | ||||||||||||
Fund at NAV |
01/29/1999 | 18.20 | % | 6.43 | % | 6.64 | % | |||||||||
Fund at Market Price |
| 17.23 | 10.11 | 7.09 | ||||||||||||
Barclays Capital Long (22+) Municipal Bond Index |
| 16.10 | % | 6.73 | % | 6.29 | % | |||||||||
% Premium/Discount to NAV |
||||||||||||||||
2.17 | % | |||||||||||||||
Distributions4 | ||||||||||||||||
Total Distributions per share for the period |
$ | 0.827 | ||||||||||||||
Distribution Rate at NAV |
5.46 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at NAV |
8.67 | % | ||||||||||||||
Distribution Rate at Market Price |
5.34 | % | ||||||||||||||
Taxable-Equivalent Distribution Rate at Market Price |
8.48 | % | ||||||||||||||
% Total Leverage5 | ||||||||||||||||
APS |
33.60 | % | ||||||||||||||
RIB |
2.62 |
Fund Profile
Credit Quality (% of total investments)6
The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6
AAA |
3.4 | % | BB |
6.3 | % | |||||
AA |
44.5 | Not Rated |
3.1 | |||||||
A |
42.7 |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.
10 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Endnotes and Additional Disclosures
11 |
Eaton Vance
California Municipal Income Trust
November 30, 2012
Portfolio of Investments
12 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
13 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
14 | See Notes to Financial Statements. |
Eaton Vance
California Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
15 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
November 30, 2012
Portfolio of Investments
16 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
17 | See Notes to Financial Statements. |
Eaton Vance
Massachusetts Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
18 | See Notes to Financial Statements. |
Eaton Vance
Michigan Municipal Income Trust
November 30, 2012
Portfolio of Investments
19 | See Notes to Financial Statements. |
Eaton Vance
Michigan Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
20 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
November 30, 2012
Portfolio of Investments
21 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
22 | See Notes to Financial Statements. |
Eaton Vance
New Jersey Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
23 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
November 30, 2012
Portfolio of Investments
24 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
25 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
26 | See Notes to Financial Statements. |
Eaton Vance
New York Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
27 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
November 30, 2012
Portfolio of Investments
28 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
29 | See Notes to Financial Statements. |
Eaton Vance
Ohio Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
30 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
November 30, 2012
Portfolio of Investments
31 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
32 | See Notes to Financial Statements. |
Eaton Vance
Pennsylvania Municipal Income Trust
November 30, 2012
Portfolio of Investments continued
33 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Assets and Liabilities
November 30, 2012 | ||||||||||||||||
Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
Investments |
||||||||||||||||
Identified cost |
$ | 151,193,761 | $ | 59,981,205 | $ | 44,172,592 | $ | 98,580,745 | ||||||||
Unrealized appreciation |
18,438,313 | 8,413,269 | 4,702,450 | 11,745,277 | ||||||||||||
Investments, at value |
$ | 169,632,074 | $ | 68,394,474 | $ | 48,875,042 | $ | 110,326,022 | ||||||||
Cash |
$ | | $ | | $ | 518,458 | $ | | ||||||||
Restricted cash* |
250,000 | 115,000 | 22,000 | 460,000 | ||||||||||||
Interest receivable |
1,750,392 | 905,654 | 528,006 | 1,542,247 | ||||||||||||
Receivable for investments sold |
699,300 | 449,044 | 35,700 | 86,914 | ||||||||||||
Deferred debt issuance costs |
28,039 | 2,288 | | 3,186 | ||||||||||||
Total assets |
$ | 172,359,805 | $ | 69,866,460 | $ | 49,979,206 | $ | 112,418,369 | ||||||||
Liabilities | ||||||||||||||||
Payable for floating rate notes issued |
$ | 14,680,000 | $ | 4,885,000 | $ | | $ | 9,455,000 | ||||||||
Payable for variation margin on open financial futures contracts |
14,938 | 5,313 | 937 | 22,656 | ||||||||||||
Due to custodian |
1,105,024 | 263,708 | | 219,691 | ||||||||||||
Payable to affiliates: |
||||||||||||||||
Investment adviser fee |
87,675 | 34,973 | 26,472 | 56,873 | ||||||||||||
Administration fee |
26,771 | 10,679 | 8,083 | 17,366 | ||||||||||||
Trustees fees |
1,114 | 492 | 394 | 754 | ||||||||||||
Interest expense and fees payable |
19,756 | 11,065 | | 19,035 | ||||||||||||
Accrued expenses |
82,669 | 55,743 | 51,923 | 67,019 | ||||||||||||
Total liabilities |
$ | 16,017,947 | $ | 5,266,973 | $ | 87,809 | $ | 9,858,394 | ||||||||
Auction preferred shares at liquidation value plus cumulative unpaid dividends |
$ | 49,975,000 | $ | 20,050,600 | $ | 17,500,262 | $ | 33,425,000 | ||||||||
Net assets applicable to common shares |
$ | 106,366,858 | $ | 44,548,887 | $ | 32,391,135 | $ | 69,134,975 | ||||||||
Sources of Net Assets | ||||||||||||||||
Common shares, $0.01 par value, unlimited number of shares authorized |
$ | 72,576 | $ | 27,505 | $ | 21,163 | $ | 46,759 | ||||||||
Additional paid-in capital |
104,154,215 | 39,728,155 | 29,330,770 | 66,988,613 | ||||||||||||
Accumulated net realized loss |
(16,918,010 | ) | (3,786,668 | ) | (1,780,426 | ) | (9,930,899 | ) | ||||||||
Accumulated undistributed net investment income |
663,177 | 169,079 | 117,612 | 359,123 | ||||||||||||
Net unrealized appreciation |
18,394,900 | 8,410,816 | 4,702,016 | 11,671,379 | ||||||||||||
Net assets applicable to common shares |
$ | 106,366,858 | $ | 44,548,887 | $ | 32,391,135 | $ | 69,134,975 | ||||||||
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
1,999 | 802 | 700 | 1,337 | ||||||||||||
Common Shares Outstanding | 7,257,591 | 2,750,521 | 2,116,294 | 4,675,855 | ||||||||||||
Net Asset Value Per Common Share | ||||||||||||||||
Net assets applicable to common shares ÷ common shares issued and outstanding |
$ | 14.66 | $ | 16.20 | $ | 15.31 | $ | 14.79 |
* | Represents restricted cash on deposit at the broker for open financial futures contracts. |
34 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Assets and Liabilities continued
November 30, 2012 | ||||||||||||
Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
Investments |
||||||||||||
Identified cost |
$ | 119,983,698 | $ | 58,389,790 | $ | 56,216,589 | ||||||
Unrealized appreciation |
16,279,092 | 8,929,764 | 5,825,623 | |||||||||
Investments, at value |
$ | 136,262,790 | $ | 67,319,554 | $ | 62,042,212 | ||||||
Cash |
$ | | $ | | $ | 451,559 | ||||||
Restricted cash* |
150,000 | 52,000 | 175,000 | |||||||||
Interest receivable |
1,676,376 | 988,717 | 802,264 | |||||||||
Receivable for investments sold |
791,625 | 383,712 | 176,232 | |||||||||
Total assets |
$ | 138,880,791 | $ | 68,743,983 | $ | 63,647,267 | ||||||
Liabilities | ||||||||||||
Payable for floating rate notes issued |
$ | 19,315,000 | $ | | $ | 1,650,000 | ||||||
Payable for when-issued securities |
| 538,130 | 518,905 | |||||||||
Payable for variation margin on open financial futures contracts |
6,718 | 2,813 | 7,813 | |||||||||
Due to custodian |
634,282 | 90,746 | | |||||||||
Payable to affiliates: |
||||||||||||
Investment adviser fee |
68,455 | 35,969 | 33,292 | |||||||||
Administration fee |
20,902 | 10,983 | 10,165 | |||||||||
Trustees fees |
887 | 504 | 479 | |||||||||
Interest expense and fees payable |
33,192 | | 5,341 | |||||||||
Accrued expenses |
75,201 | 55,594 | 58,043 | |||||||||
Total liabilities |
$ | 20,154,637 | $ | 734,739 | $ | 2,284,038 | ||||||
Auction preferred shares at liquidation value plus cumulative unpaid dividends |
$ | 33,725,252 | $ | 22,725,510 | $ | 21,175,634 | ||||||
Net assets applicable to common shares |
$ | 85,000,902 | $ | 45,283,734 | $ | 40,187,595 | ||||||
Sources of Net Assets | ||||||||||||
Common shares, $0.01 par value, unlimited number of shares authorized |
$ | 54,709 | $ | 28,570 | $ | 27,199 | ||||||
Additional paid-in capital |
79,319,580 | 40,158,982 | 38,076,743 | |||||||||
Accumulated net realized loss |
(11,212,585 | ) | (3,961,545 | ) | (3,927,242 | ) | ||||||
Accumulated undistributed net investment income |
563,208 | 129,262 | 210,754 | |||||||||
Net unrealized appreciation |
16,275,990 | 8,928,465 | 5,800,141 | |||||||||
Net assets applicable to common shares |
$ | 85,000,902 | $ | 45,283,734 | $ | 40,187,595 | ||||||
Auction Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
1,349 | 909 | 847 | |||||||||
Common Shares Outstanding | 5,470,944 | 2,856,954 | 2,719,918 | |||||||||
Net Asset Value Per Common Share | ||||||||||||
Net assets applicable to common shares ÷ common shares issued and outstanding |
$ | 15.54 | $ | 15.85 | $ | 14.78 |
* | Represents restricted cash on deposit at the broker for open financial futures contracts. |
35 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Operations
Year Ended November 30, 2012 | ||||||||||||||||
Investment Income | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
Interest |
$ | 7,498,189 | $ | 2,881,440 | $ | 2,186,760 | $ | 4,941,268 | ||||||||
Total investment income |
$ | 7,498,189 | $ | 2,881,440 | $ | 2,186,760 | $ | 4,941,268 | ||||||||
Expenses | ||||||||||||||||
Investment adviser fee |
$ | 1,046,300 | $ | 418,507 | $ | 317,736 | $ | 684,911 | ||||||||
Administration fee |
316,531 | 126,605 | 96,117 | 207,186 | ||||||||||||
Trustees fees and expenses |
6,987 | 3,099 | 2,474 | 4,727 | ||||||||||||
Custodian fee |
83,003 | 43,497 | 37,535 | 60,993 | ||||||||||||
Transfer and dividend disbursing agent fees |
19,216 | 19,060 | 18,995 | 19,193 | ||||||||||||
Legal and accounting services |
51,188 | 38,421 | 36,547 | 45,343 | ||||||||||||
Printing and postage |
17,200 | 10,003 | 10,487 | 13,916 | ||||||||||||
Interest expense and fees |
111,470 | 38,586 | | 70,500 | ||||||||||||
Preferred shares service fee |
70,034 | 29,262 | 23,618 | 49,103 | ||||||||||||
Miscellaneous |
42,512 | 36,349 | 34,414 | 40,678 | ||||||||||||
Total expenses |
$ | 1,764,441 | $ | 763,389 | $ | 577,923 | $ | 1,196,550 | ||||||||
Deduct |
||||||||||||||||
Reduction of custodian fee |
$ | 903 | $ | 552 | $ | 446 | $ | 520 | ||||||||
Total expense reductions |
$ | 903 | $ | 552 | $ | 446 | $ | 520 | ||||||||
Net expenses |
$ | 1,763,538 | $ | 762,837 | $ | 577,477 | $ | 1,196,030 | ||||||||
Net investment income |
$ | 5,734,651 | $ | 2,118,603 | $ | 1,609,283 | $ | 3,745,238 | ||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) |
||||||||||||||||
Investment transactions |
$ | (71,555 | ) | $ | (45,453 | ) | $ | (244,338 | ) | $ | 395,787 | |||||
Financial futures contracts |
(903,437 | ) | (381,782 | ) | (102,698 | ) | (1,365,995 | ) | ||||||||
Net realized loss |
$ | (974,992 | ) | $ | (427,235 | ) | $ | (347,036 | ) | $ | (970,208 | ) | ||||
Change in unrealized appreciation (depreciation) |
||||||||||||||||
Investments |
$ | 17,894,526 | $ | 6,709,414 | $ | 4,454,782 | $ | 9,531,832 | ||||||||
Financial futures contracts |
(120,303 | ) | (18,749 | ) | (11,388 | ) | (250,376 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
$ | 17,774,223 | $ | 6,690,665 | $ | 4,443,394 | $ | 9,281,456 | ||||||||
Net realized and unrealized gain |
$ | 16,799,231 | $ | 6,263,430 | $ | 4,096,358 | $ | 8,311,248 | ||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
$ | (127,665 | ) | $ | (51,813 | ) | $ | (44,571 | ) | $ | (84,946 | ) | ||||
Net increase in net assets from operations |
$ | 22,406,217 | $ | 8,330,220 | $ | 5,661,070 | $ | 11,971,540 |
36 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Operations continued
Year Ended November 30, 2012 | ||||||||||||
Investment Income | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
Interest |
$ | 6,138,728 | $ | 2,989,189 | $ | 2,862,880 | ||||||
Total investment income |
$ | 6,138,728 | $ | 2,989,189 | $ | 2,862,880 | ||||||
Expenses | ||||||||||||
Investment adviser fee |
$ | 817,444 | $ | 429,301 | $ | 402,014 | ||||||
Administration fee |
247,295 | 129,871 | 121,608 | |||||||||
Trustees fees and expenses |
5,569 | 3,153 | 2,993 | |||||||||
Custodian fee |
71,367 | 44,276 | 43,655 | |||||||||
Transfer and dividend disbursing agent fees |
19,105 | 18,944 | 19,262 | |||||||||
Legal and accounting services |
49,537 | 37,883 | 43,458 | |||||||||
Printing and postage |
15,943 | 10,627 | 11,160 | |||||||||
Interest expense and fees |
141,458 | | 14,355 | |||||||||
Preferred shares service fee |
49,051 | 32,713 | 30,279 | |||||||||
Miscellaneous |
43,634 | 38,419 | 37,280 | |||||||||
Total expenses |
$ | 1,460,403 | $ | 745,187 | $ | 726,064 | ||||||
Deduct |
||||||||||||
Reduction of custodian fee |
$ | 480 | $ | 335 | $ | 236 | ||||||
Total expense reductions |
$ | 480 | $ | 335 | $ | 236 | ||||||
Net expenses |
$ | 1,459,923 | $ | 744,852 | $ | 725,828 | ||||||
Net investment income |
$ | 4,678,805 | $ | 2,244,337 | $ | 2,137,052 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) |
||||||||||||
Investment transactions |
$ | 58,792 | $ | (326,188 | ) | $ | (247,281 | ) | ||||
Financial futures contracts |
(482,767 | ) | (219,914 | ) | (471,033 | ) | ||||||
Net realized loss |
$ | (423,975 | ) | $ | (546,102 | ) | $ | (718,314 | ) | |||
Change in unrealized appreciation (depreciation) |
||||||||||||
Investments |
$ | 13,018,565 | $ | 7,636,132 | $ | 5,108,771 | ||||||
Financial futures contracts |
(23,473 | ) | (25,239 | ) | (86,337 | ) | ||||||
Net change in unrealized appreciation (depreciation) |
$ | 12,995,092 | $ | 7,610,893 | $ | 5,022,434 | ||||||
Net realized and unrealized gain |
$ | 12,571,117 | $ | 7,064,791 | $ | 4,304,120 | ||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
$ | (86,286 | ) | $ | (58,080 | ) | $ | (54,721 | ) | |||
Net increase in net assets from operations |
$ | 17,163,636 | $ | 9,251,048 | $ | 6,386,451 |
37 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Changes in Net Assets
Year Ended November 30, 2012 | ||||||||||||||||
Increase (Decrease) in Net Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
From operations |
||||||||||||||||
Net investment income |
$ | 5,734,651 | $ | 2,118,603 | $ | 1,609,283 | $ | 3,745,238 | ||||||||
Net realized loss from investment transactions and financial futures contracts |
(974,992 | ) | (427,235 | ) | (347,036 | ) | (970,208 | ) | ||||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
17,774,223 | 6,690,665 | 4,443,394 | 9,281,456 | ||||||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
(127,665 | ) | (51,813 | ) | (44,571 | ) | (84,946 | ) | ||||||||
Net increase in net assets from operations |
$ | 22,406,217 | $ | 8,330,220 | $ | 5,661,070 | $ | 11,971,540 | ||||||||
Distributions to common shareholders |
||||||||||||||||
From net investment income |
$ | (6,086,435 | ) | $ | (2,212,744 | ) | $ | (1,636,265 | ) | $ | (3,723,547 | ) | ||||
Total distributions to common shareholders |
$ | (6,086,435 | ) | $ | (2,212,744 | ) | $ | (1,636,265 | ) | $ | (3,723,547 | ) | ||||
Capital share transactions |
||||||||||||||||
Reinvestment of distributions to common shareholders |
$ | 185,370 | $ | 59,017 | $ | | $ | 152,504 | ||||||||
Net increase in net assets from capital share transactions |
$ | 185,370 | $ | 59,017 | $ | | $ | 152,504 | ||||||||
Net increase in net assets |
$ | 16,505,152 | $ | 6,176,493 | $ | 4,024,805 | $ | 8,400,497 | ||||||||
Net Assets Applicable to Common Shares | ||||||||||||||||
At beginning of year |
$ | 89,861,706 | $ | 38,372,394 | $ | 28,366,330 | $ | 60,734,478 | ||||||||
At end of year |
$ | 106,366,858 | $ | 44,548,887 | $ | 32,391,135 | $ | 69,134,975 | ||||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||
At end of year |
$ | 663,177 | $ | 169,079 | $ | 117,612 | $ | 359,123 |
38 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Changes in Net Assets continued
Year Ended November 30, 2012 | ||||||||||||
Increase (Decrease) in Net Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
From operations |
||||||||||||
Net investment income |
$ | 4,678,805 | $ | 2,244,337 | $ | 2,137,052 | ||||||
Net realized loss from investment transactions and financial futures contracts |
(423,975 | ) | (546,102 | ) | (718,314 | ) | ||||||
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts |
12,995,092 | 7,610,893 | 5,022,434 | |||||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
(86,286 | ) | (58,080 | ) | (54,721 | ) | ||||||
Net increase in net assets from operations |
$ | 17,163,636 | $ | 9,251,048 | $ | 6,386,451 | ||||||
Distributions to common shareholders |
||||||||||||
From net investment income |
$ | (4,974,981 | ) | $ | (2,373,528 | ) | $ | (2,248,125 | ) | |||
Total distributions to common shareholders |
$ | (4,974,981 | ) | $ | (2,373,528 | ) | $ | (2,248,125 | ) | |||
Capital share transactions |
||||||||||||
Reinvestment of distributions to common shareholders |
$ | 134,042 | $ | 27,594 | $ | 38,280 | ||||||
Net increase in net assets from capital share transactions |
$ | 134,042 | $ | 27,594 | $ | 38,280 | ||||||
Net increase in net assets |
$ | 12,322,697 | $ | 6,905,114 | $ | 4,176,606 | ||||||
Net Assets Applicable to Common Shares | ||||||||||||
At beginning of year |
$ | 72,678,205 | $ | 38,378,620 | $ | 36,010,989 | ||||||
At end of year |
$ | 85,000,902 | $ | 45,283,734 | $ | 40,187,595 | ||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
||||||||||||
At end of year |
$ | 563,208 | $ | 129,262 | $ | 210,754 |
39 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Changes in Net Assets continued
Year Ended November 30, 2011 | ||||||||||||||||
Increase (Decrease) in Net Assets | California Trust | Massachusetts Trust | Michigan Trust | New Jersey Trust | ||||||||||||
From operations |
||||||||||||||||
Net investment income |
$ | 6,690,748 | $ | 2,440,871 | $ | 1,747,303 | $ | 4,146,848 | ||||||||
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts |
(5,812,389 | ) | (1,798,271 | ) | (379,490 | ) | (4,316,193 | ) | ||||||||
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts |
5,840,558 | 2,417,110 | 1,565,378 | 3,472,721 | ||||||||||||
Distributions to preferred shareholders |
||||||||||||||||
From net investment income |
(156,530 | ) | (62,477 | ) | (53,546 | ) | (104,690 | ) | ||||||||
Net increase in net assets from operations |
$ | 6,562,387 | $ | 2,997,233 | $ | 2,879,645 | $ | 3,198,686 | ||||||||
Distributions to common shareholders |
||||||||||||||||
From net investment income |
$ | (6,404,210 | ) | $ | (2,484,380 | ) | $ | (1,775,591 | ) | $ | (4,301,179 | ) | ||||
Total distributions to common shareholders |
$ | (6,404,210 | ) | $ | (2,484,380 | ) | $ | (1,775,591 | ) | $ | (4,301,179 | ) | ||||
Capital share transactions |
||||||||||||||||
Reinvestment of distributions to common shareholders |
$ | 308,410 | $ | 124,586 | $ | | $ | 120,167 | ||||||||
Net increase in net assets from capital share transactions |
$ | 308,410 | $ | 124,586 | $ | | $ | 120,167 | ||||||||
Net increase (decrease) in net assets |
$ | 466,587 | $ | 637,439 | $ | 1,104,054 | $ | (982,326 | ) | |||||||
Net Assets Applicable to Common Shares | ||||||||||||||||
At beginning of year |
$ | 89,395,119 | $ | 37,734,955 | $ | 27,262,276 | $ | 61,716,804 | ||||||||
At end of year |
$ | 89,861,706 | $ | 38,372,394 | $ | 28,366,330 | $ | 60,734,478 | ||||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||
At end of year |
$ | 1,202,450 | $ | 330,666 | $ | 198,605 | $ | 415,866 |
40 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statements of Changes in Net Assets continued
Year Ended November 30, 2011 | ||||||||||||
Increase (Decrease) in Net Assets | New York Trust | Ohio Trust | Pennsylvania Trust | |||||||||
From operations |
||||||||||||
Net investment income |
$ | 5,179,486 | $ | 2,427,846 | $ | 2,370,308 | ||||||
Net realized loss from investment transactions, extinguishment of debt, financial futures contracts and swap contracts |
(3,463,693 | ) | (1,188,474 | ) | (1,720,683 | ) | ||||||
Net change in unrealized appreciation (depreciation) from investments, financial futures contracts and swap contracts |
4,422,671 | 2,074,746 | 1,564,419 | |||||||||
Distributions to preferred shareholders |
||||||||||||
From net investment income |
(103,791 | ) | (70,672 | ) | (65,985 | ) | ||||||
Net increase in net assets from operations |
$ | 6,034,673 | $ | 3,243,446 | $ | 2,148,059 | ||||||
Distributions to common shareholders |
||||||||||||
From net investment income |
$ | (4,960,863 | ) | $ | (2,454,993 | ) | $ | (2,355,299 | ) | |||
Total distributions to common shareholders |
$ | (4,960,863 | ) | $ | (2,454,993 | ) | $ | (2,355,299 | ) | |||
Capital share transactions |
||||||||||||
Reinvestment of distributions to common shareholders |
$ | 232,016 | $ | 127,253 | $ | 7,823 | ||||||
Net increase in net assets from capital share transactions |
$ | 232,016 | $ | 127,253 | $ | 7,823 | ||||||
Net increase (decrease) in net assets |
$ | 1,305,826 | $ | 915,706 | $ | (199,417 | ) | |||||
Net Assets Applicable to Common Shares | ||||||||||||
At beginning of year |
$ | 71,372,379 | $ | 37,462,914 | $ | 36,210,406 | ||||||
At end of year |
$ | 72,678,205 | $ | 38,378,620 | $ | 36,010,989 | ||||||
Accumulated undistributed net investment income included in net assets applicable to common shares |
||||||||||||
At end of year |
$ | 940,604 | $ | 332,320 | $ | 385,127 |
41 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Statement of Cash Flows*
Year Ended November 30, 2012 |
||||
Cash Flows From Operating Activities | New York Trust | |||
Net increase in net assets from operations |
$ | 17,163,636 | ||
Distributions to preferred shareholders |
86,286 | |||
Net increase in net assets from operations excluding distributions to preferred shareholders |
$ | 17,249,922 | ||
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities: |
||||
Investments purchased |
(24,855,242 | ) | ||
Investments sold |
22,616,269 | |||
Net amortization/accretion of premium (discount) |
(321,652 | ) | ||
Amortization of deferred debt issuance costs |
1,850 | |||
Increase in restricted cash |
(150,000 | ) | ||
Increase in interest receivable |
(43,456 | ) | ||
Decrease in receivable for variation margin on open financial futures contracts |
29,298 | |||
Increase in payable for variation margin on open financial futures contracts |
6,718 | |||
Increase in payable to affiliate for investment adviser fee |
3,534 | |||
Increase in payable to affiliate for administration fee |
1,523 | |||
Increase in payable to affiliate for Trustees fees |
204 | |||
Increase in interest expense and fees payable |
101 | |||
Increase in accrued expenses |
2,945 | |||
Net change in unrealized (appreciation) depreciation from investments |
(13,018,565 | ) | ||
Net realized gain from investments |
(58,792 | ) | ||
Net cash provided by operating activities |
$ | 1,464,657 | ||
Cash Flows From Financing Activities | ||||
Distributions paid to common shareholders, net of reinvestments |
$ | (4,840,939 | ) | |
Cash distributions paid to preferred shareholders |
(87,307 | ) | ||
Proceeds from secured borrowings |
4,800,000 | |||
Repayment of secured borrowings |
(5,940,000 | ) | ||
Increase in due to custodian |
634,282 | |||
Net cash used in financing activities |
$ | (5,433,964 | ) | |
Net decrease in cash |
$ | (3,969,307 | ) | |
Cash at beginning of year |
$ | 3,969,307 | ||
Cash at end of year |
$ | | ||
Supplemental disclosure of cash flow information: | ||||
Noncash financing activities not included herein consist of: |
||||
Reinvestment of dividends and distributions |
$ | 134,042 | ||
Cash paid for interest and fees |
139,507 |
* | Statement of Cash Flows is not required for California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust. |
42 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights
Selected data for a common share outstanding during the periods stated
California Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 12.410 | $ | 12.390 | $ | 12.330 | $ | 9.890 | $ | 15.120 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.791 | $ | 0.926 | $ | 0.945 | $ | 0.947 | $ | 0.943 | ||||||||||
Net realized and unrealized gain (loss) |
2.316 | 0.002 | 0.026 | 2.321 | (5.223 | ) | ||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.018 | ) | (0.022 | ) | (0.028 | ) | (0.047 | ) | (0.277 | ) | ||||||||||
Total income (loss) from operations |
$ | 3.089 | $ | 0.906 | $ | 0.943 | $ | 3.221 | $ | (4.557 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.839 | ) | $ | (0.886 | ) | $ | (0.883 | ) | $ | (0.781 | ) | $ | (0.673 | ) | |||||
Total distributions to common shareholders |
$ | (0.839 | ) | $ | (0.886 | ) | $ | (0.883 | ) | $ | (0.781 | ) | $ | (0.673 | ) | |||||
Net asset value End of year (Common shares) |
$ | 14.660 | $ | 12.410 | $ | 12.390 | $ | 12.330 | $ | 9.890 | ||||||||||
Market value End of year (Common shares) |
$ | 14.680 | $ | 12.770 | $ | 12.400 | $ | 12.170 | $ | 9.150 | ||||||||||
Total Investment Return on Net Asset Value(2) |
25.59 | % | 7.99 | % | 7.73 | % | 34.24 | % | (30.70 | )% | ||||||||||
Total Investment Return on Market Value(2) |
22.22 | % | 11.04 | % | 9.25 | % | 43.19 | % | (26.34 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 106,367 | $ | 89,862 | $ | 89,395 | $ | 88,720 | $ | 71,065 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.66 | % | 1.83 | % | 1.78 | % | 1.93 | % | 1.87 | % | ||||||||||
Interest and fee expense(4) |
0.11 | % | 0.17 | % | 0.18 | % | 0.23 | % | 0.37 | % | ||||||||||
Total expenses before custodian fee reduction |
1.77 | % | 2.00 | % | 1.96 | % | 2.16 | % | 2.24 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.66 | % | 1.83 | % | 1.78 | % | 1.93 | % | 1.85 | % | ||||||||||
Net investment income |
5.77 | % | 7.81 | % | 7.34 | % | 8.35 | % | 6.91 | % | ||||||||||
Portfolio Turnover |
17 | % | 22 | % | 14 | % | 18 | % | 31 | % | ||||||||||
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):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.11 | % | 1.15 | % | 1.16 | % | 1.19 | % | 1.18 | % | ||||||||||
Interest and fee expense(4) |
0.07 | % | 0.11 | % | 0.11 | % | 0.15 | % | 0.24 | % | ||||||||||
Total expenses before custodian fee reduction |
1.18 | % | 1.26 | % | 1.27 | % | 1.34 | % | 1.42 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.11 | % | 1.15 | % | 1.16 | % | 1.19 | % | 1.17 | % | ||||||||||
Net investment income |
3.84 | % | 4.93 | % | 4.77 | % | 5.18 | % | 4.39 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
1,999 | 1,999 | 1,999 | 1,999 | 1,999 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 78,210 | $ | 69,954 | $ | 69,721 | $ | 69,383 | $ | 60,552 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
43 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Massachusetts Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.970 | $ | 13.790 | $ | 13.590 | $ | 10.160 | $ | 14.860 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.771 | $ | 0.890 | $ | 0.926 | $ | 0.948 | $ | 0.947 | ||||||||||
Net realized and unrealized gain (loss) |
2.283 | 0.219 | 0.210 | 3.356 | (4.720 | ) | ||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.019 | ) | (0.023 | ) | (0.030 | ) | (0.049 | ) | (0.278 | ) | ||||||||||
Total income (loss) from operations |
$ | 3.035 | $ | 1.086 | $ | 1.106 | $ | 4.255 | $ | (4.051 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.805 | ) | $ | (0.906 | ) | $ | (0.906 | ) | $ | (0.825 | ) | $ | (0.649 | ) | |||||
Total distributions to common shareholders |
$ | (0.805 | ) | $ | (0.906 | ) | $ | (0.906 | ) | $ | (0.825 | ) | $ | (0.649 | ) | |||||
Net asset value End of year (Common shares) |
$ | 16.200 | $ | 13.970 | $ | 13.790 | $ | 13.590 | $ | 10.160 | ||||||||||
Market value End of year (Common shares) |
$ | 16.350 | $ | 14.810 | $ | 13.980 | $ | 13.260 | $ | 8.930 | ||||||||||
Total Investment Return on Net Asset Value(2) |
22.28 | % | 8.49 | % | 8.16 | % | 43.29 | % | (28.02 | )% | ||||||||||
Total Investment Return on Market Value(2) |
16.41 | % | 13.45 | % | 12.38 | % | 58.91 | % | (27.89 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 44,549 | $ | 38,372 | $ | 37,735 | $ | 37,011 | $ | 27,576 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.73 | % | 1.87 | % | 1.83 | % | 2.02 | % | 2.06 | % | ||||||||||
Interest and fee expense(4) |
0.09 | % | 0.11 | % | 0.09 | % | 0.14 | % | 0.26 | % | ||||||||||
Total expenses before custodian fee reduction |
1.82 | % | 1.98 | % | 1.92 | % | 2.16 | % | 2.32 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.73 | % | 1.87 | % | 1.82 | % | 2.02 | % | 2.04 | % | ||||||||||
Net investment income |
5.06 | % | 6.70 | % | 6.51 | % | 7.77 | % | 7.03 | % | ||||||||||
Portfolio Turnover |
11 | % | 15 | % | 16 | % | 24 | % | 40 | % | ||||||||||
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):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.17 | % | 1.21 | % | 1.20 | % | 1.26 | % | 1.31 | % | ||||||||||
Interest and fee expense(4) |
0.06 | % | 0.07 | % | 0.06 | % | 0.09 | % | 0.16 | % | ||||||||||
Total expenses before custodian fee reduction |
1.23 | % | 1.28 | % | 1.26 | % | 1.35 | % | 1.47 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.17 | % | 1.21 | % | 1.20 | % | 1.26 | % | 1.30 | % | ||||||||||
Net investment income |
3.42 | % | 4.32 | % | 4.29 | % | 4.85 | % | 4.47 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
802 | 802 | 802 | 802 | 802 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 80,548 | $ | 72,846 | $ | 72,051 | $ | 71,150 | $ | 59,391 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
44 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Michigan Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.400 | $ | 12.880 | $ | 12.940 | $ | 10.860 | $ | 14.510 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.760 | $ | 0.826 | $ | 0.876 | $ | 0.918 | $ | 0.931 | ||||||||||
Net realized and unrealized gain (loss) |
1.944 | 0.558 | (0.044 | ) | 1.990 | (3.669 | ) | |||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.021 | ) | (0.025 | ) | (0.033 | ) | (0.056 | ) | (0.301 | ) | ||||||||||
Total income (loss) from operations |
$ | 2.683 | $ | 1.359 | $ | 0.799 | $ | 2.852 | $ | (3.039 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.773 | ) | $ | (0.839 | ) | $ | (0.859 | ) | $ | (0.772 | ) | $ | (0.611 | ) | |||||
Total distributions to common shareholders |
$ | (0.773 | ) | $ | (0.839 | ) | $ | (0.859 | ) | $ | (0.772 | ) | $ | (0.611 | ) | |||||
Net asset value End of year (Common shares) |
$ | 15.310 | $ | 13.400 | $ | 12.880 | $ | 12.940 | $ | 10.860 | ||||||||||
Market value End of year (Common shares) |
$ | 14.690 | $ | 12.470 | $ | 12.100 | $ | 11.530 | $ | 7.920 | ||||||||||
Total Investment Return on Net Asset Value(2) |
20.92 | % | 11.66 | % | 6.57 | % | 28.08 | % | (21.02 | )% | ||||||||||
Total Investment Return on Market Value(2) |
24.67 | % | 10.60 | % | 12.36 | % | 56.49 | % | (32.76 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 32,391 | $ | 28,366 | $ | 27,262 | $ | 27,392 | $ | 22,977 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.89 | % | 2.04 | % | 1.98 | % | 2.18 | % | 2.15 | % | ||||||||||
Interest and fee expense(4) |
| | | 0.06 | % | 0.16 | % | |||||||||||||
Total expenses before custodian fee reduction |
1.89 | % | 2.04 | % | 1.98 | % | 2.24 | % | 2.31 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.89 | % | 2.04 | % | 1.98 | % | 2.18 | % | 2.13 | % | ||||||||||
Net investment income |
5.26 | % | 6.49 | % | 6.57 | % | 7.61 | % | 6.96 | % | ||||||||||
Portfolio Turnover |
14 | % | 18 | % | 14 | % | 23 | % | 24 | % | ||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.20 | % | 1.24 | % | 1.22 | % | 1.29 | % | 1.33 | % | ||||||||||
Interest and fee expense(4) |
| | | 0.04 | % | 0.10 | % | |||||||||||||
Total expenses before custodian fee reduction |
1.20 | % | 1.24 | % | 1.22 | % | 1.33 | % | 1.43 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.20 | % | 1.24 | % | 1.22 | % | 1.29 | % | 1.31 | % | ||||||||||
Net investment income |
3.35 | % | 3.93 | % | 4.06 | % | 4.52 | % | 4.30 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
700 | 700 | 700 | 700 | 700 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 71,273 | $ | 65,524 | $ | 63,948 | $ | 64,132 | $ | 57,828 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
45 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New Jersey Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.020 | $ | 13.260 | $ | 13.570 | $ | 9.400 | $ | 14.930 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.802 | $ | 0.890 | $ | 0.957 | $ | 0.971 | $ | 0.968 | ||||||||||
Net realized and unrealized gain (loss) |
1.783 | (0.185 | ) | (0.290 | ) | 4.091 | (5.579 | ) | ||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.018 | ) | (0.022 | ) | (0.029 | ) | (0.048 | ) | (0.289 | ) | ||||||||||
Total income (loss) from operations |
$ | 2.567 | $ | 0.683 | $ | 0.638 | $ | 5.014 | $ | (4.900 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.797 | ) | $ | (0.923 | ) | $ | (0.948 | ) | $ | (0.844 | ) | $ | (0.630 | ) | |||||
Total distributions to common shareholders |
$ | (0.797 | ) | $ | (0.923 | ) | $ | (0.948 | ) | $ | (0.844 | ) | $ | (0.630 | ) | |||||
Net asset value End of year (Common shares) |
$ | 14.790 | $ | 13.020 | $ | 13.260 | $ | 13.570 | $ | 9.400 | ||||||||||
Market value End of year (Common shares) |
$ | 16.380 | $ | 13.370 | $ | 13.520 | $ | 14.040 | $ | 8.500 | ||||||||||
Total Investment Return on Net Asset Value(2) |
20.18 | % | 5.64 | % | 4.62 | % | 55.43 | % | (33.57 | )% | ||||||||||
Total Investment Return on Market Value(2) |
29.62 | % | 6.39 | % | 3.10 | % | 77.84 | % | (29.88 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 69,135 | $ | 60,734 | $ | 61,717 | $ | 62,792 | $ | 43,459 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.71 | % | 1.81 | % | 1.79 | % | 1.99 | % | 1.96 | % | ||||||||||
Interest and fee expense(4) |
0.11 | % | 0.15 | % | 0.18 | % | 0.24 | % | 0.45 | % | ||||||||||
Total expenses before custodian fee reduction |
1.82 | % | 1.96 | % | 1.97 | % | 2.23 | % | 2.41 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.71 | % | 1.81 | % | 1.79 | % | 1.99 | % | 1.94 | % | ||||||||||
Net investment income |
5.70 | % | 6.96 | % | 6.87 | % | 8.16 | % | 7.22 | % | ||||||||||
Portfolio Turnover |
14 | % | 11 | % | 9 | % | 48 | % | 54 | % | ||||||||||
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):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.14 | % | 1.16 | % | 1.18 | % | 1.24 | % | 1.23 | % | ||||||||||
Interest and fee expense(4) |
0.07 | % | 0.09 | % | 0.12 | % | 0.15 | % | 0.28 | % | ||||||||||
Total expenses before custodian fee reduction |
1.21 | % | 1.25 | % | 1.30 | % | 1.39 | % | 1.51 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.14 | % | 1.16 | % | 1.18 | % | 1.24 | % | 1.21 | % | ||||||||||
Net investment income |
3.78 | % | 4.46 | % | 4.53 | % | 5.08 | % | 4.51 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
1,337 | 1,337 | 1,337 | 1,337 | 1,366 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 76,709 | $ | 70,427 | $ | 71,162 | $ | 71,966 | $ | 56,817 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
46 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
New York Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.310 | $ | 13.110 | $ | 12.920 | $ | 9.350 | $ | 15.240 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.856 | $ | 0.950 | $ | 0.954 | $ | 0.960 | $ | 0.987 | ||||||||||
Net realized and unrealized gain (loss) |
2.300 | 0.179 | 0.166 | 3.493 | (5.887 | ) | ||||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.016 | ) | (0.019 | ) | (0.025 | ) | (0.042 | ) | (0.269 | ) | ||||||||||
Total income (loss) from operations |
$ | 3.140 | $ | 1.110 | $ | 1.095 | $ | 4.411 | $ | (5.169 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.910 | ) | $ | (0.910 | ) | $ | (0.905 | ) | $ | (0.841 | ) | $ | (0.721 | ) | |||||
Total distributions to common shareholders |
$ | (0.910 | ) | $ | (0.910 | ) | $ | (0.905 | ) | $ | (0.841 | ) | $ | (0.721 | ) | |||||
Net asset value End of year (Common shares) |
$ | 15.540 | $ | 13.310 | $ | 13.110 | $ | 12.920 | $ | 9.350 | ||||||||||
Market value End of year (Common shares) |
$ | 16.150 | $ | 13.450 | $ | 13.350 | $ | 13.200 | $ | 7.900 | ||||||||||
Total Investment Return on Net Asset Value(2) |
24.30 | % | 9.06 | % | 8.48 | % | 49.00 | % | (35.07 | )% | ||||||||||
Total Investment Return on Market Value(2) |
27.89 | % | 8.18 | % | 8.16 | % | 80.12 | % | (40.71 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 85,001 | $ | 72,678 | $ | 71,372 | $ | 69,857 | $ | 50,325 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.66 | % | 1.78 | % | 1.74 | % | 1.98 | % | 1.92 | % | ||||||||||
Interest and fee expense(4) |
0.18 | % | 0.22 | % | 0.21 | % | 0.24 | % | 0.55 | % | ||||||||||
Total expenses before custodian fee reduction |
1.84 | % | 2.00 | % | 1.95 | % | 2.22 | % | 2.47 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.66 | % | 1.78 | % | 1.74 | % | 1.98 | % | 1.89 | % | ||||||||||
Net investment income |
5.90 | % | 7.40 | % | 7.02 | % | 8.40 | % | 7.21 | % | ||||||||||
Portfolio Turnover |
17 | % | 13 | % | 13 | % | 20 | % | 48 | % | ||||||||||
The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: |
| |||||||||||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.16 | % | 1.20 | % | 1.18 | % | 1.28 | % | 1.23 | % | ||||||||||
Interest and fee expense(4) |
0.13 | % | 0.15 | % | 0.15 | % | 0.15 | % | 0.35 | % | ||||||||||
Total expenses before custodian fee reduction |
1.29 | % | 1.35 | % | 1.33 | % | 1.43 | % | 1.58 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.16 | % | 1.20 | % | 1.18 | % | 1.28 | % | 1.21 | % | ||||||||||
Net investment income |
4.14 | % | 5.00 | % | 4.82 | % | 5.43 | % | 4.63 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
1,349 | 1,349 | 1,349 | 1,349 | 1,349 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 88,010 | $ | 78,877 | $ | 77,909 | $ | 76,785 | $ | 62,309 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
47 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Ohio Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.440 | $ | 13.170 | $ | 13.520 | $ | 10.450 | $ | 14.830 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.786 | $ | 0.851 | $ | 0.899 | $ | 0.945 | $ | 0.961 | ||||||||||
Net realized and unrealized gain (loss) |
2.475 | 0.305 | (0.325 | ) | 2.974 | (4.410 | ) | |||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.020 | ) | (0.025 | ) | (0.033 | ) | (0.055 | ) | (0.303 | ) | ||||||||||
Total income (loss) from operations |
$ | 3.241 | $ | 1.131 | $ | 0.541 | $ | 3.864 | $ | (3.752 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.831 | ) | $ | (0.861 | ) | $ | (0.891 | ) | $ | (0.794 | ) | $ | (0.628 | ) | |||||
Total distributions to common shareholders |
$ | (0.831 | ) | $ | (0.861 | ) | $ | (0.891 | ) | $ | (0.794 | ) | $ | (0.628 | ) | |||||
Net asset value End of year (Common shares) |
$ | 15.850 | $ | 13.440 | $ | 13.170 | $ | 13.520 | $ | 10.450 | ||||||||||
Market value End of year (Common shares) |
$ | 16.800 | $ | 13.320 | $ | 13.420 | $ | 13.430 | $ | 8.550 | ||||||||||
Total Investment Return on Net Asset Value(2) |
24.71 | % | 9.21 | % | 3.96 | % | 38.58 | % | (25.69 | )% | ||||||||||
Total Investment Return on Market Value(2) |
33.34 | % | 6.25 | % | 6.64 | % | 68.25 | % | (29.83 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 45,284 | $ | 38,379 | $ | 37,463 | $ | 38,295 | $ | 29,563 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.76 | % | 1.93 | % | 1.85 | % | 2.08 | % | 2.08 | % | ||||||||||
Interest and fee expense(4) |
| 0.01 | % | 0.02 | % | 0.02 | % | 0.26 | % | |||||||||||
Total expenses before custodian fee reduction |
1.76 | % | 1.94 | % | 1.87 | % | 2.10 | % | 2.34 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.76 | % | 1.93 | % | 1.85 | % | 2.08 | % | 2.06 | % | ||||||||||
Net investment income |
5.31 | % | 6.64 | % | 6.53 | % | 7.77 | % | 7.12 | % | ||||||||||
Portfolio Turnover |
11 | % | 11 | % | 17 | % | 20 | % | 27 | % | ||||||||||
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):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.15 | % | 1.19 | % | 1.17 | % | 1.26 | % | 1.29 | % | ||||||||||
Interest and fee expense(4) |
| 0.01 | % | 0.01 | % | 0.01 | % | 0.16 | % | |||||||||||
Total expenses before custodian fee reduction |
1.15 | % | 1.20 | % | 1.18 | % | 1.27 | % | 1.45 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.15 | % | 1.19 | % | 1.17 | % | 1.26 | % | 1.28 | % | ||||||||||
Net investment income |
3.45 | % | 4.09 | % | 4.13 | % | 4.68 | % | 4.41 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
909 | 909 | 909 | 909 | 918 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 74,818 | $ | 67,221 | $ | 66,215 | $ | 67,131 | $ | 57,209 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
48 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Financial Highlights continued
Selected data for a common share outstanding during the periods stated
Pennsylvania Trust | ||||||||||||||||||||
Year Ended November 30, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net asset value Beginning of year (Common shares) |
$ | 13.250 | $ | 13.330 | $ | 13.380 | $ | 10.320 | $ | 14.840 | ||||||||||
Income (Loss) From Operations | ||||||||||||||||||||
Net investment income(1) |
$ | 0.786 | $ | 0.873 | $ | 0.912 | $ | 0.928 | $ | 0.986 | ||||||||||
Net realized and unrealized gain (loss) |
1.591 | (0.062 | ) | (0.063 | ) | 2.973 | (4.555 | ) | ||||||||||||
Distributions to preferred shareholders |
||||||||||||||||||||
From net investment income(1) |
(0.020 | ) | (0.024 | ) | (0.032 | ) | (0.053 | ) | (0.299 | ) | ||||||||||
Total income (loss) from operations |
$ | 2.357 | $ | 0.787 | $ | 0.817 | $ | 3.848 | $ | (3.868 | ) | |||||||||
Less Distributions to Common Shareholders | ||||||||||||||||||||
From net investment income |
$ | (0.827 | ) | $ | (0.867 | ) | $ | (0.867 | ) | $ | (0.788 | ) | $ | (0.652 | ) | |||||
Total distributions to common shareholders |
$ | (0.827 | ) | $ | (0.867 | ) | $ | (0.867 | ) | $ | (0.788 | ) | $ | (0.652 | ) | |||||
Net asset value End of year (Common shares) |
$ | 14.780 | $ | 13.250 | $ | 13.330 | $ | 13.380 | $ | 10.320 | ||||||||||
Market value End of year (Common shares) |
$ | 15.100 | $ | 13.660 | $ | 12.930 | $ | 13.050 | $ | 9.600 | ||||||||||
Total Investment Return on Net Asset Value(2) |
18.20 | % | 6.53 | % | 6.13 | % | 39.16 | % | (26.57 | )% | ||||||||||
Total Investment Return on Market Value(2) |
17.23 | % | 13.15 | % | 5.57 | % | 45.88 | % | (20.75 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets applicable to common shares, end of year (000s omitted) |
$ | 40,188 | $ | 36,011 | $ | 36,210 | $ | 36,255 | $ | 27,944 | ||||||||||
Ratios (as a percentage of average daily net assets applicable to common shares):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.85 | % | 1.93 | % | 1.88 | % | 2.11 | % | 2.06 | % | ||||||||||
Interest and fee expense(4) |
0.04 | % | 0.05 | % | 0.06 | % | 0.21 | % | 0.37 | % | ||||||||||
Total expenses before custodian fee reduction |
1.89 | % | 1.98 | % | 1.94 | % | 2.32 | % | 2.43 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.85 | % | 1.93 | % | 1.88 | % | 2.11 | % | 2.04 | % | ||||||||||
Net investment income |
5.57 | % | 6.71 | % | 6.61 | % | 7.61 | % | 7.23 | % | ||||||||||
Portfolio Turnover |
15 | % | 8 | % | 17 | % | 23 | % | 25 | % | ||||||||||
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):(3) |
||||||||||||||||||||
Expenses excluding interest and fees |
1.20 | % | 1.21 | % | 1.20 | % | 1.28 | % | 1.28 | % | ||||||||||
Interest and fee expense(4) |
0.02 | % | 0.03 | % | 0.04 | % | 0.13 | % | 0.23 | % | ||||||||||
Total expenses before custodian fee reduction |
1.22 | % | 1.24 | % | 1.24 | % | 1.41 | % | 1.51 | % | ||||||||||
Expenses after custodian fee reduction excluding interest and fees |
1.20 | % | 1.21 | % | 1.20 | % | 1.28 | % | 1.27 | % | ||||||||||
Net investment income |
3.59 | % | 4.19 | % | 4.22 | % | 4.63 | % | 4.50 | % | ||||||||||
Senior Securities: |
||||||||||||||||||||
Total preferred shares outstanding |
847 | 847 | 847 | 847 | 889 | |||||||||||||||
Asset coverage per preferred share(5) |
$ | 72,448 | $ | 67,516 | $ | 67,752 | $ | 67,806 | $ | 56,439 | ||||||||||
Involuntary liquidation preference per preferred share(6) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||
Approximate market value per preferred share(6) |
$ | 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. |
(4) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H). |
(5) | Calculated by subtracting the Trusts total liabilities (not including the preferred shares) from the Trusts total assets, and dividing the result by the number of preferred shares outstanding. |
(6) | Plus accumulated and unpaid dividends. |
49 | See Notes to Financial Statements. |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements
1 Significant Accounting Policies
Eaton Vance California Municipal Income Trust (California Trust), Eaton Vance Massachusetts Municipal Income Trust (Massachusetts Trust), Eaton Vance Michigan Municipal Income Trust (Michigan Trust), Eaton Vance New Jersey Municipal Income Trust (New Jersey Trust), Eaton Vance New York Municipal Income Trust (New York Trust), Eaton Vance Ohio Municipal Income Trust (Ohio Trust) and Eaton Vance Pennsylvania Municipal Income Trust (Pennsylvania Trust) (each individually referred to as the Trust, and collectively, the Trusts), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. Each Trust seeks to provide current income exempt from regular federal income tax and taxes in its specified state.
The following is a summary of significant accounting policies of the Trusts. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation Debt obligations (including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations provided by third party pricing services, as derived from such services pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates market value. 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 rates 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 Trust in a manner that fairly reflects the securitys value, or the amount that the Trust might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the securitys disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entitys financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes Each Trusts policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Trust intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by each Trust, as exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
At November 30, 2012, the following Trusts, for federal income tax purposes, had capital loss carryforwards and current year deferred capital losses which will reduce the respective Trusts taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Trusts of any liability for federal income or excise tax. The current year deferred capital losses are treated as arising on the first day of the Trusts next taxable year and are treated as realized prior to the utilization of the capital loss carryforward. The amounts and expiration dates of the capital loss carryforwards and the amounts of the current year deferred capital losses are as follows:
Expiration Date | California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
|||||||||||||||||||||
November 30, 2013 |
$ | | $ | | $ | 224,050 | $ | | $ | | $ | 588,403 | $ | 389,289 | ||||||||||||||
November 30, 2016 |
6,689,345 | 692,532 | 517,712 | | 2,354,581 | 736,482 | 800,874 | |||||||||||||||||||||
November 30, 2017 |
4,084,290 | 991,790 | 337,540 | 3,185,143 | 3,171,310 | 840,450 | | |||||||||||||||||||||
November 30, 2018 |
355,871 | | 34,334 | 1,512,852 | 671,928 | 41,243 | 329,527 | |||||||||||||||||||||
November 30, 2019 |
5,299,748 | 1,780,081 | 345,052 | 4,137,608 | 3,607,489 | 1,169,431 | 1,724,760 | |||||||||||||||||||||
Total capital loss carryforward |
$ | 16,429,254 | $ | 3,464,403 | $ | 1,458,688 | $ | 8,835,603 | $ | 9,805,308 | $ | 3,376,009 | $ | 3,244,450 | ||||||||||||||
Current year deferred capital losses |
$ | 1,073,756 | $ | 445,924 | $ | 361,063 | $ | 1,210,103 | $ | 654,735 | $ | 678,454 | $ | 783,890 |
50 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
As of November 30, 2012, the Trusts had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Trust files a U.S. federal tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
D Expense Reduction State Street Bank and Trust Company (SSBT) serves as custodian of the Trusts. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Trust maintains with SSBT. All credit balances, if any, used to reduce each Trusts custodian fees are reported as a reduction of expenses in the Statements of Operations.
E Legal Fees Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
F Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
G Indemnifications Under each Trusts organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Trust. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Trust) could be deemed to have personal liability for the obligations of the Trust. However, each Trusts Declaration of Trust contains an express disclaimer of liability on the part of Trust shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Trust shareholders. Moreover, the By-laws also provide for indemnification out of Trust property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Trust enters into agreements with service providers that may contain indemnification clauses. Each Trusts maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Trust that have not yet occurred.
H Floating Rate Notes Issued in Conjunction with Securities Held The Trusts may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Trust may sell a variable or fixed rate bond to a broker for cash. At the same time, the Trust buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Trust, and which may have been, but is not required to be, the bond purchased from the Trust (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Trust gives the Trust the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker transfer the Bond held by the SPV to the Trust, thereby terminating the SPV. Should the Trust exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Trusts account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption Payable for floating rate notes issued in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 10) at November 30, 2012. Interest expense related to the Trusts liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Trust, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying Bond, bankruptcy of or payment failure by the issuer of the underlying Bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year. Structuring fees paid to the liquidity provider upon the creation of an SPV have been recorded as debt issuance costs and are being amortized as interest expense to the expected maturity of the related trust. Unamortized structuring fees related to a terminated SPV are recorded as a realized loss on extinguishment of debt. At November 30, 2012, the amounts of the Trusts Floating Rate Notes and related interest rates and collateral were as follows:
California Trust |
Massachusetts Trust |
New Jersey Trust |
New York Trust |
Pennsylvania Trust |
||||||||||||||||
Floating Rate Notes Outstanding |
$ | 14,680,000 | $ | 4,885,000 | $ | 9,455,000 | $ | 19,315,000 | $ | 1,650,000 | ||||||||||
Interest Rate or Range of Interest Rates (%) |
0.16 - 0.22 | 0.16 - 0.22 | 0.16 - 0.36 | 0.16 - 0.22 | 0.17 - 0.22 | |||||||||||||||
Collateral for Floating Rate Notes Outstanding |
$ | 19,786,750 | $ | 7,473,829 | $ | 13,888,252 | $ | 29,799,053 | $ | 3,291,052 |
51 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
For the year ended November 30, 2012, the Trusts average Floating Rate Notes outstanding and the average interest rate including fees and amortization of deferred debt issuance costs were as follows:
California Trust |
Massachusetts Trust |
New Jersey Trust |
New York Trust |
Pennsylvania Trust |
||||||||||||||||
Average Floating Rate Notes Outstanding |
$ | 15,197,049 | $ | 4,885,000 | $ | 9,455,000 | $ | 19,534,016 | $ | 1,650,000 | ||||||||||
Average Interest Rate |
0.73 | % | 0.79 | % | 0.75 | % | 0.71 | % | 0.87 | % |
The Trusts may enter into shortfall and forbearance agreements with the broker by which a Trust agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Trusts had no shortfalls as of November 30, 2012.
The Trusts may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.
The Trusts investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Trusts investment policies do not allow the Trusts to borrow money except as permitted by the 1940 Act. Management believes that the Trusts restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Trusts Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Trusts restrictions apply. Residual interest bonds held by the Trusts are securities exempt from registration under Rule 144A of the Securities Act of 1933.
I Financial Futures Contracts Upon entering into a financial futures contract, a Trust is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Trust each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Trust. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Trust may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
J Interest Rate Swaps Pursuant to interest rate swap agreements, a Trust makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. Payments received or made are recorded as realized gains or losses. 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 Trust 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 Trusts may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Trusts maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
L Statement of Cash Flows The cash amount shown in the Statement of Cash Flows of a Trust is the amount included in the Trusts Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.
2 Auction Preferred Shares
Each Trust issued Auction Preferred Shares (APS) on March 1, 1999 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Trust. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) AA Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. The stated spread over the reference benchmark rate is determined based on the credit rating of the APS.
52 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
The APS are redeemable at the option of each Trust at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Trust is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Trust is required to maintain certain asset coverage with respect to the APS as defined in the Trusts By-laws and the 1940 Act. Each Trust pays an annual fee up to 0.15% of the liquidation value of the APS to broker/dealers as a service fee if the auctions are unsuccessful; otherwise, the annual fee is 0.25%.
3 Distributions to Shareholders
Each Trust intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, each Trust intends to distribute all or substantially all of its net realized capital gains (reduced by available capital loss carryforwards 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 November 30, 2012, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the year then ended were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
APS Dividend Rates at November 30, 2012 |
0.27 | % | 0.27 | % | 0.27 | % | 0.27 | % | 0.27 | % | 0.27 | % | 0.29 | % | ||||||||||||||
Dividends Accrued to APS Shareholders |
$ | 127,665 | $ | 51,813 | $ | 44,571 | $ | 84,946 | $ | 86,286 | $ | 58,080 | $ | 54,721 | ||||||||||||||
Average APS Dividend Rates |
0.26 | % | 0.26 | % | 0.25 | % | 0.25 | % | 0.26 | % | 0.26 | % | 0.26 | % | ||||||||||||||
Dividend Rate Ranges (%) |
0.11 - 0.40 | 0.11 - 0.38 | 0.11 - 0.40 | 0.11 - 0.40 | 0.11 - 0.40 | 0.11 - 0.38 | 0.11 - 0.38 |
Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Trusts APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each Trust as of November 30, 2012.
The Trusts distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
The tax character of distributions declared for the years ended November 30, 2012 and November 30, 2011 was as follows:
Year Ended November 30, 2012 | ||||||||||||||||||||||||||||
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Distributions declared from: |
||||||||||||||||||||||||||||
Tax-exempt income |
$ | 6,213,859 | $ | 2,262,741 | $ | 1,680,836 | $ | 3,783,341 | $ | 5,057,060 | $ | 2,428,655 | $ | 2,302,056 | ||||||||||||||
Ordinary income |
$ | 241 | $ | 1,816 | $ | | $ | 25,152 | $ | 4,207 | $ | 2,953 | $ | 790 |
Year Ended November 30, 2011 | ||||||||||||||||||||||||||||
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Distributions declared from: |
||||||||||||||||||||||||||||
Tax-exempt income |
$ | 6,556,616 | $ | 2,546,610 | $ | 1,829,137 | $ | 4,405,869 | $ | 5,061,545 | $ | 2,516,322 | $ | 2,381,612 | ||||||||||||||
Ordinary income |
$ | 4,124 | $ | 247 | $ | | $ | | $ | 3,109 | $ | 9,343 | $ | 39,672 |
53 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
During the year ended November 30, 2012, the following amounts were reclassified due to expired capital loss carryforwards and differences between book and tax accounting, primarily for accretion of market discount and defaulted bond interest:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Change in: |
||||||||||||||||||||||||||||
Paid-in capital |
$ | (995,999 | ) | $ | | $ | (697,198 | ) | $ | | $ | | $ | (764,353 | ) | $ | (502,868 | ) | ||||||||||
Accumulated net realized loss |
$ | 1,055,823 | $ | 15,633 | $ | 706,638 | $ | (6,512 | ) | $ | (5,066 | ) | $ | 780,140 | $ | 511,447 | ||||||||||||
Accumulated undistributed net investment income |
$ | (59,824 | ) | $ | (15,633 | ) | $ | (9,440 | ) | $ | 6,512 | $ | 5,066 | $ | (15,787 | ) | $ | (8,579 | ) |
These reclassifications had no effect on the net assets or net asset value per share of the Trusts.
As of November 30, 2012, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Undistributed tax-exempt income |
$ | 663,177 | $ | 169,679 | $ | 117,874 | $ | 359,123 | $ | 563,460 | $ | 129,772 | $ | 270,618 | ||||||||||||||
Capital loss carryforward and deferred capital losses |
$ | (17,503,010 | ) | $ | (3,910,327 | ) | $ | (1,819,751 | ) | $ | (10,045,706 | ) | $ | (10,460,043 | ) | $ | (4,054,463 | ) | $ | (4,028,340 | ) | |||||||
Net unrealized appreciation |
$ | 18,979,900 | $ | 8,534,475 | $ | 4,741,341 | $ | 11,786,186 | $ | 15,523,448 | $ | 9,021,383 | $ | 5,842,009 | ||||||||||||||
Other temporary differences |
$ | | $ | (600 | ) | $ | (262 | ) | $ | | $ | (252 | ) | $ | (510 | ) | $ | (634 | ) |
The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, residual interest bonds, futures contracts, accretion of market discount, defaulted bond interest and the timing of recognizing distributions to shareholders.
4 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Trust. The fee is computed at an annual rate of 0.655% (0.670% prior to May 1, 2012) of each Trusts average weekly gross assets and is payable monthly. Pursuant to a fee reduction agreement between each Trust and EVM that commenced on May 1, 2010, the annual adviser fee is reduced by 0.015% every May 1 thereafter for the next nineteen years. The fee reduction cannot be terminated without the consent of the Trustees and shareholders. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Trust, and the amount of any outstanding APS issued by the Trust. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Trusts APS then outstanding and the amount payable by the Trust to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Trust. The administration fee is earned by EVM for administering the business affairs of each Trust and is computed at an annual rate of 0.20% of each Trusts average weekly gross assets. For the year ended November 30, 2012, the investment adviser fees and administration fees were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Investment Adviser Fee |
$ | 1,046,300 | $ | 418,507 | $ | 317,736 | $ | 684,911 | $ | 817,444 | $ | 429,301 | $ | 402,014 | ||||||||||||||
Administration Fee |
$ | 316,531 | $ | 126,605 | $ | 96,117 | $ | 207,186 | $ | 247,295 | $ | 129,871 | $ | 121,608 |
Trustees and officers of the Trusts who are members of EVMs organization receive remuneration for their services to the Trusts out of the investment adviser fee. Trustees of the Trusts who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended November 30, 2012, no significant amounts have been deferred. Certain officers and Trustees of the Trusts are officers of EVM.
54 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
5 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, for the year ended November 30, 2012 were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Purchases |
$ | 31,260,685 | $ | 9,953,807 | $ | 7,931,766 | $ | 17,408,726 | $ | 23,591,092 | $ | 8,763,797 | $ | 8,939,049 | ||||||||||||||
Sales |
$ | 27,897,716 | $ | 7,186,911 | $ | 6,333,098 | $ | 14,578,627 | $ | 21,977,425 | $ | 6,991,448 | $ | 9,368,493 |
6 Common Shares of Beneficial Interest
Common shares issued pursuant to the Trusts dividend reinvestment plan for the years ended November 30, 2012 and November 30, 2011 were as follows:
California Trust |
Massachusetts Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
|||||||||||||||||||
Year Ended November 30, 2012 |
13,698 | 3,879 | 10,907 | 9,350 | 1,890 | 2,720 | ||||||||||||||||||
Year Ended November 30, 2011 |
26,037 | 9,543 | 9,594 | 18,118 | 10,146 | 590 |
7 Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of investments of each Trust at November 30, 2012, as determined on a federal income tax basis, were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Aggregate cost |
$ | 135,972,174 | $ | 54,974,999 | $ | 44,133,701 | $ | 89,084,836 | $ | 101,424,342 | $ | 58,298,171 | $ | 54,550,203 | ||||||||||||||
Gross unrealized appreciation |
$ | 20,063,511 | $ | 8,817,151 | $ | 4,906,423 | $ | 12,669,436 | $ | 16,419,934 | $ | 9,321,050 | $ | 6,740,242 | ||||||||||||||
Gross unrealized depreciation |
(1,083,611 | ) | (282,676 | ) | (165,082 | ) | (883,250 | ) | (896,486 | ) | (299,667 | ) | (898,233 | ) | ||||||||||||||
Net unrealized appreciation |
$ | 18,979,900 | $ | 8,534,475 | $ | 4,741,341 | $ | 11,786,186 | $ | 15,523,448 | $ | 9,021,383 | $ | 5,842,009 |
8 Overdraft Advances
Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Trusts to make properly authorized payments. When such payments result in an overdraft, the Trusts are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to SSBT. SSBT has a lien on a Trusts assets to the extent of any overdraft. At November 30, 2012, California Trust, Massachusetts Trust, New Jersey Trust, New York Trust and Ohio Trust had payments due to SSBT pursuant to the foregoing arrangement of $1,105,024, $263,708, $219,691, $634,282 and $90,746, respectively. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at November 30, 2012. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 10) at November 30, 2012. The Trusts average overdraft advances during the year ended November 30, 2012 were not significant.
9 Financial Instruments
The Trusts may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Trust has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
55 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
A summary of obligations under these financial instruments at November 30, 2012 is as follows:
Futures Contracts | ||||||||||||||||||||
Trust | Expiration Month/Year |
Contracts | Position | Aggregate Cost |
Value | Net Unrealized Depreciation |
||||||||||||||
California | 3/13 | 68 U.S. 10-Year Treasury Note |
Short | $ | (9,047,613 | ) | $ | (9,087,563 | ) | $ | (39,950 | ) | ||||||||
3/13 | 48 U.S. 30-Year Treasury Bond |
Short | (7,199,537 | ) | (7,203,000 | ) | (3,463 | ) | ||||||||||||
Massachusetts | 3/13 | 34 U.S. 30-Year Treasury Bond |
Short | $ | (5,099,672 | ) | $ | (5,102,125 | ) | $ | (2,453 | ) | ||||||||
Michigan | 3/13 | 6 U.S. 30-Year Treasury Bond |
Short | $ | (899,941 | ) | $ | (900,375 | ) | $ | (434 | ) | ||||||||
New Jersey | 3/13 | 145 U.S. 30-Year Treasury Bond |
Short | $ | (21,685,165 | ) | $ | (21,759,063 | ) | $ | (73,898 | ) | ||||||||
New York | 3/13 | 43 U.S. 30-Year Treasury Bond |
Short | $ | (6,449,586 | ) | $ | (6,452,688 | ) | $ | (3,102 | ) | ||||||||
Ohio | 3/13 | 18 U.S. 30-Year Treasury Bond |
Short | $ | (2,699,826 | ) | $ | (2,701,125 | ) | $ | (1,299 | ) | ||||||||
Pennsylvania | 3/13 | 50 U.S. 30-Year Treasury Bond |
Short | $ | (7,477,643 | ) | $ | (7,503,125 | ) | $ | (25,482 | ) |
At November 30, 2012, the Trusts had sufficient cash and/or securities to cover commitments under these contracts.
Each Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trusts hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trusts purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at November 30, 2012 were as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Liability Derivative: |
||||||||||||||||||||||||||||
Futures Contracts |
$ | (43,413 | )(1) | $ | (2,453 | )(1) | $ | (434 | )(1) | $ | (73,898 | )(1) | $ | (3,102 | )(1) | $ | (1,299 | )(1) | $ | (25,482 | )(1) | |||||||
Total |
$ | (43,413 | ) | $ | (2,453 | ) | $ | (434 | ) | $ | (73,898 | ) | $ | (3,102 | ) | $ | (1,299 | ) | $ | (25,482 | ) |
(1) | Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current days variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. |
56 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the year ended November 30, 2012 was as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Realized Gain (Loss) on Derivatives Recognized in Income |
$ | (903,437 | )(1) | $ | (381,782 | )(1) | $ | (102,698 | )(1) | $ | (1,365,995 | )(1) | $ | (482,767 | )(1) | $ | (219,914 | )(1) | $ | (471,033 | )(1) | |||||||
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income |
$ | (120,303 | )(2) | $ | (18,749 | )(2) | $ | (11,388 | )(2) | $ | (250,376 | )(2) | $ | (23,473 | )(2) | $ | (25,239 | )(2) | $ | (86,337 | )(2) |
(1) | Statement of Operations location: Net realized gain (loss) Financial futures contracts. |
(2) | Statement of Operations location: Change in unrealized appreciation (depreciation) Financial futures contracts. |
The average notional amount of futures contracts outstanding during the year ended November 30, 2012, which is indicative of the volume of this derivative type, was approximately as follows:
California Trust |
Massachusetts Trust |
Michigan Trust |
New Jersey Trust |
New York Trust |
Ohio Trust |
Pennsylvania Trust |
||||||||||||||||||||||
Average Notional Amount: |
||||||||||||||||||||||||||||
Futures Contracts |
$ | 11,600,000 | $ | 3,600,000 | $ | 646,000 | $ | 14,500,000 | $ | 4,546,000 | $ | 1,846,000 | $ | 5,000,000 |
10 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| Level 1 quoted prices in active markets for identical investments |
| Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3 significant unobservable inputs (including a funds own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
57 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
At November 30, 2012, the hierarchy of inputs used in valuing the Trusts investments and open derivative instruments, which are carried at value, were as follows:
California Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 169,632,074 | $ | | $ | 169,632,074 | ||||||||
Total Investments |
$ | | $ | 169,632,074 | $ | | $ | 169,632,074 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (43,413 | ) | $ | | $ | | $ | (43,413 | ) | ||||||
Total |
$ | (43,413 | ) | $ | | $ | | $ | (43,413 | ) | ||||||
Massachusetts Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 68,394,474 | $ | | $ | 68,394,474 | ||||||||
Total Investments |
$ | | $ | 68,394,474 | $ | | $ | 68,394,474 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (2,453 | ) | $ | | $ | | $ | (2,453 | ) | ||||||
Total |
$ | (2,453 | ) | $ | | $ | | $ | (2,453 | ) | ||||||
Michigan Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 48,875,042 | $ | | $ | 48,875,042 | ||||||||
Total Investments |
$ | | $ | 48,875,042 | $ | | $ | 48,875,042 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (434 | ) | $ | | $ | | $ | (434 | ) | ||||||
Total |
$ | (434 | ) | $ | | $ | | $ | (434 | ) | ||||||
New Jersey Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 110,326,022 | $ | | $ | 110,326,022 | ||||||||
Total Investments |
$ | | $ | 110,326,022 | $ | | $ | 110,326,022 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (73,898 | ) | $ | | $ | | $ | (73,898 | ) | ||||||
Total |
$ | (73,898 | ) | $ | | $ | | $ | (73,898 | ) | ||||||
58 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Notes to Financial Statements continued
New York Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 135,440,390 | $ | | $ | 135,440,390 | ||||||||
Miscellaneous |
| | 822,400 | 822,400 | ||||||||||||
Total Investments |
$ | | $ | 135,440,390 | $ | 822,400 | $ | 136,262,790 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (3,102 | ) | $ | | $ | | $ | (3,102 | ) | ||||||
Total |
$ | (3,102 | ) | $ | | $ | | $ | (3,102 | ) | ||||||
Ohio Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 67,319,554 | $ | | $ | 67,319,554 | ||||||||
Total Investments |
$ | | $ | 67,319,554 | $ | | $ | 67,319,554 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (1,299 | ) | $ | | $ | | $ | (1,299 | ) | ||||||
Total |
$ | (1,299 | ) | $ | | $ | | $ | (1,299 | ) | ||||||
Pennsylvania Trust |
||||||||||||||||
Asset Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Tax-Exempt Investments |
$ | | $ | 62,042,212 | $ | | $ | 62,042,212 | ||||||||
Total Investments |
$ | | $ | 62,042,212 | $ | | $ | 62,042,212 | ||||||||
Liability Description |
||||||||||||||||
Futures Contracts |
$ | (25,482 | ) | $ | | $ | | $ | (25,482 | ) | ||||||
Total |
$ | (25,482 | ) | $ | | $ | | $ | (25,482 | ) |
California Trust, Massachusetts Trust, Michigan Trust, New Jersey Trust, Ohio Trust and Pennsylvania Trust held no investments or other financial instruments as of November 30, 2011 whose fair value was determined using Level 3 inputs. Level 3 investments held by New York Trust at the beginning and/or end of the period in relation to net assets applicable to common shares were not significant and accordingly, a reconciliation of Level 3 assets for the year ended November 30, 2012 is not presented.
At November 30, 2012, there were no investments transferred between Level 1 and Level 2 during the year then ended.
59 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust:
We have audited the accompanying statements of assets and liabilities of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust (collectively, the Trusts), including the portfolios of investments, as of November 30, 2012, and the related statements of operations for the year then ended, the statement of cash flows of Eaton Vance New York Municipal Income Trust for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of each Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2012, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Eaton Vance California Municipal Income Trust, Eaton Vance Massachusetts Municipal Income Trust, Eaton Vance Michigan Municipal Income Trust, Eaton Vance New Jersey Municipal Income Trust, Eaton Vance New York Municipal Income Trust, Eaton Vance Ohio Municipal Income Trust, and Eaton Vance Pennsylvania Municipal Income Trust as of November 30, 2012, the results of their operations for the year then ended, the cash flows of Eaton Vance New York Municipal Income Trust for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 16, 2013
60 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Federal Tax Information (Unaudited)
The Form 1099-DIV you receive in January 2013 will show the tax status of all distributions paid to your account in calendar year 2012. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Trusts. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding exempt-interest dividends.
Exempt-Interest Dividends. The Trusts designate the following percentages of dividends from net investment income as exempt-interest dividends:
Eaton Vance California Municipal Income Trust |
100.00 | % | ||
Eaton Vance Massachusetts Municipal Income Trust |
99.92 | % | ||
Eaton Vance Michigan Municipal Income Trust |
100.00 | % | ||
Eaton Vance New Jersey Municipal Income Trust |
99.34 | % | ||
Eaton Vance New York Municipal Income Trust |
99.92 | % | ||
Eaton Vance Ohio Municipal Income Trust |
99.88 | % | ||
Eaton Vance Pennsylvania Municipal Income Trust |
99.97 | % |
61 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Dividend Reinvestment Plan
Each Trust offers a dividend reinvestment plan (Plan) pursuant to which shareholders automatically have distributions reinvested in common shares (Shares) of the Trust unless they elect otherwise through their investment dealer. On the distribution payment date, if the NAV per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the NAV per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by American Stock Transfer & Trust Company, the Plan agent (Agent). Distributions subject to income tax (if any) are taxable whether or not Shares are reinvested.
If your Shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that the Trusts transfer agent re-register your Shares in your name or you will not be able to participate.
The Agents service fee for handling distributions will be paid by the Trust. Plan participants will be charged their pro rata share of brokerage commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the Agent at the address noted on the following page. If you withdraw, you will receive Shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Agent to sell part or all of his or her Shares and remit the proceeds, the Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.
If you wish to participate in the Plan and your Shares are held in your own name, you may complete the form on the following page and deliver it to the Agent. Any inquiries regarding the Plan can be directed to the Agent at 1-866-439-6787.
62 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Application for Participation in Dividend Reinvestment Plan
This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.
The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.
Please print exact name on account:
Shareholder signature Date
Shareholder signature Date
Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed to the following address:
Eaton Vance Municipal Income Trusts
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
Number of Employees
Each Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and has no employees.
Number of Shareholders
As of November 30, 2012, Trust records indicate that there are 104, 95, 65, 113, 103, 85 and 106 registered shareholders for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively, and approximately 2,196, 1,181, 1,204, 1,742, 2,192, 1,456 and 1,357 shareholders owning the Trust shares in street name, such as through brokers, banks, and financial intermediaries for California Municipal Income Trust, Massachusetts Municipal Income Trust, Michigan Municipal Income Trust, New Jersey Municipal Income Trust, New York Municipal Income Trust, Ohio Municipal Income Trust and Pennsylvania Municipal Income Trust, respectively.
If you are a street name shareholder and wish to receive Trust reports directly, which contain important information about a Trust, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
NYSE MKT symbols
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Eaton Vance
Municipal Income Trusts
November 30, 2012
Management and Organization
Fund Management. The Trustees of Eaton Vance California Municipal Income Trust (CEV), Eaton Vance Massachusetts Municipal Income Trust (MMV), Eaton Vance Michigan Municipal Income Trust (EMI), Eaton Vance New Jersey Municipal Income Trust (EVJ), Eaton Vance New York Municipal Income Trust (EVY), Eaton Vance Ohio Municipal Income Trust (EVO) and Eaton Vance Pennsylvania Municipal Income Trust (EVP) (collectively, the Trusts) are responsible for the overall management and supervision of the Trusts affairs. The Trustees and officers of the Trusts are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The Noninterested Trustees consist of those Trustees who are not interested persons of the Trusts, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, EVC refers to Eaton Vance Corp., EV refers to Eaton Vance, Inc., EVM refers to Eaton Vance Management, BMR refers to Boston Management and Research and EVD refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 187 portfolios in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee serves for a three year term. Each officer serves until his or her successor is elected.
Name and Year of Birth | Position(s) with the Trusts |
Term of Office; Length of |
Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Interested Trustee | ||||||
Thomas E. Faust Jr. 1958 |
Class II Trustee |
Until 2013. 3 years. Trustee since 2007. |
Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 187 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trusts. Directorships in the Last Five Years.(1) Director of EVC and Hexavest Inc. | |||
Noninterested Trustees | ||||||
Scott E. Eston 1956 |
Class II Trustee |
Until 2013. 2 years. Trustee since 2011. |
Private investor. Formerly held various positions at Grantham, Mayo, Van Otterloo and Co., L.L.C. (investment management firm) (1997-2009), including Chief Operating Officer (2002-2009), Chief Financial Officer (1997-2009) and Chairman of the Executive Committee (2002-2008); President and Principal Executive Officer, GMO Trust (open-end registered investment company) (2006-2009). Former Partner, Coopers and Lybrand L.L.P. (now PricewaterhouseCoopers) (public accounting firm) (1987-1997). Directorships in the Last Five Years. None. | |||
Benjamin C. Esty(A) 1963 |
Class I Trustee |
Until 2015. 3 years. Trustee since 2006. |
Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration. Directorships in the Last Five Years.(1) None. | |||
Allen R. Freedman 1940 |
Class II Trustee |
Until 2013. 3 years. Trustee since 2007. |
Private Investor. Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Former Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007). Former Chief Executive Officer of Assurant, Inc. (insurance provider) (1979-2000). Directorships in the Last Five Years.(1) Director of Stonemor Partners, L.P. (owner and operator of cemeteries). Formerly, Director of Assurant, Inc. (insurance provider) (1979-2011). | |||
William H. Park 1947 |
Class III Trustee |
Until 2014. 3 years. Trustee since 2003. |
Consultant and private investor. Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm) (1972-1981). Directorships in the Last Five Years.(1) None. |
64 |
Eaton Vance
Municipal Income Trusts
November 30, 2012
Management and Organization continued
Name and Year of Birth | Position(s) with the Trusts |
Term of Office; Length of |
Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience | |||
Noninterested Trustees (continued) | ||||||
Ronald A. Pearlman 1940 |
Class I Trustee |
Until 2015. 3 years. Trustee since 2003. |
Professor of Law, Georgetown University Law Center. Formerly, Deputy Assistant Secretary (Tax Policy) and Assistant Secretary (Tax Policy), U.S. Department of the Treasury (1983-1985). Formerly, Chief of Staff, Joint Committee on Taxation, U.S. Congress (1988-1990). Directorships in the Last Five Years.(1) None. | |||
Helen Frame Peters 1948 |
Class III Trustee |
Until 2014. 3 years. Trustee since 2008. |
Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998). Directorships in the Last Five Years.(1) Formerly, Director of BJs Wholesale Club, Inc. (wholesale club retailer) (2004-2011). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009). | |||
Lynn A. Stout 1957 |
Class I Trustee |
Until 2015. 3 years. Trustee since 1998. |
Distinguished Professor of Corporate and Business Law, Jack G. Clarke Business Law Institute, Cornell University Law School. Formerly, the Paul Hastings Professor of Corporate and Securities Law (2006-2012) and Professor of Law (2001-2006), University of California at Los Angeles School of Law. Directorships in the Last Five Years.(1) None. | |||
Harriett Tee Taggart 1948 |
Class III Trustee |
Until 2014. 3 years. Trustee since 2011. |
Managing Director, Taggart Associates (a professional practice firm). Formerly, Partner and Senior Vice President, Wellington Management Company, LLP (investment management firm) (1983-2006). Directorships in the Last Five Years. Director of Albemarle Corporation (chemicals manufacturer) (since 2007) and The Hanover Group (specialty property and casualty insurance company) (since 2009). Formerly, Director of Lubrizol Corporation (specialty chemicals) (2007-2011). | |||
Ralph F. Verni(A) 1943 |
Chairman of the Board and Class II Trustee |
Until 2013. 3 years. Chairman of the Board since 2007 and Trustee since 2005. |
Consultant and private investor. Formerly, Chief Investment Officer (1982-1992), Chief Financial Officer (1988-1990) and Director (1982-1992), New England Life. Formerly, Chairperson, New England Mutual Funds (1982-1992). Formerly, President and Chief Executive Officer, State Street Management & Research (1992-2000). Formerly, Chairperson, State Street Research Mutual Funds (1992-2000). Formerly, Director, W.P. Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. (2002-2006). Directorships in the Last Five Years.(1) None. | |||
Principal Officers who are not Trustees | ||||||
Name and Year of Birth | Position(s) Trusts |
Length of Service |
Principal Occupation(s) During Past Five Years | |||
Cynthia J. Clemson 1963 |
President of CEV, EMI, EVY, EVO and EVP | Since 2005 | Vice President of EVM and BMR. | |||
Thomas M. Metzold 1958 |
President of MMV and EVJ | Since 2010 | Vice President of EVM and BMR. | |||
Payson F. Swaffield 1956 |
Vice President | Since 2011 | Vice President and Chief Income Investment Officer of EVM and BMR. | |||
Barbara E. Campbell 1957 |
Treasurer | Since 2005 | Vice President of EVM and BMR. |
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Eaton Vance
Municipal Income Trusts
November 30, 2012
Management and Organization continued
Name and Year of Birth | Position(s) Trusts |
Length of Service |
Principal Occupation(s) During Past Five Years | |||
Principal Officers who are not Trustees (continued) | ||||||
Maureen A. Gemma 1960 |
Vice President, Secretary and Chief Legal Officer | Vice President since 2011, Secretary since 2007 and Chief Legal Officer since 2008 | Vice President of EVM and BMR. | |||
Paul M. ONeil 1953 |
Chief Compliance Officer | Since 2004 | Vice President of EVM and BMR. |
(1) | During their respective tenures, the Trustees (except Mr. Eston and Ms. Taggart) also served as trustees of one or more of the following Eaton Vance funds (which operated in the years noted): Eaton Vance Credit Opportunities Fund (launched in 2005 and terminated in 2010); Eaton Vance Insured Florida Plus Municipal Bond Fund (launched in 2002 and terminated in 2009); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009). |
(A) | APS Trustee. |
66 |
Eaton Vance Funds
IMPORTANT NOTICES
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy Policy) with respect to nonpublic personal information about its customers:
| Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. |
| None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customers account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers. |
| Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. |
| We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. |
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Managements Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customers account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisors privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vances Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called householding and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SECs website at www.sec.gov. Form N-Q may also be reviewed and copied at the SECs public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds and Portfolios Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SECs website at www.sec.gov.
Additional Notice to Shareholders. A Fund also may purchase shares of its common stock in the open market when they trade at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that a Fund will take such action or that such purchases would reduce the discount. If applicable, a Fund may also redeem or purchase its outstanding auction preferred shares (APS) in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary.
Closed-End Fund Information. The Eaton Vance closed-end funds make certain fund performance data and information about portfolio characteristics (such as top holdings and asset allocation) available on the Eaton Vance website after the end of each month. Certain fund performance data for the funds, including total returns, are posted to the website shortly after the end of each month. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under Individual Investors Closed-End Funds.
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147-1/13 | CE-MUNISRC7 |
Item 2. Code of Ethics
Not required in this filing.
Item 3. Audit Committee Financial Expert
The registrants Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a consultant and private investor. Previously, he served as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), 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
The following table presents the aggregate fees billed to the registrant for the registrants fiscal years ended November 30, 2011 and November 30, 2012 by the Funds principal accountant, Deloitte & Touche LLP (D&T), for professional services rendered for the audit of the registrants annual financial statements and fees billed for other services rendered by D&T during such periods.
Fiscal Years Ended |
11/30/11 | 11/30/12 | ||||||
Audit Fees |
$ | 25,055 | $ | 26,730 | ||||
Audit-Related Fees(1) |
$ | 3,915 | $ | 3,915 | ||||
Tax Fees(2) |
$ | 8,200 | $ | 8,710 | ||||
All Other Fees(3) |
$ | 300 | $ | 0 | ||||
|
|
|
|
|||||
Total |
$ | 37,470 | $ | 39,355 | ||||
|
|
|
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(1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrants auction preferred shares. |
(2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. |
(e)(1) The registrants audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrants principal accountant (the Pre-Approval Policies). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrants audit committee at least annually. The registrants audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrants principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrants audit committee pursuant to the de minimis exception set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by D&T for the registrants fiscal years ended November 30, 2011 and November 30, 2012; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.
Fiscal Years Ended |
11/30/11 | 11/30/12 | ||||||
Registrant |
$ | 12,415 | $ | 12,625 | ||||
Eaton Vance(1) |
$ | 287,931 | $ | 662,119 |
(1) | Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrants investment adviser and administrator. |
(h) The registrants audit committee has considered whether the provision by the registrants principal accountant of non-audit services to the registrants investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountants independence.
Item 5. Audit Committee of Listed Registrants
The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park (Chair), Scott E. Eston, Helen Frame Peters, Lynn A. Stout and Ralph F. Verni are the members of the registrants audit committee.
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 Funds investment adviser and adopted the investment advisers proxy voting policies and procedures (the Policies) which are described below. The Trustees will review the Funds 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 Funds 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 Boards Special Committee except as contemplated under the Fund Policy. The Boards Special Committee will instruct the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a companys 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 them 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 Funds 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 advisers 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 personnel 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 Commissions website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Cynthia J. Clemson, portfolio manager of Eaton Vance California Municipal Income Trust, William H. Ahern, Jr., portfolio manager of Eaton Vance Michigan Municipal Income Trust and Eaton Vance Ohio Municipal Income Trust, Craig R. Brandon, portfolio manager of Eaton Vance Massachusetts Municipal Income Trust and Eaton Vance New York Municipal Income Trust and Adam A. Weigold, portfolio manager of Eaton Vance New Jersey Municipal Income Trust and Eaton Vance Pennsylvania Municipal Income Trust are responsible for the overall and day-to-day management of each Funds investments.
Ms. Clemson has been an Eaton Vance portfolio manager since 1991 and is a co-Director of Municipal Investments and Vice President of Eaton Vance Management (EVM) and Boston Management and Research (BMR), an Eaton Vance subsidiary. Mr. Ahern has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr. Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a Vice President of EVM and BMR. Mr. Weigold has been a credit analyst with Eaton Vance since 1991 and a portfolio manager since 2007, and is a Vice President of EVM and BMR. This information is provided as of the date of filing of this report.
The following table shows, as of each Funds most recent fiscal year end, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.
Number of All Accounts |
Total Assets of All Accounts |
Number of Accounts Paying a Performance Fee |
Total Assets of Accounts Paying a Performance Fee |
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Cynthia J. Clemson |
||||||||||||||||
Registered Investment Companies |
10 | $ | 2,493.5 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
William H. Ahern, Jr. |
||||||||||||||||
Registered Investment Companies |
13 | $ | 2,587.5 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
1 | $ | 23.4 | 0 | $ | 0 | ||||||||||
Craig R. Brandon |
||||||||||||||||
Registered Investment Companies |
13 | $ | 1,498.8 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Adam A. Weigold |
||||||||||||||||
Registered Investment Companies |
13 | $ | 1,117.9 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
1 | $ | 23.4 | 0 | $ | 0 |
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Funds most recent fiscal year end.
Portfolio Manager and Fund Name |
Dollar Range of Equity Securities Owned in the Fund | |
Cynthia J. Clemson |
||
California Municipal Income Trust |
None | |
William H. Ahern, Jr. |
||
Michigan Municipal Income Trust |
None | |
Ohio Municipal Income Trust |
None | |
Craig R. Brandon |
||
Massachusetts Municipal Income Trust |
None | |
New York Municipal Income Trust |
None | |
Adam A. Weigold |
||
New Jersey Municipal Income Trust |
None | |
Pennsylvania Municipal Income Trust |
None |
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio managers management of the Funds investments on the one hand and investments of other accounts for which a portfolio manager is responsible on the other. For example, a portfolio manager may have conflicts of interest in allocating management time, resources and investment opportunities among the Fund and other accounts he or she advises. In addition, due to differences in the investment strategies or restrictions between the Fund and the other accounts, a portfolio manager may take action with respect to another account that differs from the action taken with respect to the Fund. In some cases, another account managed by a portfolio manager may compensate the investment adviser based on the performance of the securities held by that account. The existence of such a performance based fee may create additional conflicts of interest for a portfolio manager in the allocation of management time, resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to all interested persons. EVM has adopted several policies and procedures designed to address these potential conflicts including a code of ethics and policies which govern the investment advisers trading practices, including among other things the aggregation and allocation of trades among clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVMs portfolio managers and other investment professionals has three primary components: (1) a base salary, (2) an annual cash bonus, and (3) annual stock-based compensation consisting of options to purchase shares of EVCs nonvoting common stock and/or restricted shares of EVCs nonvoting common stock. EVMs investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVMs employees. Compensation of EVMs investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based compensation awards, and adjustments in base salary are typically paid or put into effect at or shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the scale and complexity of their portfolio responsibilities and the total return performance of managed funds and accounts versus the benchmark(s) stated in the prospectus, as well as an appropriate peer group (as described below). In addition to rankings within peer groups of funds on the basis of absolute performance, consideration may also be given to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not limited to, the Sharpe Ratio. Performance is normally based on periods ending on the September 30th preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of funds as determined by Lipper Inc. and/or Morningstar, Inc. When a funds peer group as determined by Lipper or Morningstar is deemed by EVMs management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the funds success in achieving its objective. For managers responsible for multiple funds and accounts, investment performance is evaluated on an aggregate basis, based on averages or weighted averages among managed funds and accounts. Funds and accounts that have performance-based advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager performance.
The compensation of portfolio managers with other job responsibilities (such as heading an investment group or providing analytical support to other portfolios) will include consideration of the scope of such responsibilities and the managers performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and performance, and competitive with other firms within the investment management industry. EVM participates in investment-industry compensation surveys and utilizes survey data as a factor in determining salary, bonus and stock-based compensation levels for portfolio managers and other investment professionals. Salaries, bonuses and stock-based compensation are also influenced by the operating performance of EVM and its parent company. The overall annual cash bonus pool is based on a substantially fixed percentage of pre-bonus operating income. While the salaries of EVMs portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate significantly from year to year, based on changes in manager performance and other factors as described herein. For a high performing portfolio manager, cash bonuses and stock-based compensation may represent a substantial portion of total compensation.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
No such purchases this period.
Item 10. Submission of Matters to a Vote of Security Holders
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits
(a)(1) | Registrants Code of Ethics Not applicable (please see Item 2). | |
(a)(2)(i) | Treasurers Section 302 certification. | |
(a)(2)(ii) | Presidents Section 302 certification. | |
(b) | Combined Section 906 certification. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Pennsylvania Municipal Income Trust
By: |
/s/ Cynthia J. Clemson | |
Cynthia J. Clemson | ||
President | ||
Date: |
January 8, 2013 |
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: |
January 8, 2013 |
By: |
/s/ Cynthia J. Clemson | |
Cynthia J. Clemson | ||
President | ||
Date: |
January 8, 2013 |