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:
811-21226
Eaton Vance Ohio Municipal Bond Fund
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(Registrants Telephone Number)
September 30
Date of Fiscal Year End
September 30, 2010
Date of Reporting Period
Item 1. Reports to Stockholders
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:
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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.
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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.
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Policies and procedures (including physical, electronic and
procedural safeguards) are in place that are designed to protect
the confidentiality of such information.
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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.
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Our pledge of privacy applies to the following entities within
the Eaton Vance organization: the Eaton Vance Family of Funds,
Eaton Vance Management, Eaton Vance Investment Counsel, Boston
Management and Research, and Eaton Vance Distributors, Inc. 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 adviser/broker-dealer, it is likely
that only such advisers 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 (the SEC) permits funds to
deliver only one copy of shareholder documents, including
prospectuses, proxy statements and shareholder reports, to fund
investors with multiple accounts at the same residential or post
office box address. This practice is often called
householding and it helps eliminate duplicate
mailings to shareholders.
Eaton Vance, or your financial adviser, may household the
mailing of your documents indefinitely unless you instruct Eaton
Vance, or your financial adviser, otherwise.
If you would
prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at
1-800-262-1122,
or contact your financial adviser. Your instructions that
householding not apply to delivery of your Eaton Vance documents
will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
Portfolio Holdings.
Each Eaton Vance Fund and its
underlying Portfolio(s) (if applicable) will file a schedule of
portfolio holdings on
Form N-Q
with the SEC for the first and third quarters of each fiscal
year. The
Form N-Q
will be available on the Eaton Vance website at
www.eatonvance.com, by calling Eaton Vance at
1-800-262-1122
or in the EDGAR database on the 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.
This description is also available on the SECs website at
www.sec.gov.
Additional Notice to Shareholders.
A Fund may 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. 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 a 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.
Eaton Vance Municipal Bond Funds
as of September 30, 2010
TABLE OF CONTENTS
1
Eaton Vance Municipal Bond Funds
as of September 30, 2010
MANAGEMENTS DISCUSSION OF FUND PERFORMANCE
Eaton Vance Municipal Bond Funds (the Funds) are closed-end funds traded on the NYSE Amex, which
are designed to provide current income exempt from regular federal income tax, federal alternative
minimum tax and, in state specific funds, state personal income taxes. On January 29, 2010,
shareholders of the Funds approved a modification to each Funds 80 percent policy to eliminate the
requirement to invest primarily in insured municipal obligations and to eliminate Insured from
each Funds name. Under normal market conditions, the Funds are now required to invest at least 80
percent of net assets in municipal obligations rated A or better by Moodys Investors Service,
Inc., Standard & Poors Ratings Group or Fitch Ratings.
Economic and Market Conditions
The U.S. economy remained generally stable, if still weak, during the year ending September 30,
2010, even as concerns about high unemployment and budget deficits provoked ongoing skittishness in
the capital markets. The U.S. economy grew at an annualized rate of 3.7% in the first quarter of
2010, but slowed to 1.7% in the second quarter, according to the U.S. Department of Commerce.
Advance estimates for the third quarter indicated an annualized increase in GDP of 2%.
Municipal bond performance was positive for the fiscal year, in spite of ongoing negative media
attention on the tax-exempt sector. Solid performance resulted in part from continued investor
concern about the strength (or weakness) of the economic recovery, and investments such as
higher-quality municipals and Treasuries benefited. Toward the end of the period, the market was
bolstered by very light issuance and sustained demand, as well as a flight to quality during July
and August. September 2010 brought a change in sentiment, and investors took on more risk, helping
higher-yielding, lower-rated sectors of the market.
Against this backdrop the Barclays Capital
Municipal Bond Index (the Index)
1
an unmanaged index of municipal bonds traded in the
U.S. posted a return of 5.81% for the fiscal year ending September 30, 2010. The Barclays Capital
Long Municipal Bond Index (the Long 22+ Index) an unmanaged index of municipal bonds traded in
the U.S. with maturities of 22 years or more gained 6.56% for the fiscal year ending
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.
September 30, 2010. Munis with longer maturities performed best during the year.
Intermediate-maturity bonds, represented by the 7-year segment of the Index, also performed well,
gaining 6.48%. Shorter-maturity bonds in the 5-year segment of the Index returned 5.63%.
Management Discussion
In this generally positive environment, Eaton Vance Municipal Bond Fund II underperformed the Long
22+ Index at net asset value (NAV) for the year ending September 30, 2010. Managements research
and selection of bonds across the sector and credit spectrum helped performance relative to the
Long 22+ Index. In particular, an overweighting in high-coupon bonds and AAA-rated bonds made
significant contributions to relative performance, as did the Funds duration profile. In contrast,
the Funds stake in insured bonds detracted, and a modest hedging position using Treasury futures
and interest rate swapsan ongoing strategy that management has employed that is designed to help
mitigate interest-rate riskalso caused some underperformance for the year. Finally, underweighting
5%-6% coupon bonds and BBB-rated bonds negatively impacted returns.
Five of the state-specific Funds underperformed the Index at NAV. (The exceptions were Eaton Vance
Massachusetts Municipal Bond Fund and Eaton Vance Ohio Municipal Bond Fund.) In general, positive
contributors to the state-specific Funds included: duration profile versus the Index,
overweightings in AAA-rated and high-coupon bonds, and sector selection. Overweighted positions in
insured bonds and 5%-6% coupon bonds were negative factors. Overall, the Funds modest hedging
using Treasury futures and/ or interest rate swapsan ongoing strategy that management has employed
for many years and is designed to help mitigate interest-rate riskdetracted from their relative
returns.
Management employed leverage in several of the Funds, through which additional exposure to the
municipal market was achieved. Leverage has the
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1
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It is not possible to invest directly in an Index. The Indices total returns do not
reflect expenses that would have been incurred if an investor individually purchased or sold
the securities represented in the Indices.
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Past performance is no guarantee of future results.
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The views expressed throughout this report are those of the portfolio managers and are current only
through the end of the period of the report as stated on the cover. These views are subject to
change at any time based upon market or other conditions, and the investment adviser disclaims any
responsibility to update such views. These views may not be relied on as investment advice and,
because investment decisions for a fund are based on many factors, may not be relied on as an
indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in
the report may not be representative of the Funds current or future investments and may change due
to active management.
2
Eaton Vance Municipal Bond Funds
as of September 30, 2010
MANAGEMENTS DISCUSSION OF FUND PERFORMANCE
impact of magnifying a Funds exposure to its underlying investments in both up and down markets.
During the period, the Funds leverage generally helped their relative performance.
As we move ahead, we continue to focus on state and local government budget deficits, which likely
peaked in 2010 or are expected to peak in early 2011. The decline in tax revenues appears to be
reaching a bottom, with some municipalities realizing growth in tax receipts due to a combination
of slim economic growth and an increase in actual tax rates. However, spending continues to grow
faster than tax receipts despite deep spending cuts enacted by some government officials. We will
continue to analyze any new developments and solutions that government leaders formulate to address
their fiscal problems.
As of February 19, 2010, Craig R. Brandon became the portfolio manager of Eaton Vance Massachusetts
Municipal Bond Fund and Adam A. Weigold became the portfolio manager of Eaton Vance New Jersey
Municipal Bond Fund. Mr. Brandon is a Vice President of Eaton Vance and manages other Eaton Vance
municipal portfolios. He has been employed by Eaton Vance since 1998. Mr. Weigold is a Vice
President of Eaton Vance and manages other Eaton Vance municipal portfolios. He has been employed
by Eaton Vance since 1998.
A Note Regarding The Use Of Leverage
The Funds employ leverage through the issuance of Auction Preferred Shares (APS) and for certain
Funds, the use of residual interest bond (RIB) financing.
1
Each Funds APS and RIB
leverage percentage as of September 30, 2010, as applicable, is reflected on the Fund-specific
pages following this letter. The leverage created by APS and RIB investments provides an
opportunity for increased income but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of the common shares).
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1
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See Note 1H to the Financial Statements for more information on RIB investments.
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3
Eaton Vance Municipal Bond Fund II
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
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Performance
1
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NYSE Amex Symbol
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EIV
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Average Annual Total Returns (by market price)
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One Year
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12.78
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%
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Five Years
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3.82
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Life of Fund (11/29/02)
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6.62
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Average Annual Total Returns (by net asset value)
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One Year
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6.26
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%
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Five Years
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2.95
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Life of Fund (11/29/02)
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5.32
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Premium/(Discount) to NAV
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10.14
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%
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Market Yields
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Market Yield
2
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6.76
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%
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Taxable-Equivalent Market Yield
3
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10.40
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Index Performance
4
(Average Annual Total Returns)
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Barclays Capital Long (22+)
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Municipal Bond Index
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One Year
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6.56
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%
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Five Years
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4.50
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Life of Fund (11/30/02)
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5.55
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Lipper Averages
5
(Average Annual Total Returns)
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Lipper General Municipal Debt Funds (Leveraged) Classification (by net asset value)
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One Year
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9.50
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%
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Five Years
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4.72
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Life of Fund (11/30/02)
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6.02
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Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*
6
By total investments
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*
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The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
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AAA
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37.0
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BBB
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7.1
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AA
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35.0
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%
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CCC
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0.4
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%
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A
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19.5
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%
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C
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1.0
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%
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Fund Statistics
7
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Number of Issues:
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109
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Average Maturity:
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26.3 years
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Average Effective Maturity:
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14.0 years
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Average Call Protection:
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9.4 years
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Average Dollar Price:
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$103.15
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APS Leverage
**
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19.8%
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RIB Leverage
**
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24.1%
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**
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APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect adjustments for
executed but unsettled RIB transactions.
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1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate
would result in a lower tax-equivalent figure.
4
It is not possible to invest directly
in an Index. The Indexs total return does not reflect the expenses that would have been incurred
if an investor individually purchased or sold the securities represented in the Index. Index
performance is available as of month end only.
5
The Lipper Averages are the average
annual total returns, at net asset value, of the funds that are in the same Lipper Classification
as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may
include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper General
Municipal Debt Funds (Leveraged) Classification (closed-end) contained 63, 59 and 56 funds for the
1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month
end only.
6
Rating Distribution is determined by dividing the total market value of the
issues by the total investments of the Fund. Ratings are based on Moodys, S&P or Fitch, as
applicable. Credit ratings are based largely on the rating agencys investment analysis at the time
of rating and the rating assigned to any particular security is not necessarily a reflection of the
issuers current financial condition. The rating assigned to a security by a rating agency does not
necessarily reflect its assessment of the volatility of a securitys market value or of the
liquidity of an investment in the security. If securities are rated differently by the rating
agencies, the higher rating is applied.
7
Fund holdings information excludes securities
held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements.
4
Eaton Vance California Municipal Bond Fund II
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
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Performance
1
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NYSE Amex Symbol
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EIA
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Average Annual Total Returns (by market price)
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One Year
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13.86
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%
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Five Years
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4.07
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Life of Fund (11/29/02)
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5.37
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Average Annual Total Returns (by net asset value)
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One Year
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3.93
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%
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Five Years
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2.84
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Life of Fund (11/29/02)
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4.61
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Premium/(Discount) to NAV
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5.83
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%
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Market Yields
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Market Yield
2
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6.50
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%
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Taxable-Equivalent Market Yield
3
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11.18
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Index Performance
4
(Average Annual Total Returns)
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Barclays Capital
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Barclays Capital Long (22+)
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Municipal Bond Index
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Municipal Bond Index
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One Year
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5.81
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%
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6.56
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%
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Five Years
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5.13
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4.50
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Life of Fund (11/30/02)
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5.16
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5.55
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Lipper Averages
5
(Average Annual Total Returns)
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Lipper California Municipal Debt Funds Classification (by net asset value)
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One Year
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7.95
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%
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Five Years
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3.87
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Life of Fund (11/30/02)
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5.33
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Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: Cynthia J. Clemson
Rating Distribution*
6
By total investments
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*
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The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
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AAA
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36.8
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%
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BB
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1.7
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%
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AA
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39.4
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%
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Not Rated
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1.3
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%
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A
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20.8
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%
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Fund Statistics
7
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Number of Issues:
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66
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Average Maturity:
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22.9 years
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Average Effective Maturity:
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12.5 years
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Average Call Protection:
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7.5 years
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Average Dollar Price:
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$91.28
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APS Leverage
**
:
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31.0%
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RIB Leverage
**
:
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10.5%
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**
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APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect adjustments for
executed but unsettled RIB transactions.
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1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 41.86% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper California Municipal Debt Funds Classification
(closed-end) contained 24, 23 and 23 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
5
Eaton Vance Massachusetts Municipal Bond Fund
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
MAB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
5.44
|
%
|
|
|
|
|
Five Years
|
|
|
2.61
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
6.43
|
%
|
|
|
|
|
Five Years
|
|
|
4.87
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
3.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
5.54
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
9.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper Other States Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
7.85
|
%
|
Five Years
|
|
|
4.93
|
|
Life of Fund (11/30/02)
|
|
|
5.94
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution*
6
By total investments
|
|
*
|
The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
|
|
22.4
|
%
|
|
BBB
|
|
|
1.8
|
%
|
AA
|
|
|
36.4
|
%
|
|
Not Rated
|
|
|
6.1
|
%
|
A
|
|
|
33.3
|
%
|
|
|
|
|
|
|
Fund Statistics
7
|
|
|
Number of Issues:
|
|
47
|
|
Average Maturity:
|
|
24.5 years
|
|
Average Effective Maturity:
|
|
12.2 years
|
|
Average Call Protection:
|
|
11.8 years
|
|
Average Dollar Price:
|
|
$108.86
|
|
APS Leverage
**
:
|
|
31.7%
|
|
RIB Leverage
**
:
|
|
7.8%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification
(closed-end) contained 46, 46 and 45 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
6
Eaton Vance Michigan Municipal Bond Fund
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
MIW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
10.60
|
%
|
|
|
|
|
Five Years
|
|
|
3.34
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
5.16
|
%
|
|
|
|
|
Five Years
|
|
|
5.11
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
-0.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
6.09
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
9.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper Michigan Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
6.70
|
%
|
Five Years
|
|
|
4.57
|
|
Life of Fund (11/30/02)
|
|
|
5.74
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*
6
By total investments
|
|
|
*
|
|
There were no special purpose vehicles in which the Fund held a residual interest as
of 9/30/10.
|
Fund Statistics
|
|
|
Number of Issues:
|
|
40
|
|
Average Maturity:
|
|
19.7 years
|
|
Average Effective Maturity:
|
|
8.1 years
|
|
Average Call Protection:
|
|
6.1 years
|
|
Average Dollar Price:
|
|
$94.48
|
|
APS Leverage
**
:
|
|
37.7%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding, which is a form of investment leverage. Use of leverage creates an
opportunity for increased income but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of common shares).
2
The Funds market yield is calculated by dividing the last regular dividend per common
share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification
(closed-end) contained 5, 5 and 5 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Eaton Vance New Jersey Municipal Bond Fund
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
EMJ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
11.12
|
%
|
|
|
|
|
Five Years
|
|
|
5.20
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
7.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
5.10
|
%
|
|
|
|
|
Five Years
|
|
|
5.20
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
6.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
5.99
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
10.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper New Jersey Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
8.09
|
%
|
Five Years
|
|
|
4.94
|
|
Life of Fund (11/30/02)
|
|
|
6.25
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: Adam A. Weigold, CFA
Rating Distribution*
6
By total investments
|
|
*
|
The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
|
|
28.9
|
%
|
|
A
|
|
|
20.7
|
%
|
AA
|
|
|
47.0
|
%
|
|
BBB
|
|
|
3.4
|
%
|
Fund Statistics
7
|
|
|
Number of Issues:
|
|
63
|
|
Average Maturity:
|
|
21.8 years
|
|
Average Effective Maturity:
|
|
11.6 years
|
|
Average Call Protection:
|
|
10.5 years
|
|
Average Dollar Price:
|
|
$93.11
|
|
APS Leverage
**
:
|
|
31.0%
|
|
RIB Leverage
**
:
|
|
10.0%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification
(closed-end) contained 12, 11 and 11 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
8
Eaton Vance New York Municipal Bond Fund II
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
NYH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
9.99
|
%
|
|
|
|
|
Five Years
|
|
|
5.80
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
5.20
|
%
|
|
|
|
|
Five Years
|
|
|
3.86
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
5.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
4.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
6.30
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
10.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper New York Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
8.47
|
%
|
Five Years
|
|
|
4.15
|
|
Life of Fund (11/30/02)
|
|
|
5.57
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution*
6
By total investments
|
|
*
|
The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
|
|
25.1
|
%
|
|
BBB
|
|
|
5.2
|
%
|
AA
|
|
|
43.7
|
%
|
|
Not Rated
|
|
|
1.1
|
%
|
A
|
|
|
24.9
|
%
|
|
|
|
|
|
|
Fund Statistics
7
|
|
|
Number of Issues:
|
|
74
|
|
Average Maturity:
|
|
22.9 years
|
|
Average Effective Maturity:
|
|
11.5 years
|
|
Average Call Protection:
|
|
8.5 years
|
|
Average Dollar Price:
|
|
$101.20
|
|
APS Leverage
**
:
|
|
22.5%
|
|
RIB Leverage
**
:
|
|
19.2%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper New York Municipal Debt Funds Classification
(closed-end) contained 20, 19 and 19 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
9
Eaton Vance Ohio Municipal Bond Fund
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
EIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
13.01
|
%
|
|
|
|
|
Five Years
|
|
|
4.88
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
5.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
6.04
|
%
|
|
|
|
|
Five Years
|
|
|
2.68
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
4.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
8.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
5.48
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
8.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper Other States Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
7.85
|
%
|
Five Years
|
|
|
4.93
|
|
Life of Fund (11/30/02)
|
|
|
5.94
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: William H. Ahern, Jr., CFA
Rating Distribution*
6
By total investments
|
|
*
|
The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
|
|
31.1
|
%
|
|
BBB
|
|
|
3.3
|
%
|
AA
|
|
|
24.5
|
%
|
|
Not Rated
|
|
|
6.5
|
%
|
A
|
|
|
34.6
|
%
|
|
|
|
|
|
|
Fund Statistics
7
|
|
|
Number of Issues:
|
|
55
|
|
Average Maturity:
|
|
21.4 years
|
|
Average Effective Maturity:
|
|
11.2 years
|
|
Average Call Protection:
|
|
8.9 years
|
|
Average Dollar Price:
|
|
$93.17
|
|
APS Leverage
**
:
|
|
32.7%
|
|
RIB Leverage
**
:
|
|
4.5%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect the effect of
RIBs purchased in secondary market transactions.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 39.06% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification
(closed-end) contained 46, 46 and 45 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
10
Eaton Vance Pennsylvania Municipal Bond Fund
as of September 30, 2010
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
|
|
|
|
|
|
|
|
|
Performance
1
|
|
|
|
|
|
|
|
NYSE Amex Symbol
|
|
|
EIP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by market price)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
3.82
|
%
|
|
|
|
|
Five Years
|
|
|
4.77
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
6.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (by net asset value)
|
|
|
|
|
|
|
|
|
|
|
One Year
|
|
|
4.53
|
%
|
|
|
|
|
Five Years
|
|
|
4.72
|
|
|
|
|
|
Life of Fund (11/29/02)
|
|
|
5.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium/(Discount) to NAV
|
|
|
4.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Yields
|
|
|
|
|
|
|
|
|
|
|
Market Yield
2
|
|
|
5.92
|
%
|
|
|
|
|
Taxable-Equivalent Market Yield
3
|
|
|
9.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index Performance
4
(Average Annual Total Returns)
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Capital
|
|
Barclays Capital Long (22+)
|
|
|
Municipal Bond Index
|
|
Municipal Bond Index
|
|
One Year
|
|
|
5.81
|
%
|
|
|
6.56
|
%
|
Five Years
|
|
|
5.13
|
|
|
|
4.50
|
|
Life of Fund (11/30/02)
|
|
|
5.16
|
|
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
Lipper Averages
5
(Average Annual Total Returns)
|
|
Lipper Pennsylvania Municipal Debt Funds Classification (by net asset value)
|
|
One Year
|
|
|
8.22
|
%
|
Five Years
|
|
|
4.67
|
|
Life of Fund (11/30/02)
|
|
|
5.76
|
|
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
sold, may be worth more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Funds current 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.
Portfolio Manager: Adam A. Weigold, CFA
Rating Distribution*
6
By total investments
|
|
*
|
The rating distribution presented above includes the ratings of securities held by
special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the
Funds financial statements. Absent such securities, the Funds rating distribution as of
9/30/10 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
|
|
24.2
|
%
|
|
BBB
|
|
|
5.7
|
%
|
AA
|
|
|
28.4
|
%
|
|
Not Rated
|
|
|
8.5
|
%
|
A
|
|
|
33.2
|
%
|
|
|
|
|
|
|
Fund Statistics
7
|
|
|
Number of Issues:
|
|
70
|
|
Average Maturity:
|
|
22.5 years
|
|
Average Effective Maturity:
|
|
10.6 years
|
|
Average Call Protection:
|
|
9.0 years
|
|
Average Dollar Price:
|
|
$97.41
|
|
APS Leverage
**
:
|
|
32.8%
|
|
RIB Leverage
**
:
|
|
6.6%
|
|
|
**
|
APS leverage represents the liquidation value of the Funds Auction Preferred Shares
(APS) outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common
shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes
outstanding as of 9/30/10 as a percentage of the Funds net assets applicable to common shares
plus APS and Floating Rate Notes.
|
1
Returns are historical and are calculated by determining the percentage change in market price or
net asset value (as applicable) with all distributions reinvested. The Funds performance at market
price will differ from its results at NAV. Although market price performance generally reflects
investment results over time, during shorter periods, returns at market price can also be affected
by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply
and demand for the Funds shares, or changes in Fund distributions. Performance results reflect the
effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of
leverage creates an opportunity for increased income but, at the same time, creates special risks
(including the likelihood of greater volatility of net asset value and market price of common
shares).
2
The Funds market yield is calculated by dividing the last regular dividend
per common share in the period (annualized) by the market price at the end of the period.
3
Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax
rate. A lower tax rate would result in a lower tax-equivalent figure.
4
It is not
possible to invest directly in an Index. The Indices total returns do not reflect the expenses
that would have been incurred if an investor individually purchased or sold the securities
represented in the Indices. Index performance is available as of month end only.
5
The
Lipper Averages are the average annual total returns, at net asset value, of the funds that are in
the same Lipper Classification as the Fund. It is not possible to invest in a Lipper
Classification. Lipper Classifications may include insured and uninsured funds, as well as
leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification
(closed-end) contained 9, 8 and 8 funds for the 1-year, 5-year and Life-of-Fund periods,
respectively. Lipper Averages are available as of month end only.
6
Rating Distribution
is determined by dividing the total market value of the issues by the total investments of the
Fund. Ratings are based on Moodys, S&P or Fitch, as applicable. Credit ratings are based largely
on the rating agencys investment analysis at the time of rating and the rating assigned to any
particular security is not necessarily a reflection of the issuers current financial condition.
The rating assigned to a security by a rating agency does not necessarily reflect its assessment of
the volatility of a securitys market value or of the liquidity of an investment in the security.
If securities are rated differently by the rating agencies, the higher rating is applied.
7
Fund holdings information excludes securities held by special purpose vehicles in which the
Fund holds a residual interest. See Note 1H to the Funds financial statements.
11
Eaton Vance
Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 174.5%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Electric
Utilities 0.5%
|
|
$
|
1,600
|
|
|
Sabine River Authority, TX, (TXU Energy Co. LLC),
5.20%, 5/1/28
|
|
$
|
627,056
|
|
|
|
|
|
|
|
|
|
|
|
$
|
627,056
|
|
|
|
|
|
|
|
Escrowed / Prerefunded 0.5%
|
|
$
|
595
|
|
|
New York, NY, Prerefunded to 1/15/13, 5.25%, 1/15/33
|
|
$
|
659,242
|
|
|
|
|
|
|
|
|
|
|
|
$
|
659,242
|
|
|
|
|
|
|
|
General
Obligations 2.5%
|
|
$
|
155
|
|
|
New York, NY, 5.25%, 1/15/33
|
|
$
|
165,027
|
|
|
|
|
2,750
|
|
|
New York, NY,
5.25%, 1/15/33
(1)
|
|
|
2,948,187
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,113,214
|
|
|
|
|
|
|
|
Hospital 5.7%
|
|
$
|
40
|
|
|
Camden County, NJ, Improvement Authority, (Cooper Health
System), 5.00%, 2/15/25
|
|
$
|
40,169
|
|
|
|
|
900
|
|
|
Camden County, NJ, Improvement Authority, (Cooper Health
System), 5.00%, 2/15/35
|
|
|
866,808
|
|
|
|
|
750
|
|
|
Camden County, NJ, Improvement Authority, (Cooper Health
System), 5.25%, 2/15/27
|
|
|
757,538
|
|
|
|
|
500
|
|
|
Hawaii Department of Budget and Finance, (Hawaii Pacific
Health), 5.60%, 7/1/33
|
|
|
505,150
|
|
|
|
|
1,285
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), 5.25%, 11/15/36
|
|
|
1,318,731
|
|
|
|
|
1,850
|
|
|
Knox County, TN, Health, Educational and Housing Facilities
Board, (Covenant Health), 0.00%, 1/1/38
|
|
|
392,885
|
|
|
|
|
5,000
|
|
|
Knox County, TN, Health, Educational and Housing Facilities
Board, (Covenant Health), 0.00%, 1/1/39
|
|
|
1,001,250
|
|
|
|
|
960
|
|
|
Lehigh County, PA, General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32
|
|
|
977,683
|
|
|
|
|
1,350
|
|
|
Michigan Hospital Finance Authority, (Henry Ford Health System),
5.00%, 11/15/38
|
|
|
1,337,836
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,198,050
|
|
|
|
|
|
|
|
Industrial
Development Revenue 6.0%
|
|
$
|
4,750
|
|
|
Liberty Development Corp., NY, (Goldman Sachs Group, Inc.),
5.25%, 10/1/35
(1)
|
|
$
|
5,039,218
|
|
|
|
|
2,500
|
|
|
St. John Baptist Parish, LA, (Marathon Oil Corp.),
5.125%, 6/1/37
|
|
|
2,514,675
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,553,893
|
|
|
|
|
|
|
Insured-Electric
Utilities 8.8%
|
|
$
|
1,000
|
|
|
American Municipal Power-Ohio, Inc., OH, (Prairie State Energy),
(AGC), 5.75%, 2/15/39
|
|
$
|
1,101,680
|
|
|
|
|
6,335
|
|
|
Chelan County, WA, Public Utility District No. 1, (Columbia
River), (NPFG), 0.00%, 6/1/23
|
|
|
3,777,877
|
|
|
|
|
2,230
|
|
|
JEA, FL, Electric System Revenue, (AGM), 5.00%, 10/1/34
|
|
|
2,236,423
|
|
|
|
|
2,220
|
|
|
Mississippi Development Bank, (Municipal Energy), (XLCA),
5.00%, 3/1/41
|
|
|
2,223,041
|
|
|
|
|
1,595
|
|
|
South Carolina Public Service Authority, (Santee Cooper),
(BHAC), 5.50%, 1/1/38
|
|
|
1,778,872
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,117,893
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 0.1%
|
|
$
|
82
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), (BHAC), Prerefunded to 11/15/16,
5.25%, 11/15/36
(1)
|
|
$
|
98,881
|
|
|
|
|
35
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), (BHAC), Prerefunded to 11/15/16,
5.25%, 11/15/36
|
|
|
42,454
|
|
|
|
|
|
|
|
|
|
|
|
$
|
141,335
|
|
|
|
|
|
|
|
Insured-General
Obligations 18.0%
|
|
$
|
12,165
|
|
|
Chabot-Las Positas, CA, Community College District, (AMBAC),
0.00%, 8/1/43
|
|
$
|
1,498,120
|
|
|
|
|
17,000
|
|
|
Coast Community College District, CA, (Election of 2002), (AGM),
0.00%, 8/1/33
|
|
|
4,385,490
|
|
|
|
|
2,765
|
|
|
District of Columbia, (FGIC), (NPFG), 4.75%, 6/1/33
|
|
|
2,837,941
|
|
|
|
|
1,500
|
|
|
Goodyear, AZ, (NPFG), 3.00%, 7/1/26
|
|
|
1,436,100
|
|
|
|
|
2,000
|
|
|
Los Angeles, CA, Unified School District, (AGC),
5.00%, 1/1/34
|
|
|
2,097,380
|
|
|
|
|
2,750
|
|
|
Palm Springs, CA, Unified School District, (Election of 2008),
(AGC), 5.00%, 8/1/33
|
|
|
2,949,677
|
|
|
|
|
1,250
|
|
|
Philadelphia, PA, (AGC), 7.00%, 7/15/28
|
|
|
1,462,475
|
|
|
|
|
5,500
|
|
|
Washington, (AGM),
5.00%, 7/1/25
(1)
|
|
|
6,176,170
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,843,353
|
|
|
|
|
|
|
|
Insured-Hospital 27.3%
|
|
$
|
1,750
|
|
|
Arizona Health Facilities Authority, (Banner Health), (BHAC),
5.375%, 1/1/32
|
|
$
|
1,880,130
|
|
|
|
|
1,500
|
|
|
California Statewide Communities Development Authority, (Sutter
Health), (AGM),
5.05%, 8/15/38
(1)
|
|
|
1,559,670
|
|
|
|
|
1,695
|
|
|
Centre County, PA, Hospital Authority, (Mount Nittany Medical
Center), (AGC), 6.125%, 11/15/39
|
|
|
1,791,395
|
|
|
|
|
450
|
|
|
Centre County, PA, Hospital Authority, (Mount Nittany Medical
Center), (AGC), 6.25%, 11/15/44
|
|
|
475,245
|
|
|
|
See
notes to financial statements
12
Eaton Vance
Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Hospital (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,200
|
|
|
Colorado Health Facilities Authority, (Catholic Health), (AGM),
5.10%, 10/1/41
(1)
|
|
$
|
2,280,322
|
|
|
|
|
3,418
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), (BHAC),
5.25%, 11/15/36
(1)
|
|
|
3,586,875
|
|
|
|
|
1,485
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), (BHAC), 5.25%, 11/15/36
|
|
|
1,558,151
|
|
|
|
|
1,490
|
|
|
Highlands County, FL, Health Facilities Authority, (Adventist
Health System), (NPFG), 5.00%, 11/15/35
|
|
|
1,506,688
|
|
|
|
|
2,500
|
|
|
Illinois Finance Authority, (Childrens Memorial Hospital),
(AGC),
5.25%, 8/15/47
(1)
|
|
|
2,562,524
|
|
|
|
|
2,500
|
|
|
Indiana Health and Educational Facility Finance Authority,
(Sisters of St. Francis Health Services), (AGM),
5.25%, 5/15/41
(1)
|
|
|
2,634,875
|
|
|
|
|
2,090
|
|
|
Maricopa County, AZ, Industrial Development Authority, (Catholic
Healthcare West), (BHAC), 5.25%, 7/1/32
|
|
|
2,220,876
|
|
|
|
|
1,000
|
|
|
New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/36
(1)
|
|
|
1,053,810
|
|
|
|
|
1,385
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series II, (AGC), 5.00%, 7/1/38
|
|
|
1,441,300
|
|
|
|
|
500
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series V, (AGC),
5.00%, 7/1/38
(1)
|
|
|
520,360
|
|
|
|
|
2,245
|
|
|
New Jersey Health Care Facilities Financing Authority, (Virtua
Health), (AGC), 5.50%, 7/1/38
|
|
|
2,457,624
|
|
|
|
|
2,750
|
|
|
New York Dormitory Authority, (Health Quest Systems), (AGC),
5.125%, 7/1/37
(1)
|
|
|
2,875,813
|
|
|
|
|
1,545
|
|
|
Washington Health Care Facilities Authority, (MultiCare Health
System), (AGC), 6.00%, 8/15/39
|
|
|
1,700,952
|
|
|
|
|
2,300
|
|
|
Washington Health Care Facilities Authority, (Providence Health
Care), (AGM), 5.25%, 10/1/33
|
|
|
2,482,988
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,589,598
|
|
|
|
|
|
|
|
Insured-Industrial
Development Revenue 1.1%
|
|
$
|
1,340
|
|
|
Pennsylvania Economic Development Financing Authority, (Aqua
Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39
|
|
$
|
1,434,711
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,434,711
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 9.2%
|
|
$
|
1,000
|
|
|
Essex County, NJ, Improvement Authority, (NPFG),
5.50%, 10/1/30
|
|
$
|
1,185,280
|
|
|
|
|
4,600
|
|
|
Hudson Yards Infrastructure Corp., NY, (NPFG),
4.50%, 2/15/47
|
|
|
4,457,308
|
|
|
|
|
875
|
|
|
New Jersey Economic Development Authority, (School Facilities
Construction), (AGC), 5.50%, 12/15/34
|
|
|
980,761
|
|
|
|
|
3,250
|
|
|
San Diego County, CA, Water Authority, Certificates of
Participation, (AGM),
5.00%, 5/1/38
(1)
|
|
|
3,424,850
|
|
|
|
|
1,500
|
|
|
Tri-Creek Middle School Building Corp., IN, (AGM),
5.25%, 1/15/34
(1)
|
|
|
1,617,600
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,665,799
|
|
|
|
|
|
|
|
Insured-Other
Revenue 1.3%
|
|
$
|
2,540
|
|
|
Harris County-Houston, TX, Sports Authority, (NPFG),
0.00%, 11/15/34
|
|
$
|
429,946
|
|
|
|
|
1,000
|
|
|
New York, NY, Industrial Development Agency, (Yankee Stadium),
(AGC), 7.00%, 3/1/49
|
|
|
1,183,250
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,613,196
|
|
|
|
|
|
|
|
Insured-Private
Education 3.6%
|
|
$
|
2,500
|
|
|
Massachusetts Development Finance Agency, (Boston University),
(XLCA), 6.00%, 5/15/59
|
|
$
|
2,976,775
|
|
|
|
|
1,555
|
|
|
Miami-Dade County, FL, Educational Facilities Authority,
(University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31
|
|
|
1,640,991
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,617,766
|
|
|
|
|
|
|
|
Insured-Public
Education 3.3%
|
|
$
|
3,900
|
|
|
University of South Alabama, (BHAC), 5.00%, 8/1/38
|
|
$
|
4,126,317
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,126,317
|
|
|
|
|
|
|
|
Insured-Solid
Waste 1.0%
|
|
$
|
740
|
|
|
Palm Beach County, FL, Solid Waste Authority, (BHAC),
5.00%, 10/1/24
|
|
$
|
832,508
|
|
|
|
|
425
|
|
|
Palm Beach County, FL, Solid Waste Authority, (BHAC),
5.00%, 10/1/26
|
|
|
471,958
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,304,466
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 13.0%
|
|
$
|
4,650
|
|
|
Metropolitan Pier and Exposition Authority, IL, (McCormick Place
Expansion), (NPFG), 0.00%, 12/15/34
|
|
$
|
1,167,801
|
|
|
|
|
4,000
|
|
|
Metropolitan Pier and Exposition Authority, IL, (McCormick Place
Expansion), (NPFG), 5.25%, 6/15/42
|
|
|
4,055,560
|
|
|
|
|
3,000
|
|
|
Miami-Dade County, FL, Professional Sports Franchise Facilities,
(AGC), 7.00%, (0.00% until 10/1/19), 10/1/39
|
|
|
2,001,900
|
|
|
|
See
notes to financial statements
13
Eaton Vance
Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Special
Tax Revenue (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,175
|
|
|
New York Convention Center Development Corp., Hotel Occupancy
Tax, (AMBAC), 4.75%, 11/15/45
|
|
$
|
2,188,159
|
|
|
|
|
1,820
|
|
|
New York Convention Center Development Corp., Hotel Occupancy
Tax, (AMBAC), 5.00%, 11/15/44
|
|
|
1,851,559
|
|
|
|
|
29,695
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
2,005,006
|
|
|
|
|
6,075
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
819,214
|
|
|
|
|
12,035
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
1,515,688
|
|
|
|
|
7,595
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
895,982
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,500,869
|
|
|
|
|
|
|
|
Insured-Student
Loan 1.6%
|
|
$
|
1,860
|
|
|
Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27
|
|
$
|
2,016,352
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,016,352
|
|
|
|
|
|
|
|
Insured-Transportation 28.6%
|
|
$
|
1,585
|
|
|
Clark County, NV, (Las Vegas-McCarran International Airport),
(AGM), 5.25%, 7/1/39
|
|
$
|
1,663,030
|
|
|
|
|
7,800
|
|
|
E-470
Public
Highway Authority, CO, (NPFG), 0.00%, 9/1/22
|
|
|
3,948,906
|
|
|
|
|
1,305
|
|
|
Manchester, NH, (Manchester-Boston Regional Airport), (AGM),
5.125%, 1/1/30
|
|
|
1,368,410
|
|
|
|
|
10,000
|
|
|
Maryland Transportation Authority, (AGM),
5.00%, 7/1/41
(1)
|
|
|
10,802,200
|
|
|
|
|
1,000
|
|
|
Metropolitan Washington, DC, Airports Authority, (BHAC),
5.00%, 10/1/24
|
|
|
1,137,490
|
|
|
|
|
535
|
|
|
Metropolitan Washington, DC, Airports Authority, (BHAC),
5.00%, 10/1/29
|
|
|
586,767
|
|
|
|
|
2,870
|
|
|
Minneapolis and St. Paul, MN, Metropolitan Airports Commission,
(FGIC), (NPFG), 4.50%, 1/1/32
|
|
|
2,902,574
|
|
|
|
|
13,885
|
|
|
Nevada Department of Business and Industry, (Las Vegas Monorail
-1st Tier), (AMBAC), 0.00%, 1/1/20
|
|
|
1,716,325
|
|
|
|
|
1,040
|
|
|
New Jersey Transportation Trust Fund Authority, (AGC),
5.50%, 12/15/38
|
|
|
1,165,559
|
|
|
|
|
255
|
|
|
North Carolina Turnpike Authority, (Triangle Expressway System),
(AGC), 5.50%, 1/1/29
|
|
|
281,739
|
|
|
|
|
290
|
|
|
North Carolina Turnpike Authority, (Triangle Expressway System),
(AGC), 5.75%, 1/1/39
|
|
|
317,982
|
|
|
|
|
1,750
|
|
|
North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48
|
|
|
1,924,843
|
|
|
|
|
2,540
|
|
|
Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30
|
|
|
2,976,880
|
|
|
|
|
5,555
|
|
|
Texas Turnpike Authority, (Central Texas Turnpike System),
(AMBAC), 5.00%, 8/15/42
|
|
|
5,480,563
|
|
|
|
|
|
|
|
|
|
|
|
$
|
36,273,268
|
|
|
|
|
|
|
|
Insured-Water
and Sewer 12.1%
|
|
$
|
670
|
|
|
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26
|
|
$
|
756,959
|
|
|
|
|
420
|
|
|
Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27
|
|
|
471,072
|
|
|
|
|
660
|
|
|
Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38
|
|
|
722,733
|
|
|
|
|
1,910
|
|
|
Chicago, IL, Wastewater Transmission Revenue, (BHAC),
5.50%, 1/1/38
|
|
|
2,076,800
|
|
|
|
|
1,250
|
|
|
District of Columbia Water and Sewer Authority, (AGC),
5.00%, 10/1/34
(1)
|
|
|
1,334,438
|
|
|
|
|
435
|
|
|
Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33
|
|
|
462,966
|
|
|
|
|
2,205
|
|
|
New York, NY, Municipal Water Finance Authority, (BHAC),
5.75%, 6/15/40
|
|
|
2,549,620
|
|
|
|
|
7,610
|
|
|
Pearland, TX, Waterworks and Sewer Systems, (NPFG),
3.50%, 9/1/31
|
|
|
6,977,609
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,352,197
|
|
|
|
|
|
|
|
Insured-Water
Revenue 15.6%
|
|
$
|
5,500
|
|
|
Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC),
5.00%, 7/1/43
(1)
|
|
$
|
5,567,210
|
|
|
|
|
1,000
|
|
|
Massachusetts Water Resources Authority, (AGM),
5.25%, 8/1/35
|
|
|
1,184,160
|
|
|
|
|
6,110
|
|
|
Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
|
|
|
6,051,894
|
|
|
|
|
6,750
|
|
|
Metropolitan Water District, CA, Water and Sewer Systems,
(BHAC), (FGIC),
5.00%, 10/1/36
(1)
|
|
|
6,974,910
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,778,174
|
|
|
|
|
|
|
|
Private
Education 6.9%
|
|
$
|
2,200
|
|
|
Connecticut Health and Educational Facilities Authority,
(Wesleyan University),
5.00%, 7/1/39
(1)
|
|
$
|
2,399,298
|
|
|
|
|
1,000
|
|
|
Houston, TX, Higher Education Finance Corp., (William Marsh Rice
University), 5.00%, 5/15/35
|
|
|
1,092,140
|
|
|
|
|
2,710
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Harvard University), 5.50%, 11/15/36
|
|
|
3,157,800
|
|
|
|
|
1,500
|
|
|
New York Dormitory Authority, (Rockefeller University),
5.00%, 7/1/40
|
|
|
1,639,305
|
|
|
|
|
500
|
|
|
North Carolina Capital Facilities Finance Agency, (Duke
University),
5.00%, 10/1/38
(1)
|
|
|
540,040
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,828,583
|
|
|
|
|
|
|
See
notes to financial statements
14
Eaton Vance
Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Public
Education 1.3%
|
|
$
|
1,500
|
|
|
University of Virginia,
5.00%, 6/1/40
(2)
|
|
$
|
1,624,410
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,624,410
|
|
|
|
|
|
|
|
Special
Tax Revenue 0.7%
|
|
$
|
750
|
|
|
Massachusetts Bay Transportation Authority, Sales Tax Revenue,
5.25%, 7/1/33
|
|
$
|
901,118
|
|
|
|
|
|
|
|
|
|
|
|
$
|
901,118
|
|
|
|
|
|
|
|
Transportation 4.9%
|
|
$
|
1,715
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/35
|
|
$
|
1,813,784
|
|
|
|
|
560
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/40
|
|
|
589,193
|
|
|
|
|
2,815
|
|
|
Miami-Dade County, FL, (Miami International Airport),
5.00%, 10/1/41
|
|
|
2,838,167
|
|
|
|
|
420
|
|
|
Orlando-Orange County, FL, Expressway Authority,
5.00%, 7/1/35
|
|
|
439,102
|
|
|
|
|
505
|
|
|
Orlando-Orange County, FL, Expressway Authority,
5.00%, 7/1/40
|
|
|
526,341
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,206,587
|
|
|
|
|
|
|
|
Water
and Sewer 0.9%
|
|
$
|
205
|
|
|
Marco Island, FL, Utility System, 5.00%, 10/1/34
|
|
$
|
212,847
|
|
|
|
|
910
|
|
|
Marco Island, FL, Utility System, 5.00%, 10/1/40
|
|
|
950,805
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,163,652
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 174.5%
|
|
|
(identified
cost $221,472,966)
|
|
$
|
221,251,099
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (35.3)%
|
|
$
|
(44,701,942
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (39.2)%
|
|
$
|
(49,735,099
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
126,814,058
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
At September 30, 2010, the concentration of the Funds
investments in the various states, determined as a percentage of
total investments, is as follows:
|
|
|
|
|
California
|
|
|
12.9%
|
|
New York
|
|
|
11.5%
|
|
Others, representing less than 10% individually
|
|
|
75.6%
|
|
The Fund invests primarily in debt securities issued by
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2010, 82.9% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 2.4%
to 20.5% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(2)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
See
notes to financial statements
15
Eaton Vance
California Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 166.5%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Electric
Utilities 3.8%
|
|
$
|
1,060
|
|
|
Puerto Rico Electric Power Authority, 5.25%, 7/1/40
|
|
$
|
1,108,485
|
|
|
|
|
675
|
|
|
Vernon, Electric System Revenue, 5.125%, 8/1/21
|
|
|
720,299
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,828,784
|
|
|
|
|
|
|
|
General
Obligations 4.2%
|
|
$
|
1,850
|
|
|
Palo Alto, (Election of 2008), 5.00%, 8/1/40
|
|
$
|
2,023,530
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,023,530
|
|
|
|
|
|
|
|
Hospital 16.3%
|
|
$
|
1,330
|
|
|
California Health Facilities Financing Authority, (Catholic
Healthcare West), 5.625%, 7/1/32
|
|
$
|
1,384,623
|
|
|
|
|
1,445
|
|
|
California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 8/15/39
|
|
|
1,467,701
|
|
|
|
|
1,330
|
|
|
California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
|
|
|
1,326,156
|
|
|
|
|
500
|
|
|
California Statewide Communities Development Authority, (John
Muir Health), 5.00%, 8/15/36
|
|
|
501,230
|
|
|
|
|
1,900
|
|
|
California Statewide Communities Development Authority, (Kaiser
Permanente), 5.25%, 3/1/45
|
|
|
1,919,532
|
|
|
|
|
555
|
|
|
Washington Township Health Care District, 5.00%, 7/1/32
|
|
|
551,321
|
|
|
|
|
750
|
|
|
Washington Township Health Care District, 5.25%, 7/1/29
|
|
|
751,470
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,902,033
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 8.7%
|
|
$
|
1,475
|
|
|
Glendale Electric, (NPFG), 5.00%, 2/1/32
|
|
$
|
1,500,591
|
|
|
|
|
1,500
|
|
|
Los Angeles Department of Water and Power, (AMBAC), (BHAC),
5.00%, 7/1/26
(1)
|
|
|
1,645,065
|
|
|
|
|
1,000
|
|
|
Sacramento Municipal Utility District, (AGM), 5.00%, 8/15/27
|
|
|
1,099,180
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,244,836
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 8.6%
|
|
$
|
1,025
|
|
|
California Infrastructure & Economic Development Bank,
(Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28,
5.00%, 7/1/36
|
|
$
|
1,292,330
|
|
|
|
|
3,130
|
|
|
Clovis Unified School District, (FGIC), (NPFG), Escrowed to
Maturity, 0.00%, 8/1/20
|
|
|
2,423,684
|
|
|
|
|
395
|
|
|
Orange County Water District, Certificates of Participation,
(NPFG), Escrowed to Maturity, 5.00%, 8/15/34
|
|
|
453,117
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,169,131
|
|
|
|
|
|
|
|
Insured-General
Obligations 43.7%
|
|
$
|
740
|
|
|
Antelope Valley Community College District, (Election of 2004),
(NPFG), 5.25%, 8/1/39
|
|
$
|
776,519
|
|
|
|
|
7,125
|
|
|
Arcadia Unified School District, (AGM), 0.00%, 8/1/38
|
|
|
1,284,638
|
|
|
|
|
3,115
|
|
|
Arcadia Unified School District, (AGM), 0.00%, 8/1/40
|
|
|
493,728
|
|
|
|
|
3,270
|
|
|
Arcadia Unified School District, (AGM), 0.00%, 8/1/41
|
|
|
487,688
|
|
|
|
|
1,500
|
|
|
Carlsbad Unified School District, (Election of 2006), (NPFG),
5.25%, 8/1/32
|
|
|
1,627,905
|
|
|
|
|
19,350
|
|
|
Chabot-Las Positas Community College District, (AMBAC),
0.00%, 8/1/43
|
|
|
2,382,952
|
|
|
|
|
6,675
|
|
|
Coast Community College District, (Election of 2002), (AGM),
0.00%, 8/1/35
|
|
|
1,510,619
|
|
|
|
|
1,060
|
|
|
El Camino Hospital District, (NPFG), 4.45%, 8/1/36
|
|
|
1,051,573
|
|
|
|
|
1,000
|
|
|
Long Beach Unified School District, (Election of 1999), (AGM),
5.00%, 8/1/31
|
|
|
1,012,720
|
|
|
|
|
2,075
|
|
|
Los Angeles Community College District, (Election of 2001),
(AGM), (FGIC), 5.00%, 8/1/32
|
|
|
2,197,300
|
|
|
|
|
1,000
|
|
|
Mount Diablo Unified School District, (AGM), 5.00%, 8/1/25
|
|
|
1,040,780
|
|
|
|
|
1,250
|
|
|
Palm Springs Unified School District, (Election of 2008), (AGC),
5.00%, 8/1/33
|
|
|
1,340,762
|
|
|
|
|
4,300
|
|
|
San Mateo County Community College District, (Election of 2001),
(FGIC), (NPFG), 0.00%, 9/1/21
|
|
|
2,694,380
|
|
|
|
|
1,390
|
|
|
Santa Clara Unified School District, (Election of 2004), (AGM),
4.375%, 7/1/30
|
|
|
1,409,613
|
|
|
|
|
3,200
|
|
|
Union Elementary School District, (FGIC), (NPFG),
0.00%, 9/1/22
|
|
|
1,877,696
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,188,873
|
|
|
|
|
|
|
|
Insured-Hospital 6.4%
|
|
$
|
1,250
|
|
|
California Statewide Communities Development Authority, (Kaiser
Permanente), (BHAC),
5.00%, 3/1/41
(1)
|
|
$
|
1,282,438
|
|
|
|
|
1,750
|
|
|
California Statewide Communities Development Authority, (Sutter
Health), (AGM),
5.05%, 8/15/38
(1)
|
|
|
1,819,615
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,102,053
|
|
|
|
|
|
|
See
notes to financial statements
16
Eaton Vance
California Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 9.4%
|
|
$
|
1,250
|
|
|
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27
|
|
$
|
1,620,975
|
|
|
|
|
1,750
|
|
|
San Diego County Water Authority, Certificates of Participation,
(AGM),
5.00%, 5/1/38
(1)
|
|
|
1,844,150
|
|
|
|
|
1,075
|
|
|
San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/32
|
|
|
1,092,587
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,557,712
|
|
|
|
|
|
|
|
Insured-Private
Education 1.6%
|
|
$
|
785
|
|
|
California Educational Facilities Authority, (Pepperdine
University), (AMBAC), 5.00%, 12/1/32
|
|
$
|
806,705
|
|
|
|
|
|
|
|
|
|
|
|
$
|
806,705
|
|
|
|
|
|
|
|
Insured-Public
Education 12.7%
|
|
$
|
2,000
|
|
|
California State University, (AGM), (BHAC),
5.00%, 11/1/39
(1)
|
|
$
|
2,098,320
|
|
|
|
|
4,000
|
|
|
California State University, (AMBAC), 5.00%, 11/1/33
|
|
|
4,051,560
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,149,880
|
|
|
|
|
|
|
|
Insured-Special
Assessment Revenue 9.9%
|
|
$
|
2,500
|
|
|
Cathedral City Public Financing Authority, (Housing
Redevelopment), (NPFG), 5.00%, 8/1/33
|
|
$
|
2,405,975
|
|
|
|
|
1,000
|
|
|
Irvine Public Facility and Infrastructure Authority, (AMBAC),
5.00%, 9/2/26
|
|
|
977,950
|
|
|
|
|
1,545
|
|
|
Los Osos Community Services District, (Wastewater Assessment
District No. 1), (NPFG), 5.00%, 9/2/33
|
|
|
1,442,118
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,826,043
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 11.4%
|
|
$
|
1,535
|
|
|
Hesperia Public Financing Authority, (Redevelopment and Housing
Projects), (XLCA), 5.00%, 9/1/37
|
|
$
|
1,202,012
|
|
|
|
|
11,485
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
775,467
|
|
|
|
|
2,320
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
312,852
|
|
|
|
|
4,600
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
579,324
|
|
|
|
|
2,905
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
342,703
|
|
|
|
|
260
|
|
|
San Francisco Bay Area Rapid Transportation District, Sales Tax
Revenue, (AMBAC), 5.00%, 7/1/31
|
|
|
265,751
|
|
|
|
|
985
|
|
|
San Francisco Bay Area Rapid Transportation District, Sales Tax
Revenue, (AMBAC), 5.125%, 7/1/36
|
|
|
1,008,079
|
|
|
|
|
1,000
|
|
|
Santa Clara Valley Transportation Authority, Sales Tax Revenue,
(AMBAC), 5.00%, 4/1/32
|
|
|
1,052,370
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,538,558
|
|
|
|
|
|
|
|
Insured-Transportation 2.0%
|
|
$
|
3,520
|
|
|
San Joaquin Hills Transportation Corridor Agency, (NPFG),
0.00%, 1/15/27
|
|
$
|
999,328
|
|
|
|
|
|
|
|
|
|
|
|
$
|
999,328
|
|
|
|
|
|
|
|
Insured-Water
Revenue 12.7%
|
|
$
|
1,235
|
|
|
Calleguas Las Virgines Public Financing Authority, (Municipal
Water District), (BHAC), (FGIC), 4.75%, 7/1/37
|
|
$
|
1,268,999
|
|
|
|
|
100
|
|
|
East Bay Municipal Utility District, Water System Revenue,
(AGM), (FGIC), 5.00%, 6/1/32
|
|
|
109,097
|
|
|
|
|
1,430
|
|
|
East Bay Municipal Utility District, Water System Revenue,
(FGIC), (NPFG), 5.00%, 6/1/32
|
|
|
1,560,087
|
|
|
|
|
1,500
|
|
|
Los Angeles Department of Water and Power, (NPFG),
3.00%, 7/1/30
|
|
|
1,286,280
|
|
|
|
|
445
|
|
|
Riverside, Water Revenue, (AGM), 5.00%, 10/1/38
|
|
|
468,523
|
|
|
|
|
1,475
|
|
|
Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28
|
|
|
1,458,952
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,151,938
|
|
|
|
|
|
|
|
Private
Education 8.1%
|
|
$
|
780
|
|
|
California Educational Facilities Authority, (Claremont McKenna
College), 5.00%, 1/1/39
|
|
$
|
829,522
|
|
|
|
|
380
|
|
|
California Educational Facilities Authority, (Loyola Marymount
University), 5.00%, 10/1/30
|
|
|
402,302
|
|
|
|
|
890
|
|
|
California Educational Facilities Authority, (Santa Clara
University), 5.00%, 2/1/29
|
|
|
969,219
|
|
|
|
|
1,155
|
|
|
California Educational Facilities Authority, (Santa Clara
University), 5.00%, 2/1/40
|
|
|
1,232,593
|
|
|
|
|
500
|
|
|
California Educational Facilities Authority, (Stanford
University),
5.125%, 1/1/31
(2)
|
|
|
501,610
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,935,246
|
|
|
|
|
|
|
|
Transportation 3.5%
|
|
$
|
540
|
|
|
Long Beach, Harbor Revenue, 5.00%, 5/15/27
|
|
$
|
605,918
|
|
|
|
|
1,060
|
|
|
Los Angeles Department of Airports, (Los Angeles International
Airport),
5.00%, 5/15/35
(1)(3)
|
|
|
1,114,516
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,720,434
|
|
|
|
|
|
|
See
notes to financial statements
17
Eaton Vance
California Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Water
and Sewer 3.5%
|
|
$
|
500
|
|
|
Metropolitan Water District of Southern California, (Waterworks
Revenue Authorization), 5.00%, 1/1/34
|
|
$
|
543,425
|
|
|
|
|
1,050
|
|
|
Metropolitan Water District of Southern California, (Waterworks
Revenue Authorization), 5.00%, 1/1/39
|
|
|
1,135,775
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,679,200
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 166.5%
|
|
|
(identified
cost $81,506,560)
|
|
$
|
80,824,284
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (52.9)%
|
|
$
|
(25,700,304
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (13.6)%
|
|
$
|
(6,594,661
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
48,529,319
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by
California municipalities. The ability of the issuers of the
debt securities to meet their obligations may be affected by
economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic
developments, at September 30, 2010, 76.4% of total
investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The
aggregate percentage insured by an individual financial
institution ranged from 1.5% to 26.4% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(2)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
|
(3)
|
|
Security (or a portion thereof) has been pledged as collateral
for inverse floating-rate security transactions. The aggregate
value of such collateral is $319,516.
|
See
notes to financial statements
18
Eaton Vance
Massachusetts Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 162.5%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Escrowed / Prerefunded 4.8%
|
|
$
|
500
|
|
|
Massachusetts Development Finance Agency, (Massachusetts College
of Pharmacy), Prefunded to 7/31/13, 5.75%, 7/1/33
|
|
$
|
575,930
|
|
|
|
|
600
|
|
|
Massachusetts Development Finance Agency, (Western New England
College), Prefunded to 12/1/12, 6.125%, 12/1/32
|
|
|
676,578
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,252,508
|
|
|
|
|
|
|
|
Hospital 9.6%
|
|
$
|
775
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Dana-Farber Cancer Institute), 5.00%, 12/1/37
|
|
$
|
809,550
|
|
|
|
|
1,250
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare System), 5.00%, 7/1/39
|
|
|
1,293,800
|
|
|
|
|
370
|
|
|
Massachusetts Health and Educational Facilities Authority,
(South Shore Hospital), 5.75%, 7/1/29
|
|
|
371,502
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,474,852
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 4.8%
|
|
$
|
1,095
|
|
|
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23
|
|
$
|
1,247,085
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,247,085
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 6.5%
|
|
$
|
2,900
|
|
|
Massachusetts College Building Authority, (NPFG), Escrowed to
Maturity, 0.00%, 5/1/26
|
|
$
|
1,688,612
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,688,612
|
|
|
|
|
|
|
|
Insured-General
Obligations 14.7%
|
|
$
|
1,900
|
|
|
Massachusetts, (AMBAC), 5.50%, 8/1/30
|
|
$
|
2,432,152
|
|
|
|
|
1,000
|
|
|
Revere, (AGC), 5.00%, 4/1/39
|
|
|
1,060,010
|
|
|
|
|
300
|
|
|
Tewksbury, (AGM), 4.625%, 3/15/27
|
|
|
328,266
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,820,428
|
|
|
|
|
|
|
|
Insured-Hospital 2.1%
|
|
$
|
260
|
|
|
Massachusetts Health and Educational Facilities Authority, (Cape
Cod Healthcare), (AGC), 5.00%, 11/15/25
|
|
$
|
273,905
|
|
|
|
|
140
|
|
|
Massachusetts Health and Educational Facilities Authority, (Cape
Cod Healthcare), (AGC), 5.00%, 11/15/31
|
|
|
145,237
|
|
|
|
|
125
|
|
|
Massachusetts Health and Educational Facilities Authority, (Cape
Cod Healthcare), (AGC), 5.125%, 11/15/35
|
|
|
129,320
|
|
|
|
|
|
|
|
|
|
|
|
$
|
548,462
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 8.9%
|
|
$
|
1,000
|
|
|
Plymouth County Correctional Facility, (AMBAC),
5.00%, 4/1/22
|
|
$
|
1,020,370
|
|
|
|
|
1,000
|
|
|
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27
|
|
|
1,296,780
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,317,150
|
|
|
|
|
|
|
|
Insured-Other
Revenue 6.0%
|
|
$
|
1,315
|
|
|
Massachusetts Development Finance Agency, (WGBH Educational
Foundation), (AMBAC), 5.75%, 1/1/42
|
|
$
|
1,541,088
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,541,088
|
|
|
|
|
|
|
|
Insured-Private
Education 20.6%
|
|
$
|
1,250
|
|
|
Massachusetts Development Finance Agency, (Boston College),
(NPFG), 5.00%, 7/1/38
|
|
$
|
1,319,850
|
|
|
|
|
1,105
|
|
|
Massachusetts Development Finance Agency, (Boston University),
(XLCA), 6.00%, 5/15/59
|
|
|
1,315,735
|
|
|
|
|
750
|
|
|
Massachusetts Development Finance Agency, (College of the Holy
Cross), (AMBAC),
5.25%, 9/1/32
(1)
|
|
|
893,925
|
|
|
|
|
750
|
|
|
Massachusetts Development Finance Agency, (Massachusetts College
of Pharmacy), (AGC), 5.00%, 7/1/35
|
|
|
778,342
|
|
|
|
|
1,000
|
|
|
Massachusetts Development Finance Agency, (Massachusetts College
of Pharmacy), (AGC), 5.00%, 7/1/37
|
|
|
1,047,450
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,355,302
|
|
|
|
|
|
|
|
Insured-Public
Education 14.0%
|
|
$
|
260
|
|
|
Massachusetts College Building Authority, (AGC),
5.00%, 5/1/33
|
|
$
|
278,353
|
|
|
|
|
320
|
|
|
Massachusetts College Building Authority, (AGC),
5.00%, 5/1/38
|
|
|
339,997
|
|
|
|
|
700
|
|
|
Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39
|
|
|
829,528
|
|
|
|
|
1,000
|
|
|
Massachusetts Health and Educational Facilities Authority,
(University of Massachusetts), (FGIC), (NPFG),
5.125%, 10/1/34
|
|
|
1,012,800
|
|
|
|
|
1,150
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Worcester State College), (AMBAC), 5.00%, 11/1/32
|
|
|
1,158,326
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,619,004
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 18.9%
|
|
$
|
1,225
|
|
|
Marthas Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32
|
|
$
|
1,254,927
|
|
|
|
|
750
|
|
|
Massachusetts, Special Obligation, Dedicated Tax Revenue,
(FGIC), (NPFG), 5.50%, 1/1/29
|
|
|
891,997
|
|
|
|
See
notes to financial statements
19
Eaton Vance
Massachusetts Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Special
Tax Revenue (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
400
|
|
|
Massachusetts Bay Transportation Authority, Sales Tax Revenue,
(NPFG), 5.50%, 7/1/28
|
|
$
|
505,400
|
|
|
|
|
1,160
|
|
|
Massachusetts School Building Authority, Dedicated Sales Tax
Revenue, (AMBAC),
5.00%, 8/15/37
(1)
|
|
|
1,238,056
|
|
|
|
|
5,265
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
355,493
|
|
|
|
|
1,725
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
232,616
|
|
|
|
|
2,090
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
263,215
|
|
|
|
|
1,325
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
156,310
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,898,014
|
|
|
|
|
|
|
|
Insured-Water
Revenue 3.9%
|
|
$
|
860
|
|
|
Massachusetts Water Resources Authority, (AGM),
5.25%, 8/1/36
|
|
$
|
1,012,822
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,012,822
|
|
|
|
|
|
|
|
Private
Education 34.0%
|
|
$
|
750
|
|
|
Massachusetts Development Finance Agency, (Middlesex School),
5.00%, 9/1/33
|
|
$
|
766,815
|
|
|
|
|
150
|
|
|
Massachusetts Development Finance Agency, (Milton Academy),
5.00%, 9/1/35
|
|
|
162,242
|
|
|
|
|
1,000
|
|
|
Massachusetts Development Finance Agency, (Mount Holyoke
College), 5.00%, 7/1/36
|
|
|
1,062,950
|
|
|
|
|
2,000
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Harvard University),
5.00%, 10/1/38
(1)
|
|
|
2,175,180
|
|
|
|
|
750
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Harvard University), 5.50%, 11/15/36
|
|
|
873,930
|
|
|
|
|
1,350
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Massachusetts Institute of Technology), 5.00%, 7/1/38
|
|
|
1,464,439
|
|
|
|
|
870
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Northeastern University), 5.00%, 10/1/35
|
|
|
913,309
|
|
|
|
|
1,250
|
|
|
Massachusetts Health and Educational Facilities Authority,
(Tufts University), 5.375%, 8/15/38
|
|
|
1,388,687
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,807,552
|
|
|
|
|
|
|
|
Senior
Living / Life Care 2.7%
|
|
$
|
745
|
|
|
Massachusetts Development Finance Agency, (Berkshire Retirement
Community, Inc.), 5.15%, 7/1/31
|
|
$
|
693,722
|
|
|
|
|
|
|
|
|
|
|
|
$
|
693,722
|
|
|
|
|
|
|
Special
Tax Revenue 5.1%
|
|
$
|
1,210
|
|
|
Massachusetts Bay Transportation Authority, Sales Tax Revenue,
5.00%, 7/1/35
|
|
$
|
1,322,699
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,322,699
|
|
|
|
|
|
|
|
Transportation 5.9%
|
|
$
|
1,000
|
|
|
Massachusetts Department of Transportation, (Metropolitan
Highway System), 5.00%, 1/1/37
|
|
$
|
1,056,820
|
|
|
|
|
435
|
|
|
Massachusetts Port Authority, 5.00%, 7/1/34
|
|
|
472,932
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,529,752
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 162.5%
|
|
|
(identified
cost $39,776,849)
|
|
$
|
42,129,052
|
|
|
|
|
|
|
|
|
Auction Preferred
Shares Plus Cumulative
|
|
|
Unpaid
Dividends (52.4)%
|
|
$
|
(13,576,186
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (10.1)%
|
|
$
|
(2,633,117
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
25,919,749
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by
Massachusetts municipalities. The ability of the issuers of the
debt securities to meet their obligations may be affected by
economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic
developments, at September 30, 2010, 61.8% of total
investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The
aggregate percentage insured by an individual financial
institution ranged from 3.2% to 26.6% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
See
notes to financial statements
20
Eaton Vance
Michigan Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 159.2%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Electric
Utilities 2.8%
|
|
$
|
620
|
|
|
Michigan Strategic Fund, (Detroit Edison Pollution Control),
5.45%, 9/1/29
|
|
$
|
624,414
|
|
|
|
|
|
|
|
|
|
|
|
$
|
624,414
|
|
|
|
|
|
|
|
Escrowed / Prerefunded 9.4%
|
|
$
|
400
|
|
|
Michigan Hospital Finance Authority, (Chelsea Community
Hospital), Prerefunded to 5/15/15, 5.00%, 5/15/30
|
|
$
|
469,816
|
|
|
|
|
1,500
|
|
|
Michigan Hospital Finance Authority, (Sparrow Obligation Group),
Prerefunded to 11/15/11, 5.625%, 11/15/36
|
|
|
1,601,565
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,071,381
|
|
|
|
|
|
|
|
Hospital 7.5%
|
|
$
|
1,000
|
|
|
Michigan Hospital Finance Authority, (Oakwood Hospital System),
5.75%, 4/1/32
|
|
$
|
1,012,050
|
|
|
|
|
640
|
|
|
Michigan Hospital Finance Authority, (Trinity Health),
5.375%, 12/1/30
|
|
|
645,350
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,657,400
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 7.5%
|
|
$
|
500
|
|
|
Michigan Strategic Fund, (Detroit Edison Co.), (XLCA),
5.25%, 12/15/32
|
|
$
|
504,990
|
|
|
|
|
1,000
|
|
|
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
|
|
|
1,142,450
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,647,440
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 42.0%
|
|
$
|
750
|
|
|
Detroit School District, (School Bond Loan Fund), (AGM),
Prerefunded to 5/1/12, 5.125%, 5/1/31
|
|
$
|
804,878
|
|
|
|
|
1,250
|
|
|
Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11,
5.125%, 7/1/31
|
|
|
1,295,362
|
|
|
|
|
1,500
|
|
|
Lansing Building Authority, (NPFG), Prerefunded to 6/1/13,
5.00%, 6/1/29
|
|
|
1,674,840
|
|
|
|
|
1,150
|
|
|
Michigan Hospital Finance Authority, (St. John Health System),
(AMBAC), Escrowed to Maturity, 5.00%, 5/15/28
|
|
|
1,153,703
|
|
|
|
|
1,750
|
|
|
Michigan House of Representatives, (AMBAC), Escrowed to
Maturity, 0.00%, 8/15/22
|
|
|
1,158,903
|
|
|
|
|
2,615
|
|
|
Michigan House of Representatives, (AMBAC), Escrowed to
Maturity, 0.00%, 8/15/23
|
|
|
1,656,236
|
|
|
|
|
1,300
|
|
|
Reed City Public Schools, (AGM), Prerefunded to 5/1/14,
5.00%, 5/1/29
|
|
|
1,495,715
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,239,637
|
|
|
|
|
|
|
Insured-General
Obligations 22.4%
|
|
$
|
1,960
|
|
|
Grand Rapids and Kent County Joint Building Authority, (DeVos
Place), (NPFG),
0.00%, 12/1/27
(1)
|
|
$
|
952,070
|
|
|
|
|
750
|
|
|
Greenville Public Schools, (NPFG), 5.00%, 5/1/25
|
|
|
766,845
|
|
|
|
|
1,330
|
|
|
Okemos Public School District, (NPFG), 0.00%, 5/1/19
|
|
|
973,613
|
|
|
|
|
1,000
|
|
|
Pinconning Area Schools, (AGM), 5.00%, 5/1/33
|
|
|
1,045,870
|
|
|
|
|
1,000
|
|
|
Royal Oak, (AGC), 6.25%, 10/1/28
|
|
|
1,187,810
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,926,208
|
|
|
|
|
|
|
|
Insured-Hospital 6.7%
|
|
$
|
500
|
|
|
Michigan Hospital Finance Authority, (Mid-Michigan Obligation
Group), (AMBAC), 5.00%, 4/15/32
|
|
$
|
500,720
|
|
|
|
|
975
|
|
|
Royal Oak Hospital Finance Authority, (William Beaumont
Hospital), (NPFG), 5.25%, 11/15/35
|
|
|
969,550
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,470,270
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 6.3%
|
|
$
|
1,000
|
|
|
Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29
|
|
$
|
373,460
|
|
|
|
|
3,100
|
|
|
Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30
|
|
|
1,008,926
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,382,386
|
|
|
|
|
|
|
|
Insured-Public
Education 14.8%
|
|
$
|
750
|
|
|
Central Michigan University, (AMBAC), 5.05%, 10/1/32
|
|
$
|
764,842
|
|
|
|
|
435
|
|
|
Ferris State University, (AGC), 5.125%, 10/1/33
|
|
|
467,155
|
|
|
|
|
750
|
|
|
Lake Superior State University, (AMBAC), 5.125%, 11/15/26
|
|
|
755,828
|
|
|
|
|
1,200
|
|
|
Wayne University, (NPFG), 5.00%, 11/15/37
|
|
|
1,259,664
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,247,489
|
|
|
|
|
|
|
|
Insured-Sewer
Revenue 2.1%
|
|
$
|
500
|
|
|
Detroit Sewer Disposal System, (NPFG), 4.50%, 7/1/35
|
|
$
|
464,690
|
|
|
|
|
|
|
|
|
|
|
|
$
|
464,690
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 13.4%
|
|
$
|
6,100
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
$
|
411,872
|
|
|
|
|
1,465
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
197,555
|
|
|
|
|
1,670
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
210,320
|
|
|
|
See
notes to financial statements
21
Eaton Vance
Michigan Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Special
Tax Revenue (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,115
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
$
|
131,537
|
|
|
|
|
1,000
|
|
|
Wayne Charter County, (Airport Hotel-Detroit Metropolitan
Airport), (NPFG), 5.00%, 12/1/30
|
|
|
981,860
|
|
|
|
|
1,000
|
|
|
Ypsilanti Community Utilities Authority, (Sanitary Sewer
System), (FGIC), (NPFG), 5.00%, 5/1/32
|
|
|
1,012,420
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,945,564
|
|
|
|
|
|
|
|
Insured-Utilities 7.2%
|
|
$
|
1,000
|
|
|
Lansing Board of Water and Light, (Water Supply, Steam and
Electric Utility), (AGM), 5.00%, 7/1/25
|
|
$
|
1,041,260
|
|
|
|
|
510
|
|
|
Lansing Board of Water and Light, (Water Supply, Steam and
Electric Utility), (AGM), 5.00%, 7/1/26
|
|
|
529,681
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,570,941
|
|
|
|
|
|
|
|
Insured-Water
Revenue 11.5%
|
|
$
|
1,425
|
|
|
Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30
|
|
$
|
1,427,180
|
|
|
|
|
1,000
|
|
|
Grand Rapids Water Supply System, (AGC), 5.00%, 1/1/29
|
|
|
1,109,310
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,536,490
|
|
|
|
|
|
|
|
Private
Education 2.1%
|
|
$
|
450
|
|
|
Michigan Higher Education Facilities Authority, (Hillsdale
College), 5.00%, 3/1/35
|
|
$
|
450,680
|
|
|
|
|
|
|
|
|
|
|
|
$
|
450,680
|
|
|
|
|
|
|
|
Water
and Sewer 3.5%
|
|
$
|
650
|
|
|
Grand Rapids, (Sanitary Sewer System), 5.00%, 1/1/28
|
|
$
|
756,561
|
|
|
|
|
|
|
|
|
|
|
|
$
|
756,561
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 159.2%
|
|
|
(identified
cost $33,151,929)
|
|
$
|
34,991,551
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (60.6)%
|
|
$
|
(13,325,314
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities 1.4%
|
|
$
|
318,557
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
21,984,794
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2010, 84.1% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 1.4%
to 37.6% of total investments.
|
|
|
(1)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
See
notes to financial statements
22
Eaton Vance New
Jersey Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 166.7%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Hospital 8.7%
|
|
$
|
180
|
|
|
Camden County Improvement Authority, (Cooper Health System),
5.00%, 2/15/35
|
|
$
|
173,362
|
|
|
|
|
760
|
|
|
Camden County Improvement Authority, (Cooper Health System),
5.75%, 2/15/34
|
|
|
773,384
|
|
|
|
|
600
|
|
|
New Jersey Health Care Facilities Financing Authority,
(Atlanticare Regional Medical Center), 5.00%, 7/1/37
|
|
|
613,404
|
|
|
|
|
250
|
|
|
New Jersey Health Care Facilities Financing Authority,
(Hunterdon Medical Center), 5.125%, 7/1/35
|
|
|
251,525
|
|
|
|
|
1,425
|
|
|
New Jersey Health Care Facilities Financing Authority, (South
Jersey Hospital), 5.00%, 7/1/46
|
|
|
1,436,086
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,247,761
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 3.1%
|
|
$
|
1,000
|
|
|
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
|
|
$
|
1,142,450
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,142,450
|
|
|
|
|
|
|
|
Insured-General
Obligations 37.6%
|
|
$
|
2,415
|
|
|
Bayonne, (AGM), 0.00%, 7/1/23
|
|
$
|
1,436,563
|
|
|
|
|
1,000
|
|
|
Bayonne, (AGM), 5.50%, 7/1/39
|
|
|
1,095,480
|
|
|
|
|
320
|
|
|
Delaware Township, Hunterdon County, (AGC), 5.00%, 10/15/35
|
|
|
347,891
|
|
|
|
|
340
|
|
|
Delaware Township, Hunterdon County, (AGC), 5.10%, 10/15/36
|
|
|
371,827
|
|
|
|
|
360
|
|
|
Delaware Township, Hunterdon County, (AGC), 5.15%, 10/15/37
|
|
|
394,416
|
|
|
|
|
382
|
|
|
Delaware Township, Hunterdon County, (AGC), 5.20%, 10/15/38
|
|
|
418,668
|
|
|
|
|
895
|
|
|
Egg Harbor Township School District, (AGM), 3.50%, 4/1/28
|
|
|
890,937
|
|
|
|
|
2,000
|
|
|
Hudson County Improvement Authority, (NPFG), 0.00%, 12/15/38
|
|
|
390,640
|
|
|
|
|
5,500
|
|
|
Irvington Township, (AGM), 0.00%, 7/15/26
|
|
|
2,919,950
|
|
|
|
|
2,395
|
|
|
Jackson Township School District, (NPFG), 2.50%, 6/15/27
|
|
|
2,095,266
|
|
|
|
|
1,000
|
|
|
Jersey City, (AGM), 5.00%, 1/15/29
|
|
|
1,080,910
|
|
|
|
|
700
|
|
|
Lakewood Township, (AGC), 5.75%, 11/1/31
|
|
|
811,027
|
|
|
|
|
1,115
|
|
|
Monroe Township Board of Education, Middlesex County, (AGC),
4.75%, 3/1/34
|
|
|
1,179,714
|
|
|
|
|
110
|
|
|
Nutley School District, (NPFG), 4.75%, 7/15/30
|
|
|
117,454
|
|
|
|
|
410
|
|
|
Nutley School District, (NPFG), 4.75%, 7/15/31
|
|
|
435,371
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,986,114
|
|
|
|
|
|
|
Insured-Hospital 16.6%
|
|
$
|
1,500
|
|
|
New Jersey Health Care Facilities Financing Authority,
(Englewood Hospital), (NPFG), 5.00%, 8/1/31
|
|
$
|
1,530,090
|
|
|
|
|
2,000
|
|
|
New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/36
(1)
|
|
|
2,107,620
|
|
|
|
|
625
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series II, (AGC), 5.00%, 7/1/38
|
|
|
650,407
|
|
|
|
|
250
|
|
|
New Jersey Health Care Facilities Financing Authority, (Meridian
Health Center), Series V, (AGC),
5.00%, 7/1/38
(1)
|
|
|
260,180
|
|
|
|
|
1,500
|
|
|
New Jersey Health Care Facilities Financing Authority, (Virtua
Health), (AGC), 5.50%, 7/1/38
|
|
|
1,642,065
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,190,362
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 16.4%
|
|
$
|
1,000
|
|
|
Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30
|
|
$
|
1,185,280
|
|
|
|
|
1,250
|
|
|
Middlesex County, Certificates of Participation, (NPFG),
5.00%, 8/1/31
|
|
|
1,260,825
|
|
|
|
|
1,300
|
|
|
New Jersey Economic Development Authority, (School Facilities
Construction), (AGC), 5.50%, 12/15/34
|
|
|
1,457,131
|
|
|
|
|
500
|
|
|
New Jersey Economic Development Authority, (School Facilities
Construction), (FGIC), (NPFG), 5.50%, 9/1/28
|
|
|
591,020
|
|
|
|
|
1,250
|
|
|
Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity,
5.50%, 8/1/27
|
|
|
1,620,975
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,115,231
|
|
|
|
|
|
|
|
Insured-Other
Revenue 4.4%
|
|
$
|
1,500
|
|
|
Hudson County Improvement Authority, (Harrison Parking), (AGC),
5.25%, 1/1/39
|
|
$
|
1,633,350
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,633,350
|
|
|
|
|
|
|
|
Insured-Public
Education 14.2%
|
|
$
|
1,945
|
|
|
New Jersey Educational Facilities Authority, (College of New
Jersey), (AGM),
5.00%, 7/1/35
(1)
|
|
$
|
2,070,102
|
|
|
|
|
500
|
|
|
New Jersey Educational Facilities Authority, (Montclair State
University), (NPFG), 3.75%, 7/1/24
|
|
|
503,845
|
|
|
|
|
920
|
|
|
New Jersey Educational Facilities Authority, (Rowan University),
(AGM), (FGIC), 3.00%, 7/1/27
|
|
|
830,972
|
|
|
|
|
465
|
|
|
New Jersey Educational Facilities Authority, (Rowan University),
(AGM), (FGIC), 3.00%, 7/1/28
|
|
|
410,906
|
|
|
|
|
1,145
|
|
|
New Jersey Educational Facilities Authority, (William Paterson
University), (AGC), 4.75%, 7/1/34
|
|
|
1,181,640
|
|
|
|
|
275
|
|
|
New Jersey Educational Facilities Authority, (William Paterson
University), (AGC), 5.00%, 7/1/38
|
|
|
290,436
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,287,901
|
|
|
|
|
|
|
See
notes to financial statements
23
Eaton Vance New
Jersey Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Insured-Sewer
Revenue 2.4%
|
|
$
|
1,975
|
|
|
Rahway Valley Sewerage Authority, (NPFG), 0.00%, 9/1/27
|
|
$
|
884,010
|
|
|
|
|
|
|
|
|
|
|
|
$
|
884,010
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 14.4%
|
|
$
|
1,000
|
|
|
Garden State Preservation Trust, (AGM), 0.00%, 11/1/21
|
|
$
|
683,810
|
|
|
|
|
500
|
|
|
Garden State Preservation Trust, (AGM), 5.80%, 11/1/21
|
|
|
595,760
|
|
|
|
|
1,000
|
|
|
New Jersey Economic Development Authority, (Motor Vehicle
Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27
|
|
|
1,083,570
|
|
|
|
|
2,390
|
|
|
New Jersey Economic Development Authority, (Motor Vehicle
Surcharges), (XLCA), 0.00%, 7/1/26
|
|
|
1,151,454
|
|
|
|
|
1,120
|
|
|
New Jersey Economic Development Authority, (Motor Vehicle
Surcharges), (XLCA), 0.00%, 7/1/27
|
|
|
508,446
|
|
|
|
|
7,675
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
518,216
|
|
|
|
|
1,520
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
204,972
|
|
|
|
|
3,005
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
378,450
|
|
|
|
|
1,900
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
224,143
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,348,821
|
|
|
|
|
|
|
|
Insured-Transportation 23.8%
|
|
$
|
1,560
|
|
|
New Jersey Transportation Trust Fund Authority,
(Transportation System), (AMBAC), (BHAC), 0.00%, 12/15/26
|
|
$
|
768,893
|
|
|
|
|
3,235
|
|
|
New Jersey Transportation Trust Fund Authority,
(Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31
|
|
|
1,142,569
|
|
|
|
|
1,500
|
|
|
New Jersey Turnpike Authority, (AGM), (BHAC), 5.25%, 1/1/29
|
|
|
1,807,590
|
|
|
|
|
3,875
|
|
|
Port Authority of New York and New Jersey, (AGM),
5.00%, 11/1/27
(1)
|
|
|
4,154,066
|
|
|
|
|
720
|
|
|
Port Authority of New York and New Jersey, (AGM),
5.00%, 8/15/33
|
|
|
776,102
|
|
|
|
|
180
|
|
|
South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33
|
|
|
200,684
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,849,904
|
|
|
|
|
|
|
|
Insured-Water
and Sewer 7.4%
|
|
$
|
4,500
|
|
|
Middlesex County Improvement Authority, (Perth Amboy), (AMBAC),
0.00%, 9/1/24
|
|
$
|
2,190,420
|
|
|
|
|
895
|
|
|
Passaic Valley Sewerage Commissioners, (FGIC), (NPFG),
2.50%, 12/1/32
|
|
|
577,839
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,768,259
|
|
|
|
|
|
|
Lease
Revenue / Certificates of
Participation 1.8%
|
|
$
|
650
|
|
|
New Jersey Health Care Facilities Financing Authority, (Contract
Hospital Asset Transformation Program), 5.25%, 10/1/38
|
|
$
|
682,903
|
|
|
|
|
|
|
|
|
|
|
|
$
|
682,903
|
|
|
|
|
|
|
|
Private
Education 5.5%
|
|
$
|
2,000
|
|
|
New Jersey Educational Facilities Authority, (Princeton
University),
4.25%, 7/1/40
(2)
|
|
$
|
2,046,160
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,046,160
|
|
|
|
|
|
|
|
Public
Education 0.7%
|
|
$
|
250
|
|
|
Rutgers State University, 5.00%, 5/1/39
|
|
$
|
271,318
|
|
|
|
|
|
|
|
|
|
|
|
$
|
271,318
|
|
|
|
|
|
|
|
Other
Revenue 3.8%
|
|
$
|
1,300
|
|
|
New Jersey Economic Development Authority, (Duke Farms
Foundation), 5.00%, 7/1/48
|
|
$
|
1,402,596
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,402,596
|
|
|
|
|
|
|
|
Transportation 5.9%
|
|
$
|
590
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/35
|
|
$
|
623,984
|
|
|
|
|
210
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/40
|
|
|
220,947
|
|
|
|
|
1,325
|
|
|
South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33
|
|
|
1,344,875
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,189,806
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 166.7%
|
|
|
(identified
cost $57,915,283)
|
|
$
|
62,046,946
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (52.7)%
|
|
$
|
(19,600,690
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (14.0)%
|
|
$
|
(5,223,846
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
37,222,410
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
See
notes to financial statements
24
Eaton Vance New
Jersey Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New
Jersey municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2010, 84.1% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 2.7%
to 30.2% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(2)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
See
notes to financial statements
25
Eaton Vance New
York Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 167.0%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Hospital 3.2%
|
|
$
|
135
|
|
|
New York Dormitory Authority, (Highland Hospital of Rochester),
5.00%, 7/1/26
|
|
$
|
141,850
|
|
|
|
|
180
|
|
|
New York Dormitory Authority, (Highland Hospital of Rochester),
5.20%, 7/1/32
|
|
|
186,678
|
|
|
|
|
750
|
|
|
Suffolk County Industrial Development Agency, (Huntington
Hospital), 5.875%, 11/1/32
|
|
|
760,732
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,089,260
|
|
|
|
|
|
|
|
Industrial
Development Revenue 2.5%
|
|
$
|
220
|
|
|
Liberty Development Corp., (Goldman Sachs Group, Inc.),
5.25%, 10/1/35
|
|
$
|
233,396
|
|
|
|
|
600
|
|
|
Liberty Development Corp., (Goldman Sachs Group, Inc.),
5.25%, 10/1/35
(1)
|
|
|
636,533
|
|
|
|
|
|
|
|
|
|
|
|
$
|
869,929
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 3.4%
|
|
$
|
500
|
|
|
Long Island Power Authority, (BHAC), 5.50%, 5/1/33
|
|
$
|
564,690
|
|
|
|
|
500
|
|
|
Long Island Power Authority, (BHAC), 6.00%, 5/1/33
|
|
|
588,140
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,152,830
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 3.8%
|
|
$
|
545
|
|
|
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer
Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/26
|
|
$
|
327,976
|
|
|
|
|
550
|
|
|
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer
Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/27
|
|
|
315,243
|
|
|
|
|
1,385
|
|
|
New York Dormitory Authority, (Memorial Sloan-Kettering Cancer
Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30
|
|
|
675,257
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,318,476
|
|
|
|
|
|
|
|
Insured-General
Obligations 23.4%
|
|
$
|
535
|
|
|
Brentwood Union Free School District, (AGC), 4.75%, 11/15/23
|
|
$
|
619,364
|
|
|
|
|
560
|
|
|
Brentwood Union Free School District, (AGC), 5.00%, 11/15/24
|
|
|
656,516
|
|
|
|
|
180
|
|
|
Freeport Union Free School District, (AGC), 4.00%, 4/1/23
|
|
|
194,969
|
|
|
|
|
200
|
|
|
Freeport Union Free School District, (AGC), 4.00%, 4/1/24
|
|
|
215,340
|
|
|
|
|
250
|
|
|
Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24
|
|
|
268,065
|
|
|
|
|
250
|
|
|
Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23
|
|
|
269,562
|
|
|
|
|
185
|
|
|
Longwood Central School District, Suffolk County, (AGC),
4.15%, 6/1/23
|
|
|
199,856
|
|
|
|
|
190
|
|
|
Longwood Central School District, Suffolk County, (AGC),
4.25%, 6/1/24
|
|
|
204,900
|
|
|
|
|
1,000
|
|
|
New York, (AGM), 5.00%, 4/1/22
|
|
|
1,119,540
|
|
|
|
|
1,795
|
|
|
New York Dormitory Authority, (School Districts Financing
Program), (NPFG), 5.00%, 10/1/30
|
|
|
1,828,172
|
|
|
|
|
100
|
|
|
Plattsburgh, (AGC), 4.25%, 11/15/19
|
|
|
113,655
|
|
|
|
|
300
|
|
|
Plattsburgh, (AGC), 4.25%, 11/15/20
|
|
|
342,774
|
|
|
|
|
410
|
|
|
Sachem Central School District, (FGIC), (NPFG),
4.25%, 10/15/28
|
|
|
425,592
|
|
|
|
|
235
|
|
|
Syracuse, (AGC), 5.00%, 6/15/19
|
|
|
276,087
|
|
|
|
|
185
|
|
|
Wantagh Union Free School District, (AGC), 4.50%, 11/15/19
|
|
|
211,250
|
|
|
|
|
190
|
|
|
Wantagh Union Free School District, (AGC), 4.50%, 11/15/20
|
|
|
214,734
|
|
|
|
|
210
|
|
|
Wantagh Union Free School District, (AGC), 4.75%, 11/15/22
|
|
|
238,004
|
|
|
|
|
220
|
|
|
Wantagh Union Free School District, (AGC), 4.75%, 11/15/23
|
|
|
247,817
|
|
|
|
|
350
|
|
|
William Floyd Union Free School District, (AGC),
4.00%, 12/15/24
|
|
|
380,117
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,026,314
|
|
|
|
|
|
|
|
Insured-Hospital 6.3%
|
|
$
|
500
|
|
|
New York City Health and Hospitals Corp., (AGM),
5.50%, 2/15/20
|
|
$
|
586,975
|
|
|
|
|
1,000
|
|
|
New York Dormitory Authority, (Health Quest Systems), (AGC),
5.125%, 7/1/37
(1)
|
|
|
1,045,750
|
|
|
|
|
500
|
|
|
New York Dormitory Authority, (Hudson Valley Hospital Center),
(AGM), (BHAC), 5.00%, 8/15/36
|
|
|
533,955
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,166,680
|
|
|
|
|
|
|
|
Insured-Housing 3.0%
|
|
$
|
1,000
|
|
|
New York City Housing Corp., (NPFG), 4.95%, 11/1/33
|
|
$
|
1,015,840
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,015,840
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 8.5%
|
|
$
|
1,915
|
|
|
Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47
|
|
$
|
1,855,597
|
|
|
|
|
950
|
|
|
New York City Transitional Finance Authority, (BHAC),
5.50%, 7/15/38
|
|
|
1,068,541
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,924,138
|
|
|
|
|
|
|
See
notes to financial statements
26
Eaton Vance New
York Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Insured-Other
Revenue 16.7%
|
|
$
|
1,360
|
|
|
New York City Cultural Resource Trust, (American Museum of
Natural History), (NPFG), 5.00%, 7/1/44
|
|
$
|
1,403,289
|
|
|
|
|
2,500
|
|
|
New York City Cultural Resource Trust, (Museum of Modern Art),
(AMBAC), (BHAC),
5.125%, 7/1/31
(1)
|
|
|
2,628,275
|
|
|
|
|
1,710
|
|
|
New York City Industrial Development Agency, (Yankee Stadium),
(NPFG), 4.75%, 3/1/46
|
|
|
1,696,593
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,728,157
|
|
|
|
|
|
|
|
Insured-Private
Education 31.8%
|
|
$
|
1,440
|
|
|
New York Dormitory Authority, (Barnard College), (FGIC), (NPFG),
5.00%, 7/1/24
|
|
$
|
1,563,422
|
|
|
|
|
1,275
|
|
|
New York Dormitory Authority, (Brooklyn Law School), (XLCA),
5.125%, 7/1/30
|
|
|
1,307,270
|
|
|
|
|
2,250
|
|
|
New York Dormitory Authority, (Fordham University), (AGC),
(BHAC),
5.00%, 7/1/38
(1)
|
|
|
2,408,648
|
|
|
|
|
1,000
|
|
|
New York Dormitory Authority, (New York University), (AMBAC),
(BHAC),
5.00%, 7/1/31
(1)
|
|
|
1,024,550
|
|
|
|
|
345
|
|
|
New York Dormitory Authority, (Pratt Institute), (AGC),
5.00%, 7/1/34
|
|
|
366,449
|
|
|
|
|
835
|
|
|
New York Dormitory Authority, (Pratt Institute), (AGC),
5.125%, 7/1/39
|
|
|
890,711
|
|
|
|
|
500
|
|
|
New York Dormitory Authority, (Skidmore College), (FGIC),
(NPFG), 5.00%, 7/1/33
|
|
|
517,320
|
|
|
|
|
850
|
|
|
New York Dormitory Authority, (St. Johns University),
(NPFG), 5.25%, 7/1/37
|
|
|
892,764
|
|
|
|
|
5,425
|
|
|
Oneida County Industrial Development Agency, (Hamilton College),
(NPFG), 0.00%, 7/1/32
|
|
|
1,955,604
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,926,738
|
|
|
|
|
|
|
|
Insured-Public
Education 0.4%
|
|
$
|
130
|
|
|
New York Dormitory Authority, (City University), (AMBAC),
5.25%, 7/1/30
|
|
$
|
136,635
|
|
|
|
|
|
|
|
|
|
|
|
$
|
136,635
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 16.0%
|
|
$
|
670
|
|
|
New York Convention Center Development Corp., Hotel Occupancy
Tax, (AMBAC), 4.75%, 11/15/45
|
|
$
|
674,054
|
|
|
|
|
515
|
|
|
New York Convention Center Development Corp., Hotel Occupancy
Tax, (AMBAC), 5.00%, 11/15/44
|
|
|
523,930
|
|
|
|
|
1,700
|
|
|
Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/35
|
|
|
361,862
|
|
|
|
|
13,970
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
1,883,854
|
|
|
|
|
3,200
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
403,008
|
|
|
|
|
2,105
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
248,327
|
|
|
|
|
575
|
|
|
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29
|
|
|
631,063
|
|
|
|
|
690
|
|
|
Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32
|
|
|
749,878
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,475,976
|
|
|
|
|
|
|
|
Insured-Transportation 19.7%
|
|
$
|
2,000
|
|
|
Metropolitan Transportation Authority, (AGC), (FGIC),
5.25%, 11/15/31
|
|
$
|
2,119,440
|
|
|
|
|
1,000
|
|
|
Metropolitan Transportation Authority, (AGM), (NPFG),
5.00%, 11/15/31
|
|
|
1,062,740
|
|
|
|
|
510
|
|
|
New York Thruway Authority, (AMBAC), 5.50%, 4/1/20
|
|
|
624,816
|
|
|
|
|
2,500
|
|
|
Port Authority of New York and New Jersey, (AGM),
5.00%, 11/1/27
(1)
|
|
|
2,680,636
|
|
|
|
|
275
|
|
|
Triborough Bridge and Tunnel Authority, (NPFG),
5.00%, 11/15/32
|
|
|
287,985
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,775,617
|
|
|
|
|
|
|
|
Insured-Water
and Sewer 11.6%
|
|
$
|
905
|
|
|
Nassau County Sewer and Storm Water Finance Authority, (BHAC),
5.375%, 11/1/28
|
|
$
|
1,039,718
|
|
|
|
|
2,750
|
|
|
New York City Municipal Water Finance Authority, (Water and
Sewer System), (AMBAC), (BHAC),
5.00%, 6/15/38
(1)
|
|
|
2,936,835
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,976,553
|
|
|
|
|
|
|
|
Insured-Water
Revenue 1.1%
|
|
$
|
350
|
|
|
Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25
|
|
$
|
367,066
|
|
|
|
|
|
|
|
|
|
|
|
$
|
367,066
|
|
|
|
|
|
|
|
Other
Revenue 0.9%
|
|
$
|
1,100
|
|
|
Brooklyn Arena Local Development Corp., (Barclays Center),
0.00%, 7/15/31
|
|
$
|
319,209
|
|
|
|
|
|
|
|
|
|
|
|
$
|
319,209
|
|
|
|
|
|
|
|
Private
Education 7.5%
|
|
$
|
500
|
|
|
New York City Industrial Development Agency, (St. Francis
College), 5.00%, 10/1/34
|
|
$
|
501,795
|
|
|
|
|
1,280
|
|
|
New York Dormitory Authority, (Cornell University),
5.00%, 7/1/37
|
|
|
1,407,961
|
|
|
|
|
610
|
|
|
New York Dormitory Authority, (Rockefeller University),
5.00%, 7/1/40
|
|
|
666,651
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,576,407
|
|
|
|
|
|
|
See
notes to financial statements
27
Eaton Vance New
York Municipal Bond
Fund II
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Transportation 4.1%
|
|
$
|
350
|
|
|
Nassau County Bridge Authority, 5.00%, 10/1/35
|
|
$
|
365,981
|
|
|
|
|
65
|
|
|
Nassau County Bridge Authority, 5.00%, 10/1/40
|
|
|
67,171
|
|
|
|
|
530
|
|
|
New York Thruway Authority, 5.00%, 4/1/26
|
|
|
606,474
|
|
|
|
|
340
|
|
|
Triborough Bridge and Tunnel Authority, 5.00%, 11/15/37
|
|
|
362,946
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,402,572
|
|
|
|
|
|
|
|
Water
Revenue 3.1%
|
|
$
|
235
|
|
|
New York Environmental Facilities Corp., Clean Water and
Drinking Water, (Municipal Water Finance),
5.00%, 6/15/26
(2)
|
|
$
|
257,064
|
|
|
|
|
750
|
|
|
New York Environmental Facilities Corp., 5.00%, 10/15/39
|
|
|
821,138
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,078,202
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 167.0%
|
|
|
(identified
cost $54,935,398)
|
|
$
|
57,326,599
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (38.6)%
|
|
$
|
(13,250,311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (28.4)%
|
|
$
|
(9,748,271
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
34,328,017
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2010, 87.2% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 2.3%
to 32.7% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(2)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
See
notes to financial statements
28
Eaton Vance Ohio
Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 152.6%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
General
Obligations 4.7%
|
|
$
|
900
|
|
|
Beavercreek, School District, 5.00%, 12/1/30
|
|
$
|
987,102
|
|
|
|
|
500
|
|
|
County of Franklin,
5.00%, 12/1/27
(1)
|
|
|
562,515
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,549,617
|
|
|
|
|
|
|
|
Hospital 6.0%
|
|
$
|
500
|
|
|
Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26
|
|
$
|
514,320
|
|
|
|
|
955
|
|
|
Ohio Higher Educational Facilities Authority, (University
Hospital Health Systems, Inc.), 4.75%, 1/15/46
|
|
|
937,285
|
|
|
|
|
500
|
|
|
Ohio Higher Educational Facility Commission, (Summa Health
System), 5.75%, 11/15/40
|
|
|
514,480
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,966,085
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 20.5%
|
|
$
|
700
|
|
|
American Municipal Power-Ohio, Inc., (Prairie State Energy
Campus), (AGC), 5.25%, 2/15/33
|
|
$
|
748,454
|
|
|
|
|
2,750
|
|
|
Cleveland Public Power System, (NPFG), 0.00%, 11/15/27
|
|
|
1,226,693
|
|
|
|
|
1,000
|
|
|
Cleveland Public Power System, (NPFG), 0.00%, 11/15/38
|
|
|
226,270
|
|
|
|
|
1,670
|
|
|
Ohio Municipal Electric Generation Agency, (NPFG),
0.00%, 2/15/25
|
|
|
867,331
|
|
|
|
|
5,000
|
|
|
Ohio Municipal Electric Generation Agency, (NPFG),
0.00%, 2/15/27
|
|
|
2,310,650
|
|
|
|
|
755
|
|
|
Ohio Water Development Authority, (Dayton Power &
Light), (FGIC), 4.80%, 1/1/34
|
|
|
764,800
|
|
|
|
|
500
|
|
|
Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26
|
|
|
571,225
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,715,423
|
|
|
|
|
|
|
|
Insured-General
Obligations 39.0%
|
|
$
|
320
|
|
|
Bowling Green City School District, (AGM), 5.00%, 12/1/34
|
|
$
|
337,117
|
|
|
|
|
200
|
|
|
Brookfield Local School District, (AGM), 5.00%, 1/15/30
|
|
|
216,274
|
|
|
|
|
1,000
|
|
|
Cleveland Municipal School District, (AGM), 5.00%, 12/1/27
|
|
|
1,051,710
|
|
|
|
|
900
|
|
|
Clyde-Green Springs Exempted Village School District, (AGM),
4.50%, 12/1/31
|
|
|
927,324
|
|
|
|
|
1,575
|
|
|
Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32
|
|
|
1,622,313
|
|
|
|
|
1,000
|
|
|
Milford Exempt Village School District, (AGC),
5.25%, 12/1/36
|
|
|
1,082,340
|
|
|
|
|
1,400
|
|
|
Olentangy Local School District, (AGC), 5.00%, 12/1/36
|
|
|
1,501,640
|
|
|
|
|
2,400
|
|
|
Plain School District, (FGIC), (NPFG),
0.00%, 12/1/27
(2)
|
|
|
1,015,104
|
|
|
|
|
750
|
|
|
St. Marys School District, (AGM), 5.00%, 12/1/35
|
|
|
787,695
|
|
|
|
|
500
|
|
|
Sylvania City School District, (AGC), 5.00%, 12/1/26
|
|
|
549,705
|
|
|
|
|
1,000
|
|
|
Sylvania City School District, (AGC), 5.00%, 12/1/32
|
|
|
1,064,910
|
|
|
|
|
500
|
|
|
Tecumseh School District, (FGIC), (NPFG), 4.75%, 12/1/31
|
|
|
511,160
|
|
|
|
|
2,000
|
|
|
Wapakoneta City School District, (AGM), 4.75%, 12/1/35
|
|
|
2,105,560
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,772,852
|
|
|
|
|
|
|
|
Insured-Hospital 12.6%
|
|
$
|
820
|
|
|
Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
(NPFG), 5.00%, 5/15/32
|
|
$
|
827,798
|
|
|
|
|
1,500
|
|
|
Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
(NPFG), 5.125%, 5/15/28
|
|
|
1,529,955
|
|
|
|
|
440
|
|
|
Lorain County, (Catholic Healthcare Partners), (AGM), Variable
Rate,
17.493%, 2/1/29
(3)(4)(5)
|
|
|
531,362
|
|
|
|
|
1,250
|
|
|
Ohio Higher Educational Facility Commission, (University
Hospital Health Systems, Inc.), (AMBAC), 4.75%, 1/15/46
|
|
|
1,226,812
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,115,927
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 3.4%
|
|
$
|
235
|
|
|
Puerto Rico Public Buildings Authority, Government Facilities
Revenue, (XLCA), 5.25%, 7/1/36
|
|
$
|
236,387
|
|
|
|
|
1,000
|
|
|
Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33
|
|
|
859,980
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,096,367
|
|
|
|
|
|
|
|
Insured-Public
Education 31.0%
|
|
$
|
1,750
|
|
|
Cincinnati Technical and Community College, (AMBAC),
5.00%, 10/1/28
|
|
$
|
1,771,140
|
|
|
|
|
1,000
|
|
|
Kent State University, (AGC), 5.00%, 5/1/26
|
|
|
1,116,280
|
|
|
|
|
360
|
|
|
Kent State University, (AGC), 5.00%, 5/1/29
|
|
|
393,177
|
|
|
|
|
2,000
|
|
|
Miami University, (AGM), (AMBAC), 3.25%, 9/1/26
|
|
|
1,870,600
|
|
|
|
|
500
|
|
|
Ohio University, (AGM), 5.00%, 12/1/33
|
|
|
530,175
|
|
|
|
|
1,170
|
|
|
Ohio University, (AGM), 5.25%, 12/1/23
|
|
|
1,288,533
|
|
|
|
|
1,000
|
|
|
University of Akron, (AGM), 5.00%, 1/1/38
|
|
|
1,053,660
|
|
|
|
|
1,000
|
|
|
University of Cincinnati, (AMBAC), 5.00%, 6/1/31
|
|
|
1,021,150
|
|
|
|
See
notes to financial statements
29
Eaton Vance Ohio
Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Public
Education (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,000
|
|
|
Youngstown State University, (AGC), 5.50%, 12/15/33
|
|
$
|
1,089,740
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,134,455
|
|
|
|
|
|
|
|
Insured-Sewer
Revenue 2.5%
|
|
$
|
615
|
|
|
Marysville Wastewater Treatment System, (AGC), (XLCA),
4.75%, 12/1/46
(2)
|
|
$
|
623,598
|
|
|
|
|
180
|
|
|
Marysville Wastewater Treatment System, (AGC), (XLCA),
4.75%, 12/1/47
|
|
|
182,786
|
|
|
|
|
|
|
|
|
|
|
|
$
|
806,384
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 10.8%
|
|
$
|
1,335
|
|
|
Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23
|
|
$
|
748,908
|
|
|
|
|
3,665
|
|
|
Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24
|
|
|
1,942,780
|
|
|
|
|
8,430
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
|
569,194
|
|
|
|
|
1,525
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
192,058
|
|
|
|
|
705
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
83,169
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,536,109
|
|
|
|
|
|
|
|
Insured-Transportation 1.7%
|
|
$
|
500
|
|
|
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%, 7/1/41
(6)
|
|
$
|
555,825
|
|
|
|
|
|
|
|
|
|
|
|
$
|
555,825
|
|
|
|
|
|
|
|
Pooled
Loans 7.1%
|
|
$
|
1,335
|
|
|
Cuyahoga County Port Authority, (Garfield Heights),
5.25%, 5/15/23
|
|
$
|
1,095,795
|
|
|
|
|
1,140
|
|
|
Rickenbacker Port Authority, Oasbo Expanded Asset Pool Loan,
5.375%, 1/1/32
(6)
|
|
|
1,240,217
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,336,012
|
|
|
|
|
|
|
|
Private
Education 8.5%
|
|
$
|
850
|
|
|
Ohio Higher Educational Facilities Authority, (John Carroll
University), 5.25%, 11/15/33
|
|
$
|
864,161
|
|
|
|
|
500
|
|
|
Ohio Higher Educational Facilities Authority, (Kenyon College),
5.00%, 7/1/41
|
|
|
513,755
|
|
|
|
|
1,000
|
|
|
Ohio Higher Educational Facilities Authority, (Oberlin College),
5.00%, 10/1/33
|
|
|
1,031,890
|
|
|
|
|
350
|
|
|
Ohio Higher Educational Facility Commission, (Kenyon College),
5.00%, 7/1/44
|
|
|
366,201
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,776,007
|
|
|
|
|
|
|
|
Public
Education 4.8%
|
|
$
|
1,325
|
|
|
Ohio State University,
5.00%, 12/1/30
(7)
|
|
$
|
1,575,571
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,575,571
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 152.6%
|
|
|
(identified
cost $47,182,499)
|
|
$
|
49,936,634
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (52.0)%
|
|
$
|
(17,001,276
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (0.6)%
|
|
$
|
(209,554
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
32,725,804
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2010, 79.6% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 1.1%
to 23.3% of total investments.
|
|
|
(1)
|
|
Security (or a portion thereof) has been pledged to cover margin
requirements on open financial futures contracts.
|
|
(2)
|
|
Security (or a portion thereof) has been segregated to cover
payable for when-issued securities.
|
|
(3)
|
|
Security has been issued as a leveraged inverse floater bond.
The stated interest rate represents the rate in effect at
September 30, 2010.
|
|
(4)
|
|
Security is subject to a shortfall agreement which may require
the Fund to pay amounts to a counterparty in the event of a
significant decline in the market value of the security
underlying the inverse floater. In case of a shortfall, the
maximum potential amount of payments the Fund could
|
See
notes to financial statements
30
Eaton Vance Ohio
Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
ultimately be required to make under the agreement is
$1,320,000. However, such shortfall payment would be reduced by
the proceeds from the sale of the security underlying the
inverse floater.
|
|
(5)
|
|
Security exempt from registration pursuant to Rule 144A
under the Securities Act of 1933. These securities may be sold
in certain transactions (normally to qualified institutional
buyers) and remain exempt from registration. At
September 30, 2010, the aggregate value of these securities
is $531,362 or 1.6% of the Funds net assets applicable to
common shares.
|
|
(6)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(7)
|
|
When-issued security.
|
See
notes to financial statements
31
Eaton Vance
Pennsylvania Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
Tax-Exempt
Investments 162.2%
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Hospital 16.2%
|
|
$
|
750
|
|
|
Chester County Health and Education Facilities Authority,
(Jefferson Health System), 5.00%, 5/15/40
|
|
$
|
778,402
|
|
|
|
|
1,000
|
|
|
Franklin County Industrial Development Authority, (The
Chambersburg Hospital), 5.375%, 7/1/42
|
|
|
1,031,700
|
|
|
|
|
1,455
|
|
|
Lehigh County General Purpose Authority, (Lehigh Valley Health
Network), 5.25%, 7/1/32
|
|
|
1,481,801
|
|
|
|
|
1,250
|
|
|
Monroe County Hospital Authority, (Pocono Medical Center),
5.125%, 1/1/37
|
|
|
1,256,875
|
|
|
|
|
250
|
|
|
Northampton County General Purpose Authority, (Saint Lukes
Hospital), 5.50%, 8/15/33
|
|
|
256,495
|
|
|
|
|
675
|
|
|
Pennsylvania Higher Educational Facilities Authority, (UPMC
Health System), 5.00%, 5/15/31
|
|
|
707,009
|
|
|
|
|
750
|
|
|
Pennsylvania Higher Educational Facilities Authority, (UPMC
Health System), 6.00%, 1/15/31
|
|
|
769,950
|
|
|
|
|
250
|
|
|
South Fork Municipal Authority, (Conemaugh Health System),
5.50%, 7/1/29
|
|
|
253,558
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,535,790
|
|
|
|
|
|
|
|
Insured-Electric
Utilities 6.1%
|
|
$
|
1,610
|
|
|
Lehigh County Industrial Development Authority, (PPL Electric
Utilities Corp.), (FGIC), (NPFG), 4.75%, 2/15/27
|
|
$
|
1,635,647
|
|
|
|
|
750
|
|
|
Puerto Rico Electric Power Authority, (FGIC), (NPFG),
5.25%, 7/1/35
|
|
|
822,720
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,458,367
|
|
|
|
|
|
|
|
Insured-Escrowed / Prerefunded 3.3%
|
|
$
|
995
|
|
|
Armstrong County, (NPFG), Prerefunded to 6/1/11,
5.40%, 6/1/31
|
|
$
|
1,028,551
|
|
|
|
|
270
|
|
|
Southcentral General Authority, (Wellspan Health), (NPFG),
Escrowed to Maturity, 5.25%, 5/15/31
|
|
|
279,866
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,308,417
|
|
|
|
|
|
|
|
Insured-General
Obligations 28.9%
|
|
$
|
655
|
|
|
Armstrong County, (NPFG), 5.40%, 6/1/31
|
|
$
|
668,834
|
|
|
|
|
1,250
|
|
|
Bethlehem Area School District, (AGM), 5.25%, 1/15/25
|
|
|
1,395,375
|
|
|
|
|
660
|
|
|
Centennial School District, (AGM), 5.25%, 12/15/37
|
|
|
714,080
|
|
|
|
|
1,350
|
|
|
Central Greene School District, (AGM), 5.00%, 2/15/35
|
|
|
1,422,643
|
|
|
|
|
1,000
|
|
|
Erie School District, (AMBAC), 0.00%, 9/1/30
|
|
|
396,380
|
|
|
|
|
500
|
|
|
Harrisburg School District, (AGC), 5.00%, 11/15/33
|
|
|
534,455
|
|
|
|
|
2,555
|
|
|
McKeesport School District, (NPFG), 0.00%, 10/1/21
|
|
|
1,666,269
|
|
|
|
|
1,500
|
|
|
Norwin School District, (AGM), 3.25%, 4/1/27
|
|
|
1,403,925
|
|
|
|
|
1,500
|
|
|
Reading School District, (AGM), 5.00%, 3/1/35
|
|
|
1,585,785
|
|
|
|
|
1,000
|
|
|
Scranton School District, (AGM), 5.00%, 7/15/38
|
|
|
1,047,500
|
|
|
|
|
2,550
|
|
|
Shaler Area School District, (XLCA), 0.00%, 9/1/33
|
|
|
815,414
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,650,660
|
|
|
|
|
|
|
|
Insured-Hospital 8.7%
|
|
$
|
250
|
|
|
Allegheny County Hospital Development Authority, (UPMC Health
System), (NPFG), 6.00%, 7/1/24
|
|
$
|
306,057
|
|
|
|
|
500
|
|
|
Centre County Hospital Authority, (Mount Nittany Medical
Center), (AGC), 6.25%, 11/15/44
|
|
|
528,050
|
|
|
|
|
1,620
|
|
|
Lehigh County General Purpose Authority, (Lehigh Valley Health
Network), (AGM),
5.00%, 7/1/35
(1)
|
|
|
1,678,547
|
|
|
|
|
1,000
|
|
|
Washington County Hospital Authority, (Washington Hospital),
(AMBAC), 5.125%, 7/1/28
|
|
|
981,630
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,494,284
|
|
|
|
|
|
|
|
Insured-Industrial
Development Revenue 3.1%
|
|
$
|
150
|
|
|
Pennsylvania Economic Development Financing Authority, (Aqua
Pennsylvania, Inc. Project), (BHAC), 5.00%, 10/1/39
|
|
$
|
160,602
|
|
|
|
|
1,000
|
|
|
Pennsylvania Economic Development Financing Authority, (Aqua
Pennsylvania, Inc. Project), (BHAC),
5.00%, 10/1/39
(1)
|
|
|
1,070,680
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,231,282
|
|
|
|
|
|
|
|
Insured-Lease
Revenue / Certificates of
Participation 4.5%
|
|
$
|
500
|
|
|
Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31
|
|
$
|
531,025
|
|
|
|
|
1,215
|
|
|
Philadelphia Authority for Industrial Development, (One Benjamin
Franklin), (AGM), 4.75%, 2/15/27
|
|
|
1,295,421
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,826,446
|
|
|
|
|
|
|
|
Insured-Private
Education 11.7%
|
|
$
|
1,000
|
|
|
Chester County Industrial Development Authority, Educational
Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31
|
|
$
|
1,008,380
|
|
|
|
|
1,675
|
|
|
Pennsylvania Higher Educational Facilities Authority, (Drexel
University), (NPFG),
5.00%, 5/1/37
(2)
|
|
|
1,752,150
|
|
|
|
|
1,405
|
|
|
Pennsylvania Higher Educational Facilities Authority, (Temple
University), (NPFG), 4.50%, 4/1/36
|
|
|
1,417,954
|
|
|
|
See
notes to financial statements
32
Eaton Vance
Pennsylvania Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
Insured-Private
Education (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
500
|
|
|
Pennsylvania Higher Educational Facilities Authority,
(University of the Sciences in Philadelphia), (AGC),
5.00%, 11/1/37
|
|
$
|
526,290
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,704,774
|
|
|
|
|
|
|
|
Insured-Public
Education 11.2%
|
|
$
|
500
|
|
|
Lycoming County Authority, (Pennsylvania College of Technology),
(AGC), 5.50%, 10/1/37
|
|
$
|
534,660
|
|
|
|
|
1,200
|
|
|
Lycoming County Authority, (Pennsylvania College of Technology),
(AMBAC), 5.25%, 5/1/32
|
|
|
1,201,476
|
|
|
|
|
1,000
|
|
|
Pennsylvania Higher Educational Facilities Authority, (Clarion
University Foundation), (XLCA), 5.00%, 7/1/33
|
|
|
877,220
|
|
|
|
|
500
|
|
|
State Public School Building Authority, (Delaware County
Community College), (AGM), 5.00%, 10/1/27
|
|
|
549,635
|
|
|
|
|
375
|
|
|
State Public School Building Authority, (Delaware County
Community College), (AGM), 5.00%, 10/1/29
|
|
|
407,066
|
|
|
|
|
875
|
|
|
State Public School Building Authority, (Delaware County
Community College), (AGM), 5.00%, 10/1/32
|
|
|
934,448
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,504,505
|
|
|
|
|
|
|
|
Insured-Sewer
Revenue 17.2%
|
|
$
|
300
|
|
|
Allegheny County Sanitation Authority, (BHAC), (FGIC),
5.00%, 12/1/32
|
|
$
|
318,387
|
|
|
|
|
1,500
|
|
|
Allegheny County Sanitation Authority, (BHAC), (NPFG),
5.00%, 12/1/22
(3)
|
|
|
1,640,280
|
|
|
|
|
1,000
|
|
|
Ambridge Borough Municipal Authority, Sewer Revenue, (AGM),
4.60%, 10/15/41
|
|
|
997,520
|
|
|
|
|
1,920
|
|
|
Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26
|
|
|
817,613
|
|
|
|
|
1,430
|
|
|
Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25
|
|
|
647,676
|
|
|
|
|
2,155
|
|
|
Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25
|
|
|
976,042
|
|
|
|
|
1,500
|
|
|
University Area Joint Authority, (NPFG), 5.00%, 11/1/26
|
|
|
1,512,075
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,909,593
|
|
|
|
|
|
|
|
Insured-Special
Tax Revenue 6.0%
|
|
$
|
22,015
|
|
|
Puerto Rico Sales Tax Financing Corp., (AMBAC),
0.00%, 8/1/54
|
|
$
|
1,486,453
|
|
|
|
|
1,770
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44
|
|
|
238,685
|
|
|
|
|
3,510
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45
|
|
|
442,049
|
|
|
|
|
2,220
|
|
|
Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46
|
|
|
261,893
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,429,080
|
|
|
|
|
|
|
|
Insured-Transportation 22.6%
|
|
$
|
2,000
|
|
|
Allegheny County Port Authority, (FGIC), (NPFG),
5.00%, 3/1/25
|
|
$
|
2,031,280
|
|
|
|
|
1,000
|
|
|
Allegheny County Port Authority, (FGIC), (NPFG),
5.00%, 3/1/29
|
|
|
1,014,290
|
|
|
|
|
2,000
|
|
|
Pennsylvania Turnpike Commission, (AGM),
5.25%, 7/15/30
(1)
|
|
|
2,344,000
|
|
|
|
|
295
|
|
|
Philadelphia, Airport Revenue, (AGC), 5.375%, 6/15/29
|
|
|
319,724
|
|
|
|
|
1,000
|
|
|
Pittsburgh and Allegheny County Sports and Exhibition Authority,
(AGM), 5.00%, 2/1/31
|
|
|
1,061,380
|
|
|
|
|
2,100
|
|
|
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG),
5.25%, 7/1/41
(1)
|
|
|
2,334,465
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9,105,139
|
|
|
|
|
|
|
|
Insured-Utilities 2.2%
|
|
$
|
890
|
|
|
Philadelphia Gas Works, (AMBAC), 5.00%, 10/1/37
|
|
$
|
889,341
|
|
|
|
|
|
|
|
|
|
|
|
$
|
889,341
|
|
|
|
|
|
|
|
Insured-Water
and Sewer 0.4%
|
|
$
|
150
|
|
|
Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35
|
|
$
|
155,060
|
|
|
|
|
|
|
|
|
|
|
|
$
|
155,060
|
|
|
|
|
|
|
|
Private
Education 12.8%
|
|
$
|
625
|
|
|
Pennsylvania Higher Educational Facilities Authority, (Saint
Josephs University),
5.00%, 11/1/40
(4)
|
|
$
|
648,038
|
|
|
|
|
925
|
|
|
Pennsylvania Higher Educational Facilities Authority, (Thomas
Jefferson University), 5.00%, 3/1/40
|
|
|
976,883
|
|
|
|
|
2,900
|
|
|
Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), 4.75%, 7/15/35
|
|
|
2,981,722
|
|
|
|
|
500
|
|
|
Washington County Industrial Development Authority, (Washington
and Jefferson College), 5.25%, 11/1/30
|
|
|
539,015
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,145,658
|
|
|
|
|
|
|
|
Public
Education 1.3%
|
|
$
|
500
|
|
|
Pennsylvania State University, 5.00%, 3/1/40
|
|
$
|
544,025
|
|
|
|
|
|
|
|
|
|
|
|
$
|
544,025
|
|
|
|
|
|
|
See
notes to financial statements
33
Eaton Vance
Pennsylvania Municipal Bond
Fund
as
of September 30, 2010
PORTFOLIO OF
INVESTMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
(000s
omitted)
|
|
|
Security
|
|
Value
|
|
|
|
|
|
|
Senior
Living / Life Care 0.5%
|
|
$
|
200
|
|
|
Montgomery County Industrial Development Authority, (Foulkeways
at Gwynedd), 5.00%, 12/1/24
|
|
$
|
203,840
|
|
|
|
|
|
|
|
|
|
|
|
$
|
203,840
|
|
|
|
|
|
|
|
Special
Tax Revenue 0.3%
|
|
$
|
110
|
|
|
Virgin Islands Public Finance Authority, 6.75%, 10/1/37
|
|
$
|
124,654
|
|
|
|
|
|
|
|
|
|
|
|
$
|
124,654
|
|
|
|
|
|
|
|
Transportation 3.1%
|
|
$
|
465
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/35
|
|
$
|
491,784
|
|
|
|
|
730
|
|
|
Delaware River Port Authority of Pennsylvania and New Jersey,
5.00%, 1/1/40
|
|
|
768,055
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,259,839
|
|
|
|
|
|
|
|
Water
and Sewer 2.1%
|
|
$
|
765
|
|
|
Philadelphia, Water and Wastewater Revenue, 5.25%, 1/1/32
|
|
$
|
823,798
|
|
|
|
|
|
|
|
|
|
|
|
$
|
823,798
|
|
|
|
|
|
|
|
|
Total
Tax-Exempt Investments 162.2%
|
|
|
(identified
cost $64,142,281)
|
|
$
|
65,304,552
|
|
|
|
|
|
|
|
|
Auction
Preferred Shares Plus Cumulative
|
|
|
Unpaid
Dividends (54.0)%
|
|
$
|
(21,726,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Assets, Less Liabilities (8.2)%
|
|
$
|
(3,321,320
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares 100.0%
|
|
$
|
40,256,332
|
|
|
|
|
|
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by
Pennsylvania municipalities. The ability of the issuers of the
debt securities to meet their obligations may be affected by
economic developments in a specific industry or municipality. In
order to reduce the risk
associated with such economic developments, at
September 30, 2010, 77.6% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 2.6%
to 25.8% of total investments.
|
|
|
(1)
|
|
Security represents the underlying municipal bond of an inverse
floater (see Note 1H).
|
|
(2)
|
|
Security (or a portion thereof) has been segregated to cover
payable for when-issued securities.
|
|
(3)
|
|
Security (or a portion thereof) has been pledged as collateral
for open swap contracts. The aggregate value of such collateral
is $437,408.
|
|
(4)
|
|
When-issued security.
|
See
notes to financial statements
34
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL STATEMENTS
Statements
of Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30, 2010
|
|
Municipal Fund
II
|
|
|
California Fund
II
|
|
|
Massachusetts
Fund
|
|
|
Michigan
Fund
|
|
|
|
|
|
|
Assets
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Identified cost
|
|
$
|
221,472,966
|
|
|
$
|
81,506,560
|
|
|
$
|
39,776,849
|
|
|
$
|
33,151,929
|
|
|
|
Unrealized appreciation (depreciation)
|
|
|
(221,867
|
)
|
|
|
(682,276
|
)
|
|
|
2,352,203
|
|
|
|
1,839,622
|
|
|
|
|
|
Investments, at value
|
|
$
|
221,251,099
|
|
|
$
|
80,824,284
|
|
|
$
|
42,129,052
|
|
|
$
|
34,991,551
|
|
|
|
|
|
Cash
|
|
$
|
|
|
|
$
|
355,330
|
|
|
$
|
239,006
|
|
|
$
|
|
|
|
|
Interest receivable
|
|
|
2,896,103
|
|
|
|
782,365
|
|
|
|
543,500
|
|
|
|
477,312
|
|
|
|
Receivable for investments sold
|
|
|
7,306,087
|
|
|
|
2,755,497
|
|
|
|
|
|
|
|
|
|
|
|
Receivable for variation margin on open financial futures
contracts
|
|
|
1,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivable from the transfer agent
|
|
|
17,808
|
|
|
|
6,256
|
|
|
|
4,707
|
|
|
|
1,824
|
|
|
|
Deferred debt issuance costs
|
|
|
119,879
|
|
|
|
26,118
|
|
|
|
5,400
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
231,592,710
|
|
|
$
|
84,749,850
|
|
|
$
|
42,921,665
|
|
|
$
|
35,470,687
|
|
|
|
|
|
|
Liabilities
|
|
Payable for floating rate notes issued
|
|
$
|
59,060,000
|
|
|
$
|
10,370,000
|
|
|
$
|
3,330,000
|
|
|
$
|
|
|
|
|
Payable for variation margin on open financial futures contracts
|
|
|
|
|
|
|
1,125
|
|
|
|
|
|
|
|
31
|
|
|
|
Payable for open swap contracts
|
|
|
69,563
|
|
|
|
2,707
|
|
|
|
12,678
|
|
|
|
10,770
|
|
|
|
Due to custodian
|
|
|
557,866
|
|
|
|
|
|
|
|
|
|
|
|
84,345
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
96,937
|
|
|
|
37,221
|
|
|
|
18,722
|
|
|
|
15,980
|
|
|
|
Interest expense and fees payable
|
|
|
157,013
|
|
|
|
27,180
|
|
|
|
8,450
|
|
|
|
|
|
|
|
Accrued expenses
|
|
|
135,331
|
|
|
|
81,994
|
|
|
|
55,880
|
|
|
|
49,453
|
|
|
|
|
|
Total liabilities
|
|
$
|
60,076,710
|
|
|
$
|
10,520,227
|
|
|
$
|
3,425,730
|
|
|
$
|
160,579
|
|
|
|
|
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
|
$
|
44,701,942
|
|
|
$
|
25,700,304
|
|
|
$
|
13,576,186
|
|
|
$
|
13,325,314
|
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
126,814,058
|
|
|
$
|
48,529,319
|
|
|
$
|
25,919,749
|
|
|
$
|
21,984,794
|
|
|
|
|
|
|
Sources
of Net Assets
|
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
|
$
|
99,703
|
|
|
$
|
38,751
|
|
|
$
|
17,626
|
|
|
$
|
15,124
|
|
|
|
Additional paid-in capital
|
|
|
141,296,415
|
|
|
|
54,899,036
|
|
|
|
24,973,531
|
|
|
|
21,421,038
|
|
|
|
Accumulated net realized loss
|
|
|
(15,819,909
|
)
|
|
|
(6,122,806
|
)
|
|
|
(1,563,112
|
)
|
|
|
(1,443,807
|
)
|
|
|
Accumulated undistributed net investment income
|
|
|
1,668,902
|
|
|
|
387,428
|
|
|
|
152,179
|
|
|
|
163,357
|
|
|
|
Net unrealized appreciation (depreciation)
|
|
|
(431,053
|
)
|
|
|
(673,090
|
)
|
|
|
2,339,525
|
|
|
|
1,829,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
126,814,058
|
|
|
$
|
48,529,319
|
|
|
$
|
25,919,749
|
|
|
$
|
21,984,794
|
|
|
|
|
|
|
Auction
Preferred Shares Issued and
Outstanding (Liquidation preference of
$25,000 per share)
|
|
|
|
|
1,788
|
|
|
|
1,028
|
|
|
|
543
|
|
|
|
533
|
|
|
|
|
|
|
Common
Shares Outstanding
|
|
|
|
|
9,970,255
|
|
|
|
3,875,090
|
|
|
|
1,762,574
|
|
|
|
1,512,368
|
|
|
|
|
|
|
Net
Asset Value Per Common Share
|
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
|
$
|
12.72
|
|
|
$
|
12.52
|
|
|
$
|
14.71
|
|
|
$
|
14.54
|
|
|
|
|
|
See
notes to financial statements
35
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30, 2010
|
|
New Jersey
Fund
|
|
|
New York Fund
II
|
|
|
Ohio
Fund
|
|
|
Pennsylvania
Fund
|
|
|
|
|
|
|
Assets
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Identified cost
|
|
$
|
57,915,283
|
|
|
$
|
54,935,398
|
|
|
$
|
47,182,499
|
|
|
$
|
64,142,281
|
|
|
|
Unrealized appreciation
|
|
|
4,131,663
|
|
|
|
2,391,201
|
|
|
|
2,754,135
|
|
|
|
1,162,271
|
|
|
|
|
|
Investments, at value
|
|
$
|
62,046,946
|
|
|
$
|
57,326,599
|
|
|
$
|
49,936,634
|
|
|
$
|
65,304,552
|
|
|
|
|
|
Cash
|
|
$
|
28,835
|
|
|
$
|
935,378
|
|
|
$
|
2,351,711
|
|
|
$
|
1,360,953
|
|
|
|
Interest receivable
|
|
|
610,583
|
|
|
|
766,557
|
|
|
|
610,855
|
|
|
|
749,077
|
|
|
|
Receivable for investments sold
|
|
|
594,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivable for variation margin on open financial futures
contracts
|
|
|
|
|
|
|
|
|
|
|
781
|
|
|
|
|
|
|
|
Receivable from the transfer agent
|
|
|
10,529
|
|
|
|
3,497
|
|
|
|
6,510
|
|
|
|
5,974
|
|
|
|
Deferred debt issuance costs
|
|
|
7,801
|
|
|
|
16,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
63,299,496
|
|
|
$
|
59,048,830
|
|
|
$
|
52,906,491
|
|
|
$
|
67,420,556
|
|
|
|
|
|
Liabilities
|
|
Payable for floating rate notes issued
|
|
$
|
6,346,000
|
|
|
$
|
11,335,000
|
|
|
$
|
1,010,000
|
|
|
$
|
4,350,000
|
|
|
|
Payable for investments purchased
|
|
|
|
|
|
|
|
|
|
|
521,562
|
|
|
|
|
|
|
|
Payable for when-issued securities
|
|
|
|
|
|
|
|
|
|
|
1,545,348
|
|
|
|
643,687
|
|
|
|
Payable for variation margin on open financial futures contracts
|
|
|
4,062
|
|
|
|
1,875
|
|
|
|
|
|
|
|
|
|
|
|
Payable for open swap contracts
|
|
|
18,409
|
|
|
|
19,529
|
|
|
|
17,120
|
|
|
|
337,067
|
|
|
|
Payable to affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee
|
|
|
27,153
|
|
|
|
25,757
|
|
|
|
22,945
|
|
|
|
29,991
|
|
|
|
Interest expense and fees payable
|
|
|
19,890
|
|
|
|
26,636
|
|
|
|
2,564
|
|
|
|
11,138
|
|
|
|
Accrued expenses
|
|
|
60,882
|
|
|
|
61,705
|
|
|
|
59,872
|
|
|
|
65,441
|
|
|
|
|
|
Total liabilities
|
|
$
|
6,476,396
|
|
|
$
|
11,470,502
|
|
|
$
|
3,179,411
|
|
|
$
|
5,437,324
|
|
|
|
|
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
|
$
|
19,600,690
|
|
|
$
|
13,250,311
|
|
|
$
|
17,001,276
|
|
|
$
|
21,726,900
|
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
37,222,410
|
|
|
$
|
34,328,017
|
|
|
$
|
32,725,804
|
|
|
$
|
40,256,332
|
|
|
|
|
|
Sources
of Net Assets
|
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
|
$
|
25,830
|
|
|
$
|
25,613
|
|
|
$
|
25,260
|
|
|
$
|
29,518
|
|
|
|
Additional paid-in capital
|
|
|
36,601,583
|
|
|
|
36,281,766
|
|
|
|
35,766,891
|
|
|
|
41,822,226
|
|
|
|
Accumulated net realized loss
|
|
|
(3,789,233
|
)
|
|
|
(4,626,283
|
)
|
|
|
(5,973,854
|
)
|
|
|
(2,811,329
|
)
|
|
|
Accumulated undistributed net investment income
|
|
|
260,539
|
|
|
|
255,427
|
|
|
|
213,520
|
|
|
|
390,713
|
|
|
|
Net unrealized appreciation
|
|
|
4,123,691
|
|
|
|
2,391,494
|
|
|
|
2,693,987
|
|
|
|
825,204
|
|
|
|
|
|
Net assets applicable to common shares
|
|
$
|
37,222,410
|
|
|
$
|
34,328,017
|
|
|
$
|
32,725,804
|
|
|
$
|
40,256,332
|
|
|
|
|
|
Auction
Preferred Shares Issued and
Outstanding (Liquidation preference of
$25,000 per share)
|
|
|
|
|
784
|
|
|
|
530
|
|
|
|
680
|
|
|
|
869
|
|
|
|
|
|
Common
Shares Outstanding
|
|
|
|
|
2,582,997
|
|
|
|
2,561,263
|
|
|
|
2,526,031
|
|
|
|
2,951,783
|
|
|
|
|
|
Net
Asset Value Per Common Share
|
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
|
$
|
14.41
|
|
|
$
|
13.40
|
|
|
$
|
12.96
|
|
|
$
|
13.64
|
|
|
|
|
|
See
notes to financial statements
36
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2010
|
|
Municipal Fund
II
|
|
|
California Fund
II
|
|
|
Massachusetts
Fund
|
|
|
Michigan
Fund
|
|
|
|
|
|
|
Investment
Income
|
|
Interest
|
|
$
|
11,511,273
|
|
|
$
|
4,198,491
|
|
|
$
|
1,933,458
|
|
|
$
|
1,723,999
|
|
|
|
|
|
Total investment income
|
|
$
|
11,511,273
|
|
|
$
|
4,198,491
|
|
|
$
|
1,933,458
|
|
|
$
|
1,723,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
1,150,771
|
|
|
$
|
441,839
|
|
|
$
|
221,024
|
|
|
$
|
191,164
|
|
|
|
Trustees fees and expenses
|
|
|
7,648
|
|
|
|
3,241
|
|
|
|
1,874
|
|
|
|
1,690
|
|
|
|
Custodian fee
|
|
|
102,413
|
|
|
|
43,113
|
|
|
|
28,069
|
|
|
|
24,523
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
17,134
|
|
|
|
15,260
|
|
|
|
15,389
|
|
|
|
15,459
|
|
|
|
Legal and accounting services
|
|
|
52,935
|
|
|
|
39,233
|
|
|
|
32,808
|
|
|
|
29,562
|
|
|
|
Printing and postage
|
|
|
49,309
|
|
|
|
17,632
|
|
|
|
12,262
|
|
|
|
11,967
|
|
|
|
Interest expense and fees
|
|
|
460,286
|
|
|
|
76,318
|
|
|
|
21,546
|
|
|
|
|
|
|
|
Preferred shares service fee
|
|
|
67,127
|
|
|
|
38,595
|
|
|
|
20,385
|
|
|
|
20,010
|
|
|
|
Miscellaneous
|
|
|
51,391
|
|
|
|
52,588
|
|
|
|
30,082
|
|
|
|
28,659
|
|
|
|
|
|
Total expenses
|
|
$
|
1,959,014
|
|
|
$
|
727,819
|
|
|
$
|
383,439
|
|
|
$
|
323,034
|
|
|
|
|
|
Deduct
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
1,004
|
|
|
$
|
512
|
|
|
$
|
210
|
|
|
$
|
163
|
|
|
|
Allocation of expenses to affiliate
|
|
|
16,776
|
|
|
|
6,532
|
|
|
|
3,233
|
|
|
|
2,810
|
|
|
|
|
|
Total expense reductions
|
|
$
|
17,780
|
|
|
$
|
7,044
|
|
|
$
|
3,443
|
|
|
$
|
2,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
1,941,234
|
|
|
$
|
720,775
|
|
|
$
|
379,996
|
|
|
$
|
320,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
9,570,039
|
|
|
$
|
3,477,716
|
|
|
$
|
1,553,462
|
|
|
$
|
1,403,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and Unrealized Gain (Loss)
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
1,592,390
|
|
|
$
|
(384,429
|
)
|
|
$
|
9,296
|
|
|
$
|
(144,708
|
)
|
|
|
Extinguishment of debt
|
|
|
(1,069
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts
|
|
|
(1,898,401
|
)
|
|
|
(551,427
|
)
|
|
|
|
|
|
|
(150,916
|
)
|
|
|
Swap contracts
|
|
|
(1,254,374
|
)
|
|
|
(651,745
|
)
|
|
|
(307,580
|
)
|
|
|
(246,866
|
)
|
|
|
|
|
Net realized loss
|
|
$
|
(1,561,454
|
)
|
|
$
|
(1,587,601
|
)
|
|
$
|
(298,284
|
)
|
|
$
|
(542,490
|
)
|
|
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
(500,645
|
)
|
|
$
|
(376,176
|
)
|
|
$
|
282,031
|
|
|
$
|
131,797
|
|
|
|
Financial futures contracts
|
|
|
200,505
|
|
|
|
97,036
|
|
|
|
|
|
|
|
23,303
|
|
|
|
Swap contracts
|
|
|
269,245
|
|
|
|
192,592
|
|
|
|
80,030
|
|
|
|
62,329
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
(30,895
|
)
|
|
$
|
(86,548
|
)
|
|
$
|
362,061
|
|
|
$
|
217,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss)
|
|
$
|
(1,592,349
|
)
|
|
$
|
(1,674,149
|
)
|
|
$
|
63,777
|
|
|
$
|
(325,061
|
)
|
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(182,756
|
)
|
|
$
|
(103,957
|
)
|
|
$
|
(54,821
|
)
|
|
$
|
(54,182
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
7,794,934
|
|
|
$
|
1,699,610
|
|
|
$
|
1,562,418
|
|
|
$
|
1,024,695
|
|
|
|
|
|
See
notes to financial statements
37
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2010
|
|
New Jersey
Fund
|
|
|
New York Fund
II
|
|
|
Ohio
Fund
|
|
|
Pennsylvania
Fund
|
|
|
|
|
|
|
Investment
Income
|
|
Interest
|
|
$
|
2,980,756
|
|
|
$
|
2,731,485
|
|
|
$
|
2,523,056
|
|
|
$
|
3,146,337
|
|
|
|
|
|
Total investment income
|
|
$
|
2,980,756
|
|
|
$
|
2,731,485
|
|
|
$
|
2,523,056
|
|
|
$
|
3,146,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment adviser fee
|
|
$
|
320,719
|
|
|
$
|
307,467
|
|
|
$
|
272,968
|
|
|
$
|
348,209
|
|
|
|
Trustees fees and expenses
|
|
|
2,488
|
|
|
|
2,410
|
|
|
|
2,200
|
|
|
|
2,650
|
|
|
|
Custodian fee
|
|
|
34,902
|
|
|
|
35,730
|
|
|
|
30,552
|
|
|
|
36,918
|
|
|
|
Transfer and dividend disbursing agent fees
|
|
|
15,834
|
|
|
|
15,350
|
|
|
|
15,200
|
|
|
|
21,671
|
|
|
|
Legal and accounting services
|
|
|
38,458
|
|
|
|
40,295
|
|
|
|
37,828
|
|
|
|
36,101
|
|
|
|
Printing and postage
|
|
|
17,875
|
|
|
|
18,922
|
|
|
|
17,492
|
|
|
|
20,841
|
|
|
|
Interest expense and fees
|
|
|
59,781
|
|
|
|
93,982
|
|
|
|
7,176
|
|
|
|
29,224
|
|
|
|
Preferred shares service fee
|
|
|
29,434
|
|
|
|
19,896
|
|
|
|
25,528
|
|
|
|
32,624
|
|
|
|
Miscellaneous
|
|
|
33,912
|
|
|
|
35,688
|
|
|
|
30,062
|
|
|
|
33,501
|
|
|
|
|
|
Total expenses
|
|
$
|
553,403
|
|
|
$
|
569,740
|
|
|
$
|
439,006
|
|
|
$
|
561,739
|
|
|
|
|
|
Deduct
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reduction of custodian fee
|
|
$
|
257
|
|
|
$
|
508
|
|
|
$
|
250
|
|
|
$
|
523
|
|
|
|
Allocation of expenses to affiliate
|
|
|
4,638
|
|
|
|
4,503
|
|
|
|
4,002
|
|
|
|
5,052
|
|
|
|
|
|
Total expense reductions
|
|
$
|
4,895
|
|
|
$
|
5,011
|
|
|
$
|
4,252
|
|
|
$
|
5,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
$
|
548,508
|
|
|
$
|
564,729
|
|
|
$
|
434,754
|
|
|
$
|
556,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
2,432,248
|
|
|
$
|
2,166,756
|
|
|
$
|
2,088,302
|
|
|
$
|
2,590,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and Unrealized Gain (Loss)
|
|
Net realized gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment transactions
|
|
$
|
231,700
|
|
|
$
|
(408,974
|
)
|
|
$
|
162,250
|
|
|
$
|
(413,660
|
)
|
|
|
Financial futures contracts
|
|
|
(1,142,075
|
)
|
|
|
(564,170
|
)
|
|
|
(582,832
|
)
|
|
|
|
|
|
|
Swap contracts
|
|
|
(446,024
|
)
|
|
|
(641,722
|
)
|
|
|
(311,628
|
)
|
|
|
(461,765
|
)
|
|
|
|
|
Net realized loss
|
|
$
|
(1,356,399
|
)
|
|
$
|
(1,614,866
|
)
|
|
$
|
(732,210
|
)
|
|
$
|
(875,425
|
)
|
|
|
|
|
Change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
710,900
|
|
|
$
|
926,087
|
|
|
$
|
442,621
|
|
|
$
|
239,701
|
|
|
|
Financial futures contracts
|
|
|
10,437
|
|
|
|
78,521
|
|
|
|
62,454
|
|
|
|
|
|
|
|
Swap contracts
|
|
|
115,974
|
|
|
|
189,114
|
|
|
|
67,408
|
|
|
|
(162,902
|
)
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
$
|
837,311
|
|
|
$
|
1,193,722
|
|
|
$
|
572,483
|
|
|
$
|
76,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized loss
|
|
$
|
(519,088
|
)
|
|
$
|
(421,144
|
)
|
|
$
|
(159,727
|
)
|
|
$
|
(798,626
|
)
|
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(80,417
|
)
|
|
$
|
(54,269
|
)
|
|
$
|
(69,754
|
)
|
|
$
|
(87,380
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
1,832,743
|
|
|
$
|
1,691,343
|
|
|
$
|
1,858,821
|
|
|
$
|
1,704,167
|
|
|
|
|
|
See
notes to financial statements
38
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
Municipal Fund
II
|
|
|
California Fund
II
|
|
|
Massachusetts
Fund
|
|
|
Michigan
Fund
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
9,570,039
|
|
|
$
|
3,477,716
|
|
|
$
|
1,553,462
|
|
|
$
|
1,403,938
|
|
|
|
Net realized loss from investment transactions, extinguishment
of debt, financial futures contracts and swap contracts
|
|
|
(1,561,454
|
)
|
|
|
(1,587,601
|
)
|
|
|
(298,284
|
)
|
|
|
(542,490
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
|
|
(30,895
|
)
|
|
|
(86,548
|
)
|
|
|
362,061
|
|
|
|
217,429
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(182,756
|
)
|
|
|
(103,957
|
)
|
|
|
(54,821
|
)
|
|
|
(54,182
|
)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
7,794,934
|
|
|
$
|
1,699,610
|
|
|
$
|
1,562,418
|
|
|
$
|
1,024,695
|
|
|
|
|
|
Distributions to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(9,355,497
|
)
|
|
$
|
(3,320,673
|
)
|
|
$
|
(1,472,968
|
)
|
|
$
|
(1,321,557
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(9,355,497
|
)
|
|
$
|
(3,320,673
|
)
|
|
$
|
(1,472,968
|
)
|
|
$
|
(1,321,557
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions to common shareholders
|
|
$
|
224,935
|
|
|
$
|
69,999
|
|
|
$
|
59,710
|
|
|
$
|
5,554
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
224,935
|
|
|
$
|
69,999
|
|
|
$
|
59,710
|
|
|
$
|
5,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
$
|
(1,335,628
|
)
|
|
$
|
(1,551,064
|
)
|
|
$
|
149,160
|
|
|
$
|
(291,308
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares
|
|
At beginning of year
|
|
$
|
128,149,686
|
|
|
$
|
50,080,383
|
|
|
$
|
25,770,589
|
|
|
$
|
22,276,102
|
|
|
|
|
|
At end of year
|
|
$
|
126,814,058
|
|
|
$
|
48,529,319
|
|
|
$
|
25,919,749
|
|
|
$
|
21,984,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed net investment
income included in net assets applicable to
common shares
|
|
At end of year
|
|
$
|
1,668,902
|
|
|
$
|
387,428
|
|
|
$
|
152,179
|
|
|
$
|
163,357
|
|
|
|
|
|
See
notes to financial statements
39
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
New Jersey
Fund
|
|
|
New York Fund
II
|
|
|
Ohio
Fund
|
|
|
Pennsylvania
Fund
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
2,432,248
|
|
|
$
|
2,166,756
|
|
|
$
|
2,088,302
|
|
|
$
|
2,590,173
|
|
|
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
|
|
(1,356,399
|
)
|
|
|
(1,614,866
|
)
|
|
|
(732,210
|
)
|
|
|
(875,425
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
|
|
837,311
|
|
|
|
1,193,722
|
|
|
|
572,483
|
|
|
|
76,799
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(80,417
|
)
|
|
|
(54,269
|
)
|
|
|
(69,754
|
)
|
|
|
(87,380
|
)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
1,832,743
|
|
|
$
|
1,691,343
|
|
|
$
|
1,858,821
|
|
|
$
|
1,704,167
|
|
|
|
|
|
Distributions to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(2,359,324
|
)
|
|
$
|
(2,249,070
|
)
|
|
$
|
(1,922,367
|
)
|
|
$
|
(2,471,203
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(2,359,324
|
)
|
|
$
|
(2,249,070
|
)
|
|
$
|
(1,922,367
|
)
|
|
$
|
(2,471,203
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions to common shareholders
|
|
$
|
120,969
|
|
|
$
|
38,845
|
|
|
$
|
79,243
|
|
|
$
|
66,978
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
120,969
|
|
|
$
|
38,845
|
|
|
$
|
79,243
|
|
|
$
|
66,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets
|
|
$
|
(405,612
|
)
|
|
$
|
(518,882
|
)
|
|
$
|
15,697
|
|
|
$
|
(700,058
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares
|
|
At beginning of year
|
|
$
|
37,628,022
|
|
|
$
|
34,846,899
|
|
|
$
|
32,710,107
|
|
|
$
|
40,956,390
|
|
|
|
|
|
At end of year
|
|
$
|
37,222,410
|
|
|
$
|
34,328,017
|
|
|
$
|
32,725,804
|
|
|
$
|
40,256,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed net investment
income included in net assets applicable to
common shares
|
|
At end of year
|
|
$
|
260,539
|
|
|
$
|
255,427
|
|
|
$
|
213,520
|
|
|
$
|
390,713
|
|
|
|
|
|
See
notes to financial statements
40
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
Municipal Fund
II
|
|
|
California Fund
II
|
|
|
Massachusetts
Fund
|
|
|
Michigan
Fund
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
9,377,413
|
|
|
$
|
3,390,514
|
|
|
$
|
1,583,454
|
|
|
$
|
1,399,076
|
|
|
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
|
|
(10,730,783
|
)
|
|
|
(3,248,977
|
)
|
|
|
(1,136,806
|
)
|
|
|
(480,219
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
|
|
28,703,972
|
|
|
|
9,442,700
|
|
|
|
5,497,042
|
|
|
|
3,670,791
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(578,404
|
)
|
|
|
(325,864
|
)
|
|
|
(174,091
|
)
|
|
|
(170,213
|
)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
26,772,198
|
|
|
$
|
9,258,373
|
|
|
$
|
5,769,599
|
|
|
$
|
4,419,435
|
|
|
|
|
|
Distributions to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(8,437,461
|
)
|
|
$
|
(2,954,634
|
)
|
|
$
|
(1,332,810
|
)
|
|
$
|
(1,152,527
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(8,437,461
|
)
|
|
$
|
(2,954,634
|
)
|
|
$
|
(1,332,810
|
)
|
|
$
|
(1,152,527
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions to common shareholders
|
|
$
|
167,262
|
|
|
$
|
58,277
|
|
|
$
|
22,988
|
|
|
$
|
1,776
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
167,262
|
|
|
$
|
58,277
|
|
|
$
|
22,988
|
|
|
$
|
1,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets
|
|
$
|
18,501,999
|
|
|
$
|
6,362,016
|
|
|
$
|
4,459,777
|
|
|
$
|
3,268,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares
|
|
At beginning of year
|
|
$
|
109,647,687
|
|
|
$
|
43,718,367
|
|
|
$
|
21,310,812
|
|
|
$
|
19,007,418
|
|
|
|
|
|
At end of year
|
|
$
|
128,149,686
|
|
|
$
|
50,080,383
|
|
|
$
|
25,770,589
|
|
|
$
|
22,276,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed net investment
income included in net assets applicable to
common shares
|
|
At end of year
|
|
$
|
1,538,609
|
|
|
$
|
332,866
|
|
|
$
|
119,966
|
|
|
$
|
148,304
|
|
|
|
|
|
See
notes to financial statements
41
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
in Net Assets
|
|
New Jersey
Fund
|
|
|
New York Fund
II
|
|
|
Ohio
Fund
|
|
|
Pennsylvania
Fund
|
|
|
|
|
From operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
2,382,638
|
|
|
$
|
2,191,347
|
|
|
$
|
2,130,212
|
|
|
$
|
2,618,797
|
|
|
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
|
|
(2,484,603
|
)
|
|
|
(2,557,907
|
)
|
|
|
(4,193,790
|
)
|
|
|
(1,622,894
|
)
|
|
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
|
|
9,526,226
|
|
|
|
7,911,044
|
|
|
|
8,199,680
|
|
|
|
7,883,733
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(227,579
|
)
|
|
|
(168,414
|
)
|
|
|
(254,584
|
)
|
|
|
(210,410
|
)
|
|
|
From net realized gain
|
|
|
(40,658
|
)
|
|
|
|
|
|
|
|
|
|
|
(132,368
|
)
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
9,156,024
|
|
|
$
|
7,376,070
|
|
|
$
|
5,881,518
|
|
|
$
|
8,536,858
|
|
|
|
|
|
Distributions to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
$
|
(2,106,960
|
)
|
|
$
|
(2,014,492
|
)
|
|
$
|
(1,729,034
|
)
|
|
$
|
(2,217,812
|
)
|
|
|
From net realized gain
|
|
|
(264,989
|
)
|
|
|
|
|
|
|
|
|
|
|
(803,880
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(2,371,949
|
)
|
|
$
|
(2,014,492
|
)
|
|
$
|
(1,729,034
|
)
|
|
$
|
(3,021,692
|
)
|
|
|
|
|
Capital share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of distributions to common shareholders
|
|
$
|
68,403
|
|
|
$
|
26,563
|
|
|
$
|
63,002
|
|
|
$
|
28,342
|
|
|
|
|
|
Net increase in net assets from capital share transactions
|
|
$
|
68,403
|
|
|
$
|
26,563
|
|
|
$
|
63,002
|
|
|
$
|
28,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets
|
|
$
|
6,852,478
|
|
|
$
|
5,388,141
|
|
|
$
|
4,215,486
|
|
|
$
|
5,543,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets Applicable to Common Shares
|
|
At beginning of year
|
|
$
|
30,775,544
|
|
|
$
|
29,458,758
|
|
|
$
|
28,494,621
|
|
|
$
|
35,412,882
|
|
|
|
|
|
At end of year
|
|
$
|
37,628,022
|
|
|
$
|
34,846,899
|
|
|
$
|
32,710,107
|
|
|
$
|
40,956,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
undistributed net investment
income included in net assets applicable to
common shares
|
|
At end of year
|
|
$
|
288,817
|
|
|
$
|
366,357
|
|
|
$
|
163,581
|
|
|
$
|
397,113
|
|
|
|
|
|
See
notes to financial statements
42
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Statements
of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
Municipal Fund
II
|
|
|
California Fund
II
|
|
|
New Jersey
Fund
|
|
|
New York Fund
II
|
|
|
|
|
Net increase in net assets from operations
|
|
$
|
7,794,934
|
|
|
$
|
1,699,610
|
|
|
$
|
1,832,743
|
|
|
$
|
1,691,343
|
|
|
|
Distributions to preferred shareholders
|
|
|
182,756
|
|
|
|
103,957
|
|
|
|
80,417
|
|
|
|
54,269
|
|
|
|
|
|
Net increase in net assets from operations excluding
distributions to preferred shareholders
|
|
$
|
7,977,690
|
|
|
$
|
1,803,567
|
|
|
$
|
1,913,160
|
|
|
$
|
1,745,612
|
|
|
|
Adjustments to reconcile net increase in net assets from
operations to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments purchased
|
|
|
(29,661,886
|
)
|
|
|
(13,659,660
|
)
|
|
|
(5,191,114
|
)
|
|
|
(7,260,216
|
)
|
|
|
Investments sold
|
|
|
39,454,968
|
|
|
|
17,677,330
|
|
|
|
8,819,336
|
|
|
|
9,734,678
|
|
|
|
Net accretion/amortization of premium (discount)
|
|
|
(1,939,891
|
)
|
|
|
(950,032
|
)
|
|
|
(683,712
|
)
|
|
|
(279,826
|
)
|
|
|
Amortization of deferred debt issuance costs
|
|
|
22,210
|
|
|
|
2,605
|
|
|
|
489
|
|
|
|
9,526
|
|
|
|
Decrease (increase) in interest receivable
|
|
|
(83,053
|
)
|
|
|
16,201
|
|
|
|
54,128
|
|
|
|
55,579
|
|
|
|
Increase in receivable for investments sold
|
|
|
(6,565,136
|
)
|
|
|
(2,755,497
|
)
|
|
|
(372,099
|
)
|
|
|
|
|
|
|
Decrease in receivable for variation margin on open financial
futures contracts
|
|
|
25,360
|
|
|
|
10,750
|
|
|
|
|
|
|
|
7,500
|
|
|
|
Increase in receivable from the transfer agent
|
|
|
(17,808
|
)
|
|
|
(6,256
|
)
|
|
|
(10,529
|
)
|
|
|
(3,497
|
)
|
|
|
Decrease in payable for investments purchased
|
|
|
|
|
|
|
|
|
|
|
(1,356,300
|
)
|
|
|
|
|
|
|
Increase in payable for variation margin on open financial
futures contracts
|
|
|
|
|
|
|
1,125
|
|
|
|
4,062
|
|
|
|
1,875
|
|
|
|
Decrease in payable for open swap contracts
|
|
|
(269,245
|
)
|
|
|
(192,592
|
)
|
|
|
(115,974
|
)
|
|
|
(189,114
|
)
|
|
|
Increase in payable to affiliate for investment adviser fee
|
|
|
13,757
|
|
|
|
3,746
|
|
|
|
3,346
|
|
|
|
3,116
|
|
|
|
Decrease in interest expense and fees payable
|
|
|
(21,940
|
)
|
|
|
(2,973
|
)
|
|
|
(1,887
|
)
|
|
|
(2,344
|
)
|
|
|
Increase in accrued expenses
|
|
|
29,909
|
|
|
|
13,014
|
|
|
|
4,092
|
|
|
|
5,934
|
|
|
|
Net change in unrealized (appreciation) depreciation from
investments
|
|
|
500,645
|
|
|
|
376,176
|
|
|
|
(710,900
|
)
|
|
|
(926,087
|
)
|
|
|
Net realized (gain) loss from investments
|
|
|
(1,592,390
|
)
|
|
|
384,429
|
|
|
|
(231,700
|
)
|
|
|
408,974
|
|
|
|
Net realized loss on extinguishment of debt
|
|
|
1,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
7,874,259
|
|
|
$
|
2,721,933
|
|
|
$
|
2,124,398
|
|
|
$
|
3,311,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Financing Activities
|
|
Distributions paid to common shareholders, net of reinvestments
|
|
$
|
(9,130,562
|
)
|
|
$
|
(3,250,674
|
)
|
|
$
|
(2,238,355
|
)
|
|
$
|
(2,210,225
|
)
|
|
|
Cash distributions paid to preferred shareholders
|
|
|
(184,263
|
)
|
|
|
(106,429
|
)
|
|
|
(80,282
|
)
|
|
|
(54,140
|
)
|
|
|
Proceeds from secured borrowings
|
|
|
2,430,000
|
|
|
|
795,000
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of secured borrowings
|
|
|
(735,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in due to custodian
|
|
|
(254,434
|
)
|
|
|
|
|
|
|
|
|
|
|
(111,967
|
)
|
|
|
|
|
Net cash used in financing activities
|
|
$
|
(7,874,259
|
)
|
|
$
|
(2,562,103
|
)
|
|
$
|
(2,318,637
|
)
|
|
$
|
(2,376,332
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
$
|
|
|
|
$
|
159,830
|
|
|
$
|
(194,239
|
)
|
|
$
|
935,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of year
|
|
$
|
|
|
|
$
|
195,500
|
|
|
$
|
223,074
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of year
|
|
$
|
|
|
|
$
|
355,330
|
|
|
$
|
28,835
|
|
|
$
|
935,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow
information:
|
|
Noncash financing activities not included herein consist of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of dividends and distributions
|
|
$
|
224,935
|
|
|
$
|
69,999
|
|
|
$
|
120,969
|
|
|
$
|
38,845
|
|
|
|
Cash paid for interest and fees
|
|
|
460,015
|
|
|
|
76,686
|
|
|
|
61,179
|
|
|
|
86,800
|
|
|
|
|
|
See
notes to financial statements
43
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
12.880
|
|
|
$
|
11.030
|
|
|
$
|
15.470
|
|
|
$
|
15.860
|
|
|
$
|
15.310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.961
|
|
|
$
|
0.943
|
|
|
$
|
1.037
|
|
|
$
|
1.048
|
|
|
$
|
1.058
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.164
|
)
|
|
|
1.813
|
|
|
|
(4.159
|
)
|
|
|
(0.383
|
)
|
|
|
0.605
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.018
|
)
|
|
|
(0.058
|
)
|
|
|
(0.168
|
)
|
|
|
(0.303
|
)
|
|
|
(0.265
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.117
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.779
|
|
|
$
|
2.698
|
|
|
$
|
(3.407
|
)
|
|
$
|
0.362
|
|
|
$
|
1.398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.939
|
)
|
|
$
|
(0.848
|
)
|
|
$
|
(0.747
|
)
|
|
$
|
(0.752
|
)
|
|
$
|
(0.848
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.286
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.939
|
)
|
|
$
|
(0.848
|
)
|
|
$
|
(1.033
|
)
|
|
$
|
(0.752
|
)
|
|
$
|
(0.848
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
12.720
|
|
|
$
|
12.880
|
|
|
$
|
11.030
|
|
|
$
|
15.470
|
|
|
$
|
15.860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
14.010
|
|
|
$
|
13.370
|
|
|
$
|
11.650
|
|
|
$
|
14.550
|
|
|
$
|
15.310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
6.26
|
%
|
|
|
26.08
|
%
|
|
|
(23.08
|
)%
|
|
|
2.43
|
%
(3)
|
|
|
9.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
12.78
|
%
|
|
|
23.88
|
%
|
|
|
(13.61
|
)%
|
|
|
(0.20
|
)%
(3)
|
|
|
0.13
|
%
|
|
|
|
|
See
notes to financial statements
44
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
126,814
|
|
|
$
|
128,150
|
|
|
$
|
109,648
|
|
|
$
|
153,612
|
|
|
$
|
157,463
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.22
|
%
|
|
|
1.28
|
%
|
|
|
1.09
|
%
|
|
|
1.00
|
%
(5)
|
|
|
1.02
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
0.38
|
%
|
|
|
0.87
|
%
|
|
|
0.93
|
%
|
|
|
0.99
|
%
|
|
|
0.91
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.60
|
%
|
|
|
2.15
|
%
|
|
|
2.02
|
%
|
|
|
1.99
|
%
(5)
|
|
|
1.93
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.22
|
%
|
|
|
1.27
|
%
|
|
|
1.05
|
%
|
|
|
0.99
|
%
(5)
|
|
|
1.01
|
%
|
|
|
Net investment income
|
|
|
7.86
|
%
|
|
|
9.05
|
%
|
|
|
7.40
|
%
|
|
|
6.62
|
%
|
|
|
6.87
|
%
|
|
|
Portfolio Turnover
|
|
|
13
|
%
|
|
|
22
|
%
|
|
|
54
|
%
|
|
|
31
|
%
|
|
|
26
|
%
|
|
|
|
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
0.89
|
%
|
|
|
0.89
|
%
|
|
|
0.69
|
%
|
|
|
0.64
|
%
(5)
|
|
|
0.65
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
0.28
|
%
|
|
|
0.61
|
%
|
|
|
0.60
|
%
|
|
|
0.64
|
%
|
|
|
0.58
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.17
|
%
|
|
|
1.50
|
%
|
|
|
1.29
|
%
|
|
|
1.28
|
%
(5)
|
|
|
1.23
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.89
|
%
|
|
|
0.89
|
%
|
|
|
0.67
|
%
|
|
|
0.63
|
%
(5)
|
|
|
0.64
|
%
|
|
|
Net investment income
|
|
|
5.75
|
%
|
|
|
6.32
|
%
|
|
|
4.73
|
%
|
|
|
4.25
|
%
|
|
|
4.37
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
1,788
|
|
|
|
1,788
|
|
|
|
1,788
|
|
|
|
3,500
|
|
|
|
3,500
|
|
|
|
Asset coverage per preferred
share
(7)
|
|
$
|
95,926
|
|
|
$
|
96,674
|
|
|
$
|
86,356
|
|
|
$
|
68,894
|
|
|
$
|
69,992
|
|
|
|
Involuntary liquidation preference per preferred
share
(8)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(8)
|
|
$
|
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)
|
|
During the year ended September 30, 2007, the investment
adviser fully reimbursed the Fund for a realized loss on the
disposal of an investment security which did not meet investment
guidelines. The loss had no effect on total return.
|
|
(4)
|
|
Ratios do not reflect the effect of dividend payments to
preferred shareholders.
|
|
(5)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(6)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(7)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(8)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
45
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
12.940
|
|
|
$
|
11.310
|
|
|
$
|
15.020
|
|
|
$
|
15.330
|
|
|
$
|
14.810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.898
|
|
|
$
|
0.877
|
|
|
$
|
0.983
|
|
|
$
|
0.981
|
|
|
$
|
0.989
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.433
|
)
|
|
|
1.601
|
|
|
|
(3.583
|
)
|
|
|
(0.301
|
)
|
|
|
0.547
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.027
|
)
|
|
|
(0.084
|
)
|
|
|
(0.233
|
)
|
|
|
(0.282
|
)
|
|
|
(0.243
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.053
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.438
|
|
|
$
|
2.394
|
|
|
$
|
(2.886
|
)
|
|
$
|
0.398
|
|
|
$
|
1.293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.858
|
)
|
|
$
|
(0.764
|
)
|
|
$
|
(0.693
|
)
|
|
$
|
(0.708
|
)
|
|
$
|
(0.773
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.131
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.858
|
)
|
|
$
|
(0.764
|
)
|
|
$
|
(0.824
|
)
|
|
$
|
(0.708
|
)
|
|
$
|
(0.773
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
12.520
|
|
|
$
|
12.940
|
|
|
$
|
11.310
|
|
|
$
|
15.020
|
|
|
$
|
15.330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
13.250
|
|
|
$
|
12.500
|
|
|
$
|
10.250
|
|
|
$
|
14.250
|
|
|
$
|
14.635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
3.93
|
%
|
|
|
23.06
|
%
|
|
|
(19.81
|
)%
|
|
|
2.75
|
%
|
|
|
9.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
13.86
|
%
|
|
|
31.17
|
%
|
|
|
(23.40
|
)%
|
|
|
2.11
|
%
|
|
|
4.49
|
%
|
|
|
|
|
See
notes to financial statements
46
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
48,529
|
|
|
$
|
50,080
|
|
|
$
|
43,718
|
|
|
$
|
58,010
|
|
|
$
|
59,199
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.39
|
%
|
|
|
1.51
|
%
|
|
|
1.23
|
%
|
|
|
1.11
|
%
(4)
|
|
|
1.13
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.16
|
%
|
|
|
0.37
|
%
|
|
|
0.42
|
%
|
|
|
0.50
|
%
|
|
|
0.48
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.55
|
%
|
|
|
1.88
|
%
|
|
|
1.65
|
%
|
|
|
1.61
|
%
(4)
|
|
|
1.61
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.38
|
%
|
|
|
1.50
|
%
|
|
|
1.19
|
%
|
|
|
1.09
|
%
(4)
|
|
|
1.11
|
%
|
|
|
Net investment income
|
|
|
7.47
|
%
|
|
|
8.23
|
%
|
|
|
7.11
|
%
|
|
|
6.42
|
%
|
|
|
6.66
|
%
|
|
|
Portfolio Turnover
|
|
|
17
|
%
|
|
|
17
|
%
|
|
|
22
|
%
|
|
|
37
|
%
|
|
|
13
|
%
|
|
|
|
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
0.89
|
%
|
|
|
0.93
|
%
|
|
|
0.76
|
%
|
|
|
0.71
|
%
(4)
|
|
|
0.71
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.11
|
%
|
|
|
0.23
|
%
|
|
|
0.26
|
%
|
|
|
0.32
|
%
|
|
|
0.30
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.00
|
%
|
|
|
1.16
|
%
|
|
|
1.02
|
%
|
|
|
1.03
|
%
(4)
|
|
|
1.01
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.89
|
%
|
|
|
0.93
|
%
|
|
|
0.74
|
%
|
|
|
0.69
|
%
(4)
|
|
|
0.70
|
%
|
|
|
Net investment income
|
|
|
4.81
|
%
|
|
|
5.07
|
%
|
|
|
4.42
|
%
|
|
|
4.09
|
%
|
|
|
4.19
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
1,028
|
|
|
|
1,028
|
|
|
|
1,028
|
|
|
|
1,350
|
|
|
|
1,350
|
|
|
|
Asset coverage per preferred
share
(6)
|
|
$
|
72,208
|
|
|
$
|
73,719
|
|
|
$
|
67,578
|
|
|
$
|
67,980
|
|
|
$
|
68,858
|
|
|
|
Involuntary liquidation preference per preferred
share
(7)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(7)
|
|
$
|
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)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(5)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(6)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(7)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
47
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
14.660
|
|
|
$
|
12.130
|
|
|
$
|
15.090
|
|
|
$
|
15.640
|
|
|
$
|
15.100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.882
|
|
|
$
|
0.901
|
|
|
$
|
0.981
|
|
|
$
|
0.969
|
|
|
$
|
0.983
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
0.036
|
|
|
|
2.486
|
|
|
|
(2.981
|
)
|
|
|
(0.540
|
)
|
|
|
0.613
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.031
|
)
|
|
|
(0.099
|
)
|
|
|
(0.289
|
)
|
|
|
(0.293
|
)
|
|
|
(0.256
|
)
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.887
|
|
|
$
|
3.288
|
|
|
$
|
(2.289
|
)
|
|
$
|
0.136
|
|
|
$
|
1.340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.837
|
)
|
|
$
|
(0.758
|
)
|
|
$
|
(0.671
|
)
|
|
$
|
(0.686
|
)
|
|
$
|
(0.800
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.837
|
)
|
|
$
|
(0.758
|
)
|
|
$
|
(0.671
|
)
|
|
$
|
(0.686
|
)
|
|
$
|
(0.800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
14.710
|
|
|
$
|
14.660
|
|
|
$
|
12.130
|
|
|
$
|
15.090
|
|
|
$
|
15.640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
15.160
|
|
|
$
|
15.250
|
|
|
$
|
13.780
|
|
|
$
|
14.820
|
|
|
$
|
16.090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
6.43
|
%
|
|
|
28.42
|
%
|
|
|
(15.70
|
)%
|
|
|
0.88
|
%
(3)
|
|
|
9.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
5.44
|
%
|
|
|
17.59
|
%
|
|
|
(2.46
|
)%
|
|
|
(3.72
|
)%
(3)
|
|
|
(2.28
|
)%
|
|
|
|
|
See
notes to financial statements
48
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
25,920
|
|
|
$
|
25,771
|
|
|
$
|
21,311
|
|
|
$
|
26,476
|
|
|
$
|
27,419
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.45
|
%
|
|
|
1.69
|
%
|
|
|
1.41
|
%
|
|
|
1.25
|
%
(5)
|
|
|
1.29
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
0.09
|
%
|
|
|
0.23
|
%
|
|
|
0.71
|
%
|
|
|
0.98
|
%
|
|
|
1.54
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.54
|
%
|
|
|
1.92
|
%
|
|
|
2.12
|
%
|
|
|
2.23
|
%
(5)
|
|
|
2.83
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.45
|
%
|
|
|
1.68
|
%
|
|
|
1.38
|
%
|
|
|
1.25
|
%
(5)
|
|
|
1.26
|
%
|
|
|
Net investment income
|
|
|
6.29
|
%
|
|
|
7.41
|
%
|
|
|
6.83
|
%
|
|
|
6.27
|
%
|
|
|
6.50
|
%
|
|
|
Portfolio Turnover
|
|
|
27
|
%
|
|
|
43
|
%
|
|
|
12
|
%
|
|
|
15
|
%
|
|
|
15
|
%
|
|
|
|
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
0.94
|
%
|
|
|
1.03
|
%
|
|
|
0.88
|
%
|
|
|
0.81
|
%
(5)
|
|
|
0.81
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
0.05
|
%
|
|
|
0.14
|
%
|
|
|
0.45
|
%
|
|
|
0.62
|
%
|
|
|
0.97
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
0.99
|
%
|
|
|
1.17
|
%
|
|
|
1.33
|
%
|
|
|
1.43
|
%
(5)
|
|
|
1.78
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.94
|
%
|
|
|
1.03
|
%
|
|
|
0.87
|
%
|
|
|
0.80
|
%
(5)
|
|
|
0.80
|
%
|
|
|
Net investment income
|
|
|
4.06
|
%
|
|
|
4.53
|
%
|
|
|
4.27
|
%
|
|
|
3.99
|
%
|
|
|
4.10
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
543
|
|
|
|
543
|
|
|
|
543
|
|
|
|
620
|
|
|
|
620
|
|
|
|
Asset coverage per preferred
share
(7)
|
|
$
|
72,737
|
|
|
$
|
72,462
|
|
|
$
|
64,287
|
|
|
$
|
67,711
|
|
|
$
|
69,229
|
|
|
|
Involuntary liquidation preference per preferred
share
(8)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(8)
|
|
$
|
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)
|
|
During the year ended September 30, 2007, the Fund realized
a gain on the disposal of an investment security which did not
meet investment guidelines. The gain was less than $0.01 per
share and had no effect on total return.
|
|
(4)
|
|
Ratios do not reflect the effect of dividend payments to
preferred shareholders.
|
|
(5)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(6)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(7)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(8)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
49
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
14.730
|
|
|
$
|
12.570
|
|
|
$
|
15.150
|
|
|
$
|
15.430
|
|
|
$
|
15.000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.928
|
|
|
$
|
0.925
|
|
|
$
|
0.975
|
|
|
$
|
0.985
|
|
|
$
|
0.991
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.208
|
)
|
|
|
2.110
|
|
|
|
(2.590
|
)
|
|
|
(0.309
|
)
|
|
|
0.462
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.036
|
)
|
|
|
(0.113
|
)
|
|
|
(0.295
|
)
|
|
|
(0.288
|
)
|
|
|
(0.252
|
)
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.684
|
|
|
$
|
2.922
|
|
|
$
|
(1.910
|
)
|
|
$
|
0.388
|
|
|
$
|
1.201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.874
|
)
|
|
$
|
(0.762
|
)
|
|
$
|
(0.670
|
)
|
|
$
|
(0.668
|
)
|
|
$
|
(0.771
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.874
|
)
|
|
$
|
(0.762
|
)
|
|
$
|
(0.670
|
)
|
|
$
|
(0.668
|
)
|
|
$
|
(0.771
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
14.540
|
|
|
$
|
14.730
|
|
|
$
|
12.570
|
|
|
$
|
15.150
|
|
|
$
|
15.430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
14.430
|
|
|
$
|
13.900
|
|
|
$
|
10.400
|
|
|
$
|
14.030
|
|
|
$
|
14.190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
5.16
|
%
|
|
|
25.29
|
%
|
|
|
(12.66
|
)%
(3)
|
|
|
2.81
|
%
|
|
|
8.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
10.60
|
%
|
|
|
42.90
|
%
|
|
|
(21.97
|
)%
(3)
|
|
|
3.53
|
%
|
|
|
(7.67
|
)%
|
|
|
|
|
See
notes to financial statements
50
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
21,985
|
|
|
$
|
22,276
|
|
|
$
|
19,007
|
|
|
$
|
22,912
|
|
|
$
|
23,335
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.49
|
%
|
|
|
1.70
|
%
|
|
|
1.49
|
%
|
|
|
1.29
|
%
(5)
|
|
|
1.32
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
|
|
|
|
|
|
|
|
0.54
|
%
|
|
|
0.98
|
%
|
|
|
0.90
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.49
|
%
|
|
|
1.70
|
%
|
|
|
2.03
|
%
|
|
|
2.27
|
%
(5)
|
|
|
2.22
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.49
|
%
|
|
|
1.69
|
%
|
|
|
1.48
|
%
|
|
|
1.27
|
%
(5)
|
|
|
1.30
|
%
|
|
|
Net investment income
|
|
|
6.55
|
%
|
|
|
7.30
|
%
|
|
|
6.72
|
%
|
|
|
6.43
|
%
|
|
|
6.62
|
%
|
|
|
Portfolio Turnover
|
|
|
2
|
%
|
|
|
9
|
%
|
|
|
11
|
%
|
|
|
6
|
%
|
|
|
6
|
%
|
|
|
|
|
The ratios reported above are based on net assets applicable to
common shares. The ratios based on net assets, including amounts
related to preferred shares, are as follows:
|
Ratios (as a percentage of average daily net assets applicable
to common shares and preferred
shares):
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
0.92
|
%
|
|
|
1.00
|
%
|
|
|
0.93
|
%
|
|
|
0.81
|
%
(5)
|
|
|
0.83
|
%
|
|
|
Interest and fee
expense
(6)
|
|
|
|
|
|
|
|
|
|
|
0.33
|
%
|
|
|
0.62
|
%
|
|
|
0.56
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
0.92
|
%
|
|
|
1.00
|
%
|
|
|
1.26
|
%
|
|
|
1.43
|
%
(5)
|
|
|
1.39
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.92
|
%
|
|
|
1.00
|
%
|
|
|
0.92
|
%
|
|
|
0.80
|
%
(5)
|
|
|
0.82
|
%
|
|
|
Net investment income
|
|
|
4.04
|
%
|
|
|
4.30
|
%
|
|
|
4.16
|
%
|
|
|
4.06
|
%
|
|
|
4.15
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
533
|
|
|
|
533
|
|
|
|
540
|
|
|
|
540
|
|
|
|
540
|
|
|
|
Asset coverage per preferred
share
(7)
|
|
$
|
66,248
|
|
|
$
|
66,794
|
|
|
$
|
60,199
|
|
|
$
|
67,442
|
|
|
$
|
68,222
|
|
|
|
Involuntary liquidation preference per preferred
share
(8)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(8)
|
|
$
|
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)
|
|
During the year ended September 30, 2008, the investment
adviser fully reimbursed the Fund for a realized loss on the
disposal of an investment security which did not meet investment
guidelines. The loss had no effect on total return.
|
|
(4)
|
|
Ratios do not reflect the effect of dividend payments to
preferred shareholders.
|
|
(5)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(6)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(7)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(8)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
51
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
14.620
|
|
|
$
|
11.980
|
|
|
$
|
15.690
|
|
|
$
|
15.840
|
|
|
$
|
15.240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.943
|
|
|
$
|
0.926
|
|
|
$
|
0.982
|
|
|
$
|
0.996
|
|
|
$
|
1.002
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.207
|
)
|
|
|
2.740
|
|
|
|
(3.393
|
)
|
|
|
(0.150
|
)
|
|
|
0.671
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.031
|
)
|
|
|
(0.088
|
)
|
|
|
(0.196
|
)
|
|
|
(0.286
|
)
|
|
|
(0.253
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
(0.016
|
)
|
|
|
(0.114
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.705
|
|
|
$
|
3.562
|
|
|
$
|
(2.721
|
)
|
|
$
|
0.560
|
|
|
$
|
1.420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.915
|
)
|
|
$
|
(0.819
|
)
|
|
$
|
(0.706
|
)
|
|
$
|
(0.710
|
)
|
|
$
|
(0.820
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
(0.103
|
)
|
|
|
(0.283
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.915
|
)
|
|
$
|
(0.922
|
)
|
|
$
|
(0.989
|
)
|
|
$
|
(0.710
|
)
|
|
$
|
(0.820
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
14.410
|
|
|
$
|
14.620
|
|
|
$
|
11.980
|
|
|
$
|
15.690
|
|
|
$
|
15.840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
15.350
|
|
|
$
|
14.730
|
|
|
$
|
11.880
|
|
|
$
|
14.790
|
|
|
$
|
16.400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
5.10
|
%
|
|
|
31.84
|
%
|
|
|
(18.15
|
)%
|
|
|
3.64
|
%
|
|
|
9.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
11.12
|
%
|
|
|
33.95
|
%
|
|
|
(13.88
|
)%
|
|
|
(5.66
|
)%
|
|
|
6.53
|
%
|
|
|
|
|
See
notes to financial statements
52
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
37,222
|
|
|
$
|
37,628
|
|
|
$
|
30,776
|
|
|
$
|
40,262
|
|
|
$
|
40,620
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.36
|
%
|
|
|
1.53
|
%
|
|
|
1.33
|
%
|
|
|
1.14
|
%
(4)
|
|
|
1.19
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.17
|
%
|
|
|
0.46
|
%
|
|
|
1.16
|
%
|
|
|
0.92
|
%
|
|
|
0.86
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.53
|
%
|
|
|
1.99
|
%
|
|
|
2.49
|
%
|
|
|
2.06
|
%
(4)
|
|
|
2.05
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.36
|
%
|
|
|
1.52
|
%
|
|
|
1.28
|
%
|
|
|
1.11
|
%
(4)
|
|
|
1.16
|
%
|
|
|
Net investment income
|
|
|
6.79
|
%
|
|
|
7.81
|
%
|
|
|
6.72
|
%
|
|
|
6.29
|
%
|
|
|
6.59
|
%
|
|
|
Portfolio Turnover
|
|
|
8
|
%
|
|
|
39
|
%
|
|
|
48
|
%
|
|
|
27
|
%
|
|
|
22
|
%
|
|
|
|
|
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
|
|
|
0.88
|
%
|
|
|
0.93
|
%
|
|
|
0.84
|
%
|
|
|
0.73
|
%
(4)
|
|
|
0.75
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.11
|
%
|
|
|
0.28
|
%
|
|
|
0.73
|
%
|
|
|
0.59
|
%
|
|
|
0.55
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
0.99
|
%
|
|
|
1.21
|
%
|
|
|
1.57
|
%
|
|
|
1.32
|
%
(4)
|
|
|
1.30
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.88
|
%
|
|
|
0.92
|
%
|
|
|
0.81
|
%
|
|
|
0.72
|
%
(4)
|
|
|
0.73
|
%
|
|
|
Net investment income
|
|
|
4.39
|
%
|
|
|
4.75
|
%
|
|
|
4.24
|
%
|
|
|
4.05
|
%
|
|
|
4.18
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
784
|
|
|
|
784
|
|
|
|
812
|
|
|
|
900
|
|
|
|
900
|
|
|
|
Asset coverage per preferred
share
(6)
|
|
$
|
72,478
|
|
|
$
|
72,996
|
|
|
$
|
62,907
|
|
|
$
|
69,751
|
|
|
$
|
70,144
|
|
|
|
Involuntary liquidation preference per preferred
share
(7)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(7)
|
|
$
|
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)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(5)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(6)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(7)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
53
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
13.620
|
|
|
$
|
11.530
|
|
|
$
|
15.240
|
|
|
$
|
15.760
|
|
|
$
|
15.300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.847
|
|
|
$
|
0.857
|
|
|
$
|
0.938
|
|
|
$
|
0.969
|
|
|
$
|
0.990
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.167
|
)
|
|
|
2.087
|
|
|
|
(3.483
|
)
|
|
|
(0.256
|
)
|
|
|
0.542
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.021
|
)
|
|
|
(0.066
|
)
|
|
|
(0.237
|
)
|
|
|
(0.209
|
)
|
|
|
(0.240
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.049
|
)
|
|
|
(0.079
|
)
|
|
|
(0.015
|
)
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.659
|
|
|
$
|
2.878
|
|
|
$
|
(2.831
|
)
|
|
$
|
0.425
|
|
|
$
|
1.277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.879
|
)
|
|
$
|
(0.788
|
)
|
|
$
|
(0.699
|
)
|
|
$
|
(0.697
|
)
|
|
$
|
(0.732
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
|
|
|
|
(0.180
|
)
|
|
|
(0.248
|
)
|
|
|
(0.085
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.879
|
)
|
|
$
|
(0.788
|
)
|
|
$
|
(0.879
|
)
|
|
$
|
(0.945
|
)
|
|
$
|
(0.817
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
13.400
|
|
|
$
|
13.620
|
|
|
$
|
11.530
|
|
|
$
|
15.240
|
|
|
$
|
15.760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
14.000
|
|
|
$
|
13.610
|
|
|
$
|
10.580
|
|
|
$
|
14.440
|
|
|
$
|
14.420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
5.20
|
%
|
|
|
26.71
|
%
|
|
|
(19.25
|
)%
|
|
|
3.00
|
%
|
|
|
9.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
9.99
|
%
|
|
|
37.98
|
%
|
|
|
(21.80
|
)%
|
|
|
6.66
|
%
|
|
|
4.75
|
%
|
|
|
|
|
See
notes to financial statements
54
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Fund
II
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
34,328
|
|
|
$
|
34,847
|
|
|
$
|
29,459
|
|
|
$
|
38,947
|
|
|
$
|
40,263
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.41
|
%
|
|
|
1.51
|
%
|
|
|
1.33
|
%
|
|
|
1.16
|
%
(4)
|
|
|
1.14
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.28
|
%
|
|
|
0.63
|
%
|
|
|
0.46
|
%
|
|
|
0.46
|
%
|
|
|
0.42
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.69
|
%
|
|
|
2.14
|
%
|
|
|
1.79
|
%
|
|
|
1.62
|
%
(4)
|
|
|
1.56
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.41
|
%
|
|
|
1.50
|
%
|
|
|
1.28
|
%
|
|
|
1.14
|
%
(4)
|
|
|
1.11
|
%
|
|
|
Net investment income
|
|
|
6.49
|
%
|
|
|
7.67
|
%
|
|
|
6.67
|
%
|
|
|
6.24
|
%
|
|
|
6.48
|
%
|
|
|
Portfolio Turnover
|
|
|
13
|
%
|
|
|
30
|
%
|
|
|
44
|
%
|
|
|
38
|
%
|
|
|
26
|
%
|
|
|
|
|
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
|
|
|
1.01
|
%
|
|
|
1.03
|
%
|
|
|
0.83
|
%
|
|
|
0.74
|
%
(4)
|
|
|
0.72
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.20
|
%
|
|
|
0.43
|
%
|
|
|
0.29
|
%
|
|
|
0.29
|
%
|
|
|
0.27
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.21
|
%
|
|
|
1.46
|
%
|
|
|
1.12
|
%
|
|
|
1.03
|
%
(4)
|
|
|
0.99
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.01
|
%
|
|
|
1.02
|
%
|
|
|
0.80
|
%
|
|
|
0.73
|
%
(4)
|
|
|
0.71
|
%
|
|
|
Net investment income
|
|
|
4.65
|
%
|
|
|
5.24
|
%
|
|
|
4.17
|
%
|
|
|
3.98
|
%
|
|
|
4.11
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
530
|
|
|
|
530
|
|
|
|
530
|
|
|
|
900
|
|
|
|
900
|
|
|
|
Asset coverage per preferred
share
(6)
|
|
$
|
89,770
|
|
|
$
|
90,749
|
|
|
$
|
80,583
|
|
|
$
|
68,285
|
|
|
$
|
69,746
|
|
|
|
Involuntary liquidation preference per preferred
share
(7)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(7)
|
|
$
|
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)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(5)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(6)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(7)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
55
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
12.980
|
|
|
$
|
11.330
|
|
|
$
|
14.970
|
|
|
$
|
15.330
|
|
|
$
|
14.830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.828
|
|
|
$
|
0.846
|
|
|
$
|
0.948
|
|
|
$
|
0.966
|
|
|
$
|
0.978
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.058
|
)
|
|
|
1.592
|
|
|
|
(3.665
|
)
|
|
|
(0.361
|
)
|
|
|
0.497
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.028
|
)
|
|
|
(0.101
|
)
|
|
|
(0.298
|
)
|
|
|
(0.301
|
)
|
|
|
(0.263
|
)
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.742
|
|
|
$
|
2.337
|
|
|
$
|
(3.015
|
)
|
|
$
|
0.304
|
|
|
$
|
1.212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.762
|
)
|
|
$
|
(0.687
|
)
|
|
$
|
(0.625
|
)
|
|
$
|
(0.664
|
)
|
|
$
|
(0.712
|
)
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.762
|
)
|
|
$
|
(0.687
|
)
|
|
$
|
(0.625
|
)
|
|
$
|
(0.664
|
)
|
|
$
|
(0.712
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
12.960
|
|
|
$
|
12.980
|
|
|
$
|
11.330
|
|
|
$
|
14.970
|
|
|
$
|
15.330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
14.100
|
|
|
$
|
13.250
|
|
|
$
|
11.250
|
|
|
$
|
13.710
|
|
|
$
|
14.600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
6.04
|
%
|
|
|
22.05
|
%
|
|
|
(20.51
|
)%
|
|
|
2.17
|
%
|
|
|
8.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
13.01
|
%
|
|
|
25.48
|
%
|
|
|
(13.81
|
)%
|
|
|
(1.75
|
)%
|
|
|
5.69
|
%
|
|
|
|
|
See
notes to financial statements
56
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
32,726
|
|
|
$
|
32,710
|
|
|
$
|
28,495
|
|
|
$
|
37,617
|
|
|
$
|
38,532
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.36
|
%
|
|
|
1.57
|
%
|
|
|
1.35
|
%
|
|
|
1.16
|
%
(4)
|
|
|
1.19
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.02
|
%
|
|
|
0.10
|
%
|
|
|
0.29
|
%
|
|
|
0.53
|
%
|
|
|
0.41
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.38
|
%
|
|
|
1.67
|
%
|
|
|
1.64
|
%
|
|
|
1.69
|
%
(4)
|
|
|
1.60
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.36
|
%
|
|
|
1.57
|
%
|
|
|
1.33
|
%
|
|
|
1.14
|
%
(4)
|
|
|
1.16
|
%
|
|
|
Net investment income
|
|
|
6.61
|
%
|
|
|
7.87
|
%
|
|
|
6.82
|
%
|
|
|
6.33
|
%
|
|
|
6.56
|
%
|
|
|
Portfolio Turnover
|
|
|
11
|
%
|
|
|
18
|
%
|
|
|
22
|
%
|
|
|
30
|
%
|
|
|
16
|
%
|
|
|
|
|
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
|
|
|
0.88
|
%
|
|
|
0.95
|
%
|
|
|
0.83
|
%
|
|
|
0.74
|
%
(4)
|
|
|
0.75
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.01
|
%
|
|
|
0.06
|
%
|
|
|
0.18
|
%
|
|
|
0.34
|
%
|
|
|
0.26
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
0.89
|
%
|
|
|
1.01
|
%
|
|
|
1.01
|
%
|
|
|
1.08
|
%
(4)
|
|
|
1.01
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.88
|
%
|
|
|
0.95
|
%
|
|
|
0.82
|
%
|
|
|
0.72
|
%
(4)
|
|
|
0.73
|
%
|
|
|
Net investment income
|
|
|
4.30
|
%
|
|
|
4.77
|
%
|
|
|
4.19
|
%
|
|
|
4.03
|
%
|
|
|
4.14
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
680
|
|
|
|
680
|
|
|
|
875
|
|
|
|
875
|
|
|
|
875
|
|
|
|
Asset coverage per preferred
share
(6)
|
|
$
|
73,128
|
|
|
$
|
73,104
|
|
|
$
|
57,579
|
|
|
$
|
67,991
|
|
|
$
|
69,036
|
|
|
|
Involuntary liquidation preference per preferred
share
(7)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(7)
|
|
$
|
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)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(5)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(6)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(7)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
57
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
Net asset value Beginning of year (Common shares)
|
|
$
|
13.900
|
|
|
$
|
12.030
|
|
|
$
|
15.270
|
|
|
$
|
15.470
|
|
|
$
|
14.930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
Net investment
income
(1)
|
|
$
|
0.878
|
|
|
$
|
0.889
|
|
|
$
|
0.995
|
|
|
$
|
0.995
|
|
|
$
|
0.994
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.270
|
)
|
|
|
2.123
|
|
|
|
(3.047
|
)
|
|
|
(0.209
|
)
|
|
|
0.559
|
|
|
|
Distributions to preferred shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.030
|
)
|
|
|
(0.071
|
)
|
|
|
(0.236
|
)
|
|
|
(0.291
|
)
|
|
|
(0.266
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
(0.045
|
)
|
|
|
(0.076
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from operations
|
|
$
|
0.578
|
|
|
$
|
2.896
|
|
|
$
|
(2.364
|
)
|
|
$
|
0.495
|
|
|
$
|
1.287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions to Common Shareholders
|
|
From net investment income
|
|
$
|
(0.838
|
)
|
|
$
|
(0.753
|
)
|
|
$
|
(0.693
|
)
|
|
$
|
(0.695
|
)
|
|
$
|
(0.747
|
)
|
|
|
From net realized gain
|
|
|
|
|
|
|
(0.273
|
)
|
|
|
(0.183
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders
|
|
$
|
(0.838
|
)
|
|
$
|
(1.026
|
)
|
|
$
|
(0.876
|
)
|
|
$
|
(0.695
|
)
|
|
$
|
(0.747
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value End of year (Common shares)
|
|
$
|
13.640
|
|
|
$
|
13.900
|
|
|
$
|
12.030
|
|
|
$
|
15.270
|
|
|
$
|
15.470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value End of year (Common shares)
|
|
$
|
14.230
|
|
|
$
|
14.600
|
|
|
$
|
13.400
|
|
|
$
|
14.150
|
|
|
$
|
15.020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Net Asset
Value
(2)
|
|
|
4.53
|
%
|
|
|
27.36
|
%
|
|
|
(16.07
|
)%
|
|
|
3.44
|
%
|
|
|
9.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return on Market
Value
(2)
|
|
|
3.82
|
%
|
|
|
20.09
|
%
|
|
|
0.88
|
%
|
|
|
(1.28
|
)%
|
|
|
1.68
|
%
|
|
|
|
|
See
notes to financial statements
58
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FINANCIAL
STATEMENTS
CONTD
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
Fund
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
|
|
|
|
Ratios/Supplemental
Data
|
|
Net assets applicable to common shares, end of year (000s
omitted)
|
|
$
|
40,256
|
|
|
$
|
40,956
|
|
|
$
|
35,413
|
|
|
$
|
44,955
|
|
|
$
|
45,516
|
|
|
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding interest and fees
|
|
|
1.36
|
%
|
|
|
1.52
|
%
|
|
|
1.30
|
%
|
|
|
1.15
|
%
(4)
|
|
|
1.18
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.07
|
%
|
|
|
0.17
|
%
|
|
|
1.03
|
%
|
|
|
0.83
|
%
|
|
|
0.78
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
1.43
|
%
|
|
|
1.69
|
%
|
|
|
2.33
|
%
|
|
|
1.98
|
%
(4)
|
|
|
1.96
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
1.36
|
%
|
|
|
1.51
|
%
|
|
|
1.28
|
%
|
|
|
1.12
|
%
(4)
|
|
|
1.15
|
%
|
|
|
Net investment income
|
|
|
6.67
|
%
|
|
|
7.80
|
%
|
|
|
6.86
|
%
|
|
|
6.45
|
%
|
|
|
6.64
|
%
|
|
|
Portfolio Turnover
|
|
|
19
|
%
|
|
|
8
|
%
|
|
|
28
|
%
|
|
|
24
|
%
|
|
|
22
|
%
|
|
|
|
|
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
|
|
|
0.87
|
%
|
|
|
0.91
|
%
|
|
|
0.81
|
%
|
|
|
0.73
|
%
(4)
|
|
|
0.74
|
%
|
|
|
Interest and fee
expense
(5)
|
|
|
0.05
|
%
|
|
|
0.10
|
%
|
|
|
0.64
|
%
|
|
|
0.53
|
%
|
|
|
0.49
|
%
|
|
|
Total expenses before custodian fee reduction
|
|
|
0.92
|
%
|
|
|
1.01
|
%
|
|
|
1.45
|
%
|
|
|
1.26
|
%
(4)
|
|
|
1.23
|
%
|
|
|
Expenses after custodian fee reduction excluding interest and
fees
|
|
|
0.87
|
%
|
|
|
0.90
|
%
|
|
|
0.80
|
%
|
|
|
0.71
|
%
(4)
|
|
|
0.72
|
%
|
|
|
Net investment income
|
|
|
4.28
|
%
|
|
|
4.68
|
%
|
|
|
4.26
|
%
|
|
|
4.10
|
%
|
|
|
4.17
|
%
|
|
|
|
|
Senior Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preferred shares outstanding
|
|
|
869
|
|
|
|
869
|
|
|
|
1,040
|
|
|
|
1,040
|
|
|
|
1,040
|
|
|
|
Asset coverage per preferred
share
(6)
|
|
$
|
71,327
|
|
|
$
|
72,133
|
|
|
$
|
59,091
|
|
|
$
|
68,233
|
|
|
$
|
68,770
|
|
|
|
Involuntary liquidation preference per preferred
share
(7)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
|
Approximate market value per preferred
share
(7)
|
|
$
|
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)
|
|
The investment adviser was allocated a portion of the
Funds operating expenses (equal to less than 0.01% of
average daily net assets for the year ended September 30,
2007). Absent this allocation, total return would be lower.
|
|
(5)
|
|
Interest and fee expense relates to the liability for floating
rate notes issued in conjunction with inverse floater securities
transactions (see Note 1H).
|
|
(6)
|
|
Calculated by subtracting the Funds total liabilities (not
including the preferred shares) from the Funds total
assets, and dividing the result by the number of preferred
shares outstanding.
|
|
(7)
|
|
Plus accumulated and unpaid dividends.
|
See
notes to financial statements
59
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL STATEMENTS
1
Significant
Accounting Policies
Eaton Vance Municipal Bond Fund II (formerly, Eaton Vance
Insured Municipal Bond Fund II) (Municipal Fund II),
Eaton Vance California Municipal Bond Fund II (formerly,
Eaton Vance Insured California Municipal Bond Fund II)
(California Fund II), Eaton Vance Massachusetts Municipal
Bond Fund (formerly, Eaton Vance Insured Massachusetts Municipal
Bond Fund) (Massachusetts Fund), Eaton Vance Michigan Municipal
Bond Fund (formerly, Eaton Vance Insured Michigan Municipal Bond
Fund) (Michigan Fund), Eaton Vance New Jersey Municipal Bond
Fund (formerly, Eaton Vance Insured New Jersey Municipal Bond
Fund) (New Jersey Fund), Eaton Vance New York Municipal Bond
Fund II (formerly, Eaton Vance Insured New York
Municipal Bond Fund II) (New York Fund II), Eaton
Vance Ohio Municipal Bond Fund (formerly, Eaton Vance Insured
Ohio Municipal Bond Fund) (Ohio Fund) and Eaton Vance
Pennsylvania Municipal Bond Fund (formerly, Eaton Vance Insured
Pennsylvania Municipal Bond Fund) (Pennsylvania Fund), (each
individually referred to as the Fund, and collectively, the
Funds), are Massachusetts business trusts registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as
non-diversified, closed-end management investment companies,
except for Municipal Fund II, which is a diversified,
closed-end management investment company. Each Fund seeks to
provide current income exempt from regular federal income tax,
including alternative minimum tax, and, in state specific funds,
taxes in its specified state.
The following is a summary of significant accounting policies of
the Funds. The policies are in conformity with accounting
principles generally accepted in the United States of America.
A
Investment
Valuation
Debt obligations (including
short-term obligations with a remaining maturity of more than
sixty days) are generally valued on the basis of valuations
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 quotations provided
by electronic data services or by broker/dealers. Investments
for which valuations or market quotations are not readily
available or are deemed unreliable are valued at fair value
using methods determined in good faith by or at the direction of
the Trustees of a Fund in a manner that most fairly reflects the
securitys value, or the amount that the Fund might
reasonably expect to receive for the security upon its current
sale in the ordinary course. Each such determination is based on
a consideration of all relevant factors, which are likely to
vary from one pricing context to another. These factors may
include, but are not limited to, the type of security, the
existence of any contractual restrictions on the 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 Funds policy is to comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies and to distribute to shareholders
each year substantially all of its taxable, if any, and
tax-exempt net investment income, and all or substantially all
of its net realized capital gains. Accordingly, no provision for
federal income or excise tax is necessary. Each Fund intends to
satisfy conditions which will enable it to designate
distributions from the interest income generated by its
investments in municipal obligations, which are exempt from
regular federal income tax when received by each Fund, as
exempt-interest dividends.
At September 30, 2010, the following Funds, for federal
income tax purposes, had capital loss carryforwards which will
reduce the respective Funds 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
60
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
relieve the Funds of any liability for federal income or excise
tax. The amounts and expiration dates of the capital loss
carryforwards are as follows:
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
Amount
|
|
|
Expiration
Date
|
|
|
|
|
Municipal II
|
|
$
|
658,427
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
2,011,041
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
11,539,291
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California II
|
|
$
|
52,500
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
1,365,711
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
3,330,399
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts
|
|
$
|
179,329
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
94,578
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
1,054,999
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan
|
|
$
|
384,407
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
1,883
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
579,696
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
$
|
244,927
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
2,060,337
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York II
|
|
$
|
41,818
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
1,233,356
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
1,545,637
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
|
|
$
|
321,978
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
83,319
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
1,620,085
|
|
|
|
September 30, 2017
|
|
|
|
|
|
|
3,381,936
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
|
|
$
|
1,949,047
|
|
|
|
September 30, 2018
|
|
|
|
Additionally, at September 30, 2010, the Municipal
Fund II, California Fund II, Massachusetts Fund,
Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund
and Pennsylvania Fund had net capital losses of $1,499,034,
$1,573,635, $225,669, $524,009, $1,550,366, $1,647,209, $692,166
and $730,899, respectively, attributable to security
transactions incurred after October 31, 2009. These net
capital losses are treated as arising on the first day of the
Funds taxable year ending September 30, 2011.
As of September 30, 2010, the Funds had no uncertain tax
positions that would require financial statement recognition,
de-recognition, or disclosure. Each of the Funds federal
tax returns filed in the
3-year
period ended September 30, 2010 remains subject to
examination by the Internal Revenue Service.
D
Expense
Reduction
State Street Bank and
Trust Company (SSBT) serves as custodian of the Funds.
Pursuant to the respective custodian agreements, SSBT receives a
fee reduced by credits, which are determined based on the
average daily cash balance each Fund maintains with SSBT. All
credit balances, if any, used to reduce each Funds
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 Funds organizational documents, its
officers and Trustees may be indemnified against certain
liabilities and expenses arising out of the performance of their
duties to each Fund. Under Massachusetts law, if certain
conditions prevail, shareholders of a Massachusetts business
trust (such as a Fund) could be deemed to have personal
liability for the obligations of the Fund. However, each
Funds Declaration of Trust contains an express disclaimer
of liability on the part of Fund shareholders and the By-laws
provide that the Fund shall assume the defense on behalf of any
Fund shareholders. Moreover, the By-laws also provide for
indemnification out of Fund property of any shareholder held
personally liable solely by reason of being or having been a
shareholder for all loss or expense arising from such liability.
Additionally, in the normal course of business, each Fund enters
into agreements with service providers that may contain
indemnification clauses. Each Funds maximum exposure under
these arrangements is unknown as this would involve future
claims that may be made against each Fund that have not yet
occurred.
H
Floating
Rate Notes Issued in Conjunction with Securities
Held
The Funds may invest in inverse floating
rate securities, also referred to as residual interest bonds,
whereby a Fund may sell a fixed rate bond to a broker for cash.
At the same time, the Fund buys a residual interest in the
assets and cash flows of a Special-Purpose Vehicle (the SPV),
(which is generally organized as a trust), set up by the broker,
often referred to as an inverse floating rate obligation
(Inverse Floater). The broker deposits a fixed rate bond into
the SPV with the same CUSIP number as the fixed rate bond sold
to the broker by the Fund, and which may have been, but is not
required to be, the fixed rate bond purchased from the Fund (the
Fixed Rate Bond). The SPV also issues floating rate notes
(Floating Rate Notes) which are sold to
third-parties.
61
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
The Inverse Floater held by a Fund gives the Fund the right
(1) to cause the holders of the Floating Rate Notes to
tender their notes at par, and (2) to have the broker
transfer the Fixed Rate Bond held by the SPV to the Fund,
thereby terminating the SPV. Should the Fund exercise such
right, it would pay the broker the par amount due on the
Floating Rate Notes and exchange the Inverse Floater for the
underlying Fixed Rate Bond. Pursuant to generally accepted
accounting principles for transfers and servicing of financial
assets and extinguishment of liabilities, the Funds account for
the transaction described above as a secured borrowing by
including the Fixed Rate Bond in their Portfolio of Investments
and the Floating Rate Notes as a liability under the caption
Payable for floating rate notes issued in their
Statement of Assets and Liabilities. The Floating Rate Notes
have interest rates that generally reset weekly and their
holders have the option to tender their notes to the broker for
redemption at par at each reset date. Interest expense related
to the Funds liability with respect to Floating Rate Notes
is recorded as incurred. The SPV may be terminated by the Fund,
as noted above, or by the broker upon the occurrence of certain
termination events as defined in the trust agreement, such as a
downgrade in the credit quality of the underlying bond,
bankruptcy of or payment failure by the issuer of the underlying
bond, the inability to remarket Floating Rate Notes that have
been tendered due to insufficient buyers in the market, or the
failure by the SPV to obtain renewal of the liquidity agreement
under which liquidity support is provided for the Floating Rate
Notes up to one year. Structuring fees paid to the liquidity
provider upon the creation of an SPV have been recorded as debt
issuance costs and are being amortized as interest expense to
the expected maturity of the related trust. Unamortized
structuring fees related to a terminated SPV are recorded as a
realized loss on extinguishment of debt. At September 30,
2010, the amounts of the Funds Floating Rate Notes and
related interest rates and collateral were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateral
|
|
|
|
|
|
Floating
|
|
|
Interest Rate
|
|
for Floating
|
|
|
|
|
|
Rate
|
|
|
or Range of
|
|
Rate
|
|
|
|
|
|
Notes
|
|
|
Interest
|
|
Notes
|
|
|
|
Fund
|
|
Outstanding
|
|
|
Rates
(%)
|
|
Outstanding
|
|
|
|
|
Municipal II
|
|
$
|
59,060,000
|
|
|
0.27 0.32
|
|
$
|
71,303,338
|
|
|
|
California II
|
|
|
10,370,000
|
|
|
0.27 0.29
|
|
|
12,413,421
|
|
|
|
Massachusetts
|
|
|
3,330,000
|
|
|
0.27 0.30
|
|
|
4,307,161
|
|
|
|
New Jersey
|
|
|
6,346,000
|
|
|
0.27 0.32
|
|
|
8,591,968
|
|
|
|
New York II
|
|
|
11,335,000
|
|
|
0.27 0.29
|
|
|
13,361,227
|
|
|
|
Ohio
|
|
|
1,010,000
|
|
|
0.32 0.37
|
|
|
1,796,042
|
|
|
|
Pennsylvania
|
|
|
4,350,000
|
|
|
0.28 0.37
|
|
|
7,427,692
|
|
|
|
For the year ended September 30, 2010, the Funds
average Floating Rate Notes outstanding and the average interest
rate including fees and amortization of deferred debt issuance
costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Floating
|
|
|
|
|
|
|
|
|
Rate Notes
|
|
|
Average
|
|
|
|
Fund
|
|
Outstanding
|
|
|
Interest
Rate
|
|
|
|
|
Municipal II
|
|
$
|
58,263,726
|
|
|
|
0.79
|
%
|
|
|
California II
|
|
|
9,897,356
|
|
|
|
0.77
|
|
|
|
Massachusetts
|
|
|
2,812,767
|
|
|
|
0.77
|
|
|
|
New Jersey
|
|
|
6,346,000
|
|
|
|
0.94
|
|
|
|
New York II
|
|
|
11,335,000
|
|
|
|
0.83
|
|
|
|
Ohio
|
|
|
1,010,000
|
|
|
|
0.71
|
|
|
|
Pennsylvania
|
|
|
2,790,822
|
|
|
|
1.05
|
|
|
|
The Funds may enter into shortfall and forbearance agreements
with the broker by which a Fund agrees to reimburse the broker,
in certain circumstances, for the difference between the
liquidation value of the Fixed Rate Bond held by the SPV and the
liquidation value of the Floating Rate Notes, as well as any
shortfalls in interest cash flows. The Funds had no shortfalls
as of September 30, 2010.
The Funds may also purchase Inverse Floaters from brokers in a
secondary market transaction without first owning the underlying
fixed rate bond. Such transactions are not required to be
treated as secured borrowings. Shortfall agreements, if any,
related to Inverse Floaters purchased in a secondary market
transaction are disclosed in the Portfolio of Investments. The
Funds investment policies and restrictions expressly
permit investments in Inverse Floaters. Inverse floating rate
securities typically offer the potential for yields exceeding
the yields available on fixed rate bonds with comparable credit
quality and maturity. These securities tend to underperform the
market for fixed rate bonds in a rising long-term interest rate
environment, but tend to outperform the market for fixed rate
bonds when long-term interest rates decline. The value and
income of inverse floating rate securities are generally more
volatile than that of a fixed rate bond. The Funds
investment policies do not allow the Funds to borrow money
except as permitted by the 1940 Act. Management believes that
the Funds restrictions on borrowing money and issuing
senior securities (other than as specifically permitted) do not
apply to Floating Rate Notes issued by the SPV and included as a
liability in the Funds Statement of Assets and
Liabilities. As secured indebtedness issued by an SPV, Floating
Rate Notes are distinct from the borrowings and senior
securities to which the Funds restrictions apply. Inverse
Floaters held by the Funds are securities exempt from
registration under Rule 144A of the Securities Act of 1933.
62
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
I
Financial
Futures Contracts
The Funds may enter into
financial futures contracts. The Funds investment in
financial futures contracts is designed for hedging against
changes in interest rates or as a substitute for the purchase of
securities. Upon entering into a financial futures contract, a
Fund is required to deposit with the broker, either in cash or
securities, an amount equal to a certain percentage of the
purchase price (initial margin). Subsequent payments, known as
variation margin, are made or received by the Fund each business
day, depending on the daily fluctuations in the value of the
underlying security, and are recorded as unrealized gains or
losses by the Fund. Gains (losses) are realized upon the
expiration or closing of the financial futures contracts. Should
market conditions change unexpectedly, the Fund may not achieve
the anticipated benefits of the financial futures contracts and
may realize a loss. Futures contracts have minimal counterparty
risk as they are exchange traded and the clearinghouse for the
exchange is substituted as the counterparty, guaranteeing
counterparty performance.
J
Interest
Rate Swaps
The Funds may enter into interest
rate swap agreements to enhance return, to hedge against
fluctuations in securities prices or interest rates, or as
substitution for the purchase or sale of securities. Pursuant to
these agreements, a Fund makes periodic payments at a fixed
interest rate and, in exchange, receives payments based on the
interest rate of a benchmark industry index. During the term of
the outstanding swap agreement, changes in the underlying value
of the swap are recorded as unrealized gains or losses. The
value of the swap is determined by changes in the relationship
between two rates of interest. A Fund is exposed to credit loss
in the event of non-performance by the swap counterparty. Risk
may also arise from movements in interest rates.
K
When-Issued
Securities and Delayed Delivery Transactions
The Funds may purchase or sell securities on a delayed
delivery or when-issued basis. Payment and delivery may take
place after the customary settlement period for that security.
At the time the transaction is negotiated, the price of the
security that will be delivered is fixed. The Funds maintain
security positions for these commitments such that sufficient
liquid assets will be available to make payments upon
settlement. Securities purchased on a delayed delivery or
when-issued basis are
marked-to-market
daily and begin earning interest on settlement date. Losses may
arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under
the contract.
L
Statement
of Cash Flows
The cash amount shown in the
Statement of Cash Flows of a Fund is the amount included in the
Funds 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 Fund issued Auction Preferred Shares (APS) on
January 15, 2003 in a public offering. The underwriting
discounts and other offering costs incurred in connection with
the offering were recorded as a reduction of the paid-in capital
of the common shares of each respective Fund. Dividends on the
APS, which accrue daily, are cumulative at rates which are reset
every seven days by an auction, unless a special dividend period
has been set. If the APS auctions do not successfully clear, the
dividend payment rate over the next period for the APS holders
is set at a specified maximum applicable rate until such time as
the APS auctions are successful. The maximum applicable rate on
the APS is 110% (150% for taxable distributions) of the greater
of the 1) AA Financial Composite Commercial
Paper Rate or 2) Taxable Equivalent of the Short-Term
Municipal Obligation Rate on the date of the auction. Series of
APS are identical in all respects except for the reset dates of
the dividend rates.
The number of APS issued and outstanding as of
September 30, 2010 is as follows:
|
|
|
|
|
|
|
|
|
APS Issued and
|
|
|
|
Fund
|
|
Outstanding
|
|
|
|
|
Municipal II
|
|
|
|
|
|
|
Series A
|
|
|
894
|
|
|
|
Series B
|
|
|
894
|
|
|
|
California II
|
|
|
1,028
|
|
|
|
Massachusetts
|
|
|
543
|
|
|
|
Michigan
|
|
|
533
|
|
|
|
New Jersey
|
|
|
784
|
|
|
|
New York II
|
|
|
530
|
|
|
|
Ohio
|
|
|
680
|
|
|
|
Pennsylvania
|
|
|
869
|
|
|
|
The APS are redeemable at the option of each Fund at a
redemption price equal to $25,000 per share, plus accumulated
and unpaid dividends, on any dividend payment date. The APS are
also subject to mandatory redemption at a redemption price equal
to $25,000 per share, plus accumulated and unpaid dividends, if
a Fund is in default for an extended period on its asset
maintenance requirements with respect to the APS. If the
dividends on the APS remain unpaid in an amount equal to two
full years dividends, the holders of the APS as a class
have the right to elect a majority of the Board of Trustees. In
general, the holders of the APS and the common shares
63
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
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 Fund is required to maintain certain
asset coverage with respect to the APS as defined in the
Funds By-laws and the 1940 Act. Each Fund pays an annual
fee up to 0.15% of the liquidation value of the APS to
broker-dealers as a service fee if the auctions are
unsuccessful; otherwise, the annual fee is 0.25%.
3
Distributions
to Shareholders
Each Fund intends to make monthly distributions of net
investment income to common shareholders, after payment of any
dividends on any outstanding APS. In addition, at least
annually, each Fund intends to distribute all or substantially
all of its net realized capital gains, (reduced by available
capital loss carryforwards from prior years, if any).
Distributions to common shareholders are recorded on the
ex-dividend date. Distributions to preferred shareholders are
recorded daily and are payable at the end of each dividend
period. The dividend rates for APS at September 30, 2010,
and the amount of dividends paid (including capital gains, if
any) to APS shareholders, average APS dividend rates, and
dividend rate ranges for the year then ended were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APS
|
|
|
Dividends
|
|
|
Average APS
|
|
|
Dividend
|
|
|
|
|
Dividend Rates
at
|
|
|
Paid to APS
|
|
|
Dividend
|
|
|
Rate
|
|
|
|
|
September 30,
2010
|
|
|
Shareholders
|
|
|
Rates
|
|
|
Ranges
(%)
|
|
|
|
Municipal II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A
|
|
|
0.43
|
%
|
|
$
|
90,406
|
|
|
|
0.40
|
%
|
|
0.240.56
|
|
|
Series B
|
|
|
0.46
|
|
|
|
92,350
|
|
|
|
0.41
|
|
|
0.240.56
|
|
|
California II
|
|
|
0.46
|
|
|
|
103,957
|
|
|
|
0.40
|
|
|
0.240.56
|
|
|
Massachusetts
|
|
|
0.46
|
|
|
|
54,821
|
|
|
|
0.40
|
|
|
0.240.56
|
|
|
Michigan
|
|
|
0.43
|
|
|
|
54,182
|
|
|
|
0.41
|
|
|
0.260.50
|
|
|
New Jersey
|
|
|
0.43
|
|
|
|
80,417
|
|
|
|
0.41
|
|
|
0.260.62
|
|
|
New York II
|
|
|
0.43
|
|
|
|
54,269
|
|
|
|
0.41
|
|
|
0.260.58
|
|
|
Ohio
|
|
|
0.46
|
|
|
|
69,754
|
|
|
|
0.41
|
|
|
0.240.56
|
|
|
Pennsylvania
|
|
|
0.46
|
|
|
|
87,380
|
|
|
|
0.40
|
|
|
0.240.56
|
|
|
Beginning February 13, 2008 and consistent with the
patterns in the broader market for auction-rate securities, the
Funds APS auctions were unsuccessful in clearing due to an
imbalance of sell orders over bids to buy the APS. As a result,
the dividend rates of the APS were reset to the maximum
applicable rates. The table above reflects such maximum dividend
rates for each series as of September 30, 2010.
The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Accounting principles generally
accepted in the United States of America require that only
distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital. For tax
purposes, distributions from short-term capital gains are
considered to be from ordinary income.
The tax character of distributions declared for the years ended
September 30, 2010 and September 30, 2009 was as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
|
California
|
|
|
Massachusetts
|
|
|
Michigan
|
|
|
|
Year Ended
September 30, 2010
|
|
Fund II
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt income
|
|
$
|
9,537,273
|
|
|
$
|
3,424,169
|
|
|
$
|
1,527,589
|
|
|
$
|
1,375,739
|
|
|
|
Ordinary income
|
|
$
|
980
|
|
|
$
|
461
|
|
|
$
|
200
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
|
New York
|
|
|
Ohio
|
|
|
Pennsylvania
|
|
|
|
Year Ended
September 30, 2010
|
|
Fund
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt income
|
|
$
|
2,438,432
|
|
|
$
|
2,303,145
|
|
|
$
|
1,990,886
|
|
|
$
|
2,558,583
|
|
|
|
Ordinary income
|
|
$
|
1,309
|
|
|
$
|
194
|
|
|
$
|
1,235
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
|
California
|
|
|
Massachusetts
|
|
|
Michigan
|
|
|
|
Year Ended
September 30, 2009
|
|
Fund II
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt income
|
|
$
|
9,012,856
|
|
|
$
|
3,279,960
|
|
|
$
|
1,504,880
|
|
|
$
|
1,322,740
|
|
|
|
Ordinary income
|
|
$
|
3,009
|
|
|
$
|
538
|
|
|
$
|
2,021
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
|
New York
|
|
|
Ohio
|
|
|
Pennsylvania
|
|
|
|
Year Ended
September 30, 2009
|
|
Fund
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Distributions declared from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt income
|
|
$
|
2,331,670
|
|
|
$
|
2,182,191
|
|
|
$
|
1,983,618
|
|
|
$
|
2,423,937
|
|
|
|
Ordinary income
|
|
$
|
3,088
|
|
|
$
|
715
|
|
|
$
|
|
|
|
$
|
188,110
|
|
|
|
Long-term capital gains
|
|
$
|
305,428
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
752,423
|
|
|
|
|
During the
year ended September 30, 2010, the following amounts were
reclassified due to differences between book and tax accounting,
primarily for accretion of market discount.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
|
California
|
|
|
Massachusetts
|
|
|
Michigan
|
|
|
|
|
|
Fund II
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Decrease (increase) in accumulated net realized loss
|
|
$
|
(98,507
|
)
|
|
$
|
(1,476
|
)
|
|
$
|
(6,540
|
)
|
|
$
|
13,146
|
|
|
|
Increase (decrease) in accumulated undistributed net investment
income
|
|
$
|
98,507
|
|
|
$
|
1,476
|
|
|
$
|
6,540
|
|
|
$
|
(13,146
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
|
New York
|
|
|
Ohio
|
|
|
Pennsylvania
|
|
|
|
|
|
Fund
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Decrease (increase) in accumulated net realized loss
|
|
$
|
20,785
|
|
|
$
|
(25,653
|
)
|
|
$
|
46,242
|
|
|
$
|
37,990
|
|
|
|
Increase (decrease) in accumulated undistributed net investment
income
|
|
$
|
(20,785
|
)
|
|
$
|
25,653
|
|
|
$
|
(46,242
|
)
|
|
$
|
(37,990
|
)
|
|
|
|
These
reclassifications had no effect on the net assets or net asset
value per share of the Funds.
|
|
As of
September 30, 2010, the components of distributable
earnings (accumulated losses) and unrealized appreciation
(depreciation) on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
|
|
|
California
|
|
|
Massachusetts
|
|
|
Michigan
|
|
|
|
|
|
Fund II
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Undistributed tax-exempt income
|
|
$
|
1,670,844
|
|
|
$
|
387,732
|
|
|
$
|
153,365
|
|
|
$
|
163,671
|
|
|
|
Capital loss carryforward and post October losses
|
|
$
|
(15,707,793
|
)
|
|
$
|
(6,322,245
|
)
|
|
$
|
(1,554,575
|
)
|
|
$
|
(1,489,995
|
)
|
|
|
Net unrealized appreciation (depreciation)
|
|
$
|
(543,169
|
)
|
|
$
|
(473,651
|
)
|
|
$
|
2,330,988
|
|
|
$
|
1,875,270
|
|
|
|
Other temporary differences
|
|
$
|
(1,942
|
)
|
|
$
|
(304
|
)
|
|
$
|
(1,186
|
)
|
|
$
|
(314
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
|
|
|
New York
|
|
|
Ohio
|
|
|
Pennsylvania
|
|
|
|
|
|
Fund
|
|
|
Fund II
|
|
|
Fund
|
|
|
Fund
|
|
|
|
|
Undistributed tax-exempt income
|
|
$
|
261,229
|
|
|
$
|
255,738
|
|
|
$
|
214,796
|
|
|
$
|
392,613
|
|
|
|
Capital loss carryforward and post October losses
|
|
$
|
(3,855,630
|
)
|
|
$
|
(4,468,020
|
)
|
|
$
|
(6,099,484
|
)
|
|
$
|
(2,679,946
|
)
|
|
|
Net unrealized appreciation
|
|
$
|
4,190,088
|
|
|
$
|
2,233,231
|
|
|
$
|
2,819,617
|
|
|
$
|
693,821
|
|
|
|
Other temporary differences
|
|
$
|
(690
|
)
|
|
$
|
(311
|
)
|
|
$
|
(1,276
|
)
|
|
$
|
(1,900
|
)
|
|
|
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, the timing of recognizing distributions to
shareholders, futures contracts, accretion of market discount
and inverse floaters.
4
Investment
Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Eaton Vance Management
(EVM) as compensation for investment advisory services rendered
to each Fund. The fee is computed at an annual rate of 0.55% of
each Funds average weekly gross assets and is payable
monthly. Average weekly gross assets include the principal
amount of any indebtedness for money borrowed, including debt
securities issued by a Fund, and the amount of any outstanding
APS issued by the Fund. Pursuant to a fee reduction agreement
with EVM, average weekly gross assets are calculated by adding
to net assets the liquidation value of a Funds APS then
outstanding and the amount payable by the Fund to floating rate
note holders, such adjustment being limited to the value of the
APS
65
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
outstanding prior to any APS redemptions by the Fund. EVM also
serves as the administrator of each Fund, but receives no
compensation.
In addition, EVM has contractually agreed to reimburse the Funds
for fees and other expenses at an annual rate of 0.15% of
average weekly gross assets of each Fund during the first five
full years of its operations, 0.10% of a Funds average
weekly gross assets in year six, and 0.05% in year seven. The
Funds concluded their first seven full years of operations on
November 29, 2009. For the year ended September 30,
2010, the investment adviser fee and expenses contractually
reduced by EVM were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Investment
|
|
|
Reduced by
|
|
|
|
Fund
|
|
Adviser
Fee
|
|
|
EVM
|
|
|
|
|
Municipal II
|
|
$
|
1,150,771
|
|
|
$
|
16,776
|
|
|
|
California II
|
|
|
441,839
|
|
|
|
6,532
|
|
|
|
Massachusetts
|
|
|
221,024
|
|
|
|
3,233
|
|
|
|
Michigan
|
|
|
191,164
|
|
|
|
2,810
|
|
|
|
New Jersey
|
|
|
320,719
|
|
|
|
4,638
|
|
|
|
New York II
|
|
|
307,467
|
|
|
|
4,503
|
|
|
|
Ohio
|
|
|
272,968
|
|
|
|
4,002
|
|
|
|
Pennsylvania
|
|
|
348,209
|
|
|
|
5,052
|
|
|
|
Except for Trustees of the Funds who are not members of
EVMs organization, officers and Trustees receive
remuneration for their services to the Funds out of the
investment adviser fee. Trustees of the Funds who are not
affiliated with the investment adviser may elect to defer
receipt of all or a percentage of their annual fees in
accordance with the terms of the Trustees Deferred Compensation
Plan. For the year ended September 30, 2010, no significant
amounts have been deferred. Certain officers and Trustees of the
Funds are officers of EVM.
5
Purchases
and Sales of Investments
Purchases and sales of investments, other than short-term
obligations, for the year ended September 30, 2010 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
Purchases
|
|
|
Sales
|
|
|
|
|
Municipal II
|
|
$
|
29,661,886
|
|
|
$
|
39,454,968
|
|
|
|
California II
|
|
|
13,659,660
|
|
|
|
17,677,330
|
|
|
|
Massachusetts
|
|
|
11,976,517
|
|
|
|
11,166,698
|
|
|
|
Michigan
|
|
|
698,432
|
|
|
|
1,418,092
|
|
|
|
New Jersey
|
|
|
5,191,114
|
|
|
|
8,819,336
|
|
|
|
New York II
|
|
|
7,260,216
|
|
|
|
9,734,678
|
|
|
|
Ohio
|
|
|
5,260,614
|
|
|
|
5,690,173
|
|
|
|
Pennsylvania
|
|
|
12,553,417
|
|
|
|
11,586,979
|
|
|
|
6
Common
Shares of Beneficial Interest
Common shares issued pursuant to the Funds dividend
reinvestment plan for the years ended September 30, 2010
and September 30, 2009 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30,
|
Fund
|
|
2010
|
|
|
2009
|
|
|
|
|
Municipal II
|
|
|
17,591
|
|
|
|
15,775
|
|
|
|
California II
|
|
|
5,807
|
|
|
|
5,322
|
|
|
|
Massachusetts
|
|
|
4,173
|
|
|
|
1,835
|
|
|
|
Michigan
|
|
|
391
|
|
|
|
132
|
|
|
|
New Jersey
|
|
|
8,500
|
|
|
|
5,648
|
|
|
|
New York II
|
|
|
2,956
|
|
|
|
2,353
|
|
|
|
Ohio
|
|
|
6,248
|
|
|
|
5,911
|
|
|
|
Pennsylvania
|
|
|
5,032
|
|
|
|
2,397
|
|
|
|
7
Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of each Fund at September 30, 2010, as
determined on a federal income tax basis, were as follows:
|
|
|
|
|
|
|
Municipal Fund II
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
167,334,705
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
3,870,368
|
|
|
|
Gross unrealized depreciation
|
|
|
(4,343,974
|
)
|
|
|
|
|
Net unrealized depreciation
|
|
$
|
(473,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Fund II
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
72,590,228
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
4,333,439
|
|
|
|
Gross unrealized depreciation
|
|
|
(4,804,383
|
)
|
|
|
|
|
Net unrealized depreciation
|
|
$
|
(470,944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts Fund
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
36,455,386
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
2,814,134
|
|
|
|
Gross unrealized depreciation
|
|
|
(470,468
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
2,343,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
|
|
|
|
|
|
|
Michigan Fund
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
33,105,511
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
2,519,258
|
|
|
|
Gross unrealized depreciation
|
|
|
(633,218
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
1,886,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey Fund
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
51,492,449
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
5,109,862
|
|
|
|
Gross unrealized depreciation
|
|
|
(901,365
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
4,208,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Fund II
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
43,738,839
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
3,574,273
|
|
|
|
Gross unrealized depreciation
|
|
|
(1,321,513
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
2,252,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio Fund
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
46,089,897
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
3,880,735
|
|
|
|
Gross unrealized depreciation
|
|
|
(1,043,998
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
2,836,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania Fund
|
|
|
|
|
|
|
|
|
Aggregate cost
|
|
$
|
59,923,664
|
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
2,962,005
|
|
|
|
Gross unrealized depreciation
|
|
|
(1,931,117
|
)
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
1,030,888
|
|
|
|
|
|
8
Overdraft Advances
Pursuant to the respective custodian agreements, SSBT may, in
its discretion, advance funds to the Funds to make properly
authorized payments. When such payments result in an overdraft,
the Funds are obligated to repay SSBT at the current rate of
interest charged by SSBT for secured loans (currently, a rate
above the Federal Funds rate). This obligation is payable on
demand to SSBT. SSBT has a lien on a Funds assets to the
extent of any overdraft. At September 30, 2010, Municipal
Fund II and Michigan Fund had payments due to SSBT pursuant
to the foregoing arrangement of $557,866 and $84,345,
respectively.
9
Financial Instruments
The Funds may trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities.
These financial instruments may include financial futures
contracts and interest rate swaps and may involve, to a varying
degree, elements of risk in excess of the amounts recognized for
financial statement purposes. The notional or contractual
amounts of these instruments represent the investment a Fund has
in particular classes of financial instruments and do not
necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions
are considered.
A summary of obligations under these financial instruments at
September 30, 2010 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
Expiration
|
|
|
|
|
|
Aggregate
|
|
|
|
|
|
Appreciation
|
|
|
|
Fund
|
|
Date
|
|
Contracts
|
|
Position
|
|
Cost
|
|
|
Value
|
|
|
(Depreciation)
|
|
|
|
|
Municipal II
|
|
12/10
|
|
41
U.S. 10-Year
Treasury Note
|
|
Short
|
|
$
|
(5,118,450
|
)
|
|
$
|
(5,167,922
|
)
|
|
$
|
(49,472
|
)
|
|
|
|
|
12/10
|
|
44
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
|
(5,793,474
|
)
|
|
|
(5,883,625
|
)
|
|
|
(90,151
|
)
|
|
|
|
|
California II
|
|
12/10
|
|
18
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
$
|
(2,418,831
|
)
|
|
$
|
(2,406,938
|
)
|
|
$
|
11,893
|
|
|
|
|
|
Michigan
|
|
12/10
|
|
2
U.S. 10-Year
Treasury Note
|
|
Short
|
|
$
|
(249,681
|
)
|
|
$
|
(252,094
|
)
|
|
$
|
(2,413
|
)
|
|
|
|
|
12/10
|
|
4
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
|
(537,518
|
)
|
|
|
(534,875
|
)
|
|
|
2,643
|
|
|
|
|
|
New Jersey
|
|
12/10
|
|
65
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
$
|
(8,702,155
|
)
|
|
$
|
(8,691,718
|
)
|
|
$
|
10,437
|
|
|
|
|
|
New York II
|
|
12/10
|
|
30
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
$
|
(4,031,385
|
)
|
|
$
|
(4,011,563
|
)
|
|
$
|
19,822
|
|
|
|
|
|
67
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
Futures Contracts
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
Expiration
|
|
|
|
|
|
Aggregate
|
|
|
|
|
|
Appreciation
|
|
|
|
Fund
|
|
Date
|
|
Contracts
|
|
Position
|
|
Cost
|
|
|
Value
|
|
|
(Depreciation)
|
|
|
|
|
Ohio
|
|
12/10
|
|
14
U.S. 10-Year
Treasury Note
|
|
Short
|
|
$
|
(1,747,763
|
)
|
|
$
|
(1,764,656
|
)
|
|
$
|
(16,893
|
)
|
|
|
|
|
12/10
|
|
12
U.S. 30-Year
Treasury Bond
|
|
Short
|
|
|
(1,578,490
|
)
|
|
|
(1,604,625
|
)
|
|
|
(26,135
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Swaps
|
Municipal Fund
II
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
3,000,000
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(65,082
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
3,000,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(4,481
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(69,563
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Fund
II
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
$
|
1,812,500
|
|
|
3.374%
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
$
|
(2,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts
Fund
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
525,000
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(11,390
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
862,500
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(1,288
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(12,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Swaps (continued)
|
Michigan
Fund
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
450,000
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(9,762
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
675,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(1,008
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(10,770
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
Fund
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
762,500
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(16,542
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
1,250,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(1,867
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(18,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Fund
II
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
762,500
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(16,542
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
2,000,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(2,987
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(19,529
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
Fund
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
JPMorgan
Chase Co.
|
|
$
|
737,500
|
|
|
3.488%
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
$
|
(16,000
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
750,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(1,120
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(17,120
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
Interest Rate
Swaps (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
Fund
|
|
|
|
|
|
|
Annual
|
|
Floating
|
|
Effective
Date/
|
|
Net
|
|
|
|
|
|
Notional
|
|
|
Fixed Rate
|
|
Rate
|
|
Termination
|
|
Unrealized
|
|
|
|
Counterparty
|
|
Amount
|
|
|
Paid By
Fund
|
|
Paid To
Fund
|
|
Date
|
|
Depreciation
|
|
|
|
|
Barclays
Bank PLC
|
|
$
|
3,000,000
|
|
|
3.889%
|
|
3-month
USD-LIBOR-BBA
|
|
October 20, 2010/
October 20, 2040
|
|
$
|
(319,845
|
)
|
|
|
|
|
JPMorgan
Chase Co.
|
|
|
725,000
|
|
|
3.488
|
|
3-month
USD-LIBOR-BBA
|
|
December 14, 2010/
December 14, 2040
|
|
|
(15,728
|
)
|
|
|
|
|
Merrill Lynch
Capital
Services, Inc.
|
|
|
1,000,000
|
|
|
3.374
|
|
3-month
USD-LIBOR-BBA
|
|
November 24, 2010/
November 24, 2040
|
|
|
(1,494
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(337,067
|
)
|
|
|
|
|
The effective date represents the date on which a Fund and the
counterparty to the interest rate swap contract begin interest
payment accruals.
At September 30, 2010, the Funds had sufficient cash
and/or
securities to cover commitments under these contracts.
Each Fund is subject to interest rate risk in the normal course
of pursuing its investment objectives. Because the Funds hold
fixed-rate bonds, the value of these bonds may decrease if
interest rates rise. To hedge against this risk, each Fund
enters into interest rate swap contracts. The Funds also
purchase and sell U.S. Treasury futures contracts to hedge
against changes in interest rates.
The Funds enter into interest rate swap contracts that may
contain provisions whereby the counterparty may terminate the
contract under certain conditions, including but not limited to
a decline in a Funds net assets below a certain level over
a certain period of time, which would trigger a payment by the
Fund for those swaps in a liability position. At
September 30, 2010, the fair value of interest rate swaps
with credit-related contingent features in a net liability
position was equal to the fair value of the liability derivative
related to interest rate swaps included in the table below for
each respective Fund. The value of securities pledged as
collateral, if any, for open interest rate swap contracts at
September 30, 2010 is disclosed in a note to each
Funds Portfolio of Investments.
The non-exchange traded derivatives in which a Fund invests,
including swap contracts, are subject to the risk that the
counterparty to the contract fails to perform its obligations
under the contract. At September 30, 2010, the maximum
amount of loss the Funds would incur due to counterparty risk
was equal to the fair value of the asset derivative related to
interest rate swaps included in the table below for each
respective Fund. Counterparties may be required to pledge
collateral in the form of cash, U.S. Government securities or
highly-rated bonds for the benefit of a Fund if the net amount
due from the counterparty with respect to a derivative contract
exceeds a certain threshold. The amount of collateral posted by
the counterparties with respect to such contracts would also
reduce the amount of any loss incurred.
The fair values of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) and
whose primary underlying risk exposure is interest rate risk at
September 30, 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value
|
|
|
|
|
|
Asset
Derivative
|
|
|
Liability
Derivative
|
|
|
|
|
Municipal Fund II
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
|
|
|
$
|
(139,623
|
)
(1)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(69,563
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(209,186
|
)
|
|
|
|
|
California Fund II
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
11,893
|
(3)
|
|
$
|
|
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(2,707
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
11,893
|
|
|
$
|
(2,707
|
)
|
|
|
|
|
Massachusetts Fund
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(12,678
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(12,678
|
)
|
|
|
|
|
Michigan Fund
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
2,643
|
(3)
|
|
$
|
(2,413
|
)
(1)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(10,770
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
2,643
|
|
|
$
|
(13,183
|
)
|
|
|
|
|
New Jersey Fund
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
10,437
|
(3)
|
|
$
|
|
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(18,409
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
10,437
|
|
|
$
|
(18,409
|
)
|
|
|
|
|
New York Fund II
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
19,822
|
(3)
|
|
$
|
|
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(19,529
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
19,822
|
|
|
$
|
(19,529
|
)
|
|
|
|
|
Ohio Fund
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
|
|
|
$
|
(43,028
|
)
(1)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(17,120
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(60,148
|
)
|
|
|
|
|
Pennsylvania Fund
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(337,067
|
)
(2)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(337,067
|
)
|
|
|
|
|
|
|
|
(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.
|
69
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
|
|
|
(2)
|
|
Statement of Assets and Liabilities location: Payable for open
swap contracts; Net unrealized appreciation (depreciation).
|
|
(3)
|
|
Amount represents cumulative unrealized appreciation on futures
contracts in the Futures Contracts table above. Only the current
days variation margin on open futures contracts is
reported within the Statement of Assets and Liabilities as
Receivable or Payable for variation margin, as applicable.
|
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the
Statement of Operations and whose primary underlying risk
exposure is interest rate risk for the year ended
September 30, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
Realized Gain
|
|
|
Appreciation
|
|
|
|
|
|
(Loss) on
|
|
|
(Depreciation)
on
|
|
|
|
|
|
Derivatives
|
|
|
Derivatives
|
|
|
|
|
|
Recognized in
|
|
|
Recognized in
|
|
|
|
Fund
|
|
Income
(1)
|
|
|
Income
(2)
|
|
|
|
|
Municipal II
|
|
$
|
(3,152,775
|
)
|
|
$
|
469,750
|
|
|
|
California II
|
|
|
(1,203,172
|
)
|
|
|
289,628
|
|
|
|
Massachusetts
|
|
|
(307,580
|
)
|
|
|
80,030
|
|
|
|
Michigan
|
|
|
(397,782
|
)
|
|
|
85,632
|
|
|
|
New Jersey
|
|
|
(1,588,099
|
)
|
|
|
126,411
|
|
|
|
New York II
|
|
|
(1,205,892
|
)
|
|
|
267,635
|
|
|
|
Ohio
|
|
|
(894,460
|
)
|
|
|
129,862
|
|
|
|
Pennsylvania
|
|
|
(461,765
|
)
|
|
|
(162,902
|
)
|
|
|
|
|
|
(1)
|
|
Statement of Operations location: Net realized gain
(loss) Financial futures contracts and swap
contracts.
|
|
(2)
|
|
Statement of Operations location: Change in unrealized
appreciation (depreciation) Financial futures
contracts and swap contracts.
|
The average notional amounts of futures contracts and interest
rate swaps outstanding during the year ended September 30,
2010, which are indicative of the volume of these derivative
types, were approximately as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Notional
Amount
|
|
|
|
Fund
|
|
Futures
Contracts
|
|
|
Interest Rate
Swaps
|
|
|
|
|
Municipal II
|
|
$
|
13,969,000
|
|
|
$
|
6,000,000
|
|
|
|
California II
|
|
|
3,531,000
|
|
|
|
2,862,500
|
|
|
|
Massachusetts
|
|
|
|
|
|
|
1,388,000
|
|
|
|
Michigan
|
|
|
923,000
|
|
|
|
1,125,000
|
|
|
|
New Jersey
|
|
|
3,500,000
|
|
|
|
2,012,500
|
|
|
|
New York II
|
|
|
3,000,000
|
|
|
|
2,762,500
|
|
|
|
Ohio
|
|
|
4,315,000
|
|
|
|
1,488,000
|
|
|
|
Pennsylvania
|
|
|
|
|
|
|
3,879,000
|
|
|
|
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)
|
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities.
At September 30, 2010, the inputs used in valuing the
Funds investments, which are carried at value, were
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
Fund II
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
221,251,099
|
|
|
$
|
|
|
|
$
|
221,251,099
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
221,251,099
|
|
|
$
|
|
|
|
$
|
221,251,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
(139,623
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(139,623
|
)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(69,563
|
)
|
|
|
|
|
|
|
(69,563
|
)
|
|
|
|
|
Total
|
|
$
|
(139,623
|
)
|
|
$
|
(69,563
|
)
|
|
$
|
|
|
|
$
|
(209,186
|
)
|
|
|
|
|
70
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
Fund II
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
80,824,284
|
|
|
$
|
|
|
|
$
|
80,824,284
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
80,824,284
|
|
|
$
|
|
|
|
$
|
80,824,284
|
|
|
|
|
|
Futures Contracts
|
|
$
|
11,893
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
11,893
|
|
|
|
|
|
Total
|
|
$
|
11,893
|
|
|
$
|
80,824,284
|
|
|
$
|
|
|
|
$
|
80,836,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(2,707
|
)
|
|
$
|
|
|
|
$
|
(2,707
|
)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(2,707
|
)
|
|
$
|
|
|
|
$
|
(2,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts
Fund
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
42,129,052
|
|
|
$
|
|
|
|
$
|
42,129,052
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
42,129,052
|
|
|
$
|
|
|
|
$
|
42,129,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(12,678
|
)
|
|
$
|
|
|
|
$
|
(12,678
|
)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(12,678
|
)
|
|
$
|
|
|
|
$
|
(12,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan
Fund
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
34,991,551
|
|
|
$
|
|
|
|
$
|
34,991,551
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
34,991,551
|
|
|
$
|
|
|
|
$
|
34,991,551
|
|
|
|
|
|
Futures Contracts
|
|
$
|
2,643
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
2,643
|
|
|
|
|
|
Total
|
|
$
|
2,643
|
|
|
$
|
34,991,551
|
|
|
$
|
|
|
|
$
|
34,994,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
(2,413
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(2,413
|
)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(10,770
|
)
|
|
|
|
|
|
|
(10,770
|
)
|
|
|
|
|
Total
|
|
$
|
(2,413
|
)
|
|
$
|
(10,770
|
)
|
|
$
|
|
|
|
$
|
(13,183
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey
Fund
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
62,046,946
|
|
|
$
|
|
|
|
$
|
62,046,946
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
62,046,946
|
|
|
$
|
|
|
|
$
|
62,046,946
|
|
|
|
|
|
Futures Contracts
|
|
$
|
10,437
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
10,437
|
|
|
|
Total
|
|
$
|
10,437
|
|
|
$
|
62,046,946
|
|
|
$
|
|
|
|
$
|
62,057,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(18,409
|
)
|
|
$
|
|
|
|
$
|
(18,409
|
)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(18,409
|
)
|
|
$
|
|
|
|
$
|
(18,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York
Fund II
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
57,326,599
|
|
|
$
|
|
|
|
$
|
57,326,599
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
57,326,599
|
|
|
$
|
|
|
|
$
|
57,326,599
|
|
|
|
|
|
Futures Contracts
|
|
$
|
19,822
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
19,822
|
|
|
|
|
|
Total
|
|
$
|
19,822
|
|
|
$
|
57,326,599
|
|
|
$
|
|
|
|
$
|
57,346,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(19,529
|
)
|
|
$
|
|
|
|
$
|
(19,529
|
)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(19,529
|
)
|
|
$
|
|
|
|
$
|
(19,529
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio
Fund
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
49,936,634
|
|
|
$
|
|
|
|
$
|
49,936,634
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
49,936,634
|
|
|
$
|
|
|
|
$
|
49,936,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts
|
|
$
|
(43,028
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(43,028
|
)
|
|
|
Interest Rate Swaps
|
|
|
|
|
|
|
(17,120
|
)
|
|
|
|
|
|
|
(17,120
|
)
|
|
|
|
|
Total
|
|
$
|
(43,028
|
)
|
|
$
|
(17,120
|
)
|
|
$
|
|
|
|
$
|
(60,148
|
)
|
|
|
|
|
71
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTES TO FINANCIAL
STATEMENTS
CONTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania
Fund
|
|
|
Quoted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
Significant
|
|
|
|
|
|
|
|
|
|
|
|
Markets for
|
|
|
Other
|
|
|
Significant
|
|
|
|
|
|
|
|
|
Identical
|
|
|
Observable
|
|
|
Unobservable
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Inputs
|
|
|
Inputs
|
|
|
|
|
|
|
|
|
|
Asset
Description
|
|
(Level
1)
|
|
|
(Level
2)
|
|
|
(Level
3)
|
|
|
Total
|
|
|
|
|
Tax-Exempt Investments
|
|
$
|
|
|
|
$
|
65,304,552
|
|
|
$
|
|
|
|
$
|
65,304,552
|
|
|
|
|
|
Total Investments
|
|
$
|
|
|
|
$
|
65,304,552
|
|
|
$
|
|
|
|
$
|
65,304,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
$
|
|
|
|
$
|
(337,067
|
)
|
|
$
|
|
|
|
$
|
(337,067
|
)
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
(337,067
|
)
|
|
$
|
|
|
|
$
|
(337,067
|
)
|
|
|
|
|
The Funds held no investments or other financial instruments as
of September 30, 2009 whose fair value was determined using
Level 3 inputs.
11
Name Change
Effective February 1, 2010, the names of Eaton Vance
Municipal Bond Fund II, Eaton Vance California Municipal
Bond Fund II, Eaton Vance Massachusetts Municipal Bond
Fund, Eaton Vance Michigan Municipal Bond Fund, Eaton Vance New
Jersey Municipal Bond Fund, Eaton Vance New York Municipal Bond
Fund II, Eaton Vance Ohio Municipal Bond Fund and Eaton
Vance Pennsylvania Municipal Bond Fund were changed from Eaton
Vance Insured Municipal Bond Fund II, Eaton Vance Insured
California Municipal Bond Fund II, Eaton Vance Insured
Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan
Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal
Bond Fund, Eaton Vance Insured New York Municipal Bond
Fund II, Eaton Vance Insured Ohio Municipal Bond Fund and
Eaton Vance Insured Pennsylvania Municipal Bond Fund,
respectively. The name changes resulted from a modification to
each Funds 80 percent policy to eliminate the
requirement to invest primarily in insured municipal
obligations, which was approved by the Funds shareholders.
72
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Trustees
and Shareholders of Eaton Vance Municipal Bond Fund II
(formerly, Eaton Vance Insured Municipal Bond Fund II),
Eaton Vance California Municipal Bond Fund II (formerly,
Eaton Vance Insured California Municipal Bond Fund II),
Eaton Vance Massachusetts Municipal Bond Fund (formerly, Eaton
Vance Insured Massachusetts Municipal Bond Fund), Eaton Vance
Michigan Municipal Bond Fund (formerly, Eaton Vance Insured
Michigan Municipal Bond Fund), Eaton Vance New Jersey Municipal
Bond Fund (formerly, Eaton Vance Insured New Jersey Municipal
Bond Fund), Eaton Vance New York Municipal Bond Fund II
(formerly, Eaton Vance Insured New York Municipal Bond
Fund II), Eaton Vance Ohio Municipal Bond Fund (formerly,
Eaton Vance Insured Ohio Municipal Bond Fund), and Eaton Vance
Pennsylvania Municipal Bond Fund (formerly, Eaton Vance Insured
Pennsylvania Municipal Bond Fund):
We have audited the accompanying statements of assets and
liabilities of Eaton Vance Municipal Bond Fund II
(formerly, Eaton Vance Insured Municipal Bond Fund II),
Eaton Vance California Municipal Bond Fund II (formerly,
Eaton Vance Insured California Municipal Bond Fund II),
Eaton Vance Massachusetts Municipal Bond Fund (formerly, Eaton
Vance Insured Massachusetts Municipal Bond Fund), Eaton Vance
Michigan Municipal Bond Fund (formerly, Eaton Vance Insured
Michigan Municipal Bond Fund), Eaton Vance New Jersey Municipal
Bond Fund (formerly, Eaton Vance Insured New Jersey Municipal
Bond Fund), Eaton Vance New York Municipal Bond Fund II
(formerly, Eaton Vance Insured New York Municipal Bond
Fund II), Eaton Vance Ohio Municipal Bond Fund (formerly,
Eaton Vance Insured Ohio Municipal Bond Fund), and Eaton Vance
Pennsylvania Municipal Bond Fund (formerly, Eaton Vance Insured
Pennsylvania Municipal Bond Fund) (collectively, the
Funds), including the portfolios of investments, as
of September 30, 2010, and the related statements of
operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended,
the financial highlights for each of the five years in the
period then ended and the statements of cash flows of Eaton
Vance Municipal Bond Fund II, Eaton Vance California
Municipal Bond Fund II, Eaton Vance New Jersey Municipal
Bond Fund and Eaton Vance New York Municipal Bond Fund II
for the year then ended. These financial statements and
financial highlights are the responsibility of the Funds
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
Funds 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 Funds
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
September 30, 2010, 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 Municipal Bond
Fund II, Eaton Vance California Municipal Bond
Fund II, Eaton Vance Massachusetts Municipal Bond Fund,
Eaton Vance Michigan Municipal Bond Fund, Eaton Vance New Jersey
Municipal Bond Fund, Eaton Vance New York Municipal Bond
Fund II, Eaton Vance Ohio Municipal Bond Fund, and Eaton
Vance Pennsylvania Municipal Bond Fund as of September 30,
2010, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the
period then ended, and their financial highlights for each of
the five years in the period then ended, and the cash flows of
Eaton Vance Municipal Bond Fund II, Eaton Vance California
Municipal Bond Fund II, Eaton Vance New Jersey Municipal
Bond Fund, and Eaton Vance New York Municipal Bond Fund II
for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 15, 2010
73
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
FEDERAL TAX
INFORMATION
(Unaudited)
The
Form 1099-DIV
you receive in January 2011 will show the tax status of all
distributions paid to your account in calendar year 2010.
Shareholders are advised to consult their own tax adviser with
respect to the tax consequences of their investment in the
Funds. As required by the Internal Revenue Code
and/or
regulations, shareholders must be notified within 60 days
of the Funds fiscal year end regarding exempt-interest
dividends.
Exempt-Interest Dividends.
The Funds designate the
following percentages of dividends from net investment income as
exempt-interest dividends:
|
|
|
|
|
|
|
Eaton Vance Municipal Bond Fund II
|
|
|
99.99
|
%
|
|
|
Eaton Vance California Municipal Bond Fund II
|
|
|
99.99
|
%
|
|
|
Eaton Vance Massachusetts Municipal Bond Fund
|
|
|
99.99
|
%
|
|
|
Eaton Vance Michigan Municipal Bond Fund
|
|
|
100.00
|
%
|
|
|
Eaton Vance New Jersey Municipal Bond Fund
|
|
|
99.95
|
%
|
|
|
Eaton Vance New York Municipal Bond Fund II
|
|
|
99.99
|
%
|
|
|
Eaton Vance Ohio Municipal Bond Fund
|
|
|
99.94
|
%
|
|
|
Eaton Vance Pennsylvania Municipal Bond Fund
|
|
|
100.00
|
%
|
|
|
74
Eaton Vance
Municipal Bond
Funds
as
of September 30, 2010
NOTICE TO SHAREHOLDERS
At a joint Special Meeting of Shareholders held on
January 29, 2010, shareholders of the Funds approved a
modification to each Funds 80 percent policy to
eliminate the requirement to invest primarily in insured
municipal obligations. Effective February 1, 2010, the
Funds are required, under normal market conditions, to invest at
least 80 percent of net assets in municipal obligations
rated A or better by Moodys, S&P or Fitch and each
Fund eliminated Insured from its name. For purposes
of the Funds 80 percent requirement, the rating of
insured obligations will be deemed to be the higher of the
claims-paying rating of the insurer and the rating of the
underlying issue.
75
Eaton Vance
Municipal Bond Funds
ANNUAL MEETING OF
SHAREHOLDERS
(Unaudited)
The Funds held their Annual Meeting of Shareholders on
July 23, 2010. The following action was taken by the
shareholders:
Item 1:
The election of Thomas E. Faust Jr.,
Allen R. Freedman and Benjamin C. Esty as Class II Trustees
of each Fund for a term expiring in 2013. Mr. Esty was
elected solely by APS shareholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominee for
|
|
|
Nominee for
|
|
|
|
|
|
Nominee for Class
II
|
|
|
Class II
Trustee
|
|
|
Class II
Trustee
|
|
|
|
|
|
Trustee Elected
by
|
|
|
Elected by All
|
|
|
Elected by All
|
|
|
|
|
|
APS
Shareholders:
|
|
|
Shareholders:
|
|
|
Shareholders:
|
|
|
|
Fund
|
|
Benjamin C.
Esty
|
|
|
Thomas E. Faust
Jr.
|
|
|
Allen R.
Freedman
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Fund II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
1,212
|
|
|
|
9,187,270
|
|
|
|
9,175,523
|
|
|
|
Withheld
|
|
|
5
|
|
|
|
271,630
|
|
|
|
283,377
|
|
|
|
California Fund II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
623
|
|
|
|
3,535,825
|
|
|
|
3,520,474
|
|
|
|
Withheld
|
|
|
0
|
|
|
|
129,231
|
|
|
|
144,582
|
|
|
|
Massachusetts Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
461
|
|
|
|
1,701,728
|
|
|
|
1,702,590
|
|
|
|
Withheld
|
|
|
4
|
|
|
|
17,300
|
|
|
|
16,408
|
|
|
|
Michigan Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
319
|
|
|
|
1,434,725
|
|
|
|
1,436,725
|
|
|
|
Withheld
|
|
|
0
|
|
|
|
61,427
|
|
|
|
59,427
|
|
|
|
New Jersey Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
476
|
|
|
|
2,505,713
|
|
|
|
2,512,062
|
|
|
|
Withheld
|
|
|
0
|
|
|
|
17,322
|
|
|
|
10,973
|
|
|
|
New York Fund II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
308
|
|
|
|
2,352,431
|
|
|
|
2,363,970
|
|
|
|
Withheld
|
|
|
11
|
|
|
|
117,567
|
|
|
|
106,029
|
|
|
|
Ohio Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
440
|
|
|
|
2,375,545
|
|
|
|
2,335,297
|
|
|
|
Withheld
|
|
|
2
|
|
|
|
51,020
|
|
|
|
91,028
|
|
|
|
Pennsylvania Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
|
|
638
|
|
|
|
2,835,631
|
|
|
|
2,831,685
|
|
|
|
Withheld
|
|
|
0
|
|
|
|
34,483
|
|
|
|
38,429
|
|
|
|
76
Eaton Vance
Municipal Bond Funds
DIVIDEND REINVESTMENT PLAN
Each Fund offers a dividend reinvestment plan (the Plan)
pursuant to which shareholders may elect to have distributions
automatically reinvested in common shares (the Shares) of the
same Fund. You may elect to participate in the Plan by
completing the Dividend Reinvestment Plan Application Form. If
you do not participate, you will receive all distributions in
cash paid by check mailed directly to you by American Stock
Transfer & Trust Company (AST) as dividend paying
agent. On the distribution payment date, if the net asset value
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 net asset value per Share or 95% of the market price.
Otherwise, Shares generally will be purchased on the open market
by the Plan 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 your shares be re-registered in
your name with the Funds transfer agent, AST, or you will
not be able to participate.
The Plan Agents service fee for handling distributions
will be paid by the Fund. Each participant 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 Plan 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 Plan Agent to have
the Plan Agent sell part or all of his or her Shares and remit
the proceeds, the Plan 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 Plan Agent.
Any inquiries regarding the Plan can be directed to the Plan
Agent, AST, at 1-866-439-6787.
77
Eaton Vance
Municipal Bond Funds
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 Bond Funds
c/o
American
Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY
10269-0560
Number of
Employees
Each Fund is organized as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended,
as a closed-end management investment company, and has no
employees.
Number of
Shareholders
As of September 30, 2010, our records indicate that there
are 66, 25, 18, 22, 22, 36, 48 and 96 registered shareholders
for Municipal Fund II, California Fund II,
Massachusetts Fund, Michigan Fund, New Jersey Fund, New York
Fund II, Ohio Fund and Pennsylvania Fund, respectively, and
approximately 4,337, 1,312, 828, 893, 1,254, 1,201, 1,358 and
1,640 shareholders owning the Fund shares in street name, such
as through brokers, banks and financial intermediaries for
Municipal Fund II, California Fund II, Massachusetts
Fund, Michigan Fund, New Jersey Fund, New York Fund II,
Ohio Fund and Pennsylvania Fund, respectively.
If you are a street name shareholder and wish to receive Fund
reports directly, which contain important information about a
Fund, please write or call:
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
1-800-262-1122
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|
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|
|
NYSE Amex symbols
|
|
|
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|
Municipal Bond Fund II
|
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EIV
|
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California Municipal Bond Fund II
|
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EIA
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Massachusetts Municipal Bond Fund
|
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MAB
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Michigan Municipal Bond Fund
|
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MIW
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|
New Jersey Municipal Bond Fund
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EMJ
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|
New York Municipal Bond Fund II
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NYH
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Ohio Municipal Bond Fund
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EIO
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Pennsylvania Municipal Bond Fund
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EIP
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|
78
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES CONTRACT
APPROVAL
Overview
of the Contract Review Process
The Investment Company Act of 1940, as amended (the 1940
Act), provides, in substance, that each investment
advisory agreement between a fund and its investment adviser
will continue in effect from year to year only if its
continuance is approved at least annually by the funds
board of trustees, including by a vote of a majority of the
trustees who are not interested persons of the fund
(Independent Trustees), cast in person at a meeting
called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a
Board) of the Eaton Vance group of mutual funds (the
Eaton Vance Funds) held on April 26, 2010, the
Board, including a majority of the Independent Trustees, voted
to approve continuation of existing advisory and
sub-advisory
agreements for the Eaton Vance Funds for an additional
one-year
period. In voting its approval, the Board relied upon the
affirmative recommendation of the Contract Review Committee of
the Board, which is a committee comprised exclusively of
Independent Trustees. Prior to making its recommendation, the
Contract Review Committee reviewed information furnished for a
series of meetings of the Contract Review Committee held between
February and April 2010. Such information included, among
other things, the following:
Information
about Fees, Performance and Expenses
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|
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An independent report comparing the advisory and related fees
paid by each fund with fees paid by comparable funds;
|
|
|
An independent report comparing each funds total expense
ratio and its components to comparable funds;
|
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|
An independent report comparing the investment performance of
each fund (including yield where relevant) to the investment
performance of comparable funds over various time periods;
|
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|
Data regarding investment performance in comparison to relevant
peer groups of similarly managed funds and appropriate indices;
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For each fund, comparative information concerning the fees
charged and the services provided by each adviser in managing
other mutual funds and institutional accounts using investment
strategies and techniques similar to those used in managing such
fund;
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Profitability analyses for each adviser with respect to each
fund;
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Information
about Portfolio Management
|
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Descriptions of the investment management services provided to
each fund, including the investment strategies and processes
employed, and any changes in portfolio management processes and
personnel;
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Information concerning the allocation of brokerage and the
benefits received by each adviser as a result of brokerage
allocation, including information concerning the acquisition of
research through soft dollar benefits received in
connection with the funds brokerage, and the
implementation of a soft dollar reimbursement program
established with respect to the funds;
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Data relating to portfolio turnover rates of each fund;
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The procedures and processes used to determine the fair value of
fund assets and actions taken to monitor and test the
effectiveness of such procedures and processes;
|
Information
about each Adviser
|
|
|
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|
Reports detailing the financial results and condition of each
adviser;
|
|
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Descriptions of the qualifications, education and experience of
the individual investment professionals whose responsibilities
include portfolio management and investment research for the
funds, and information relating to their compensation and
responsibilities with respect to managing other mutual funds and
investment accounts;
|
|
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Copies of the Codes of Ethics of each adviser and its
affiliates, together with information relating to compliance
with and the administration of such codes;
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Copies of or descriptions of each advisers policies and
procedures relating to proxy voting, the handling of corporate
actions and class actions;
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Information concerning the resources devoted to compliance
efforts undertaken by each adviser and its affiliates on behalf
of the funds (including descriptions of various compliance
programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure,
and with policies on personal securities transactions;
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Descriptions of the business continuity and disaster recovery
plans of each adviser and its affiliates;
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A description of Eaton Vance Managements procedures for
overseeing third party advisers and
sub-advisers;
|
Other
Relevant Information
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|
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|
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Information concerning the nature, cost and character of the
administrative and other non-investment management services
provided by Eaton Vance Management and its affiliates;
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|
|
Information concerning management of the relationship with the
custodian, subcustodians and fund accountants by each adviser or
the funds administrator; and
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|
The terms of each advisory agreement.
|
79
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES CONTRACT
APPROVAL
CONTD
In addition to the information identified above, the Contract
Review Committee considered information provided from time to
time by each adviser throughout the year at meetings of the
Board and its committees. Over the course of the twelve-month
period ended April 30, 2010, with respect to one or more
Funds, the Board met ten times and the Contract Review
Committee, the Audit Committee, the Governance Committee, the
Portfolio Management Committee and the Compliance Reports and
Regulatory Matters Committee, each of which is a Committee
comprised solely of Independent Trustees, met nine, thirteen,
three, eight and fifteen times, respectively. At such meetings,
the Trustees received, among other things, presentations by the
portfolio managers and other investment professionals of each
adviser relating to the investment performance of each fund and
the investment strategies used in pursuing the funds
investment objective including, where relevant, the use of
derivative instruments, as well as trading policies and
procedures and risk management techniques
.
For funds that invest through one or more underlying portfolios,
the Board considered similar information about the portfolio(s)
when considering the approval of advisory agreements. In
addition, in cases where the funds investment adviser has
engaged a
sub-adviser,
the Board considered similar information about the
sub-adviser
when considering the approval of any
sub-advisory
agreement.
The Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
Committee relied upon the advice of such counsel and their own
business judgment in determining the material factors to be
considered in evaluating each advisory and
sub-advisory
agreement and the weight to be given to each such factor. The
conclusions reached with respect to each advisory and
sub-advisory
agreement were based on a comprehensive evaluation of all the
information provided and not any single factor. Moreover, each
member of the Contract Review Committee may have placed varying
emphasis on particular factors in reaching conclusions with
respect to each advisory and
sub-advisory
agreement.
Results
of the Process
Based on its consideration of the foregoing, and such other
information as it deemed relevant, including the factors and
conclusions described below, the Contract Review Committee
concluded that the continuance of the investment advisory
agreements of the following funds:
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Eaton Vance Municipal Bond Fund II (formerly Eaton Vance
Insured Municipal Bond Fund II)
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Eaton Vance California Municipal Bond Fund II (formerly
Eaton Vance Insured California Municipal Bond Fund II)
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Eaton Vance Massachusetts Municipal Bond Fund (formerly Eaton
Vance Insured Massachusetts Municipal Bond Fund)
|
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|
Eaton Vance Michigan Municipal Bond Fund (formerly Eaton Vance
Insured Michigan Municipal Bond Fund)
|
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Eaton Vance New Jersey Municipal Bond Fund (formerly Eaton Vance
Insured New Jersey Municipal Bond Fund)
|
|
|
Eaton Vance New York Municipal Bond Fund II (formerly Eaton
Vance Insured New York Municipal Bond Fund II)
|
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Eaton Vance Ohio Municipal Bond Fund (formerly Eaton Vance
Insured Ohio Municipal Bond Fund)
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Eaton Vance Pennsylvania Municipal Bond Fund (formerly Eaton
Vance Insured Pennsylvania Municipal Bond Fund)
|
(the Funds), each with Eaton Vance Management (the
Adviser), including their fee structures, is in the
interests of shareholders and, therefore, the Contract Review
Committee recommended to the Board approval of each agreement.
The Board accepted the recommendation of the Contract Review
Committee as well as the factors considered and conclusions
reached by the Contract Review Committee with respect to each
agreement. Accordingly, the Board, including a majority of the
Independent Trustees, voted to approve continuation of the
investment advisory agreement for each Fund.
Nature,
Extent and Quality of Services
In considering whether to approve the investment advisory
agreements of the Funds, the Board evaluated the nature, extent
and quality of services provided to the Funds by the Adviser.
The Board considered the Advisers management capabilities
and investment process with respect to the types of investments
held by each Fund, including the education, experience and
number of its investment professionals and other personnel who
provide portfolio management, investment research, and similar
services to the Funds, including recent changes to such
personnel (where applicable). In particular, the Board
evaluated, where relevant, the abilities and experience of such
investment personnel in analyzing factors such as credit risk,
tax efficiency, and special considerations relevant to investing
in municipal bonds. The Board considered the Advisers
large municipal bond team, which includes portfolio managers and
credit specialists who provide services to the Funds. The Board
also took into account the resources dedicated to portfolio
management and other services, including the compensation
methods of the Adviser to recruit and retain investment
personnel, and the time and attention devoted to each Fund by
senior management.
80
Eaton Vance
Municipal Bond Funds
BOARD OF TRUSTEES CONTRACT
APPROVAL
CONTD
The Board also reviewed the compliance programs of the Adviser
and relevant affiliates thereof. Among other matters, the Board
considered compliance and reporting matters relating to personal
trading by investment personnel, selective disclosure of
portfolio holdings, late trading, frequent trading, portfolio
valuation, business continuity and the allocation of investment
opportunities. The Board also evaluated the responses of the
Adviser and its affiliates to requests in recent years from
regulatory authorities such as the Securities and Exchange
Commission and the Financial Industry Regulatory Authority.
The Board considered shareholder and other administrative
services provided or managed by Eaton Vance Management and its
affiliates, including transfer agency and accounting services.
The Board evaluated the benefits to shareholders of investing in
a fund that is a part of a large family of funds.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser, taken as a whole, are appropriate and
consistent with the terms of the respective investment advisory
agreements.
Fund Performance
The Board compared each Funds investment performance to a
relevant universe of similarly managed funds identified by an
independent data provider and appropriate benchmark indices and,
where relevant, a peer group of similarly managed funds. The
Board reviewed comparative performance data for the
one-,
three-,
five-
and
ten-year
periods ended September 30, 2009 for each Fund. The Board
considered the impact of extraordinary market conditions during
2008 and 2009 on each Funds performance relative to its
peer universe in light of, among other things, the
Advisers long-standing strategy of generating current
income through investments in higher quality (including insured)
municipal bonds with longer maturities. The Board noted that the
Adviser had restructured management of the municipal bond team
and had implemented additional processes and tools designed to
manage credit and interest rate risk. The Board concluded that
appropriate actions are being taken by the Adviser to improve
Fund performance and that additional time is required to
evaluate the effectiveness of such actions.
Management
Fees and Expenses
The Board reviewed contractual investment advisory fee rates
payable by each Fund (referred to as management
fees). As part of its review, the Board considered each
Funds management fee and total expense ratio for the year
ended September 30, 2009, as compared to a group of
similarly managed funds selected by an independent data
provider. The Board also considered factors that had an impact
on the Funds expense ratios, as identified by management
in response to inquiries from the Contract Review Committee, as
well as actions being taken to reduce expenses at the Eaton
Vance fund complex level. The Board considered the fact that the
Adviser had waived fees
and/or
paid
expenses for each of the Funds.
After reviewing the foregoing information, and in light of the
nature, extent and quality of the services provided by the
Adviser, the Board concluded with respect to each Fund that the
management fees charged to the Fund for advisory and related
services are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser
and relevant affiliates thereof in providing investment advisory
and administrative services to each Fund and to all Eaton Vance
Funds as a group. The Board considered the level of profits
realized with and without regard to revenue sharing or other
payments by the Adviser and its affiliates to third parties in
respect of distribution services. The Board also considered
other direct or indirect benefits received by the Adviser and
its affiliates in connection with their relationship with the
Funds, including the benefits of research services that may be
available to the Adviser as a result of securities transactions
effected for a Fund and other investment advisory clients.
The Board concluded that, in light of the foregoing factors and
the nature, extent and quality of the services rendered, the
profits realized by the Adviser and its affiliates are
reasonable.
Economies
of Scale
In reviewing management fees and profitability, the Board also
considered the extent to which the Adviser and its affiliates,
on the one hand, and each Fund, on the other hand, can expect to
realize benefits from economies of scale as the assets of the
Fund increase. The Board acknowledged the difficulty in
accurately measuring the benefits resulting from the economies
of scale with respect to the management of any specific fund or
group of funds. The Board also considered the fact that none of
the Funds is continuously offered and concluded that, in light
of the level of the Advisers profits with respect to each
Fund, the implementation of breakpoints in the advisory fee
schedule is not appropriate at this time. Based upon the
foregoing, the Board concluded that the benefits from economies
of scale are currently being shared equitably by the Adviser and
its affiliates and each Fund.
81
Eaton Vance
Municipal Bond Funds
MANAGEMENT AND ORGANIZATION
Fund Management.
The Trustees and officers of
Eaton Vance Municipal Bond Fund II (EIV), Eaton Vance
California Municipal Bond Fund II (EIA), Eaton Vance
Massachusetts Municipal Bond Fund (MAB), Eaton Vance Michigan
Municipal Bond Fund (MIW), Eaton Vance New Jersey Municipal
Bond Fund (EMJ), Eaton Vance New York Municipal Bond
Fund II (NYH), Eaton Vance Ohio Municipal Bond Fund (EIO),
and Eaton Vance Pennsylvania Municipal Bond Fund (EIP) (the
Funds) are responsible for the overall management and
supervision of the Funds affairs. The Trustees and
officers of the Funds 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 Funds, 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.
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|
Term of
|
|
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|
Number of
Portfolios
|
|
|
|
|
|
Position(s)
|
|
Office and
|
|
|
|
in Fund
Complex
|
|
|
|
Name and
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|
with the
|
|
Length of
|
|
Principal
Occupation(s)
|
|
Overseen By
|
|
|
Other
Directorships Held
|
Date of
Birth
|
|
Funds
|
|
Service
|
|
During Past Five
Years and Other Relevant Experience
|
|
Trustee
(1)
|
|
|
During the Last
Five
Years
(2)
|
|
|
|
Interested
Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas E. Faust Jr.
5/31/58
|
|
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 184 registered investment companies and 1 private
investment company managed by EVM or BMR. Mr. Faust is an
interested person because of his positions with EVM, BMR, EVD,
EVC and EV, which are affiliates of the Funds.
|
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|
184
|
|
|
Director of EVC.
|
|
Noninterested
Trustees
|
|
|
|
|
|
|
|
|
|
|
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|
|
Benjamin C. Esty
1/2/63
|
|
Class II
Trustee
|
|
Until 2013.
3 years.
Trustee since 2005.
|
|
Roy and Elizabeth Simmons Professor of Business Administration
and Finance Unit Head, Harvard University Graduate School of
Business Administration.
|
|
|
184
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
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|
Allen R. Freedman
4/3/40
|
|
Class II
Trustee
|
|
Until 2013.
3 years.
Trustee since 2007.
|
|
Private Investor and Consultant. 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).
Formerly, Chairman and a Director of Indus International, Inc.
(provider of enterprise management software to the power
generating industry)
(2005-2007).
|
|
|
184
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|
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Director of Assurant, Inc. (insurance provider) and Stonemor
Partners, L.P. (owner and operator of cemeteries).
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William H. Park
9/19/47
|
|
Class I
Trustee
|
|
Until 2012.
3 years.
Trustee since 2003.
|
|
Chief Financial Officer, Aveon Group, L.P. (an investment
management firm) (since 2010). 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 (an institutional investment
management firm)
(1982-2001).
Formerly, Senior Manager, Price Waterhouse (now
PricewaterhouseCoopers) (an independent registered public
accounting firm)
(1972-1981).
|
|
|
184
|
|
|
None
|
|
|
|
|
|
|
|
|
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|
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|
|
Ronald A. Pearlman
7/10/40
|
|
Class III
Trustee
|
|
Until 2011.
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).
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184
|
|
|
None
|
82
Eaton Vance
Municipal Bond Funds
MANAGEMENT AND
ORGANIZATION
CONTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
Number of
Portfolios
|
|
|
|
|
|
Position(s)
|
|
Office and
|
|
|
|
in Fund
Complex
|
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
Principal
Occupation(s)
|
|
Overseen By
|
|
|
Other
Directorships Held
|
Date of
Birth
|
|
Funds
|
|
Service
|
|
During Past Five
Years and Other Relevant Experience
|
|
Trustee
(1)
|
|
|
During the Last
Five
Years
(2)
|
|
|
Noninterested
Trustees (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Helen Frame Peters
3/22/48
|
|
Class III
Trustee
|
|
Until 2011.
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).
|
|
|
184
|
|
|
Director of BJs Wholesale Club, Inc. (wholesale club
retailer). 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).
|
|
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|
|
|
|
|
|
|
|
|
|
|
Heidi L. Steiger
7/8/53
|
|
Class III
Trustee
|
|
Until 2011.
3 years.
Trustee since 2007.
|
|
Managing Partner, Topridge Associates LLC (global wealth
management firm) (since 2008); Senior Advisor (since 2008),
President
(2005-2008),
Lowenhaupt Global Advisors, LLC (global wealth management firm).
Formerly, President and Contributing Editor, Worth Magazine
(2004-2005).
Formerly, Executive Vice President and Global Head of Private
Asset Management (and various other positions), Neuberger Berman
(investment firm)
(1986-2004).
|
|
|
184
|
|
|
Director of Nuclear Electric Insurance Ltd. (nuclear insurance
provider), Aviva USA (insurance provider) and CIFG (family of
financial guaranty companies), and Advisory Director of
Berkshire Capital Securities LLC (private investment banking
firm).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lynn A. Stout
9/14/57
|
|
Class I
Trustee
|
|
Until 2012.
3 years.
Trustee since 2002.
|
|
Paul Hastings Professor of Corporate and Securities Law (since
2006) and Professor of Law
(2001-2006),
University of California at Los Angeles School of Law. Professor
Stout teaches classes in corporate law and securities regulation
and is the author of numerous academic and professional papers
on these areas.
|
|
|
184
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ralph F. Verni
1/26/43
|
|
Chairman of
the Board and
Class I Trustee
|
|
Until 2012. 3 years. Chairman of the Board since 2007; 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).
|
|
|
184
|
|
|
None
|
Principal Officers
who are not Trustees
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
|
Position(s)
|
|
Office and
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
Principal
Occupation(s)
|
Date of
Birth
|
|
Funds
|
|
Service
|
|
During Past Five
Years
|
|
|
|
|
|
|
|
|
Cynthia J. Clemson
3/2/63
|
|
President of EIA,
MIW, NYH, EIO and
EIP; Vice President
of MAB, EIV and EMJ
|
|
President
since 2005 and
Vice President
since 2004
|
|
Vice President of EVM and BMR. Officer of 96 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Thomas M. Metzold
8/3/58
|
|
President of MAB, EIV and EMJ; Vice President of
EIA and EIP
|
|
President since 2010 and Vice President of EIA since 2010 and of
EIP
since 2005
|
|
Vice President of EVM and BMR. Officer of 57 registered
investment companies managed by EVM or BMR.
|
83
Eaton Vance
Municipal Bond Funds
MANAGEMENT AND
ORGANIZATION
CONTD
|
|
|
|
|
|
|
|
|
|
|
Term of
|
|
|
|
|
Position(s)
|
|
Office and
|
|
|
Name and
|
|
with the
|
|
Length of
|
|
Principal
Occupation(s)
|
Date of
Birth
|
|
Funds
|
|
Service
|
|
During Past Five
Years
|
|
|
Principal
Officers who are not Trustees (continued)
|
|
|
|
|
|
|
|
William H. Ahern, Jr.
7/28/59
|
|
Vice President of
MIW, EIV and EIO
|
|
Of MIW since 2002; of EIV since 2004; and of EIO since 2005
|
|
Vice President of EVM and BMR. Officer of 80 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Craig R. Brandon
12/21/66
|
|
Vice President of
EIA and NYH
|
|
Of EIA since 2010 and of NYH since 2005
|
|
Vice President of EVM and BMR. Officer of 50 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Adam A. Weigold
3/22/75
|
|
Vice President of
EIP
|
|
Since 2007
|
|
Vice President of EVM and BMR. Officer of 73 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Barbara E. Campbell
6/19/57
|
|
Treasurer
|
|
Since 2005
|
|
Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Maureen A. Gemma
5/24/60
|
|
Secretary and Chief
Legal Officer
|
|
Secretary since 2007 and Chief Legal Officer
since 2008
|
|
Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.
|
|
|
|
|
|
|
|
Paul M. ONeil
7/11/53
|
|
Chief Compliance
Officer
|
|
Since 2004
|
|
Vice President of EVM and BMR. Officer of 184 registered
investment companies managed by EVM or BMR.
|
|
|
|
(1)
|
|
Includes both master and feeder funds in a master-feeder
structure.
|
|
(2)
|
|
During their respective tenures, the Trustees 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 Fund (launched in 1998 and terminated in 2009).
|
84
Investment
Adviser and Administrator of
Eaton Vance
Municipal Bond Funds
Eaton Vance
Management
Two International
Place
Boston, MA 02110
State Street
Bank and Trust Company
200 Clarendon
Street
Boston, MA 02116
American Stock
Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Independent
Registered Public Accounting Firm
Deloitte &
Touche LLP
200 Berkeley Street
Boston, MA
02116-5022
Eaton
Vance Municipal Bond Funds
Two
International Place
Boston, MA
02110
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by calling
1-800-262-1122.
Item 3. Audit Committee Financial Expert
The 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 the Chief Financial
Officer of Aveon Group, L.P. (an investment management firm). Previously, he served 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
(a) (d)
The following table presents the aggregate fees billed to the registrant for the registrants
fiscal years ended September 30, 2009 and September 30, 2010 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 the principal accountant
during such period.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended
|
|
9/30/09
|
|
9/30/10
|
|
Audit Fees
|
|
$
|
25,380
|
|
|
$
|
24,270
|
|
Audit-Related Fees
(1)
|
|
$
|
3,915
|
|
|
$
|
3,915
|
|
Tax Fees
(2)
|
|
$
|
8,402
|
|
|
$
|
7,766
|
|
All Other Fees
(3)
|
|
$
|
0
|
|
|
$
|
500
|
|
|
|
|
Total
|
|
$
|
37,697
|
|
|
$
|
36,541
|
|
|
|
|
|
|
|
(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 the registrants
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.
|
|
(3)
|
|
All other fees consist of the aggregate fees billed for products and services
provided by the registrants 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 the registrants principal accountant for the
registrants fiscal year ended September 30, 2009 and the fiscal year ended September 30, 2010; and
(ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to
the Eaton Vance organization by the registrants principal accountant for the same time periods.
|
|
|
|
|
|
|
|
|
Fiscal Years Ended
|
|
9/30/09
|
|
9/30/10
|
|
Registrant
|
|
$
|
12,317
|
|
|
$
|
12,181
|
|
Eaton Vance
(1)
|
|
$
|
288,889
|
|
|
$
|
278,901
|
|
|
|
|
(1)
|
|
The investment adviser to the registrant, as well as any of its affiliates that
provide ongoing services to the registrant, are subsidiaries of Eaton Vance Corp.
|
(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. Norton H. Reamer
(Chair), William H. Park, Lynn A. Stout, Heidi L. Steiger 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 then back to the investment
adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in
accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser
proxies relating to mergers and restructurings, and the disposition of assets, termination,
liquidation and mergers contained in mutual fund proxies. The investment adviser will normally
vote against anti-takeover measures and other proposals designed to limit the ability of
shareholders to act on possible transactions, except in the case of closed-end management
investment companies. The investment adviser generally supports management on social and
environmental proposals. The investment adviser may abstain from voting from time to time where it
determines that the costs associated with voting a proxy outweighs the benefits derived from
exercising the right to vote or the economic effect on shareholders interests or the value of the
portfolio holding is indeterminable or insignificant.
In addition, the investment adviser will monitor situations that may result in a conflict of
interest between the 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 personal of the investment adviser identified in the
Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner
inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel
will consult with members of senior management of the investment adviser to determine if a material
conflict of interests exists. If it is determined that a material conflict does exist, the
investment adviser will seek instruction on how to vote from the Special Committee.
Information on how the Fund voted proxies relating to portfolio securities during the most recent
12 month period ended June 30 is available (1) without charge, upon request, by calling
1-800-262-1122, and (2) on the Securities and Exchange Commissions website at http://www.sec.gov.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
California Municipal Bond Fund II, Massachusetts Municipal Bond Fund, Michigan Municipal Bond
Fund, Municipal Bond Fund II, New York Municipal Bond Fund II, New Jersey Municipal Bond Fund, Ohio
Municipal Bond Fund, Pennsylvania Municipal Bond Fund
Portfolio Management
Cynthia J. Clemson, portfolio manager of Eaton Vance California Municipal Bond Fund II, William H.
Ahern, Jr., portfolio manager of Eaton Vance Michigan Municipal Bond Fund, Eaton Vance Municipal
Bond Fund II and Eaton Vance Ohio Municipal Bond Fund, Craig R. Brandon, portfolio manager of Eaton
Vance Massachusetts Municipal Bond Fund and Eaton Vance New York Municipal Bond Fund II and Adam A.
Weigold, portfolio manager of Eaton Vance New Jersey Municipal Bond Fund and Eaton Vance
Pennsylvania Municipal Bond Fund 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 Vice President of Eaton
Vance Management (EVM) and Boston Management and Research (BMR). 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 tables show, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
|
|
Total Assets of
|
|
|
Number
|
|
Total Assets
|
|
Paying a
|
|
Accounts Paying
|
|
|
of All
|
|
of All
|
|
Performance
|
|
a Performance
|
|
|
Accounts
|
|
Accounts
|
|
Fee
|
|
Fee
|
Cynthia J. Clemson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies
|
|
|
11
|
|
|
$
|
3,008.6
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Pooled Investment
Vehicles
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Accounts
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William H. Ahern, Jr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies
|
|
|
14
|
|
|
$
|
3,379.0
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Pooled Investment
Vehicles
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Accounts
|
|
|
1
|
|
|
$
|
17.8
|
|
|
|
0
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Craig R. Brandon
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies
|
|
|
14
|
|
|
$
|
1,822.8
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Pooled Investment
Vehicles
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Accounts
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adam A. Weigold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered Investment
Companies
|
|
|
14
|
|
|
$
|
1,437.1
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Pooled Investment
Vehicles
|
|
|
0
|
|
|
$
|
0
|
|
|
|
0
|
|
|
$
|
0
|
|
Other Accounts
|
|
|
1
|
|
|
$
|
17.1
|
|
|
|
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.
|
|
|
|
|
|
|
Dollar Range of
|
|
|
Equity Securities
|
|
|
Owned in the
|
|
|
Fund
|
|
|
|
|
|
California Municipal Bond Fund II
|
|
|
|
|
Cynthia J. Clemson
|
|
None
|
|
|
|
|
|
Michigan Municipal Bond Fund
|
|
|
|
|
Municipal Bond Fund II
|
|
|
|
|
Ohio Municipal Bond Fund
|
|
|
|
|
William H. Ahern, Jr.
|
|
None
|
|
|
|
|
|
Massachusetts Municipal Bond Fund
|
|
|
|
|
New York Municipal Bond Fund II
|
|
|
|
|
Craig R. Brandon
|
|
None
|
|
|
|
|
|
New Jersey Municipal Bond Fund
|
|
|
|
|
Pennsylvania Municipal Bond Fund
|
|
|
|
|
Adam A. Weigold
|
|
None
|
Potential for Conflicts of Interest
. It is possible that conflicts of interest may arise in
connection with a portfolio managers management of a 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 a 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 or sub-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. 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
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(a)(1)
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Registrants Code of Ethics Not applicable (please see Item 2).
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(a)(2)(i)
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Treasurers Section 302 certification.
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(a)(2)(ii)
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Presidents Section 302 certification.
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(b)
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Combined Section 906 certification.
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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 Ohio Municipal Bond Fund
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By:
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/s/ Cynthia J. Clemson
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Cynthia J. Clemson
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President
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Date: November 15, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
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By:
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/s/ Barbara E. Campbell
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Barbara E. Campbell
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Treasurer
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Date: November 15, 2010
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By:
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/s/ Cynthia J. Clemson
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Cynthia J. Clemson
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President
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Date: November 15, 2010
Eaton Vance Ohio Municipal Bond Fund Common Shared of Befeficial Interest, $.01 Par Value (AMEX:EIO)
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