Eaton Vance California Municipal Bond Fund II

 

 

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: 811-21217

 

 

Eaton Vance California Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

September 30

Date of Fiscal Year End

March 31, 2014

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders


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Eaton Vance

Municipal Bond Funds

Semiannual Report

March 31, 2014

 

 

 

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

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

 

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Commodity Futures Trading Commission Registration. Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. Each Fund has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act. Accordingly, neither the Funds nor the adviser with respect to the operation of the Funds is subject to CFTC regulation. Because of its management of other strategies, each Fund’s adviser is registered with the CFTC as a commodity pool operator and a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.


Semiannual Report March 31, 2014

Eaton Vance

Municipal Bond Funds

Table of Contents

 

Performance and Fund Profile

  
  

Municipal Bond Fund II

     2   

California Municipal Bond Fund II

     3   

Massachusetts Municipal Bond Fund

     4   

Michigan Municipal Bond Fund

     5   

New Jersey Municipal Bond Fund

     6   

New York Municipal Bond Fund II

     7   

Ohio Municipal Bond Fund

     8   

Pennsylvania Municipal Bond Fund

     9   
  

Endnotes and Additional Disclosures

     10   

Financial Statements

     11   

Officers and Trustees

     70   

Important Notices

     71   


Eaton Vance

Municipal Bond Fund II

March 31, 2014

 

Performance1,2

 

Portfolio Manager Cynthia J. Clemson

 

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

Fund at NAV

     11/29/2002         8.57      0.83      11.96      5.16

Fund at Market Price

             7.39         –5.94         7.69         3.95   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –6.44
Distributions4                                        

Total Distributions per share for the period

               $ 0.379   

Distribution Rate at NAV

                 6.09

Taxable-Equivalent Distribution Rate at NAV

                 10.76

Distribution Rate at Market Price

                 6.51

Taxable-Equivalent Distribution Rate at Market Price

                 11.50
% Total Leverage5                                        

Auction Preferred Shares (APS)

                 21.14

Residual Interest Bond (RIB)

                 20.00   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing .5 Absent such securities, credit quality (% of total investments) is as follows :6

 

AAA

    8.5   

BB

    1.1

AA

    69.5      

B

    0.2   

A

    15.2      

Not Rated

    1.3   

BBB

    4.2        

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  2  


Eaton Vance

California Municipal Bond Fund II

March 31, 2014

 

Performance1,2

 

Portfolio Manager Craig R. Brandon, CFA

 

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

Fund at NAV

     11/29/2002         9.74      –0.07      11.51      4.65

Fund at Market Price

             6.64         –6.12         9.48         3.93   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –7.04
Distributions4                                        

Total Distributions per share for the period

               $ 0.365   

Distribution Rate at NAV

                 5.85

Taxable-Equivalent Distribution Rate at NAV

                 11.92

Distribution Rate at Market Price

                 6.29

Taxable-Equivalent Distribution Rate at Market Price

                 12.82
% Total Leverage5                                        

APS

                 30.53

RIB

                 11.74   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    13.7   

BBB

    1.8

AA

    69.1      

Not Rated

    1.9   

A

    13.5        

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  3  


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2014

 

Performance1,2

 

Portfolio Manager Craig R. Brandon, CFA

 

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

Fund at NAV

     11/29/2002         9.22      –1.34      9.97      5.33

Fund at Market Price

             8.32         –6.94         8.46         3.67   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –8.30
Distributions4                                        

Total Distributions per share for the period

               $ 0.380   

Distribution Rate at NAV

                 5.30

Taxable-Equivalent Distribution Rate at NAV

                 9.88

Distribution Rate at Market Price

                 5.78

Taxable-Equivalent Distribution Rate at Market Price

                 10.77
% Total Leverage5                                        

APS

                 32.11

RIB

                 7.88   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    17.8   

BBB

    1.9

AA

    49.4      

BB

    3.4   

A

    22.1      

Not Rated

    5.4   

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  4  


Eaton Vance

Michigan Municipal Bond Fund

March 31, 2014

 

Performance1,2

 

Portfolio Manager Thomas M. Metzold, CFA

 

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

Fund at NAV

     11/29/2002         9.81      0.62      9.20      5.40

Fund at Market Price

             8.93         –9.35         9.60         3.23   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –11.13
Distributions4                                        

Total Distributions per share for the period

               $ 0.364   

Distribution Rate at NAV

                 5.20

Taxable-Equivalent Distribution Rate at NAV

                 9.60

Distribution Rate at Market Price

                 5.85

Taxable-Equivalent Distribution Rate at Market Price

                 10.80
% Total Leverage5                                        

APS

                 38.56

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  5  


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2014

 

Performance1,2

 

Portfolio Manager Adam A. Weigold, CFA

 

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

Fund at NAV

     11/29/2002         7.67      0.53      10.18      5.23

Fund at Market Price

             8.05         –8.96         6.87         3.67   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –10.28
Distributions4                                        

Total Distributions per share for the period

               $ 0.350   

Distribution Rate at NAV

                 5.10

Taxable-Equivalent Distribution Rate at NAV

                 9.90

Distribution Rate at Market Price

                 5.69

Taxable-Equivalent Distribution Rate at Market Price

                 11.04
% Total Leverage5                                        

APS

                 35.24

RIB

                 0.40   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    6.4   

A

    24.7

AA

    57.5      

BBB

    11.4   

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  6  


Eaton Vance

New York Municipal Bond Fund II

March 31, 2014

 

Performance1,2

 

Portfolio Manager Craig R. Brandon, CFA

 

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

Fund at NAV

     11/29/2002         6.62      –0.29      10.33      4.78

Fund at Market Price

             11.10         –6.88         8.36         3.96   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –6.40
Distributions4                                        

Total Distributions per share for the period

               $ 0.344   

Distribution Rate at NAV

                 5.36

Taxable-Equivalent Distribution Rate at NAV

                 10.39

Distribution Rate at Market Price

                 5.73

Taxable-Equivalent Distribution Rate at Market Price

                 11.10
% Total Leverage5                                        

APS

                 23.91

RIB

                 16.79   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    22.9   

BBB

    4.5

AA

    51.5      

BB

    0.7   

A

    20.4        

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  7  


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2014

 

Performance1,2

 

Portfolio Manager Thomas M. Metzold, CFA

 

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

Fund at NAV

     11/29/2002         9.00      0.27      11.10      4.48

Fund at Market Price

             7.71         –10.15         8.60         2.86   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –7.97
Distributions4                                        

Total Distributions per share for the period

               $ 0.351   

Distribution Rate at NAV

                 5.43

Taxable-Equivalent Distribution Rate at NAV

                 10.14

Distribution Rate at Market Price

                 5.90

Taxable-Equivalent Distribution Rate at Market Price

                 11.02
% Total Leverage5                                        

APS

                 32.60

RIB

                 4.54   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    3.5   

BBB

    3.7

AA

    73.9      

Not Rated

    0.1   

A

    18.8        

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  8  


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2014

 

Performance1,2

 

Portfolio Manager Adam A. Weigold, CFA

 

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

Fund at NAV

     11/29/2002         9.49      1.27      11.21      5.53

Fund at Market Price

             9.46         –7.35         8.18         3.80   

Barclays Long (22+) Year Municipal Bond Index

             5.97      –0.82      8.14      4.90
% Premium/Discount to NAV3                                        
                 –8.84
Distributions4                                        

Total Distributions per share for the period

               $ 0.387   

Distribution Rate at NAV

                 5.74

Taxable-Equivalent Distribution Rate at NAV

                 10.46

Distribution Rate at Market Price

                 6.29

Taxable-Equivalent Distribution Rate at Market Price

                 11.47
% Total Leverage5                                        

APS

                 32.90

RIB

                 6.72   

Fund Profile

 

Credit Quality (% of total investments)6

 

 

LOGO

The above chart includes the ratings of securities held by special purpose vehicles established in connection with the RIB financing.5 Absent such securities, credit quality (% of total investments) is as follows:6

 

AAA

    0.4   

BBB

    2.5

AA

    60.7      

Not Rated

    5.8   

A

    30.6        

    

 

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or market price (as applicable) with all distributions reinvested and includes management fees and other expenses. Fund performance at market price will differ from its results at NAV due to factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for Fund shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance less than one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to eatonvance.com.

 

  9  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Endnotes and Additional Disclosures

 

 

1 

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

 

2 

Performance results reflect the effects of leverage. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable.

 

3 

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

 

4 

The Distribution Rate is based on the Fund’s last regular distribution per share in the period (annualized) divided by the Fund’s NAV or market price at the end of the period. The Fund’s distributions may be comprised of amounts characterized for federal income tax purposes as tax-exempt income, ordinary income and net realized capital gains. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. This is reported on the IRS form 1099-DIV and provided to the shareholder shortly after each year- end. For information about the tax character of distributions made in prior calendar years, please refer to Performance-Tax Character of Distributions on the Fund’s webpage available at eatonvance.com. The Fund’s distributions are determined by the investment adviser based on its current assessment of the Fund’s long-term return potential. As portfolio and market conditions change, the rate of distributions paid by the Fund could change. Taxable-equivalent performance is based on the highest combined federal and state income tax rates, where applicable. Lower tax rates would result in lower tax-equivalent performance. Actual tax rates will vary depending on your income, exemptions and deductions. Rates do not include local taxes.

5 

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

 

6 

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

 

  

Fund profile subject to change due to active management.

 

  

Important Notices to Shareholders

  

Effective March 20, 2014, each Fund may invest more than 15% of its net assets in illiquid securities.

 

  

Effective March 3, 2014, the Municipal Bond Fund II is managed by Cynthia J. Clemson, and Michigan Municipal Bond Fund and Ohio Municipal Bond Fund are managed by Thomas M. Metzold, CFA.

 

  

Effective January 1, 2014, the California Municipal Bond Fund II is managed by Craig R. Brandon, CFA.

 

 

  10  


Eaton Vance

Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Municipal Securities — 168.5%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 13.1%

  

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

  $ 2,200      $ 2,367,706   

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

    565        601,115   

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

    1,745        1,960,089   

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

    1,650        1,802,575   

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

    2,710        3,127,692   

New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37

    1,500        1,528,785   

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

    1,500        1,616,295   

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

    500        546,890   

Tennessee School Bond Authority, 5.50%, 5/1/38

    1,000        1,103,810   

University of Virginia, 5.00%, 6/1/40

    1,500        1,644,135   
                 
    $ 16,299,092   
                 

Electric Utilities — 3.4%

  

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

  $ 1,300      $ 1,344,798   

South Carolina Public Service Authority, (Santee Cooper), 5.50%, 1/1/38

    1,420        1,580,332   

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

    500        558,405   

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

    685        726,984   
                 
    $ 4,210,519   
                 

General Obligations — 15.7%

  

California, 5.00%, 12/1/30

  $ 610      $ 682,078   

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

    1,680        1,754,021   

Clark County, NV, 5.00%, 7/1/33

    500        545,640   

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

    2,500        2,820,725   

Hawaii, 5.00%, 12/1/29

    2,500        2,849,825   

Hawaii, 5.00%, 12/1/30

    1,000        1,117,370   

Mississippi, 5.00%, 10/1/36(1)

    1,725        1,887,840   

New York, 5.00%, 2/15/34(1)

    2,750        2,992,027   

New York, NY, 5.00%, 8/1/31

    3,500        3,827,495   

Oregon, 5.00%, 8/1/36

    1,000        1,089,820   
                 
    $ 19,566,841   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital — 5.7%

  

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

  $ 870      $ 870,244   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27

    545        548,515   

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

    360        387,814   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36

    1,285        1,359,543   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38

    1,850        435,508   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39

    5,000        1,107,950   

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

    615        660,135   

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

    1,550        1,685,144   
                 
    $ 7,054,853   
                 

Industrial Development Revenue — 0.5%

  

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

  $ 595      $ 573,277   
                 
    $ 573,277   
                 

Insured – Education — 7.0%

  

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

  $ 2,500      $ 2,926,775   

Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31

    1,555        1,660,662   

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

    3,900        4,095,507   
                 
    $ 8,682,944   
                 

Insured – Electric Utilities — 8.5%

  

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

  $ 1,000      $ 1,077,870   

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

    6,335        4,703,231   

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

    735        792,301   

Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41

    2,205        2,229,586   

South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38

    1,595        1,791,631   
                 
    $ 10,594,619   
                 

Insured – Escrowed / Prerefunded — 7.8%

  

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.125%, 11/15/39

  $ 1,695      $ 1,758,240   
 

 

  11   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Escrowed / Prerefunded (continued)

  

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

  $ 450      $ 467,136   

Philadelphia, PA, (AGC), Prerefunded to 7/15/16, 7.00%, 7/15/28

    1,250        1,435,275   

Washington, (AGM), Prerefunded to 7/1/16, 5.00%, 7/1/25(1)

    5,500        6,058,910   
                 
    $ 9,719,561   
                 

Insured – General Obligations — 6.9%

  

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

  $ 750      $ 895,163   

Coast Community College District, CA, (Election of 2002), (AGM), 0.00%, 8/1/33

    12,000        4,266,480   

Goodyear, AZ, (NPFG), 3.00%, 7/1/26

    510        495,684   

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

    2,750        2,989,277   
                 
    $ 8,646,604   
                 

Insured – Hospital — 20.0%

  

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

  $ 1,750      $ 1,863,330   

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

    1,500        1,540,425   

Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)

    2,200        2,255,176   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)

    3,000        3,209,760   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35

    1,490        1,515,107   

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

    2,500        2,561,574   

Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)

    750        772,005   

Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41

    1,750        1,801,345   

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

    2,090        2,248,276   

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

    500        518,940   

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

    2,245        2,371,326   

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

    1,545        1,687,109   

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

    2,300        2,524,641   
                 
    $ 24,869,014   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Industrial Development Revenue — 1.2%

  

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

  $ 1,340      $ 1,430,102   
                 
    $ 1,430,102   
                 

Insured – Lease Revenue / Certificates of Participation — 5.8%

  

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

  $ 1,000      $ 1,200,820   

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

    875        979,913   

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

    3,250        3,525,697   

Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)

    1,500        1,573,440   
                 
    $ 7,279,870   
                 

Insured – Other Revenue — 1.5%

  

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

  $ 2,540      $ 738,886   

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

    1,000        1,168,460   
                 
    $ 1,907,346   
                 

Insured – Solid Waste — 1.1%

  

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

  $ 740      $ 856,017   

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

    425        489,630   
                 
    $ 1,345,647   
                 

Insured – Special Tax Revenue — 4.9%

  

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

  $ 3,000      $ 2,630,580   

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

    2,540        2,908,960   

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

    4,440        566,544   
                 
    $ 6,106,084   
                 

Insured – Student Loan — 1.2%

  

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

  $ 1,360      $ 1,476,022   
                 
    $ 1,476,022   
                 

Insured – Transportation — 22.4%

  

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

  $ 260      $ 279,916   
 

 

  12   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Transportation (continued)

  

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

  $ 200      $ 216,232   

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

    180        194,195   

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

    100        108,416   

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

    1,585        1,685,362   

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

    7,800        5,598,060   

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

    1,305        1,380,873   

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

    10,000        10,773,800   

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

    1,000        1,138,720   

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

    535        589,907   

Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20(2)

    13,885        2,217,295   

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

    1,040        1,162,741   

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

    255        280,464   

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

    290        315,990   

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

    1,750        1,957,305   
                 
    $ 27,899,276   
                 

Insured – Water and Sewer — 8.9%

  

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

  $ 670      $ 750,346   

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

    420        470,770   

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

    660        735,445   

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

    1,635        1,794,396   

Detroit, MI, Water Supply System, (NPFG), 5.00%, 7/1/34

    705        672,979   

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

    1,250        1,359,062   

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

    435        471,918   

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

    1,000        1,193,440   

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

    2,205        2,483,293   

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

    1,220        1,174,409   
                 
    $ 11,106,058   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Lease Revenue / Certificates of Participation — 6.5%

  

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

  $ 2,235      $ 2,555,767   

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

    5,000        5,547,850   
                 
    $ 8,103,617   
                 

Other Revenue — 1.8%

  

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

  $ 1,300      $ 1,479,491   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29

    485        498,056   

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

    260        266,063   
                 
    $ 2,243,610   
                 

Senior Living / Life Care — 0.2%

  

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

  $ 235      $ 255,290   
                 
    $ 255,290   
                 

Special Tax Revenue — 8.0%

  

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

  $ 1,880      $ 2,022,861   

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

    750        884,453   

Michigan Trunk Line Fund, 5.00%, 11/15/30

    110        120,450   

Michigan Trunk Line Fund, 5.00%, 11/15/31

    125        136,179   

Michigan Trunk Line Fund, 5.00%, 11/15/33

    105        112,942   

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

    80        85,724   

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

    465        509,417   

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

    1,710        1,865,182   

New York, NY, Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(3)

    3,800        4,242,130   
                 
    $ 9,979,338   
                 

Transportation — 12.3%

  

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

  $ 640      $ 719,136   

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

    990        1,105,632   

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

    1,715        1,818,946   

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

    465        529,937   
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation (continued)

  

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

  $ 865      $ 929,806   

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

    2,095        2,152,885   

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

    1,070        1,149,469   

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

    420        439,333   

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

    375        389,542   

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

    2,040        2,252,915   

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

    1,000        1,080,940   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/37

    2,500        2,709,800   
                 
    $ 15,278,341   
                 

Water and Sewer — 4.1%

  

Chicago, IL, Water Revenue, 5.00%, 11/1/42

  $ 1,000      $ 1,021,300   

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

    1,555        1,477,188   

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

    380        360,875   

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

    300        284,385   

Marco Island, FL, Utility System, 5.00%, 10/1/34

    205        216,572   

Marco Island, FL, Utility System, 5.00%, 10/1/40

    910        951,823   

New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/37

    720        749,477   
                 
    $ 5,061,620   
                 

Total Tax-Exempt Municipal Securities — 168.5%
(identified cost $204,032,797)

    $ 209,689,545   
                 
Corporate Bonds & Notes — 0.0%(4)    
   
Security   Principal
Amount
(000’s omitted)
    Value  

Transportation — 0.0%(4)

               

Las Vegas Monorail Co., Jr. Subordinated Notes, 3.00% to 12/31/15, 5.50%, 7/15/55(5)(6)(7)

  $ 47      $ 6,257   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation (continued)

               

Las Vegas Monorail Co., Sr. Secured Notes, 5.50%, 7/15/19(5)(6)

  $ 167      $ 29,980   
                 

Total Corporate Bonds & Notes — 0.0%(4)
(identified cost $10,616)

   

  $ 36,237   
                 

Total Investments — 168.5%
(identified cost $204,043,413)

   

  $ 209,725,782   
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (35.9)%

   

  $ (44,700,722
                 

Other Assets, Less Liabilities — (32.6)%

  

  $ (40,543,248
                 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 124,481,812   
                 

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

 

AGC     Assured Guaranty Corp.
AGM     Assured Guaranty Municipal Corp.
AMBAC     AMBAC Financial Group, Inc.
BHAC     Berkshire Hathaway Assurance Corp.
FGIC  

  Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.
XLCA     XL Capital Assurance, Inc.

At March 31, 2014, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

New York      12.9%   
Others, representing less than 10% individually      87.1%   

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 57.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.4% to 21.6% of total investments.

 

(1) 

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

 

(2) 

Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy.

 

(3) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,392,130.

 

(4) 

Amount is less than 0.05%.

 

(5) 

For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 10).

 

(6) 

Represents a payment-in-kind security which may pay all or a portion of interest in additional principal.

 

(7) 

Security is in default and making only partial interest payments.

 

 

  14   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 171.6%    
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 17.0%

  

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

  $ 1,370      $ 1,452,679   

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

    395        434,555   

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

    160        173,469   

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

    70        80,737   

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

    380        401,573   

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

    890        972,361   

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

    115        134,483   

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

    1,200        1,341,936   

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

    330        359,611   

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

    210        223,841   

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

    145        151,590   

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

    405        449,919   

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

    425        469,850   

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

    450        495,162   

University of California, 5.25%, 5/15/39

    1,000        1,127,030   
                 
    $ 8,268,796   
                 

Electric Utilities — 6.8%

  

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

  $ 745      $ 835,078   

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

    420        460,727   

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

    125        135,993   

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

    1,000        1,123,950   

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

    675        742,797   
                 
    $ 3,298,545   
                 

General Obligations — 24.0%

  

California, 5.50%, 11/1/35

  $ 1,300      $ 1,480,739   

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

    1,850        1,998,148   

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

    1,510        1,507,237   
Security   Principal
Amount
(000’s omitted)
    Value  
   

General Obligations (continued)

  

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

  $ 720      $ 792,468   

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

    455        502,657   

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/33

    350        384,066   

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

    410        446,826   

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

    685        808,245   

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

    1,170        1,372,749   

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

    1,125        1,213,211   

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

    1,000        1,134,980   
                 
    $ 11,641,326   
                 

Hospital — 16.1%

  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32

  $ 1,330      $ 1,364,274   

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

    1,400        1,442,434   

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

    335        354,949   

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

    475        498,722   

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

    750        831,810   

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

    600        643,338   

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

    280        296,674   

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

    1,000        1,067,510   

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

    555        556,937   

Washington Township Health Care District, 5.25%, 7/1/29

    750        750,315   
                 
    $ 7,806,963   
                 

Insured – Education — 7.5%

  

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32

  $ 420      $ 441,714   

California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/35

    1,000        1,051,700   

California State University, (AGM), (BHAC), 5.00%, 11/1/39(1)

    2,000        2,168,940   
                 
    $ 3,662,354   
                 
 

 

  15   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Electric Utilities — 7.7%

  

Los Angeles Department of Water and Power, Electric System Revenue, (AMBAC), (BHAC), 5.00%, 7/1/26(1)

  $ 1,500      $ 1,668,600   

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

    1,035        937,855   

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

    1,000        1,114,430   
                 
    $ 3,720,885   
                 

Insured – Escrowed / Prerefunded — 12.3%

  

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

  $ 1,150      $ 1,430,335   

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

    1,025        1,274,864   

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

    3,130        2,806,358   

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

    395        459,571   
                 
    $ 5,971,128   
                 

Insured – General Obligations — 26.2%

  

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

  $ 725      $ 788,525   

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

    7,125        2,069,385   

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

    2,525        625,619   

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

    1,500        1,631,430   

Coast Community College District, (Election of 2002), (AGM), 0.00%, 8/1/35

    6,675        2,121,048   

El Camino Hospital District, (NPFG), 4.45%, 8/1/36

    575        579,738   

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

    1,250        1,358,762   

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

    1,040        1,122,857   

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

    3,200        2,454,368   
                 
    $ 12,751,732   
                 

Insured – Hospital — 6.4%

  

California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC),
5.00%, 3/1/41(1)

  $ 1,250      $ 1,309,450   

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

    1,750        1,797,162   
                 
    $ 3,106,612   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Lease Revenue / Certificates of Participation — 3.9%

  

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

  $ 1,750      $ 1,898,453   
                 
    $ 1,898,453   
                 

Insured – Special Tax Revenue — 9.2%

  

Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG), 5.00%, 8/1/33

  $ 1,400      $ 1,401,078   

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

    1,535        1,432,631   

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

    2,675        341,330   

Santa Clara Valley Transportation Authority, Sales Tax Revenue, (AMBAC), 5.00%, 4/1/32

    1,225        1,314,462   
                 
    $ 4,489,501   
                 

Insured – Transportation — 4.2%

  

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

  $ 3,520      $ 1,693,226   

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

    330        337,210   
                 
    $ 2,030,436   
                 

Insured – Water and Sewer — 8.7%

  

Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37

  $ 1,235      $ 1,268,197   

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

    100        107,637   

East Bay Municipal Utility District, Water System Revenue, (NPFG), 5.00%, 6/1/32(1)

    1,600        1,722,192   

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

    445        481,775   

Santa Clara Valley Water District, (AGM), 3.75%, 6/1/28

    615        623,050   
                 
    $ 4,202,851   
                 

Lease Revenue / Certificates of Participation — 1.0%

  

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

  $ 480      $ 507,110   
                 
    $ 507,110   
                 

Special Tax Revenue — 6.3%

  

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

  $ 1,490      $ 1,637,361   

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

    1,300        1,442,428   
                 
    $ 3,079,789   
                 
 

 

  16   See Notes to Financial Statements.


Eaton Vance

California Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation — 11.9%

  

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

  $ 1,190      $ 1,358,409   

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

    540        601,582   

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)(2)

    1,060        1,140,729   

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

    1,250        1,421,212   

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

    635        666,693   

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

    500        577,330   
                 
    $ 5,765,955   
                 

Water and Sewer — 2.4%

  

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

  $ 1,050      $ 1,150,611   
                 
    $ 1,150,611   
                 

Total Tax-Exempt Investments — 171.6%
(identified cost $78,491,190)

    $ 83,353,047   
                 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (52.9)%

    $ (25,700,345
                 

Other Assets, Less Liabilities — (18.7)%

    $ (9,070,515
                 

Net Assets Applicable to Common Shares — 100.0%

    $ 48,582,187   
                 

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

 

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

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 50.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.6% to 19.1% of total investments.

(1) 

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

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $345,730.

 

 

  17   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 159.2%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 5.9%

  

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

  $ 585      $ 712,600   

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

    640        782,407   
                 
  $ 1,495,007   
                 

Education — 28.8%

               

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

  $ 750      $ 805,883   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)

    2,000        2,209,700   

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

    1,000        1,142,550   

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

    870        924,740   

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

    1,025        1,141,471   

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

    1,000        1,084,490   
                 
  $ 7,308,834   
                 

General Obligations — 12.4%

               

Boston, 4.00%, 4/1/24

  $ 200      $ 219,156   

Cambridge, 4.00%, 2/15/21

    395        447,081   

Danvers, 5.25%, 7/1/36

    565        623,800   

Plymouth, 5.00%, 5/1/26

    250        281,777   

Plymouth, 5.00%, 5/1/31

    225        246,670   

Plymouth, 5.00%, 5/1/32

    205        224,071   

Wayland, 5.00%, 2/1/33

    340        374,979   

Wayland, 5.00%, 2/1/36

    510        557,894   

Winchester, 5.00%, 4/15/36

    160        175,432   
                 
  $ 3,150,860   
                 

Hospital — 15.7%

               

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

  $ 775      $ 801,311   

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

    400        434,564   

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

    500        534,965   

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

    750        789,615   

Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29

    370        371,576   

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

    1,000        1,041,100   
                 
  $ 3,973,131   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Education — 15.1%

               

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

  $ 700      $ 846,293   

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

    750        805,845   

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

    1,105        1,293,634   

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)(2)

    750        890,325   
                 
  $ 3,836,097   
                 

Insured – Electric Utilities — 4.2%

               

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

  $ 1,095      $ 1,067,526   
                 
  $ 1,067,526   
                 

Insured – Escrowed / Prerefunded — 11.1%

               

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

  $ 2,900      $ 2,013,296   

Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), Prerefunded to 7/1/15, 5.00%, 7/1/35

    750        794,775   
                 
  $ 2,808,071   
                 

Insured – General Obligations — 13.5%

               

Massachusetts, (AMBAC), 5.50%, 8/1/30

  $ 1,900      $ 2,370,953   

Revere, (AGC), 5.00%, 4/1/39

    1,000        1,041,460   
                 
  $ 3,412,413   
                 

Insured – Hospital — 0.9%

               

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

  $ 220      $ 235,224   
                 
  $ 235,224   
                 

Insured – Lease Revenue / Certificates of Participation — 4.9%

  

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

  $ 1,000      $ 1,248,730   
                 
  $ 1,248,730   
                 

Insured – Other Revenue — 1.9%

               

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

  $ 415      $ 484,716   
                 
  $ 484,716   
                 
 

 

  18   See Notes to Financial Statements.


Eaton Vance

Massachusetts Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Special Tax Revenue — 15.7%

               

Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32

  $ 1,225      $ 1,229,447   

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

    400        495,764   

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37(1)

    1,160        1,248,241   

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

    750        896,197   

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

    770        98,252   
                 
  $ 3,967,901   
                 

Insured – Water and Sewer — 4.5%

               

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

  $ 960      $ 1,146,394   
                 
  $ 1,146,394   
                 

Other Revenue — 3.5%

               

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

  $ 320      $ 359,082   

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

    490        537,520   
                 
  $ 896,602   
                 

Senior Living / Life Care — 2.8%

               

Massachusetts Development Finance Agency, (Berkshire Retirement Community, Inc.), 5.15%, 7/1/31

  $ 745      $ 714,440   
                 
  $ 714,440   
                 

Special Tax Revenue — 5.6%

               

Massachusetts Bay Transportation Authority, 5.25%, 7/1/34

  $ 95      $ 107,166   

Massachusetts Bay Transportation Authority, Special Tax Revenue, 5.00%, 7/1/35

    1,210        1,321,320   
                 
  $ 1,428,486   
                 

Transportation — 9.3%

               

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

  $ 1,000      $ 1,064,860   

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

    500        523,205   

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

    250        284,923   

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

    435        474,637   
                 
  $ 2,347,625   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer — 3.4%

               

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

  $ 750      $ 856,455   
                 
  $ 856,455   
                 

Total Tax-Exempt Investments — 159.2%
(identified cost $37,232,032)

   

  $ 40,378,512   
   

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (53.5)%

   

  $ (13,575,316
   

Other Assets, Less Liabilities — (5.7)%

  

  $ (1,435,000
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 25,368,196   
   

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.
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 March 31, 2014, 45.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 2.8% to 18.5% of total investments.

 

(1) 

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

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $390,325.

 

 

  19   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 163.6%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 6.2%

               

Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35

  $ 250      $ 250,095   

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

    570        545,900   

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

    500        525,910   
                 
    $ 1,321,905   
                 

Electric Utilities — 7.8%

               

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

  $ 865      $ 929,339   

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

    700        719,180   
                 
    $ 1,648,519   
                 

Escrowed / Prerefunded — 2.0%

               

Michigan Hospital Finance Authority, (Chelsea Community Hospital), Prerefunded to 5/15/15, 5.00%, 5/15/30

  $ 400      $ 421,268   
                 
    $ 421,268   
                 

General Obligations — 42.1%

               

Birmingham Public Schools, 4.00%, 5/1/32

  $ 1,000      $ 1,017,140   

Bloomfield Hills Schools, MI, 4.00%, 5/1/37

    500        503,210   

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

    500        503,360   

Chippewa Valley Schools, 5.00%, 5/1/31

    750        818,865   

Comstock Park Public Schools, 5.00%, 5/1/28

    170        184,926   

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

    205        218,251   

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

    165        178,294   

HealthSource Saginaw, Inc., Saginaw County, 4.00%, 5/1/29

    500        508,810   

Howell Public Schools, 4.50%, 5/1/29

    620        659,934   

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

    750        822,780   

Livingston County, 4.00%, 6/1/30

    225        229,631   

Northview Public Schools, 5.00%, 5/1/41

    895        934,273   

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

    750        760,365   

St. Clair County, (Convention Center), 3.75%, 4/1/42

    375        321,480   

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

    635        682,758   

Whitmore Lake Public School District, 4.00%, 5/1/32

    600        600,900   
                 
    $ 8,944,977   
                 

Hospital — 19.4%

               

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

  $ 750      $ 795,397   

Kalamazoo Hospital Finance Authority, (Bronson Health Care Group), 5.25%, 5/15/33

    500        523,230   

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

    750        793,290   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

               

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

  $ 750      $ 781,853   

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

    500        515,820   

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

    700        717,164   
                 
    $ 4,126,754   
                 

Insured – Education — 2.2%

  

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

  $ 435      $ 469,343   
                 
    $ 469,343   
                 

Insured – Electric Utilities — 2.7%

               

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

  $ 610      $ 578,762   
                 
    $ 578,762   
                 

Insured – Escrowed / Prerefunded — 21.0%

               

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

  $ 1,135      $ 1,139,279   

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

    2,615        2,008,660   

Reed City Public Schools, (AGM), Prerefunded to 5/1/14, 5.00%, 5/1/29

    1,300        1,305,278   
                 
    $ 4,453,217   
                 

Insured – General Obligations — 27.1%

               

Battle Creek, (BAM), 5.00%, 6/1/33

  $ 500      $ 513,480   

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

    500        528,175   

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

    750        777,398   

Okemos Public Schools, (NPFG), 0.00%, 5/1/19(2)

    1,330        1,191,813   

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

    1,000        1,061,670   

Royal Oak, (AGC), 6.25%, 10/1/28

    1,000        1,155,440   

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

    500        517,580   
                 
    $ 5,745,556   
                 

Insured – Lease Revenue / Certificates of Participation — 8.8%

  

       

Michigan Building Authority, (AGM), (FGIC), 0.00%, 10/15/29

  $ 1,000      $ 480,240   

Michigan Building Authority, (NPFG), 0.00%, 10/15/30

    3,100        1,386,134   
                 
    $ 1,866,374   
                 
 

 

  20   See Notes to Financial Statements.


Eaton Vance

Michigan Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Special Tax Revenue — 0.4%

               

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

  $ 615      $ 78,474   
                 
    $ 78,474   
                 

Insured – Water and Sewer — 11.7%

               

Detroit Water Supply System, (NPFG), 5.00%, 7/1/30

  $ 1,425      $ 1,381,267   

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

    1,000        1,100,210   
                 
    $ 2,481,477   
                 

Special Tax Revenue — 5.0%

               

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

  $ 1,000      $ 1,071,550   
                 
    $ 1,071,550   
                 

Transportation — 2.5%

               

Wayne County Airport Authority, 5.00%, 12/1/31

  $ 500      $ 521,210   
                 
    $ 521,210   
                 

Water and Sewer — 4.7%

               

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

  $ 605      $ 724,221   

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

    250        264,515   
                 
    $ 988,736   
                 

Total Tax-Exempt Investments — 163.6%
(identified cost $33,631,692)

   

  $ 34,718,122   
   

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (62.8)%

   

  $ (13,325,214
   

Other Assets, Less Liabilities — (0.8)%

  

  $ (164,840
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 21,228,068   
   

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.
BAM     Build America Mutual Assurance Co.
FGIC     Financial Guaranty Insurance Company
NPFG     National Public Finance Guaranty Corp.

The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 45.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 1.4% to 13.3% of total investments.

 

(1) 

When-issued security.

 

(2) 

Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

 

  21   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Municipal Securities — 150.7%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 9.4%

               

New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37

  $ 750      $ 764,393   

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

    340        373,898   

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

    210        230,189   

New Jersey Educational Facilities Authority, (Princeton University), 5.00%, 7/1/29

    500        573,290   

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

    360        385,718   

New Jersey Institute of Technology, 5.00%, 7/1/42

    735        780,070   

Rutgers State University, 5.00%, 5/1/39

    250        269,370   
                 
    $ 3,376,928   
                 

General Obligations — 4.4%

               

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

  $ 1,375      $ 1,556,555   
                 
    $ 1,556,555   
                 

Hospital — 12.5%

               

Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34

  $ 685      $ 691,254   

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

    250        260,740   

New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37

    515        534,895   

New Jersey Health Care Facilities Financing Authority, (Hunterdon Medical Center), 5.125%, 7/1/35

    250        253,450   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), 5.00%, 7/1/21

    255        292,023   

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

    295        321,600   

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

    750        764,250   

New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46

    1,345        1,357,145   
                 
    $ 4,475,357   
                 

Housing — 2.7%

               

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

  $ 940      $ 982,638   
                 
    $ 982,638   
                 

Insured – Education — 6.6%

               

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

  $ 920      $ 874,837   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Education (continued)

               

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

  $ 1,145      $ 1,184,754   

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

    275        286,300   
                 
    $ 2,345,891   
                 

Insured – Electric Utilities — 2.5%

               

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

  $ 615      $ 583,506   

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

    335        302,783   
                 
    $ 886,289   
                 

Insured – General Obligations — 43.5%

               

Bayonne, (AGM), 0.00%, 7/1/23

  $ 2,415      $ 1,760,825   

Bayonne, (AGM), 5.50%, 7/1/39

    1,000        1,067,160   

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

    320        341,709   

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

    340        364,130   

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

    360        386,582   

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

    382        410,142   

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

    1,500        1,589,280   

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

    2,000        601,900   

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

    5,235        3,281,350   

Jackson Township School District, (NPFG), 2.50%, 6/15/27

    2,310        2,066,619   

Jersey City, (AGM), 5.00%, 1/15/29

    1,000        1,063,060   

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

    700        771,071   

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

    1,015        1,050,312   

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

    110        114,910   

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

    410        427,130   

Paterson, (BAM), 5.00%, 1/15/26

    250        275,990   
                 
    $ 15,572,170   
                 

Insured – Hospital — 11.6%

               

New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36

  $ 2,000      $ 2,147,660   

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

    170        176,440   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38(2)

    250        259,470   
 

 

  22   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Hospital (continued)

               

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

  $ 1,500      $ 1,584,405   
                 
    $ 4,167,975   
                 

Insured – Lease Revenue / Certificates of Participation — 9.1%

  

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

  $ 1,000      $ 1,200,820   

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

    1,300        1,455,870   

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

    500        595,820   
                 
    $ 3,252,510   
                 

Insured – Special Tax Revenue — 12.7%

               

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

  $ 1,000      $ 817,880   

Garden State Preservation Trust, (AGM), Prerefunded to 11/1/15, 5.80%, 11/1/21

    500        543,890   

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

    975        985,091   

New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26(3)

    2,380        1,431,261   

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

    1,120        636,149   

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

    1,105        140,998   
                 
    $ 4,555,269   
                 

Insured – Transportation — 7.8%

               

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

  $ 1,500      $ 1,799,385   

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

    720        778,889   

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

    180        197,582   
                 
  $ 2,775,856   
                 

Insured – Water and Sewer — 9.7%

  

       

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

  $ 4,500      $ 2,991,960   

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

    635        468,795   
                 
    $ 3,460,755   
                 

Lease Revenue / Certificates of Participation — 1.7%

  

       

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

  $ 600      $ 623,346   
                 
    $ 623,346   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Senior Living / Life Care — 1.9%

  

       

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

  $ 675      $ 681,926   
                 
    $ 681,926   
                 

Student Loan — 2.9%

  

       

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

  $ 965      $ 1,041,457   
                 
    $ 1,041,457   
                 

Transportation — 9.5%

  

       

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

  $ 590      $ 625,760   

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

    210        220,403   

New Jersey Transportation Trust Fund Authority, (Transportation Program), 5.25%, 6/15/30

    610        678,381   

New Jersey Transportation Trust Fund Authority, (Transportation System), 0.00%, 12/15/26

    1,000        582,680   

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

    1,150        1,290,243   
                 
    $ 3,397,467   
                 

Water and Sewer — 2.2%

  

       

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

  $ 725      $ 795,963   
                 
    $ 795,963   
                 

Total Tax-Exempt Municipal Securities — 150.7%
(identified cost $50,096,674)

   

  $ 53,948,352   
   
   
 

 

  23   See Notes to Financial Statements.


Eaton Vance

New Jersey Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Taxable Municipal Securities — 1.3%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation — 1.3%

  

Port Authority of New York and New Jersey, 4.458%, 10/1/62

  $ 500      $ 469,725   
   

Total Taxable Municipal Securities — 1.3%
(identified cost $494,542)

   

  $ 469,725   
   

Total Investments — 152.0%
(identified cost $50,591,216)

   

  $ 54,418,077   
   

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (54.8)%

   

  $ (19,600,368
   

Other Assets, Less Liabilities — 2.8%

  

  $ 979,791   
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 35,797,500   
   

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.
BAM     Build America Mutual Assurance Co.
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 Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 68.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.5% to 22.4% of total investments.

 

(1) 

When-issued security.

 

(2) 

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

 

(3) 

Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

 

  24   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 165.2%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 2.5%

  

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

  $ 750      $ 810,030   
                 
    $ 810,030   
                 

Education — 22.1%

  

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

  $ 605      $ 653,467   

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

    110        118,781   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/23

    60        66,186   

New York City Industrial Development Agency, (St. Francis College), 5.00%, 10/1/34

    350        351,603   

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

    1,275        1,386,639   

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

    1,275        1,399,236   

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

    565        628,455   

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

    610        657,293   

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

    325        354,764   

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

    1,000        1,075,010   

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

    515        557,858   
                 
    $ 7,249,292   
                 

Electric Utilities — 5.1%

  

Puerto Rico Electric Power Authority, 5.25%, 7/1/31

  $ 580      $ 356,253   

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

    1,160        1,304,617   
                 
    $ 1,660,870   
                 

General Obligations — 10.3%

  

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

  $ 770      $ 827,943   

New York, 5.00%, 2/15/34(1)

    1,000        1,088,010   

New York City, 5.00%, 8/1/34(1)

    1,350        1,463,521   
                 
    $ 3,379,474   
                 

Hospital — 8.1%

  

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

  $ 135      $ 147,740   

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

    180        189,792   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

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

  $ 500      $ 516,910   

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

    235        270,060   

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

    335        349,824   

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

    1,135        1,195,529   
                 
    $ 2,669,855   
                 

Housing — 1.4%

  

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

  $ 500      $ 467,155   
                 
    $ 467,155   
                 

Industrial Development Revenue — 1.3%

  

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

  $ 380      $ 419,284   
                 
    $ 419,284   
                 

Insured – Education — 26.4%

  

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

  $ 1,440      $ 1,576,498   

New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)

    2,250        2,372,625   

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

    345        362,088   

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

    545        570,980   

New York Dormitory Authority, (Skidmore College), (NPFG), 5.00%, 7/1/33

    500        501,485   

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

    850        881,892   

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

    5,425        2,412,877   
                 
    $ 8,678,445   
                 

Insured – Electric Utilities — 3.5%

  

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

  $ 500      $ 569,605   

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

    500        582,745   
                 
    $ 1,152,350   
                 

Insured – Escrowed / Prerefunded — 3.3%

  

New York City, (AGM), Prerefunded to 4/1/16, 5.00%, 4/1/22

  $ 1,000      $ 1,092,590   
                 
    $ 1,092,590   
                 
 

 

  25   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations — 10.8%

  

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

  $ 535      $ 600,297   

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

    560        630,218   

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

    250        265,980   

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

    185        196,564   

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

    190        201,455   

Sachem Central School District, (NPFG), 4.25%, 10/15/28

    410        418,294   

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

    185        205,341   

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

    190        208,392   

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

    210        227,676   

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

    220        237,710   

William Floyd Union Free School District, (AGC), 4.00%, 12/15/24

    350        371,557   
                 
    $ 3,563,484   
                 

Insured – Hospital — 3.3%

  

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

  $ 500      $ 567,315   

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

    500        528,865   
                 
    $ 1,096,180   
                 

Insured – Housing — 3.1%

  

New York City Housing Development Corp., (NPFG), 4.95%, 11/1/33

  $ 1,000      $ 1,004,790   
                 
    $ 1,004,790   
                 

Insured – Other Revenue — 6.4%

  

New York City Cultural Resources Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44

  $ 700      $ 707,084   

New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46

    330        331,967   

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

    950        1,069,899   
                 
    $ 2,108,950   
                 

Insured – Special Tax Revenue — 9.8%

  

Metropolitan Transportation Authority, Dedicated Tax Revenue, (AGM), (NPFG), 5.00%, 11/15/31

  $ 1,000      $ 1,061,000   

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

    510        614,219   

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

    1,700        306,289   

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

    1,185        151,206   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Special Tax Revenue (continued)

  

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29

  $ 385      $ 394,228   

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32

    690        706,429   
                 
    $ 3,233,371   
                 

Insured – Water and Sewer — 4.2%

  

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

  $ 905      $ 1,029,953   

Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25

    350        356,339   
                 
    $ 1,386,292   
                 

Other Revenue — 7.5%

  

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

  $ 1,100      $ 428,362   

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

    1,865        2,050,288   
                 
    $ 2,478,650   
                 

Special Tax Revenue — 18.3%

  

New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1) (2)

  $ 500      $ 558,175   

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

    2,750        3,036,467   

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

    650        705,751   

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

    1,020        1,117,430   

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

    530        588,279   
                 
    $ 6,006,102   
                 

Transportation — 17.8%

  

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

  $ 2,000      $ 2,126,620   

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

    350        365,278   

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

    65        67,650   

New York Bridge Authority, 5.00%, 1/1/26

    205        232,775   

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

    1,175        1,255,394   

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

    820        905,583   

Triborough Bridge and Tunnel Authority, 5.00%, 11/15/37

    340        368,533   
 

 

  26   See Notes to Financial Statements.


Eaton Vance

New York Municipal Bond Fund II

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Transportation (continued)

  

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

  $ 500      $ 532,875   
                 
    $ 5,854,708   
                 

Total Tax-Exempt Investments — 165.2%
(identified cost $51,900,691)

   

  $ 54,311,872   
   

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (40.3)%

   

  $ (13,250,214
   

Other Assets, Less Liabilities — (24.9)%

  

  $ (8,191,422
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 32,870,236   
   

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.
NPFG     National Public Finance Guaranty Corp.

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 42.9% 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 or financial guaranty assurance agency ranged from 3.7% to 17.3% of total investments.

 

(1) 

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

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $183,175.

 

 

  27   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 152.7%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Bond Bank — 11.7%

  

Cuyahoga County Port Authority, (Garfield Heights), 5.25%, 5/15/23

  $ 990      $ 952,251   

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

    700        773,626   

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

    1,040        1,163,011   

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

    895        946,042   
   
    $ 3,834,930   
   

Education — 8.9%

  

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

  $ 305      $ 314,464   

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

    500        545,595   

Ohio State University, 5.00%, 12/1/30

    1,270        1,508,074   

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

    500        531,355   
   
    $ 2,899,488   
   

Electric Utilities — 1.7%

  

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

  $ 500      $ 543,200   
   
    $ 543,200   
   

Escrowed/Prerefunded — 0.2%

  

Ohio State University, Escrowed to Maturity, 5.00%, 12/1/30

  $ 55      $ 67,991   
   
    $ 67,991   
   

General Obligations — 13.6%

  

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

  $ 270      $ 294,967   

Beavercreek City School District, 5.00%, 12/1/30

    900        997,569   

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

    1,000        1,051,360   

Franklin County, 5.00%, 12/1/27

    500        551,795   

Marysville Exempted Village School District, 4.00%, 12/1/26

    1,000        1,036,550   

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

    500        530,755   
   
    $ 4,462,996   
   

Hospital — 13.3%

  

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

  $ 440      $ 458,630   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

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

  $ 250      $ 272,042   

Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26

    500        516,990   

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

    500        519,690   

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

    755        779,039   

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

    500        538,640   

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

    460        490,953   

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

    565        615,212   

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

    165        176,864   
   
    $ 4,368,060   
   

Insured – Education — 18.7%

  

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

  $ 1,000      $ 1,114,530   

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

    360        387,803   

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

    2,000        1,982,780   

Ohio University, (AGM), 5.00%, 12/1/33

    500        530,175   

University of Akron, Series B, (AGM), 5.00%, 1/1/38

    1,000        1,046,390   

Youngstown State University, (AGC), 5.50%, 12/15/33

    1,000        1,063,760   
   
    $ 6,125,438   
   

Insured – Electric Utilities — 17.8%

  

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

  $ 700      $ 730,177   

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

    2,750        1,543,245   

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

    1,000        273,850   

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

    5,000        2,986,550   

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

    305        289,381   
   
    $ 5,823,203   
   

Insured – Escrowed / Prerefunded — 9.0%

  

Cleveland Municipal School District, (AGM), Prerefunded to 6/1/14, 5.00%, 12/1/27

  $ 1,000      $ 1,008,150   

Hamilton County, (Cincinnati Children’s Hospital Medical Center), (NPFG), Prerefunded to 5/15/14, 5.00%, 5/15/32

    425        427,508   

Hamilton County, (Cincinnati Children’s Hospital Medical Center), (NPFG), Prerefunded to 5/15/14, 5.125%, 5/15/28

    1,500        1,509,090   
   
    $ 2,944,748   
   
 

 

  28   See Notes to Financial Statements.


Eaton Vance

Ohio Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations — 29.4%

  

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

  $ 445      $ 464,042   

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

    500        596,775   

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

    1,000        1,097,950   

Olentangy Local School District, (AGC), 5.00%, 12/1/36

    1,400        1,508,444   

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

    2,400        1,498,248   

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

    750        795,832   

Sylvania City School District, (AGC), 5.00%, 12/1/26

    500        549,745   

Sylvania City School District, (AGC), 5.00%, 12/1/32

    1,000        1,066,610   

Wapakoneta City School District, (AGM), 4.75%, 12/1/35

    2,000        2,073,420   
   
    $ 9,651,066   
   

Insured – Hospital — 1.6%

  

Lorain County, (Catholic Healthcare Partners), (AGM), 15.406%, 2/1/29(1)(2)(3)

  $ 440      $ 539,158   
   
    $ 539,158   
   

Insured – Special Tax Revenue — 10.2%

  

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

  $ 1,245      $ 869,271   

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

    3,665        2,426,963   

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

    250        31,900   
   
    $ 3,328,134   
   

Insured – Transportation — 2.9%

  

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

  $ 480      $ 504,014   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(4)(5)

    500        459,325   
   
    $ 963,339   
   

Other Revenue — 1.1%

  

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

  $ 350      $ 375,270   
   
    $ 375,270   
   

Senior Living / Life Care — 2.5%

  

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

  $ 375      $ 382,159   

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

    190        198,704   

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

    220        236,126   
   
    $ 816,989   
   

Transportation — 3.5%

  

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

  $ 310      $ 70,413   

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

    1,000        1,078,680   
   
    $ 1,149,093   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Water and Sewer — 6.6%

  

Hamilton County, Sewer System, 5.00%, 12/1/32

  $ 750      $ 808,268   

Northeast Ohio Regional Sewer District, 4.00%, 11/15/33(4)(5)

    1,000        1,004,910   

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

    300        334,278   
   
    $ 2,147,456   
   

Total Tax-Exempt Investments — 152.7%
(identified cost $46,295,922)

   

  $ 50,040,559   
   

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (51.9)%

  

  $ (17,000,321
   

Other Assets, Less Liabilities — (0.8)%

  

  $ (258,339
   

Net Assets Applicable to Common Shares — 100.0%

  

  $ 32,781,899   
   

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.

The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 58.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.9% to 19.1% of total investments.

 

(1) 

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 March 31, 2014, the aggregate value of these securities is $539,158 or 1.6% of the Fund’s net assets applicable to common shares.

 

(2) 

Security has been issued as a leveraged residual interest bond with a variable interest rate. The stated interest rate represents the rate in effect at March 31, 2014.

 

(3) 

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 held by the trust that issued the residual interest bond. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $1,320,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security held by the trust that issued the residual interest bond.

 

(4) 

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

 

(5) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $414,235.

 

 

  29   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited)

 

 

Tax-Exempt Investments — 163.6%   
   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Education — 28.3%

  

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

  $ 1,050      $ 1,158,643   

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

    640        675,616   

Bucks County Industrial Development Authority, (George School), 5.00%, 9/15/44

    250        263,175   

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

    1,500        1,639,965   

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

    750        829,740   

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

    440        452,272   

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

    925        967,078   

Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), 4.75%, 7/15/35

    2,900        3,003,414   

Pennsylvania Higher Educational Facilities Authority,
(Ursinus College), 5.00%, 1/1/29

    560        596,775   

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

    750        818,550   

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

    250        273,535   

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

    575        614,894   
                 
  $ 11,293,657   
                 

General Obligations — 15.4%

  

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

  $ 1,000      $ 1,128,290   

Pennsylvania, 4.00%, 4/1/29(1)(2)

    3,000        3,135,000   

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

    750        817,762   

York County, 5.00%, 6/1/38

    1,000        1,071,690   
                 
  $ 6,152,742   
                 

Hospital — 15.4%

  

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

  $ 750      $ 775,305   

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

    1,000        1,035,570   

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

    500        495,335   

Monroe County Hospital Authority, (Pocono Medical Center), 5.125%, 1/1/37

    1,250        1,270,550   

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

    500        518,315   
Security   Principal
Amount
(000’s omitted)
    Value  
   

Hospital (continued)

  

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

  $ 250      $ 261,448   

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

    675        705,523   

Philadelphia Hospitals and Higher Education Facilities Authority, 5.00%, 7/1/32

    750        807,510   

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

    250        265,990   
                 
  $ 6,135,546   
                 

Housing — 1.2%

  

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

  $ 500      $ 464,170   
                 
  $ 464,170   
                 

Insured – Education — 13.8%

  

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

  $ 500      $ 528,510   

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

    1,530        1,593,266   

Pennsylvania Higher Educational Facilities Authority,
(Temple University), (NPFG), 4.50%, 4/1/36

    1,000        1,001,990   

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

    500        515,765   

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

    500        529,590   

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

    375        393,896   

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

    875        933,800   
                 
  $ 5,496,817   
                 

Insured – Electric Utilities — 2.8%

  

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

  $ 490      $ 444,009   

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

    750        677,872   
                 
  $ 1,121,881   
                 

Insured – Escrowed / Prerefunded — 1.3%

  

Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

  $ 500      $ 519,040   
                 
  $ 519,040   
                 

Insured – General Obligations — 31.0%

  

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

  $ 1,250      $ 1,368,562   

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

    660        738,395   

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

    1,350        1,430,622   
 

 

  30   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – General Obligations (continued)

  

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

  $ 1,000      $ 471,690   

Harrisburg School District, (AGC), 5.00%, 11/15/33

    500        518,125   

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

    750        796,785   

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

    2,555        1,944,355   

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

    1,475        1,424,024   

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

    1,500        1,589,910   

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

    1,000        1,021,190   

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

    2,550        1,074,698   
                 
  $ 12,378,356   
                 

Insured – Hospital — 5.0%

  

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

  $ 250      $ 307,183   

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

    1,620        1,674,221   
                 
  $ 1,981,404   
                 

Insured – Industrial Development Revenue — 2.7%

  

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

  $ 1,000      $ 1,067,240   
                 
  $ 1,067,240   
                 

Insured – Lease Revenue / Certificates of Participation — 4.5%

  

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

  $ 500      $ 535,830   

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

    1,215        1,256,043   
                 
  $ 1,791,873   
                 

Insured – Special Tax Revenue — 3.1%

  

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

  $ 1,000      $ 1,064,330   

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

    1,295        165,242   
                 
  $ 1,229,572   
                 

Insured – Transportation — 5.7%

  

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

  $ 295      $ 325,007   

Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)(2)

    2,100        1,929,165   
                 
  $ 2,254,172   
                 

Insured – Utilities — 2.3%

  

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

  $ 890      $ 913,096   
                 
  $ 913,096   
                 
Security   Principal
Amount
(000’s omitted)
    Value  
   

Insured – Water and Sewer — 14.2%

  

Allegheny County Sanitation Authority, (BHAC), (FGIC), 5.00%, 12/1/32

  $ 300      $ 319,983   

Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22

    1,500        1,607,865   

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

    500        532,140   

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

    1,430        807,778   

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

    2,155        1,217,317   

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

    1,920        1,017,446   

Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35

    150        157,245   
                 
  $ 5,659,774   
                 

Senior Living / Life Care — 0.5%

  

Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24

  $ 200      $ 204,310   
                 
  $ 204,310   
                 

Special Tax Revenue — 4.5%

  

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

  $ 1,500      $ 1,692,435   

Virgin Islands Public Finance Authority, 6.75%, 10/1/37

    110        120,217   
                 
  $ 1,812,652   
                 

Transportation — 8.5%

  

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

  $ 465      $ 493,184   

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

    730        766,164   

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

    1,000        1,084,180   

Pennsylvania Turnpike Commission, 5.35%, (0.00% until 12/1/15), 12/1/30

    500        502,300   

Philadelphia Airport, 5.25%, 6/15/27

    500        545,135   
                 
  $ 3,390,963   
                 

Water and Sewer — 3.4%

  

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

  $ 500      $ 523,715   

Philadelphia, Water and Wastewater Revenue, 5.25%, 1/1/32

    765        816,691   
                 
  $ 1,340,406   
                 

Total Tax-Exempt Investments — 163.6%
(identified cost $62,721,680)

   

  $ 65,207,671   
                 
 

 

  31   See Notes to Financial Statements.


Eaton Vance

Pennsylvania Municipal Bond Fund

March 31, 2014

 

Portfolio of Investments (Unaudited) — continued

 

 

Security        Value  
   

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (54.5)%

  $ (21,725,507
             

Other Assets, Less Liabilities — (9.1)%

  $ (3,618,937
             

Net Assets Applicable to Common Shares — 100.0%

  $ 39,863,227   
             

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.
SFMR     Single Family Mortgage Revenue
XLCA     XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2014, 52.8% 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 or financial guaranty assurance agency ranged from 0.5% to 22.6% of total investments.

 

(1) 

Security represents the municipal bond held by a trust that issues residual interest bonds.

 

(2) 

Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,614,165.

 

 

  32   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Assets and Liabilities (Unaudited)

 

 

    March 31, 2014  
Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Investments —

       

Identified cost

  $ 204,043,413      $ 78,491,190      $ 37,232,032      $ 33,631,692   

Unrealized appreciation

    5,682,369        4,861,857        3,146,480        1,086,430   

Investments, at value

  $ 209,725,782      $ 83,353,047      $ 40,378,512      $ 34,718,122   

Cash

  $      $      $ 1,387,122      $ 253,758   

Restricted cash*

    129,000        95,000        50,000        36,000   

Interest receivable

    2,751,742        871,121        496,751        495,353   

Receivable for investments sold

    480,471                        

Receivable for variation margin on open financial futures contracts

    13,750        8,125        4,375        3,750   

Deferred debt issuance costs

    36,040        16,528        1,612          

Total assets

  $ 213,136,785      $ 84,343,821      $ 42,318,372      $ 35,506,983   
Liabilities   

Payable for floating rate notes issued

  $ 42,295,000      $ 9,885,000      $ 3,330,000      $   

Payable for investments purchased

    551,305                        

Payable for when-issued securities

                         921,329   

Due to custodian

    891,964        97,202                 

Payable to affiliates:

       

Investment adviser fee

    98,539        38,368        18,993        16,103   

Trustees’ fees

                  1,075          

Interest expense and fees payable

    72,208        15,658        6,353          

Accrued expenses

    45,235        25,061        18,439        16,269   

Total liabilities

  $ 43,954,251      $ 10,061,289      $ 3,374,860      $ 953,701   

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 44,700,722      $ 25,700,345      $ 13,575,316      $ 13,325,214   

Net assets applicable to common shares

  $ 124,481,812      $ 48,582,187      $ 25,368,196      $ 21,228,068   
Sources of Net Assets   

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

  $ 100,134      $ 38,852      $ 17,685      $ 15,141   

Additional paid-in capital

    141,844,963        55,017,475        24,878,979        21,061,153   

Accumulated net realized loss

    (22,850,929     (11,418,139     (2,730,599     (983,947

Accumulated undistributed (distributions in excess of) net investment income

    (205,613     122,422        84,005        73,594   

Net unrealized appreciation

    5,593,257        4,821,577        3,118,126        1,062,127   

Net assets applicable to common shares

  $ 124,481,812      $ 48,582,187      $ 25,368,196      $ 21,228,068   
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    1,788 (1)      1,028        543        533   
Common Shares Outstanding     10,013,381        3,885,230        1,768,514        1,514,065   
Net Asset Value Per Common Share   

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

  $ 12.43      $ 12.50      $ 14.34      $ 14.02   

 

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

 

(1) 

Comprised of 894 Series A shares and 894 Series B shares.

 

  33   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Assets and Liabilities (Unaudited) — continued

 

 

    March 31, 2014  
Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

Investments —

       

Identified cost

  $ 50,591,216      $ 51,900,691      $ 46,295,922      $ 62,721,680   

Unrealized appreciation

    3,826,861        2,411,181        3,744,637        2,485,991   

Investments, at value

  $ 54,418,077      $ 54,311,872      $ 50,040,559      $ 65,207,671   

Cash

  $ 1,119,321      $ 391,972      $ 193,318      $   

Restricted cash*

    150,000        66,000        60,000        167,000   

Interest receivable

    544,286        707,803        579,266        795,477   

Receivable for investments sold

    25,000                        

Receivable for variation margin on open financial futures contracts

    15,625        6,875        6,250        17,188   

Deferred debt issuance costs

    222        2,510                 

Total assets

  $ 56,272,531      $ 55,487,032      $ 50,879,393      $ 66,187,336   
Liabilities   

Payable for floating rate notes issued

  $ 225,000      $ 9,305,000      $ 1,050,000      $ 4,440,000   

Payable for when-issued securities

    601,677                        

Due to custodian

                         91,526   

Payable to affiliates:

       

Investment adviser fee

    25,890        25,831        23,652        30,632   

Interest expense and fees payable

    361        12,993        2,964        13,633   

Accrued expenses

    21,735        22,758        20,557        22,811   

Total liabilities

  $ 874,663      $ 9,366,582      $ 1,097,173      $ 4,598,602   

Auction preferred shares at liquidation value plus cumulative unpaid dividends

  $ 19,600,368      $ 13,250,214      $ 17,000,321      $ 21,725,507   

Net assets applicable to common shares

  $ 35,797,500      $ 32,870,236      $ 32,781,899      $ 39,863,227   
Sources of Net Assets   

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

  $ 26,089      $ 25,669      $ 25,370      $ 29,598   

Additional paid-in capital

    36,954,964        36,355,002        35,585,298        41,928,282   

Accumulated net realized loss

    (5,102,425     (6,021,784     (6,647,577     (4,712,524

Accumulated undistributed net investment income

    193,274        144,724        114,676        243,270   

Net unrealized appreciation

    3,725,598        2,366,625        3,704,132        2,374,601   

Net assets applicable to common shares

  $ 35,797,500      $ 32,870,236      $ 32,781,899      $ 39,863,227   
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
    784        530        680        869   
Common Shares Outstanding     2,608,910        2,566,941        2,536,999        2,959,759   
Net Asset Value Per Common Share   

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

  $ 13.72      $ 12.81      $ 12.92      $ 13.47   

 

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

 

  34   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Operations (Unaudited)

 

 

    Six Months Ended March 31, 2014  
Investment Income   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

Interest

  $ 4,734,990      $ 1,830,524      $ 887,226      $ 745,946   

Total investment income

  $ 4,734,990      $ 1,830,524      $ 887,226      $ 745,946   
Expenses   

Investment adviser fee

  $ 567,808      $ 220,278      $ 109,183      $ 92,452   

Trustees’ fees and expenses

    4,560        1,918        2,152        952   

Custodian fee

    27,760        16,013        12,751        12,216   

Transfer and dividend disbursing agent fees

    9,183        9,133        9,088        9,368   

Legal and accounting services

    69,566        24,590        19,317        18,094   

Printing and postage

    11,315        4,747        4,048        3,783   

Interest expense and fees

    130,360        28,519        10,133          

Preferred shares service fee

    33,472        19,245        10,164        9,977   

Miscellaneous

    27,472        17,581        14,838        14,507   

Total expenses

  $ 881,496      $ 342,024      $ 191,674      $ 161,349   

Deduct —

       

Reduction of custodian fee

  $ 191      $ 375      $ 286      $ 119   

Total expense reductions

  $ 191      $ 375      $ 286      $ 119   

Net expenses

  $ 881,305      $ 341,649      $ 191,388      $ 161,230   

Net investment income

  $ 3,853,685      $ 1,488,875      $ 695,838      $ 584,716   
Realized and Unrealized Gain (Loss)   

Net realized gain (loss) —

       

Investment transactions

  $ (87,663   $ 54,950      $ 13,932      $ 217,575   

Financial futures contracts

    (123,514     (116,125     (33,681     (21,486

Net realized gain (loss)

  $ (211,177   $ (61,175   $ (19,749   $ 196,089   

Change in unrealized appreciation (depreciation) —

       

Investments

  $ 6,081,998      $ 2,808,516      $ 1,452,183      $ 1,080,992   

Financial futures contracts

    3,885        46,478        (5,907     (6,360

Net change in unrealized appreciation (depreciation)

  $ 6,085,883      $ 2,854,994      $ 1,446,276      $ 1,074,632   

Net realized and unrealized gain

  $ 5,874,706      $ 2,793,819      $ 1,426,527      $ 1,270,721   

Distributions to preferred shareholders

                               

From net investment income

  $ (23,010   $ (12,843   $ (7,156   $ (6,706

Net increase in net assets from operations

  $ 9,705,381      $ 4,269,851      $ 2,115,209      $ 1,848,731   

 

  35   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Operations (Unaudited) — continued

 

 

    Six Months Ended March 31, 2014  
Investment Income   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

Interest

  $ 1,213,044      $ 1,211,496      $ 1,165,467      $ 1,520,732   

Total investment income

  $ 1,213,044      $ 1,211,496      $ 1,165,467      $ 1,520,732   
Expenses   

Investment adviser fee

  $ 149,350      $ 148,981      $ 135,863      $ 176,156   

Trustees’ fees and expenses

    1,386        1,390        1,281        1,590   

Custodian fee

    13,786        14,211        13,605        14,743   

Transfer and dividend disbursing agent fees

    9,099        9,398        9,098        9,223   

Legal and accounting services

    21,302        23,368        21,270        21,101   

Printing and postage

    4,928        4,914        5,082        5,413   

Interest expense and fees

    1,212        26,282        4,840        18,637   

Preferred shares service fee

    14,677        9,921        12,729        16,267   

Miscellaneous

    15,763        16,322        16,339        16,459   

Total expenses

  $ 231,503      $ 254,787      $ 220,107      $ 279,589   

Deduct —

       

Reduction of custodian fee

  $ 188      $ 197      $ 146      $ 65   

Total expense reductions

  $ 188      $ 197      $ 146      $ 65   

Net expenses

  $ 231,315      $ 254,590      $ 219,961      $ 279,524   

Net investment income

  $ 981,729      $ 956,906      $ 945,506      $ 1,241,208   
Realized and Unrealized Gain (Loss)   

Net realized gain (loss) —

       

Investment transactions

  $ 99,294      $ (42,826   $ 82,526      $ (47,881

Financial futures contracts

    (146,845     (52,927     (57,961     (132,317

Net realized gain (loss)

  $ (47,551   $ (95,753   $ 24,565      $ (180,198

Change in unrealized appreciation (depreciation) —

       

Investments

  $ 1,571,153      $ 1,128,090      $ 1,706,632      $ 2,362,227   

Financial futures contracts

    (5,059     (9,281     9,887        (23,203

Net change in unrealized appreciation (depreciation)

  $ 1,566,094      $ 1,118,809      $ 1,716,519      $ 2,339,024   

Net realized and unrealized gain

  $ 1,518,543      $ 1,023,056      $ 1,741,084      $ 2,158,826   

Distributions to preferred shareholders

                               

From net investment income

  $ (10,458   $ (6,546   $ (9,007   $ (11,452

Net increase in net assets from operations

  $ 2,489,814      $ 1,973,416      $ 2,677,583      $ 3,388,582   

 

  36   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Changes in Net Assets

 

 

    Six Months Ended March 31, 2014 (Unaudited)  
Increase (Decrease) in Net Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

From operations —

       

Net investment income

  $ 3,853,685      $ 1,488,875      $ 695,838      $ 584,716   

Net realized gain (loss) from investment transactions and financial futures contracts

    (211,177     (61,175     (19,749     196,089   

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    6,085,883        2,854,994        1,446,276        1,074,632   

Distributions to preferred shareholders —

       

From net investment income

    (23,010     (12,843     (7,156     (6,706

Net increase in net assets from operations

  $ 9,705,381      $ 4,269,851      $ 2,115,209      $ 1,848,731   

Distributions to common shareholders —

       

From net investment income

  $ (3,792,508   $ (1,420,036   $ (672,032   $ (551,868

Total distributions to common shareholders

  $ (3,792,508   $ (1,420,036   $ (672,032   $ (551,868

Net increase in net assets

  $ 5,912,873      $ 2,849,815      $ 1,443,177      $ 1,296,863   
Net Assets Applicable to Common Shares   

At beginning of period

  $ 118,568,939      $ 45,732,372      $ 23,925,019      $ 19,931,205   

At end of period

  $ 124,481,812      $ 48,582,187      $ 25,368,196      $ 21,228,068   
Accumulated undistributed (distributions in excess of) net investment income
included in net assets applicable to common shares
   

At end of period

  $ (205,613   $ 122,422      $ 84,005      $ 73,594   

 

  37   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Changes in Net Assets — continued

 

 

    Six Months Ended March 31, 2014 (Unaudited)  
Increase (Decrease) in Net Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

From operations —

       

Net investment income

  $ 981,729      $ 956,906      $ 945,506      $ 1,241,208   

Net realized gain (loss) from investment transactions and financial futures contracts

    (47,551     (95,753     24,565        (180,198

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    1,566,094        1,118,809        1,716,519        2,339,024   

Distributions to preferred shareholders —

       

From net investment income

    (10,458     (6,546     (9,007     (11,452

Net increase in net assets from operations

  $ 2,489,814      $ 1,973,416      $ 2,677,583      $ 3,388,582   

Distributions to common shareholders —

       

From net investment income

  $ (913,113   $ (881,744   $ (890,487   $ (1,143,953

Total distributions to common shareholders

  $ (913,113   $ (881,744   $ (890,487   $ (1,143,953

Net increase in net assets

  $ 1,576,701      $ 1,091,672      $ 1,787,096      $ 2,244,629   
Net Assets Applicable to Common Shares   

At beginning of period

  $ 34,220,799      $ 31,778,564      $ 30,994,803      $ 37,618,598   

At end of period

  $ 35,797,500      $ 32,870,236      $ 32,781,899      $ 39,863,227   
Accumulated undistributed net investment income
included in net assets applicable to common shares
   

At end of period

  $ 193,274      $ 144,724      $ 114,676      $ 243,270   

 

  38   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended September 30, 2013  
Increase (Decrease) in Net Assets   Municipal Fund II     California Fund II     Massachusetts Fund     Michigan Fund  

From operations —

       

Net investment income

  $ 7,525,317      $ 2,938,111      $ 1,415,792      $ 1,194,090   

Net realized gain (loss) from investment transactions, extinguishment of debt and financial futures contracts

    (218,175     (312,753     81,152        415,740   

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    (14,918,050     (6,007,800     (4,303,002     (3,228,129

Distributions to preferred shareholders —

       

From net investment income

    (89,559     (51,075     (26,566     (25,938

Net decrease in net assets from operations

  $ (7,700,467   $ (3,433,517   $ (2,832,624   $ (1,644,237

Distributions to common shareholders —

       

From net investment income

  $ (7,583,773   $ (2,917,478   $ (1,391,104   $ (1,185,728

Total distributions to common shareholders

  $ (7,583,773   $ (2,917,478   $ (1,391,104   $ (1,185,728

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $ 80,915      $ 20,779      $ 11,047      $ 2,212   

Net increase in net assets from capital share transactions

  $ 80,915      $ 20,779      $ 11,047      $ 2,212   

Net decrease in net assets

  $ (15,203,325   $ (6,330,216   $ (4,212,681   $ (2,827,753
Net Assets Applicable to Common Shares   

At beginning of year

  $ 133,772,264      $ 52,062,588      $ 28,137,700      $ 22,758,958   

At end of year

  $ 118,568,939      $ 45,732,372      $ 23,925,019      $ 19,931,205   
Accumulated undistributed (distributions in excess of) net investment income
included in net assets applicable to common shares
   

At end of year

  $ (243,780   $ 66,426      $ 67,355      $ 47,452   

 

  39   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Changes in Net Assets — continued

 

 

    Year Ended September 30, 2013  
Increase (Decrease) in Net Assets   New Jersey Fund     New York Fund II     Ohio Fund     Pennsylvania Fund  

From operations —

       

Net investment income

  $ 1,979,130      $ 1,832,367      $ 1,867,747      $ 2,404,346   

Net realized gain (loss) from investment transactions, extinguishment of debt and financial futures contracts

    827,815        (173,078     (45,778     249,110   

Net change in unrealized appreciation (depreciation) from investments and financial futures contracts

    (4,841,029     (3,770,993     (3,982,158     (5,413,920

Distributions to preferred shareholders —

       

From net investment income

    (38,265     (25,993     (34,076     (42,842

Net decrease in net assets from operations

  $ (2,072,349   $ (2,137,697   $ (2,194,265   $ (2,803,306

Distributions to common shareholders —

       

From net investment income

  $ (1,895,291   $ (1,763,312   $ (1,824,719   $ (2,386,340

Total distributions to common shareholders

  $ (1,895,291   $ (1,763,312   $ (1,824,719   $ (2,386,340

Capital share transactions —

       

Reinvestment of distributions to common shareholders

  $ 48,477      $ 10,514      $ 28,917      $ 17,233   

Net increase in net assets from capital share transactions

  $ 48,477      $ 10,514      $ 28,917      $ 17,233   

Net decrease in net assets

  $ (3,919,163   $ (3,890,495   $ (3,990,067   $ (5,172,413
Net Assets Applicable to Common Shares   

At beginning of year

  $ 38,139,962      $ 35,669,059      $ 34,984,870      $ 42,791,011   

At end of year

  $ 34,220,799      $ 31,778,564      $ 30,994,803      $ 37,618,598   
Accumulated undistributed net investment income
included in net assets applicable to common shares
   

At end of year

  $ 135,116      $ 76,108      $ 68,664      $ 157,467   

 

  40   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Statements of Cash Flows (Unaudited)*

 

 

    Six Months Ended March 31, 2014  
Cash Flows From Operating Activities   Municipal Fund II     California Fund II     New York Fund II  

Net increase in net assets from operations

  $ 9,705,381      $ 4,269,851      $ 1,973,416   

Distributions to preferred shareholders

    23,010        12,843        6,546   

Net increase in net assets from operations excluding distributions to preferred shareholders

  $ 9,728,391      $ 4,282,694      $ 1,979,962   

Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:

     

Investments purchased

    (10,730,379     (4,836,307     (3,302,958

Investments sold

    9,875,197        2,877,495        1,681,329   

Net amortization/accretion of premium (discount)

    (274,574     (205,205     (34,279

Amortization of deferred debt issuance costs

    4,229        1,249        557   

Decrease in restricted cash

    45,000        10,000          

Increase in interest receivable

    (57,176     (8,440     (33,169

Increase in receivable for variation margin on open financial futures contracts

    (10,125     (7,625     (5,500

Increase in payable to affiliate for investment adviser fee

    7,456        3,168        2,262   

Increase (decrease) in interest expense and fees payable

    (3,738     (2,488     338   

Decrease in accrued expenses

    (53,441     (38,153     (36,860

Net change in unrealized (appreciation) depreciation from investments

    (6,081,998     (2,808,516     (1,128,090

Net realized (gain) loss from investments

    87,663        (54,950     42,826   

Net cash provided by (used in) operating activities

  $ 2,536,505      $ (787,078   $ (833,582
Cash Flows From Financing Activities   

Distributions paid to common shareholders, net of reinvestments

  $ (3,792,508   $ (1,420,036   $ (881,744

Cash distributions paid to preferred shareholders

    (22,850     (12,901     (6,582

Proceeds from secured borrowings

    1,530,000               615,000   

Repayment of secured borrowings

    (1,120,000              

Increase in due to custodian

    868,853        97,202          

Net cash used in financing activities

  $ (2,536,505   $ (1,335,735   $ (273,326

Net increase (decrease) in cash

  $      $ (2,122,813   $ (1,106,908

Cash at beginning of period

  $      $ 2,122,813      $ 1,498,880   

Cash at end of period

  $      $      $ 391,972   
Supplemental disclosure of cash flow information:   

Cash paid for interest and fees

  $ 129,869      $ 29,758      $ 25,387   

 

* Statement of Cash Flows is not required for Massachusetts Fund, Michigan Fund, New Jersey Fund, Ohio Fund and Pennsylvania Fund.

 

  41   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights

 

Selected data for a common share outstanding during the periods stated

 

    Municipal Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 11.840      $ 13.370      $ 12.040      $ 12.720      $ 12.880      $ 11.030   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.385      $ 0.752      $ 0.778      $ 0.929      $ 0.961      $ 0.943   

Net realized and unrealized gain (loss)

    0.586        (1.516     1.437        (0.638     (0.164     1.813   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.002     (0.009     (0.011     (0.015     (0.018     (0.058

Total income (loss) from operations

  $ 0.969      $ (0.773   $ 2.204      $ 0.276      $ 0.779      $ 2.698   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.379   $ (0.757   $ (0.874   $ (0.956   $ (0.939   $ (0.848

Total distributions to common shareholders

  $ (0.379   $ (0.757   $ (0.874   $ (0.956   $ (0.939   $ (0.848

Net asset value — End of period (Common shares)

  $ 12.430      $ 11.840      $ 13.370      $ 12.040      $ 12.720      $ 12.880   

Market value — End of period (Common shares)

  $ 11.630      $ 11.200      $ 13.880      $ 13.280      $ 14.010      $ 13.370   

Total Investment Return on Net Asset Value(2)

    8.57 %(3)      (5.83 )%      18.56     2.45     6.26     26.08

Total Investment Return on Market Value(2)

    7.39 %(3)      (14.20 )%      11.59     2.60     12.78     23.88

 

  42   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Municipal Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 124,482      $ 118,569      $ 133,772      $ 120,308      $ 126,814      $ 128,150   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.25 %(5)      1.23     1.37     1.50     1.22     1.28

Interest and fee expense(6)

    0.22 %(5)      0.23     0.28     0.35     0.38     0.87

Total expenses before custodian fee reduction

    1.47 %(5)      1.46     1.65     1.85     1.60     2.15

Expenses after custodian fee reduction excluding interest and fees

    1.25 %(5)      1.23     1.37     1.49     1.22     1.27

Net investment income

    6.42 %(5)      5.83     6.14     8.23     7.86     9.05

Portfolio Turnover

    5 %(3)      7     16     12     13     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):(4)

           

Expenses excluding interest and fees(7)

    0.91 %(5)      0.91     1.02     1.07     0.89     0.89

Interest and fee expense(6)

    0.16 %(5)      0.17     0.20     0.25     0.28     0.61

Total expenses(7)

    1.07 %(5)      1.08     1.22     1.32     1.17     1.50

Net investment income

    4.68 %(5)      4.33     4.54     5.89     5.75     6.32

Senior Securities:

           

Total preferred shares outstanding

    1,788        1,788        1,788        1,788        1,788        1,788   

Asset coverage per preferred share(8)

  $ 94,621      $ 91,314      $ 99,818      $ 92,287      $ 95,926      $ 96,674   

Involuntary liquidation preference per preferred
share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7)

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(8) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(9) 

Plus accumulated and unpaid dividends.

 

  43   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    California Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 11.770      $ 13.410      $ 11.730      $ 12.520      $ 12.940      $ 11.310   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.383      $ 0.756      $ 0.777      $ 0.855      $ 0.898      $ 0.877   

Net realized and unrealized gain (loss)

    0.715        (1.632     1.712        (0.761     (0.433     1.601   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.003     (0.013     (0.016     (0.023     (0.027     (0.084

Total income (loss) from operations

  $ 1.095      $ (0.889   $ 2.473      $ 0.071      $ 0.438      $ 2.394   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.365   $ (0.751   $ (0.793   $ (0.861   $ (0.858   $ (0.764

Total distributions to common shareholders

  $ (0.365   $ (0.751   $ (0.793   $ (0.861   $ (0.858   $ (0.764

Net asset value — End of period (Common shares)

  $ 12.500      $ 11.770      $ 13.410      $ 11.730      $ 12.520      $ 12.940   

Market value — End of period (Common shares)

  $ 11.620      $ 11.260      $ 13.630      $ 12.260      $ 13.250      $ 12.500   

Total Investment Return on Net Asset Value(2)

    9.74 %(3)      (6.75 )%      21.62     1.31     3.93     23.06

Total Investment Return on Market Value(2)

    6.64 %(3)      (12.29 )%      18.36     0.06     13.86     31.17

 

  44   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    California Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 48,582      $ 45,732      $ 52,063      $ 45,535      $ 48,529      $ 50,080   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.35 %(5)      1.34     1.36     1.47     1.39     1.51

Interest and fee expense(6)

    0.12 %(5)      0.13     0.14     0.15     0.16     0.37

Total expenses before custodian fee reduction

    1.47 %(5)      1.47     1.50     1.62     1.55     1.88

Expenses after custodian fee reduction excluding interest and fees

    1.35 %(5)      1.34     1.36     1.47     1.38     1.50

Net investment income

    6.40 %(5)      5.84     6.16     7.75     7.47     8.23

Portfolio Turnover

    4 %(3)      7     15     34     17     17

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(7)

    0.87 %(5)      0.88     0.89     0.92     0.89     0.93

Interest and fee expense(6)

    0.08 %(5)      0.09     0.09     0.09     0.11     0.23

Total expenses(7)

    0.95 %(5)      0.97     0.98     1.01     1.00     1.16

Net investment income

    4.13 %(5)      3.86     4.04     4.84     4.81     5.07

Senior Securities:

           

Total preferred shares outstanding

    1,028        1,028        1,028        1,028        1,028        1,028   

Asset coverage per preferred share(8)

  $ 72,259      $ 69,487      $ 75,645      $ 69,295      $ 72,208      $ 73,719   

Involuntary liquidation preference per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7)

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(8) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(9) 

Plus accumulated and unpaid dividends.

 

  45   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Massachusetts Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 13.530      $ 15.920      $ 14.230      $ 14.710      $ 14.660      $ 12.130   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.393      $ 0.801      $ 0.821      $ 0.876      $ 0.882      $ 0.901   

Net realized and unrealized gain (loss)

    0.801        (2.389     1.728        (0.490     0.036        2.486   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.004     (0.015     (0.019     (0.026     (0.031     (0.099

Total income (loss) from operations

  $ 1.190      $ (1.603   $ 2.530      $ 0.360      $ 0.887      $ 3.288   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.380   $ (0.787   $ (0.840   $ (0.840   $ (0.837   $ (0.758

Total distributions to common shareholders

  $ (0.380   $ (0.787   $ (0.840   $ (0.840   $ (0.837   $ (0.758

Net asset value — End of period (Common shares)

  $ 14.340      $ 13.530      $ 15.920      $ 14.230      $ 14.710      $ 14.660   

Market value — End of period (Common shares)

  $ 13.150      $ 12.510      $ 16.510      $ 14.320      $ 15.160      $ 15.250   

Total Investment Return on Net Asset Value(2)

    9.22 %(3)      (10.28 )%      18.26     3.06     6.43     28.42

Total Investment Return on Market Value(2)

    8.32 %(3)      (20.01 )%      21.87     0.64     5.44     17.59

 

  46   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Massachusetts Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 25,368      $ 23,925      $ 28,138      $ 25,134      $ 25,920      $ 25,771   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.50 %(5)      1.45     1.46     1.54     1.45     1.69

Interest and fee expense(6)

    0.08 %(5)      0.09     0.09     0.11     0.09     0.23

Total expenses before custodian fee reduction

    1.58 %(5)      1.54     1.55     1.65     1.54     1.92

Expenses after custodian fee reduction excluding interest and fees

    1.50 %(5)      1.45     1.46     1.54     1.45     1.68

Net investment income

    5.73 %(5)      5.31     5.44     6.60     6.29     7.41

Portfolio Turnover

    0 %(3)      3     2     27     27     43

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(7)

    0.96 %(5)      0.96     0.97     0.97     0.94     1.03

Interest and fee expense(6)

    0.05 %(5)      0.06     0.06     0.07     0.05     0.14

Total expenses(7)

    1.01 %(5)      1.02     1.03     1.04     0.99     1.17

Net investment income

    3.68 %(5)      3.52     3.61     4.18     4.06     4.53

Senior Securities:

           

Total preferred shares outstanding

    543        543        543        543        543        543   

Asset coverage per preferred share(8)

  $ 71,719      $ 69,061      $ 76,820      $ 71,288      $ 72,737      $ 72,462   

Involuntary liquidation preference per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7)

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(8) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(9) 

Plus accumulated and unpaid dividends.

 

  47   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Michigan Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 13.160      $ 15.030      $ 14.040      $ 14.540      $ 14.730      $ 12.570   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.386      $ 0.789      $ 0.862      $ 0.913      $ 0.928      $ 0.925   

Net realized and unrealized gain (loss)

    0.842        (1.859     1.038        (0.496     (0.208     2.110   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.004     (0.017     (0.021     (0.030     (0.036     (0.113

Total income (loss) from operations

  $ 1.224      $ (1.087   $ 1.879      $ 0.387      $ 0.684      $ 2.922   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.364   $ (0.783   $ (0.889   $ (0.887   $ (0.874   $ (0.762

Total distributions to common shareholders

  $ (0.364   $ (0.783   $ (0.889   $ (0.887   $ (0.874   $ (0.762

Net asset value — End of period (Common shares)

  $ 14.020      $ 13.160      $ 15.030      $ 14.040      $ 14.540      $ 14.730   

Market value — End of period (Common shares)

  $ 12.460      $ 11.790      $ 16.000      $ 13.610      $ 14.430      $ 13.900   

Total Investment Return on Net Asset Value(2)

    9.81 %(3)      (7.29 )%      13.69     3.25     5.16     25.29

Total Investment Return on Market Value(2)

    8.93 %(3)      (21.98 )%      24.85     0.85     10.60     42.90

 

  48   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Michigan Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 21,228      $ 19,931      $ 22,759      $ 21,233      $ 21,985      $ 22,276   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses before custodian fee reduction

    1.58 %(5)      1.55     1.54     1.58     1.49     1.70

Expenses after custodian fee reduction

    1.58 %(5)      1.55     1.54     1.58     1.49     1.69

Net investment income

    5.74 %(5)      5.46     5.90     6.76     6.55     7.30

Portfolio Turnover

    6 %(3)      29     19     5     2     9

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(6)

    0.96 %(5)      0.96     0.96     0.96     0.92     1.00

Net investment income

    3.48 %(5)      3.39     3.68     4.09     4.04     4.30

Senior Securities:

           

Total preferred shares outstanding

    533        533        533        533        533        533   

Asset coverage per preferred share(7)

  $ 64,828      $ 62,395      $ 67,701      $ 64,837      $ 66,248      $ 66,794   

Involuntary liquidation preference per preferred share(8)

  $ 25,000      $ 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      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6)

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(7) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(8) 

Plus accumulated and unpaid dividends.

 

  49   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New Jersey Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
   

Year Ended September 30,

 
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 13.120      $ 14.640      $ 13.180      $ 14.410      $ 14.620      $ 11.980   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.376      $ 0.759      $ 0.820      $ 0.895      $ 0.943      $ 0.926   

Net realized and unrealized gain (loss)

    0.578        (1.537     1.471        (1.179     (0.207     2.740   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.004     (0.015     (0.019     (0.026     (0.031     (0.088

From net realized gain

                                       (0.016

Total income (loss) from operations

  $ 0.950      $ (0.793   $ 2.272      $ (0.310   $ 0.705      $ 3.562   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.350   $ (0.727   $ (0.812   $ (0.920   $ (0.915   $ (0.819

From net realized gain

                                       (0.103

Total distributions to common shareholders

  $ (0.350   $ (0.727   $ (0.812   $ (0.920   $ (0.915   $ (0.922

Net asset value — End of period (Common shares)

  $ 13.720      $ 13.120      $ 14.640      $ 13.180      $ 14.410      $ 14.620   

Market value — End of period (Common shares)

  $ 12.310      $ 11.730      $ 15.090      $ 13.370      $ 15.350      $ 14.730   

Total Investment Return on Net Asset Value(2)

    7.67 %(3)      (5.48 )%      17.69     (1.80 )%      5.10     31.84

Total Investment Return on Market Value(2)

    8.05 %(3)      (18.01 )%      19.58     (6.49 )%      11.12     33.95

 

  50   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New Jersey Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
   

Year Ended September 30,

 
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 35,798      $ 34,221      $ 38,140      $ 34,186      $ 37,222      $ 37,628   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.33 %(5)      1.35     1.39     1.42     1.36     1.53

Interest and fee expense(6)

    0.01 %(5)      0.04     0.12     0.15     0.17     0.46

Total expenses before custodian fee reduction

    1.34 %(5)      1.39     1.51     1.57     1.53     1.99

Expenses after custodian fee reduction excluding interest and fees

    1.33 %(5)      1.35     1.39     1.41     1.36     1.52

Net investment income

    5.68 %(5)      5.35     5.87     6.96     6.79     7.81

Portfolio Turnover

    3 %(3)      11     16     4     8     39

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)

           

Expenses excluding interest and fees

    0.86 %(5)      0.88     0.90     0.90     0.88     0.93

Interest and fee expense(6)

    0.00 %(5)(7)      0.03     0.08     0.09     0.11     0.28

Total expenses before custodian fee reduction

    0.86 %(5)      0.91     0.98     0.99     0.99     1.21

Expenses after custodian fee reduction excluding interest and fees

    0.86 %(5)      0.88     0.90     0.89     0.88     0.92

Net investment income

    3.63 %(5)      3.50     3.81     4.38     4.39     4.75

Senior Securities:

           

Total preferred shares outstanding

    784        784        784        784        784        784   

Asset coverage per preferred share(8)

  $ 70,661      $ 68,650      $ 73,649      $ 68,605      $ 72,478      $ 72,996   

Involuntary liquidation preference per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7) 

Amount is less than 0.005%.

 

(8) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(9) 

Plus accumulated and unpaid dividends.

 

  51   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New York Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
   

Year Ended September 30,

 
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 12.380      $ 13.900      $ 12.760      $ 13.400      $ 13.620      $ 11.530   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.373      $ 0.714      $ 0.775      $ 0.868      $ 0.847      $ 0.857   

Net realized and unrealized gain (loss)

    0.404        (1.537     1.162        (0.621     (0.167     2.087   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.003     (0.010     (0.013     (0.018     (0.021     (0.066

Total income (loss) from operations

  $ 0.774      $ (0.833   $ 1.924      $ 0.229      $ 0.659      $ 2.878   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.344   $ (0.687   $ (0.784   $ (0.869   $ (0.879   $ (0.788

Total distributions to common shareholders

  $ (0.344   $ (0.687   $ (0.784   $ (0.869   $ (0.879   $ (0.788

Net asset value — End of period (Common shares)

  $ 12.810      $ 12.380      $ 13.900      $ 12.760      $ 13.400      $ 13.620   

Market value — End of period (Common shares)

  $ 11.990      $ 11.120      $ 13.970      $ 12.890      $ 14.000      $ 13.610   

Total Investment Return on Net Asset Value(2)

    6.62 %(3)      (6.01 )%      15.47     2.16     5.20     26.71

Total Investment Return on Market Value(2)

    11.10 %(3)      (16.01 )%      14.89     (1.21 )%      9.99     37.98

 

  52   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    New York Fund II  
    Six Months Ended
March 31, 2014
(Unaudited)
   

Year Ended September 30,

 
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 32,870      $ 31,779      $ 35,669      $ 32,717      $ 34,328      $ 34,847   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.43 %(5)      1.40     1.42     1.47     1.41     1.51

Interest and fee expense(6)

    0.16 %(5)      0.17     0.22     0.28     0.28     0.63

Total expenses before custodian fee reduction

    1.59 %(5)      1.57     1.64     1.75     1.69     2.14

Expenses after custodian fee reduction excluding interest and fees

    1.43 %(5)      1.40     1.42     1.46     1.41     1.50

Net investment income

    5.97 %(5)      5.33     5.80     7.07     6.49     7.67

Portfolio Turnover

    3 %(3)      14     18     17     13     30

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)

           

Expenses excluding interest and fees

    1.01 %(5)      1.01     1.02     1.03     1.01     1.03

Interest and fee expense(6)

    0.12 %(5)      0.12     0.16     0.20     0.20     0.43

Total expenses before custodian fee reduction

    1.13 %(5)      1.13     1.18     1.23     1.21     1.46

Expenses after custodian fee reduction excluding interest and fees

    1.01 %(5)      1.01     1.02     1.02     1.01     1.02

Net investment income

    4.23 %(5)      3.85     4.18     4.98     4.65     5.24

Senior Securities:

           

Total preferred shares outstanding

    530        530        530        530        530        530   

Asset coverage per preferred share(7)

  $ 87,020      $ 84,960      $ 92,301      $ 86,730      $ 89,770      $ 90,749   

Involuntary liquidation preference per preferred share(8)

  $ 25,000      $ 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      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(8) 

Plus accumulated and unpaid dividends.

 

  53   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Ohio Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 12.220      $ 13.800      $ 12.220      $ 12.960      $ 12.980      $ 11.330   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.373      $ 0.736      $ 0.762      $ 0.814      $ 0.828      $ 0.846   

Net realized and unrealized gain (loss)

    0.682        (1.584     1.606        (0.759     (0.058     1.592   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.004     (0.013     (0.016     (0.023     (0.028     (0.101

Total income (loss) from operations

  $ 1.051      $ (0.861   $ 2.352      $ 0.032      $ 0.742      $ 2.337   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.351   $ (0.719   $ (0.772   $ (0.772   $ (0.762   $ (0.687

Total distributions to common shareholders

  $ (0.351   $ (0.719   $ (0.772   $ (0.772   $ (0.762   $ (0.687

Net asset value — End of period (Common shares)

  $ 12.920      $ 12.220      $ 13.800      $ 12.220      $ 12.960      $ 12.980   

Market value — End of period (Common shares)

  $ 11.890      $ 11.380      $ 15.200      $ 12.780      $ 14.100      $ 13.250   

Total Investment Return on Net Asset Value(2)

    9.00 %(3)      (6.46 )%      19.50     0.65     6.04     22.05

Total Investment Return on Market Value(2)

    7.71 %(3)      (20.91 )%      25.85     (3.25 )%      13.01     25.48

 

  54   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Ohio Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 32,782      $ 30,995      $ 34,985      $ 30,922      $ 32,726      $ 32,710   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees(5)

    1.37 %(6)      1.33     1.35     1.42     1.36     1.57

Interest and fee expense(7)

    0.03 %(6)      0.02     0.01     0.02     0.02     0.10

Total expenses(5)

    1.40 %(6)      1.35     1.36     1.44     1.38     1.67

Net investment income

    6.01 %(6)      5.51     5.83     6.98     6.61     7.87

Portfolio Turnover

    5 %(3)      12     12     10     11     18

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(5)

    0.89 %(6)      0.89     0.89     0.90     0.88     0.95

Interest and fee expense(7)

    0.02 %(6)      0.01     0.01     0.01     0.01     0.06

Total expenses(5)

    0.91 %(6)      0.90     0.90     0.91     0.89     1.01

Net investment income

    3.91 %(6)      3.67     3.85     4.43     4.30     4.77

Senior Securities:

           

Total preferred shares outstanding

    680        680        680        680        680        680   

Asset coverage per preferred share(8)

  $ 73,209      $ 70,581      $ 76,450      $ 70,474      $ 73,128      $ 73,104   

Involuntary liquidation preference per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

Approximate market value per preferred share(9)

  $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Excludes the effect of custody fee credits, if any, of less than 0.005%.

 

(6) 

Annualized.

 

(7) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(8) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(9) 

Plus accumulated and unpaid dividends.

 

  55   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Pennsylvania Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
      2013     2012     2011     2010     2009  

Net asset value — Beginning of period (Common shares)

  $ 12.710      $ 14.460      $ 13.180      $ 13.640      $ 13.900      $ 12.030   
Income (Loss) From Operations                                                

Net investment income(1)

  $ 0.419      $ 0.812      $ 0.829      $ 0.893      $ 0.878      $ 0.889   

Net realized and unrealized gain (loss)

    0.732        (1.742     1.342        (0.460     (0.270     2.123   

Distributions to preferred shareholders(1)

           

From net investment income

    (0.004     (0.014     (0.018     (0.025     (0.030     (0.071

From net realized gain

                                       (0.045

Total income (loss) from operations

  $ 1.147      $ (0.944   $ 2.153      $ 0.408      $ 0.578      $ 2.896   
Less Distributions to Common Shareholders                                                

From net investment income

  $ (0.387   $ (0.806   $ (0.873   $ (0.868   $ (0.838   $ (0.753

From net realized gain

                                       (0.273

Total distributions to common shareholders

  $ (0.387   $ (0.806   $ (0.873   $ (0.868   $ (0.838   $ (1.026

Net asset value — End of period (Common shares)

  $ 13.470      $ 12.710      $ 14.460      $ 13.180      $ 13.640      $ 13.900   

Market value — End of period (Common shares)

  $ 12.280      $ 11.590      $ 15.780      $ 13.030      $ 14.230      $ 14.600   

Total Investment Return on Net Asset Value(2)

    9.49 %(3)      (6.69 )%      16.76     3.63     4.53     27.36

Total Investment Return on Market Value(2)

    9.46 %(3)      (22.03 )%      28.88     (1.79 )%      3.82     20.09

 

  56   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Financial Highlights — continued

 

Selected data for a common share outstanding during the periods stated

 

    Pennsylvania Fund  
    Six Months Ended
March 31, 2014
(Unaudited)
    Year Ended September 30,  
Ratios/Supplemental Data     2013     2012     2011     2010     2009  

Net assets applicable to common shares, end of period (000’s omitted)

  $ 39,863      $ 37,619      $ 42,791      $ 38,972      $ 40,256      $ 40,956   

Ratios (as a percentage of average daily net assets applicable to common shares):(4)

           

Expenses excluding interest and fees

    1.36 %(5)      1.35     1.33     1.41     1.36     1.52

Interest and fee expense(6)

    0.10 %(5)      0.06     0.04     0.08     0.07     0.17

Total expenses before custodian fee reduction

    1.46 %(5)      1.41     1.37     1.49     1.43     1.69

Expenses after custodian fee reduction excluding interest and fees

    1.36 %(5)      1.35     1.33     1.40     1.36     1.51

Net investment income

    6.50 %(5)      5.83     5.98     7.19     6.67     7.80

Portfolio Turnover

    1 %(3)      14     11     12     19     8

The ratios reported above are based on net assets applicable to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

   

Ratios (as a percentage of average daily net assets applicable to common shares and preferred shares):(4)

           

Expenses excluding interest and fees

    0.87 %(5)      0.88     0.87     0.88     0.87     0.91

Interest and fee expense(6)

    0.06 %(5)      0.04     0.03     0.05     0.05     0.10

Total expenses before custodian fee reduction

    0.93 %(5)      0.92     0.90     0.93     0.92     1.01

Expenses after custodian fee reduction excluding interest and fees

    0.87 %(5)      0.88     0.87     0.88     0.87     0.90

Net investment income

    4.15 %(5)      3.82     3.91     4.51     4.28     4.68

Senior Securities:

           

Total preferred shares outstanding

    869        869        869        869        869        869   

Asset coverage per preferred share(7)

  $ 70,873      $ 68,290      $ 74,242      $ 69,847      $ 71,327      $ 72,133   

Involuntary liquidation preference per preferred share(8)

  $ 25,000      $ 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      $ 25,000   

 

(1) 

Computed using average common shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

(3) 

Not annualized.

 

(4) 

Ratios do not reflect the effect of dividend payments to preferred shareholders.

 

(5) 

Annualized.

 

(6) 

Interest and fee expense relates to the liability for floating rate notes issued in conjunction with residual interest bond transactions (see Note 1H).

 

(7) 

Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding.

 

(8) 

Plus accumulated and unpaid dividends.

 

  57   See Notes to Financial Statements.


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited)

 

 

1  Significant Accounting Policies

Eaton Vance Municipal Bond Fund II (Municipal Fund II), Eaton Vance California Municipal Bond Fund II (California Fund II), Eaton Vance Massachusetts Municipal Bond Fund (Massachusetts Fund), Eaton Vance Michigan Municipal Bond Fund (Michigan Fund), Eaton Vance New Jersey Municipal Bond Fund (New Jersey Fund), Eaton Vance New York Municipal Bond Fund II (New York Fund II), Eaton Vance Ohio Municipal Bond Fund (Ohio Fund) and Eaton Vance Pennsylvania Municipal Bond Fund (Pennsylvania Fund), (each individually referred to as the Fund, and collectively, the Funds), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies, except for Municipal Fund II, which is a diversified, closed-end management investment company. The Funds’ investment objective is to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state.

The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Debt Obligations. 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.

Derivatives. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Fund in a manner that fairly reflects the security’s value, or the amount that 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 relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

C  Federal Taxes — Each Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in non-taxable municipal securities, which are exempt from regular federal income tax when received by each Fund, as exempt-interest dividends.

At September 30, 2013, the following Funds, for federal income tax purposes, had capital loss carryforwards and deferred capital losses which will reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The deferred capital losses are treated as arising on the first day of the Funds’ next taxable year and are treated as realized

 

  58  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

prior to the utilization of the capital loss carryforward. The amounts and expiration dates of the capital loss carryforwards and the amounts of the deferred capital losses are as follows:

 

Expiration Date   Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

September 30, 2016

  $ 658,427       $ 52,500       $       $ 1,883   

September 30, 2017

    2,011,041         1,365,711         94,578           

September 30, 2018

    11,539,291         3,330,399         1,054,999         579,696   

September 30, 2019

    1,277,303         1,539,887         225,669         515,704   

Total capital loss carryforward

  $ 15,486,062       $ 6,288,497       $ 1,375,246       $ 1,097,283   

Deferred capital losses

  $ 7,556,202       $ 5,315,587       $ 1,385,634       $ 162,382   
          
Expiration Date   New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

September 30, 2016

  $       $ 41,818       $ 83,319       $   

September 30, 2017

    244,927         1,233,356         1,620,085           

September 30, 2018

    2,060,337         1,545,637         3,381,936         1,949,047   

September 30, 2019

    1,369,694         1,548,104         669,118         925,899   

Total capital loss carryforward

  $ 3,674,958       $ 4,368,915       $ 5,754,458       $ 2,874,946   

Deferred capital losses

  $ 1,501,196       $ 1,696,957       $ 1,180,207       $ 1,931,731   

As of March 31, 2014, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’s custodian fees are reported as a reduction of expenses in the Statements of Operations.

E  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.

F  Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

G  Indemnifications — Under each Fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as a Fund) could be deemed to have personal liability for the obligations of the Fund. However, each Fund’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Fund shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.

H  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in residual interest bonds, also referred to as inverse floating rate securities, whereby a Fund may sell a variable or 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. The broker deposits a bond into the SPV with the same CUSIP number as the bond sold to the broker by the Fund, and which may have been, but is not required to be, the bond purchased from the Fund (the Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The residual interest bond held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to generally tender their notes at par, and (2) to have the broker

 

  59  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

transfer the Bond held by the SPV to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would generally pay the broker the par amount due on the Floating Rate Notes and exchange the residual interest bond for the underlying Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Funds account for the transaction described above as a secured borrowing by including the Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Accordingly, the fair value of the payable for floating rate notes issued approximates its carrying value. If measured at fair value, the payable for floating rate notes would have been considered as Level 2 in the fair value hierarchy (see Note 10) at March 31, 2014. 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 March 31, 2014, the amounts of the Funds’ Floating Rate Notes and related interest rates and collateral were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
 

Floating Rate Notes Outstanding

  $ 42,295,000       $ 9,885,000       $ 3,330,000   

Interest Rate or Range of Interest Rates (%)

    0.06 - 0.31         0.06 - 0.08         0.06 - 0.08   

Collateral for Floating Rate Notes Outstanding

  $ 51,808,613       $ 11,705,526       $ 4,348,266   

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Floating Rate Notes Outstanding

  $ 225,000       $ 9,305,000       $ 1,050,000       $ 4,440,000   

Interest Rate or Range of Interest Rates (%)

    0.21         0.06 - 0.08         0.06 - 1.21         0.06 - 1.21   

Collateral for Floating Rate Notes Outstanding

  $ 259,470       $ 11,873,402       $ 1,464,235       $ 6,131,405   

For the six months ended March 31, 2014, the Funds’ average Floating Rate Notes outstanding and the average interest rate (annualized) including fees and amortization of deferred debt issuance costs were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
 

Average Floating Rate Notes Outstanding

  $ 42,129,670       $ 9,885,000       $ 3,330,000   

Average Interest Rate

    0.62      0.58      0.61

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Average Floating Rate Notes Outstanding

  $ 225,000       $ 9,112,390       $ 1,050,000       $ 4,440,000   

Average Interest Rate

    1.08      0.58      0.92      0.84

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 Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Funds had no shortfalls as of March 31, 2014.

The Funds may also purchase residual interest bonds from brokers in a secondary market transaction without first owning the underlying bond. Such transactions are not required to be treated as secured borrowings. Shortfall agreements, if any, related to residual interest bonds purchased in a secondary market transaction are disclosed in the Portfolio of Investments.

 

  60  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

The Funds’ investment policies and restrictions expressly permit investments in residual interest bonds. Such bonds typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of residual interest bonds are generally more volatile than that of a fixed rate bond. The Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Funds’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Funds’ restrictions apply. Residual interest bonds held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

On December 10, 2013, five U.S. federal agencies published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”). The Volcker Rule prohibits banking entities from engaging in proprietary trading of certain instruments and limits such entities’ investments in, and relationships with, covered funds, as defined in the rules. The compliance date for the Volcker Rule is July 21, 2015. The Volcker Rule may preclude banking entities and their affiliates from (i) sponsoring residual interest bond programs (as such programs are presently structured) and (ii) continuing relationships with or services for existing residual interest bond programs. As a result, residual interest bond trusts may need to be restructured or unwound. There can be no assurances that residual interest bond trusts can be restructured, that new sponsors of residual interest bond programs will develop, or that alternative forms of leverage will be available to the Funds. The effects of the Volcker Rule may make it more difficult for the Funds to maintain current or desired levels of leverage and may cause the Funds to incur additional expenses to maintain their leverage.

I  Financial Futures Contracts — Upon entering into a financial futures contract, a Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.

J  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.

K  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Fund is the amount included in the Fund’s Statement of Assets and Liabilities and represents the unrestricted cash on hand at its custodian and does not include any short-term investments.

L  Interim Financial Statements — The interim financial statements relating to March 31, 2014 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds’ management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares

Each Fund issued Auction Preferred Shares (APS) on January 15, 2003 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Fund. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set. If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) “AA” Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. The stated spread over the reference benchmark rate is determined based on the credit rating of the APS. Series of APS are identical in all respects except for the reset dates of the dividend rates.

The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if a Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years’ dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that 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%.

 

  61  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

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). Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for APS at March 31, 2014, and the amount of dividends accrued (including capital gains, if any) to APS shareholders, average APS dividend rates (annualized), and dividend rate ranges for the six months then ended were as follows:

 

    

Municipal
Fund II

(Series A)

    

Municipal
Fund II

(Series B)

     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

APS Dividend Rates at March 31, 2014

    0.10      0.23      0.10      0.21      0.10

Dividends Accrued to APS Shareholders

  $ 11,169       $ 11,841       $ 12,843       $ 7,156       $ 6,706   

Average APS Dividend Rates

    0.10      0.11      0.10      0.11      0.10

Dividend Rate Ranges (%)

    0.07 - 0.18         0.07 - 0.23         0.07 - 0.18         0.07 - 0.23         0.07 - 0.18   

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

APS Dividend Rates at March 31, 2014

    0.10      0.10      0.23      0.21

Dividends Accrued to APS Shareholders

  $ 10,458       $ 6,546       $ 9,007       $ 11,452   

Average APS Dividend Rates

    0.11      0.10      0.11      0.11

Dividend Rate Ranges (%)

    0.07 - 0.23         0.07 - 0.17         0.07 - 0.23         0.07 - 0.23   

Beginning February 13, 2008 and consistent with the patterns in the broader market for auction-rate securities, the Funds’ APS auctions were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates of the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each series as of March 31, 2014.

The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. The fee is computed at an annual rate of 0.55% of each Fund’s average weekly gross assets and is payable monthly. Average weekly gross assets include the principal amount of any indebtedness for money borrowed, including debt securities issued by a Fund, and the amount of any outstanding APS issued by the Fund. Pursuant to a fee reduction agreement with EVM, average weekly gross assets are calculated by adding to net assets the liquidation value of a Fund’s APS then outstanding and the amount payable by the Fund to floating rate note holders, such adjustment being limited to the value of the APS outstanding prior to any APS redemptions by the Fund. EVM also serves as the administrator of each Fund, but receives no compensation. For the six months ended March 31, 2014, the investment adviser fees were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Investment Adviser Fee

  $ 567,808       $ 220,278       $ 109,183       $ 92,452   

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Investment Adviser Fee

  $ 149,350       $ 148,981       $ 135,863       $ 176,156   

 

  62  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

Trustees and officers of the Funds who are members of EVM’s organization receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with 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 six months ended March 31, 2014, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.

5  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the six months ended March 31, 2014 were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Purchases

  $ 10,926,983       $ 4,836,307       $       $ 2,375,635   

Sales

  $ 10,325,334       $ 2,872,567       $ 750,000       $ 1,975,597   

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Purchases

  $ 1,481,014       $ 3,302,958       $ 2,393,960       $ 802,058   

Sales

  $ 1,698,918       $ 1,671,196       $ 2,276,542       $ 1,004,659   

6  Common Shares of Beneficial Interest

Common shares issued pursuant to the Funds’ dividend reinvestment plan for the six months ended March 31, 2014 and the year ended September 30, 2013 were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Six Months Ended March 31, 2014 (Unaudited)

                              

Year Ended September 30, 2013

    6,020         1,517         692         144   

 

     New Jersey
Fund
     New York
Fund II
     Ohio
Fund
     Pennsylvania
Fund
 

Six Months Ended March 31, 2014 (Unaudited)

                              

Year Ended September 30, 2013

    3,216         760         2,095         1,153   

On November 11, 2013, the Boards of Trustees of the Funds authorized the repurchase by each Fund of up to 10% of its then currently outstanding common shares in open-market transactions at a discount to net asset value (NAV). The repurchase program does not obligate the Funds to purchase a specific amount of shares. There were no repurchases of common shares by the Funds for the six months ended March 31, 2014.

 

  63  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

7  Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2014, as determined on a federal income tax basis, were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Aggregate cost

  $ 161,952,645       $ 68,437,433       $ 33,871,096       $ 33,570,874   

Gross unrealized appreciation

  $ 14,065,329       $ 5,646,829       $ 3,312,360       $ 1,643,843   

Gross unrealized depreciation

    (8,587,192      (616,215      (134,944      (496,595

Net unrealized appreciation

  $ 5,478,137       $ 5,030,614       $ 3,177,416       $ 1,147,248   

 

     New Jersey
Fund
     New York
Fund II
    

Ohio

Fund

     Pennsylvania
Fund
 

Aggregate cost

  $ 50,335,070       $ 42,480,832       $ 45,054,379       $ 58,082,802   

Gross unrealized appreciation

  $ 4,162,147       $ 3,179,262       $ 4,241,636       $ 3,378,668   

Gross unrealized depreciation

    (304,140      (653,222      (305,456      (693,799

Net unrealized appreciation

  $ 3,858,007       $ 2,526,040       $ 3,936,180       $ 2,684,869   

8  Overdraft Advances

Pursuant to the custodian agreement, SSBT may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to SSBT. SSBT has a lien on a Fund’s assets to the extent of any overdraft. At March 31, 2014, the Municipal Fund II, California Fund II and Pennsylvania Fund had an overdraft balance due to SSBT pursuant to the foregoing arrangement of $891,964, $97,202 and $91,526, respectively. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at March 31, 2014. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy (see Note 10) at March 31, 2014. The Funds’ average overdraft advances during the six months ended March 31, 2014 were not significant.

9  Financial Instruments

The Funds may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

 

  64  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

A summary of obligations under these financial instruments at March 31, 2014 is as follows:

 

Futures Contracts  
Fund   Expiration
Month/Year
     Contracts    Position    Aggregate
Cost
     Value      Net Unrealized
Appreciation
(Depreciation)
 
Municipal II     6/14       44
U.S. Long Treasury Bond
   Short    $ (5,772,513    $ (5,861,625    $ (89,112
California II     6/14       15
U.S. 10-Year Treasury Note
   Short    $ (1,858,801    $ (1,852,500    $ 6,301   
      6/14       23
U.S. Long Treasury Bond
   Short      (3,017,450      (3,064,031      (46,581
Massachusetts     6/14       14
U.S. Long Treasury Bond
   Short    $ (1,836,709    $ (1,865,063    $ (28,354
Michigan     6/14       12
U.S. Long Treasury Bond
   Short    $ (1,574,322    $ (1,598,625    $ (24,303
New Jersey     6/14       50
U.S. Long Treasury Bond
   Short    $ (6,559,675    $ (6,660,938    $ (101,263
New York II     6/14       22
U.S. Long Treasury Bond
   Short    $ (2,886,257    $ (2,930,813    $ (44,556
Ohio     6/14       20
U.S. Long Treasury Bond
   Short    $ (2,623,870    $ (2,664,375    $ (40,505
Pennsylvania     6/14       55
U.S. Long Treasury Bond
   Short    $ (7,215,642    $ (7,327,032    $ (111,390

At March 31, 2014, the Funds had sufficient cash and/or securities to cover commitments under these contracts.

Each Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Funds hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Funds purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.

The fair values of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at March 31, 2014 were as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Asset Derivative:

    

Futures Contracts

  $       $ 6,301 (1)     $       $   

Total

  $       $ 6,301       $       $   

Liability Derivative:

       

Futures Contracts

  $ (89,112 )(1)     $ (46,581 )(1)     $ (28,354 )(1)     $ (24,303 )(1) 

Total

  $ (89,112    $ (46,581    $ (28,354    $ (24,303
          

 

  65  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

     New Jersey
Fund
     New York
Fund II
     Ohio
Fund
     Pennsylvania
Fund
 

Liability Derivative:

       

Futures Contracts

  $ (101,263 )(1)     $ (44,556 )(1)     $ (40,505 )(1)     $ (111,390 )(1) 

Total

  $ (101,263    $ (44,556    $ (40,505    $ (111,390

 

(1) 

Amount represents cumulative unrealized appreciation or (depreciation) on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable.

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the six months ended March 31, 2014 was as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ (123,514 )(1)     $ (116,125 )(1)     $ (33,681 )(1)     $ (21,486 )(1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ 3,885 (2)     $ 46,478 (2)     $ (5,907 )(2)     $ (6,360 )(2) 
          
     New Jersey
Fund
     New York
Fund II
     Ohio
Fund
     Pennsylvania
Fund
 

Realized Gain (Loss) on Derivatives Recognized in Income

  $ (146,845 )(1)     $ (52,927 )(1)     $ (57,961 )(1)     $ (132,317 )(1) 

Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income

  $ (5,059 )(2)     $ (9,281 )(2)     $ 9,887 (2)     $ (23,203 )(2) 

 

(1) 

Statement of Operations location: Net realized gain (loss) – Financial futures contracts.

 

(2) 

Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts.

The average notional amounts of futures contracts outstanding during the six months ended March 31, 2014, which are indicative of the volume of this derivative type, were approximately as follows:

 

     Municipal
Fund II
     California
Fund II
     Massachusetts
Fund
     Michigan
Fund
 

Average Notional Amount:

    

Futures Contracts

  $ 4,800,000       $ 3,943,000       $ 1,400,000       $ 1,129,000   
          
     New Jersey
Fund
     New York
Fund II
     Ohio
Fund
     Pennsylvania
Fund
 

Average Notional Amount:

    

Futures Contracts

  $ 5,714,000       $ 2,200,000       $ 2,129,000       $ 5,500,000   

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.

 

Ÿ  

Level 1 – quoted prices in active markets for identical investments

 

Ÿ  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  66  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

 

Ÿ  

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At March 31, 2014, the hierarchy of inputs used in valuing the Funds’ investments and open derivative instruments, which are carried at value, were as follows:

 

Municipal Fund II

 
Asset Description   Level 1      Level 2      Level 3*      Total  

Tax-Exempt Municipal Securities

  $       $ 209,689,545       $       $ 209,689,545   

Corporate Bonds & Notes

                    36,237         36,237   

Total Investments

  $       $ 209,689,545       $ 36,237       $ 209,725,782   

Liability Description

                                  

Futures Contracts

  $ (89,112    $       $       $ (89,112

Total

  $ (89,112    $       $       $ (89,112
          

California Fund II

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 83,353,047       $       $ 83,353,047   

Total Investments

  $       $ 83,353,047       $       $ 83,353,047   

Futures Contracts

  $ 6,301       $       $       $ 6,301   

Total

  $ 6,301       $ 83,353,047       $       $ 83,359,348   

Liability Description

                                  

Futures Contracts

  $ (46,581    $       $       $ (46,581

Total

  $ (46,581    $       $       $ (46,581
          

Massachusetts Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 40,378,512       $       $ 40,378,512   

Total Investments

  $       $ 40,378,512       $       $ 40,378,512   

Liability Description

                                  

Futures Contracts

  $ (28,354    $       $       $ (28,354

Total

  $ (28,354    $       $       $ (28,354

 

  67  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

Michigan Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 34,718,122       $         —       $ 34,718,122   

Total Investments

  $       $ 34,718,122       $       $ 34,718,122   

Liability Description

                                  

Futures Contracts

  $ (24,303    $       $       $ (24,303

Total

  $ (24,303    $       $       $ (24,303
          

New Jersey Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Municipal Securities

  $       $ 53,948,352       $       $ 53,948,352   

Taxable Municipal Securities

            469,725                 469,725   

Total Investments

  $       $ 54,418,077       $       $ 54,418,077   

Liability Description

                                  

Futures Contracts

  $ (101,263    $       $       $ (101,263

Total

  $ (101,263    $       $       $ (101,263
          

New York Fund II

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 54,311,872       $       $ 54,311,872   

Total Investments

  $       $ 54,311,872       $       $ 54,311,872   

Liability Description

                                  

Futures Contracts

  $ (44,556    $       $       $ (44,556

Total

  $ (44,556    $       $       $ (44,556
          

Ohio Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 50,040,559       $       $ 50,040,559   

Total Investments

  $       $ 50,040,559       $       $ 50,040,559   

Liability Description

                                  

Futures Contracts

  $ (40,505    $       $       $ (40,505

Total

  $ (40,505    $       $       $ (40,505
          

 

  68  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Notes to Financial Statements (Unaudited) — continued

 

 

Pennsylvania Fund

 
Asset Description   Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

  $       $ 65,207,671       $         —       $ 65,207,671   

Total Investments

  $       $ 65,207,671       $       $ 65,207,671   

Liability Description

                                  

Futures Contracts

  $ (111,390    $       $       $ (111,390

Total

  $ (111,390    $       $       $ (111,390

 

* None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Municipal Fund II.

The California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund held no investments or other financial instruments as of September 30, 2013 whose fair value was determined using Level 3 inputs.

Level 3 investments held by Municipal Fund II at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the six months ended March 31, 2014 is not presented.

At March 31, 2014, there were no investments transferred between Level 1 and Level 2 during the six months then ended.

 

  69  


Eaton Vance

Municipal Bond Funds

March 31, 2014

 

Officers and Trustees

 

 

Officers of Eaton Vance Municipal Bond Funds

 

 

Payson F. Swaffield

President

Maureen A. Gemma

Vice President, Secretary and Chief Legal Officer

James F. Kirchner

Treasurer

Paul M. O’Neil

Chief Compliance Officer

 

 

Trustees of Eaton Vance Municipal Bond Funds

 

 

Ralph F. Verni

Chairman

Scott E. Eston

Thomas E. Faust Jr.*

Allen R. Freedman

Valerie A. Mosley

William H. Park

Ronald A. Pearlman

Helen Frame Peters

Harriett Tee Taggart

 

 

* Interested Trustee

 

 

Number of Employees

Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company, and has no employees.

Number of Shareholders

As of March 31, 2014, Fund records indicate that there are 16, 5, 3, 4, 6, 12, 6 and 25 registered shareholders for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively, and approximately 3,538, 1,234, 822, 848, 1,138, 1,035, 1,344 and 1,579 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Municipal Fund II, California Fund II, Massachusetts Fund, Michigan Fund, New Jersey Fund, New York Fund II, Ohio Fund and Pennsylvania Fund, respectively.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

1-800-262-1122

NYSE MKT symbols

Municipal Bond Fund II    EIV
California Municipal Bond Fund II    EIA
Massachusetts Municipal Bond Fund    MAB
Michigan Municipal Bond Fund    MIW
New Jersey Municipal Bond Fund    EMJ
New York Municipal Bond Fund II    NYH
Ohio Municipal Bond Fund    EIO
Pennsylvania Municipal Bond Fund    EIP
 

 

  70  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Privacy.  The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (“Privacy Policy”) with respect to nonpublic personal information about its customers:

 

Ÿ  

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.

 

Ÿ  

None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker-dealers.

 

Ÿ  

Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

 

Ÿ  

We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial advisor/broker-dealer, it is likely that only such advisor’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial advisor.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

Share Repurchase Program.  On November 11, 2013, the Funds’ Boards of Trustees approved a share repurchase program authorizing each Fund to repurchase up to 10% of its currently outstanding common shares in open-market transactions at a discount to net asset value. The repurchase program does not obligate a Fund to purchase a specific amount of shares. The Funds’ repurchase activity, including the number of shares purchased, average price and average discount to net asset value, are disclosed in the Funds’ annual and semi-annual reports to shareholders.

Additional Notice to Shareholders.  If applicable, a Fund may also redeem or purchase its outstanding preferred shares in order to maintain compliance with regulatory requirements, borrowing or rating agency requirements or for other purposes as it deems appropriate or necessary.

Closed-End Fund Information.  Eaton Vance closed-end funds make fund performance data and certain information about portfolio characteristics available on the Eaton Vance website shortly after the end of each month. The funds’ net asset value per share is readily accessible on the Eaton Vance website. Portfolio holdings for the most recent month-end are also posted to the website approximately 30 days following the end of the month. This information is available at www.eatonvance.com on the fund information pages under “Individual Investors — Closed-End Funds”.

 

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Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Custodian

State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

 

Transfer Agent

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Fund Offices

Two International Place

Boston, MA 02110

 


LOGO

7728    3.31.14


Item 2. Code of Ethics

Not required in this filing.

Item 3. Audit Committee Financial Expert

Not required in this filing.

Item 4. Principal Accountant Fees and Services

Not required in this filing.

Item 5. Audit Committee of Listed Registrants

Not required in this filing.


Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not required in this filing.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Craig R. Brandon, portfolio manager of Eaton Vance California Municipal Bond Fund II, Cynthia J. Clemson, portfolio manager of Eaton Vance Municipal Bond Fund II, and Thomas M. Metzold, portfolio manager of Eaton Vance Michigan Municipal Bond Fund and Eaton Vance Ohio Municipal Bond Fund are responsible for the overall and day-to-day management of each Fund’s investments.

Mr. Brandon has been an Eaton Vance analyst since 1998, a portfolio manager since 2004, and is Co-Director of the Municipal Investments Group. Ms. Clemson has been an Eaton Vance portfolio manager since 1991 and is Co-Director of the Municipal Investments Group. Mr. Metzold has been an Eaton Vance portfolio manager since 1991 and is a Senior Portfolio Advisor. Messrs. Brandon, and Metzold and Ms. Clemson are Vice Presidents of Eaton Vance Management (“EVM”). This information is provided as of the date of filing of this report.

The following tables show as of March 31, 2014, the number of accounts each portfolio manager managed in each of the listed categories and the total assets (in millions of dollars) in the accounts managed within each category. The table also shows the number of accounts with respect to which the advisory fee is based on the performance of the account, if any, and the total assets (in millions of dollars) in those accounts.

 

     Number
of All
Accounts
     Total Assets
of All
Accounts
     Number of
Accounts
Paying a
Performance
Fee
     Total Assets of
Accounts Paying
a Performance
Fee
 

    Craig R. Brandon

           

Registered Investment Companies

     17       $ 6,013.0         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   

    Cynthia J. Clemson

           

Registered Investment Companies

     9       $ 3,491.0         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   

    Thomas M. Metzold

           

Registered Investment Companies

     9       $ 4,994.4         0       $ 0   

Other Pooled Investment Vehicles

     0       $ 0         0       $ 0   

Other Accounts

     0       $ 0         0       $ 0   


The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of March 31, 2014.

 

     Dollar Range of Equity
Securities Owned in the
Fund

California Municipal Bond Fund II

  

    Craig R. Brandon

   None

Municipal Bond Fund II

  

    Cynthia J. Clemson

   None

Michigan Municipal Bond Fund

  

Ohio Municipal Bond Fund

  

    Thomas M. Metzold

   None

Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in connection with a portfolio manager’s management of a Fund’s 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 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 adviser’s 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 EVM’s 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 EVC’s nonvoting common stock and/or restricted shares of EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement, insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s 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 fund’s peer group as determined by Lipper or Morningstar is deemed by EVM’s management not to provide a fair comparison, performance may instead be evaluated primarily against a custom peer group or market index. In evaluating the performance of a fund and its manager, primary emphasis is normally placed on three-year performance, with secondary consideration of performance over longer and shorter periods. For funds that are tax-managed or otherwise have an objective of after-tax returns, performance is measured net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an investment objective other than total return (such as current income), consideration will also be given to the fund’s 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 EVM’s 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 registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed,


summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

 

(a)(1)   Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)   Treasurer’s Section 302 certification.
(a)(2)(ii)   President’s Section 302 certification.
(b)   Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Eaton Vance California Municipal Bond Fund II
By:  

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   May 9, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ James F. Kirchner

  James F. Kirchner
  Treasurer
Date:   May 9, 2014
By:  

/s/ Payson F. Swaffield

  Payson F. Swaffield
  President
Date:   May 9, 2014