UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act File Number

 

811-09141

 

 

 

 

 

 

Eaton Vance Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

 

 

 

The Eaton Vance Building,
255 State Street, Boston, Massachusetts

 

02109

(Address of Principal Executive Offices)

 

(Zip code)

 

 

 

Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109

(Name and Address of Agent for Service)

 

Registrant’s Telephone Number, Including Area Code:

 

(617) 482-8260

 

 

 

Date of Fiscal Year End:

 

November 30

 

 

 

Date of Reporting Period:

 

February 29, 2008

 

 



 

Item 1. Schedule of Investments

 



 

Eaton Vance Municipal Income Trust

 

as of February 29, 2008

 

PORTFOLIO OF INVESTMENTS (Unaudited)

 

Tax-Exempt Investments — 172.4%

 

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Security

 

Value

 

Cogeneration — 1.3%

 

 

 

$

2,950

 

Maryland Energy Cogeneration, (AES Warrior Run), (AMT), 7.40%, 9/1/19

 

$

2,791,821

 

 

 

 

 

$

 2,791,821

 

Education — 5.6%

 

 

 

$

9,000

 

California Educational Facilities Authority, (Stanford University), 5.25%, 12/1/32 (1)

 

$

8,987,355

 

3,430

 

Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59

 

3,120,477

 

 

 

 

 

$

 12,107,832

 

Electric Utilities — 12.9%

 

 

 

$

6,500

 

Brazos River Authority, TX, (Reliant Energy, Inc.), 7.75%, 12/1/18

 

$

6,636,110

 

1,300

 

Brazos River Authority, TX, Pollution Control Revenue (Texas Energy Co.), (AMT), 5.40%, 5/1/29

 

1,006,174

 

2,000

 

Brazos River Authority, TX, Pollution Control Revenue (Texas Energy Co.), (AMT), 6.75%, 4/1/38

 

1,932,820

 

3,550

 

Mississippi Business Finance Corp., (System Energy Resources, Inc.), 5.90%, 5/1/22

 

3,560,117

 

7,250

 

North Carolina Municipal Power Agency, (Catawba), 6.50%, 1/1/20

 

7,606,120

 

3,400

 

Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

 

3,367,564

 

2,550

 

Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

 

2,525,673

 

1,000

 

Pennsylvania Economic Development Financing Authority, (Reliant Energy, Inc.), Series A, (AMT), 6.75%, 12/1/36

 

999,230

 

 

 

 

 

$

 27,633,808

 

Escrowed/Prerefunded — 6.9%

 

 

 

$

3,000

 

Capital Trust Agency, FL, (Seminole Tribe Convention), Prerefunded to 10/1/12, 8.95%, 10/1/33 (2)

 

$

3,718,470

 

5,000

 

Illinois Health Facility Authority, (Loyola University Health System), Prerefunded to 7/1/11, 6.00%, 7/1/21

 

5,420,750

 

1,400

 

Mesquite, TX, Health Facilities Authority, (Christian Retirement Facility), Prerefunded to 2/15/10, 7.625%, 2/15/28

 

1,533,490

 

2,234

 

New York, Prerefunded to 6/1/13, 5.25%, 6/1/28 (1)

 

2,430,050

 

1,290

 

Tobacco Settlement Financing Corp., NJ, Prerefunded to 6/1/13, 6.75%, 6/1/39

 

1,490,053

 

135

 

Willacy County, TX, Local Government Corp., Escrowed to Maturity, 6.00%, 3/1/09

 

139,026

 

 

 

 

 

$

 14,731,839

 

General Obligations — 1.6%

 

 

 

$

2,485

 

California, (AMT), 5.05%, 12/1/36

 

$

2,166,249

 

1,366

 

New York City, NY, 5.25%, 6/1/28 (1)

 

1,350,850

 

 

 

 

 

$

 3,517,099

 

Health Care-Miscellaneous — 0.9%

 

 

 

$

386

 

Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 6.00%, 12/1/36 (2)

 

$

395,677

 

1,019

 

Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 6.25%, 12/1/36 (2)

 

1,045,969

 

387

 

Tax Revenue Exempt Securities Trust, Community Health Provider, (Pooled Loan Program Various States Trust Certificates), 7.75%, 12/1/36 (2)

 

397,297

 

 

 

 

 

$

 1,838,943

 

Hospital — 12.1%

 

 

 

$

600

 

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/25

 

$

531,996

 

1,260

 

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

 

1,038,946

 

1,200

 

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

 

1,078,800

 

 

1



 

$

800

 

Chautauqua County, NY, Industrial Development Agency, (Women’s Christian Association), 6.35%, 11/15/17

 

$

802,496

 

975

 

Chautauqua County, NY, Industrial Development Agency, (Women’s Christian Association), 6.40%, 11/15/29

 

977,779

 

6,000

 

Henderson, NV, Health Care Facility, 5.625%, 7/1/24

 

6,028,020

 

2,000

 

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

 

288,100

 

5,000

 

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

 

675,000

 

7,590

 

Knox County Health, TN, Educational & Housing Facilities Board, (Covenant Health), 0.00%, 1/1/42

 

848,790

 

900

 

Louisiana Public Facilities Authority, (Ochsner Clinic Foundation), Prerefunded to 5/15/26, 5.50%, 5/15/32

 

957,204

 

2,575

 

Louisiana Public Facilities Authority, (Tuoro Infirmary), 5.625%, 8/15/29

 

2,288,917

 

2,000

 

Martin County, MN, (Fairmont Community Hospital Association), 6.625%, 9/1/22

 

2,037,460

 

500

 

Mecosta County, MI, General Hospital, 5.75%, 5/15/09

 

500,560

 

2,500

 

Mecosta County, MI, General Hospital, 6.00%, 5/15/18

 

2,459,525

 

785

 

New York Dormitory Authority, (NYU Hospital Center), 5.625%, 7/1/37

 

718,542

 

5,000

 

North Central, TX, Health Facility Development Corp., (Baylor Healthcare System), 5.125%, 5/15/29

 

4,648,300

 

 

 

 

 

$

 25,880,435

 

Housing — 14.9%

 

 

 

$

2,420

 

Capital Trust Agency, FL, (Atlantic Housing Foundation), 5.35%, 7/1/40

 

$

2,013,392

 

4,000

 

Centerline Equity Issuer Trust, TN, 6.00%, 4/30/19 (2)

 

4,208,480

 

4,000

 

Centerline Equity Issuer Trust, TN, 6.625%, 6/30/09 (2)

 

4,162,320

 

2,115

 

Colorado Housing and Finance Authority, (Birchwood Manor Project), (AMT), 5.50%, 9/20/36

 

1,968,515

 

1,425

 

Fairfax County, VA, Redevelopment and Housing Authority, (Cedar Ridge), (AMT), 4.85%, 10/1/48

 

1,187,923

 

3,045

 

Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), Prerefunded to 8/15/10, 7.75%, 8/15/20

 

3,398,951

 

1,655

 

Lake Creek, CO, Affordable Housing Corp., Multifamily, 7.00%, 12/1/23

 

1,657,251

 

4,000

 

Muni Mae Tax-Exempt Bond, LLC, 6.875%, 6/30/49 (2)

 

4,154,800

 

2,750

 

North Little Rock, AR, Residential Housing Facilities, (Parkstone Place), 6.50%, 8/1/21

 

2,683,835

 

3,395

 

Oregon Health Authority, (Trillium Affordable Housing), (AMT), 6.75%, 2/15/29

 

3,412,314

 

3,300

 

Texas Student Housing Corp., (University of Northern Texas), 6.75%, 7/1/16

 

3,145,197

 

 

 

 

 

$

 31,992,978

 

Industrial Development Revenue — 24.5%

 

 

 

$

1,731

 

ABIA Development Corp., TX, (Austin CargoPort Development), (AMT), 6.50%, 10/1/24

 

$

1,594,027

 

1,522

 

Broward County, FL, Industrial Development Revenue, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19

 

1,455,722

 

1,300

 

California Pollution Control Financing Authority, (Solid Waste Disposal), (AMT), 5.40%, 4/1/25

 

1,185,522

 

12,000

 

Cartersville, GA, Development Authority Sewer and Solid Waste Disposal Facility, (Anheuser-Busch Cos., Inc.), (AMT), 5.50%, 3/1/44

 

10,724,760

 

3,370

 

Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.25%, 10/1/32

 

2,614,176

 

2,955

 

Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.75%, 10/1/32

 

2,489,469

 

1,220

 

Effingham County, GA, (Solid Waste Disposal), (Fort James), (AMT), 5.625%, 7/1/18

 

1,060,107

 

2,500

 

Gulf Coast, TX, Waste Disposal Authority, (Valero Energy Corp.), (AMT), 5.70%, 4/1/32

 

2,235,775

 

6,000

 

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29

 

5,292,540

 

1,300

 

New York City, NY, Industrial Development Agency, (American Airlines, Inc.), (AMT), Variable Rate, 7.75%, 8/1/31

 

1,348,295

 

6,000

 

New York City, NY, Industrial Development Agency, (American Airlines, Inc.-JFK International Airport), (AMT), Variable Rate, 8.00%, 8/1/28

 

6,346,140

 

3,500

 

New York City, NY, Industrial Development Agency, (JFK International Airport), (AMT), 8.50%, 8/1/28

 

3,691,625

 

 

2



 

$

4,350

 

Phoenix, AZ, Industrial Development Agency, (America West Airlines, Inc.), (AMT), 6.25%, 6/1/19

 

$

3,976,378

 

2,110

 

Savannah, GA, Economic Development Authority, (Intercat-Savannah), (AMT), 7.00%, 1/1/38

 

1,982,303

 

7,500

 

St. John, LA, Baptist Parish Revenue, (Marathon Oil Corp.), 5.125%, 6/1/37

 

6,566,025

 

 

 

 

 

$

 52,562,864

 

Insured-Electric Utilities — 0.6%

 

 

 

$

1,350

 

Wamego, KS, Pollution Control Revenue, (MBIA), 5.30%, 6/1/31

 

$

1,309,527

 

 

 

 

 

$

 1,309,527

 

Insured-General Obligations — 12.0%

 

 

 

$

10,500

 

California, (FGIC), 5.25%, 9/1/30 (1)

 

$

11,097,870

 

9,990

 

Puerto Rico, (AGC), 5.50%, 7/1/29 (1)

 

10,255,734

 

4,000

 

Puerto Rico, (FSA), Variable Rate, 11.337%, 7/1/27 (2) (3)

 

4,468,920

 

 

 

 

 

$

 25,822,524

 

 

Insured-Hospital — 8.5%

 

 

 

 

 

$

16,820

 

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/25

 

$

5,805,759

 

 

 

19,165

 

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/26

 

6,148,899

 

 

 

8,590

 

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/27

 

2,577,773

 

 

 

500

 

Maryland Health and Higher Educational Facilities Authority, (Lifebridge Health), (AGC), 4.75%, 7/1/38

 

453,805

 

 

 

3,555

 

Maryland Health and Higher Educational Facilities Authority, (Lifebridge Health), (AGC), 4.75%, 7/1/47

 

3,156,342

 

 

 

 

 

 

 

$

 18,142,578

 

 

 

Insured-Lease Revenue/Certificates of Participation — 1.7%

 

 

 

 

 

$

4,055

 

Hudson Yards Infrastructure Corp., NY, (FGIC), 5.00%, 2/15/47

 

$

3,699,458

 

 

 

 

 

 

 

$

 3,699,458

 

 

 

Insured-Other Revenue — 0.3%

 

 

 

 

 

$

4,210

 

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

 

$

739,192

 

 

 

 

 

 

 

$

 739,192

 

 

 

Insured-Special Tax Revenue — 4.0%

 

 

 

 

 

$

4,100

 

New York Convention Center Development Corp., (AMBAC), 4.75%, 11/15/45

 

$

3,668,106

 

 

 

37,800

 

Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54

 

2,165,562

 

 

 

6,160

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44

 

680,742

 

 

 

12,215

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45

 

1,271,093

 

 

 

7,685

 

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46

 

753,361

 

 

 

 

 

 

 

$

 8,538,864

 

 

 

Insured-Student Loan — 1.2%

 

 

 

 

 

$

2,905

 

Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33

 

$

2,497,893

 

 

 

 

 

 

 

$

 2,497,893

 

 

 

Insured-Transportation — 24.8%

 

 

 

 

 

$

12,425

 

Alameda, CA, Corridor Transportation Authority, (MBIA), 0.00%, 10/1/33

 

$

2,598,192

 

 

 

3,500

 

Chicago, IL, O’Hare International Airport, (AMBAC), (AMT), 5.375%, 1/1/32

 

3,295,950

 

 

 

2,500

 

Dallas-Fort Worth, TX, International Airport Facility Improvements Corp., (FGIC), (AMT), 5.50%, 11/1/20

 

2,503,325

 

 

 

4,930

 

Dallas-Fort Worth, TX, International Airport, (FGIC), (AMT), 5.75%, 11/1/30

 

4,825,681

 

 

 

4,500

 

Dallas-Fort Worth, TX, International Airport, (FGIC), (AMT), 6.125%, 11/1/35

 

4,524,660

 

 

 

5,500

 

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40

 

4,421,120

 

 

 

6,600

 

E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/39

 

813,384

 

 

 

25,500

 

E-470 Public Highway Authority, CO, (MBIA), 0.00%, 3/1/36

 

4,027,215

 

 

 

7,000

 

Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37

 

6,631,590

 

 

 

9,820

 

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

 

9,641,963

 

 

 

7,000

 

San Antonio, TX, Airport System, (FGIC), (AMT), 5.25%, 7/1/21 (4)

 

6,809,810

 

 

 

1,625

 

San Antonio, TX, Airport System, (FSA), 5.00%, 7/1/32

 

1,490,109

 

 

 

1,625

 

San Antonio, TX, Airport System, (FSA), 5.25%, 7/1/32

 

1,547,715

 

 

 

 

 

 

 

$

 53,130,714

 

 

 

3



 

Nursing Home — 0.9%

 

 

 

$

2,000

 

Orange County, FL, Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34

 

$

2,013,920

 

 

 

 

 

$

 2,013,920

 

Other Revenue — 22.9%

 

 

 

$

42,190

 

Buckeye, OH, Tobacco Settlement Financing Authority, 0.00%, 6/1/47

 

$

2,239,867

 

1,955

 

Central Falls, RI, Detention Facility Revenue, 7.25%, 7/15/35

 

1,990,405

 

3,160

 

Golden State Tobacco Securitization Corp., CA, Prerefunded to 6/1/13, 6.75%, 6/1/39

 

3,595,258

 

1,535

 

Main Street National Gas Inc., GA, Gas Project Revenue, 5.50%, 9/15/27

 

1,335,849

 

6,700

 

Michigan Tobacco Settlement Finance Authority, 6.00%, 6/1/48

 

6,214,116

 

1,500

 

Mohegan Tribe Indians, CT, Gaming Authority, (Public Improvements), 6.25%, 1/1/21 (2)

 

1,455,480

 

2,300

 

Northern Tobacco Securitization Corp., AK, 0.00%, 6/1/46

 

142,715

 

195

 

Otero County, NM, Jail Project, 5.50%, 4/1/13

 

188,243

 

360

 

Otero County, NM, Jail Project, 5.75%, 4/1/18

 

340,096

 

100

 

Otero County, NM, Jail Project, 6.00%, 4/1/23

 

92,918

 

110

 

Otero County, NM, Jail Project, 6.00%, 4/1/28

 

98,276

 

19,500

 

Puerto Rico Infrastructure Financing Authority, 5.50%, 10/1/32 (1)

 

20,231,640

 

2,901

 

Santa Fe, NM, (Crow Hobbs), 8.50%, 9/1/16

 

2,920,408

 

2,000

 

Seminole Tribe, FL, Special Obligation Revenue, 5.25%, 10/1/27 (2)

 

1,764,420

 

1,365

 

Seminole Tribe, FL, Special Obligation Revenue, 5.50%, 10/1/24 (2)

 

1,267,170

 

6,905

 

Tobacco Settlement Financing Corp., VA, 0.00%, 6/1/47

 

413,817

 

3,000

 

Tobacco Settlement Financing Corp., VA, Prerefunded to 6/1/15, 5.625%, 6/1/37 (1)

 

3,303,580

 

1,415

 

White Earth Band of Chippewa Indians, MN, 6.375%, 12/1/26 (2)

 

1,227,810

 

410

 

Willacy County, TX, Local Government Corp., 6.00%, 9/1/10

 

406,704

 

 

 

 

 

$

 49,228,772

 

Senior Living/Life Care — 5.2%

 

 

 

$

3,210

 

Cliff House Trust, PA, (AMT), 6.625%, 6/1/27 (5)

 

$

2,034,562

 

1,155

 

Fairfax County, VA, Economic Development Authority, (Goodwin House, Inc.), 5.125%, 10/1/37

 

983,425

 

1,295

 

Fairfax County, VA, Economic Development Authority, (Goodwin House, Inc.), 5.125%, 10/1/42

 

1,083,229

 

3,240

 

Logan County, CO, Industrial Development Revenue, (TLC Care Choices, Inc.), 6.875%, 12/1/23 (6)

 

2,394,328

 

700

 

Massachusetts Development Finance Agency, (Linden Ponds, Inc.), 5.75%, 11/15/35

 

596,120

 

4,895

 

Massachusetts Development Finance Agency, (Linden Ponds, Inc.), 5.75%, 11/15/42

 

4,114,296

 

 

 

 

 

$

 11,205,960

 

Special Tax Revenue — 3.0%

 

 

 

$

3,280

 

Bell Mountain Ranch, CO, Metropolitan District, 6.625%, 11/15/25

 

$

3,222,633

 

190

 

Longleaf, FL, Community Development District, 6.20%, 5/1/09

 

189,439

 

1,150

 

New Jersey Economic Development Finance Authority, (Cigarette Tax), 5.50%, 6/15/24

 

1,077,009

 

2,115

 

New Jersey Economic Development Finance Authority, (Cigarette Tax), 5.75%, 6/15/29

 

1,984,124

 

 

 

 

 

$

 6,473,205

 

Transportation — 5.4%

 

 

 

$

1,500

 

Augusta, GA, (AMT), 5.35%, 1/1/28

 

$

1,313,610

 

915

 

Branson, MO, Regional Airport Transportation Development District, (Branson Airport LLC), (AMT), 6.00%, 7/1/25

 

813,334

 

2,670

 

Branson, MO, Regional Airport Transportation Development District, (Branson Airport LLC), (AMT), 6.00%, 7/1/37

 

2,259,247

 

7,500

 

Kent County, MI, Airport Facility, 5.00%, 1/1/25 (1)

 

7,259,025

 

 

 

 

 

$

 11,645,216

 

Water and Sewer — 1.2%

 

 

 

$

3,405

 

Massachusetts Water Resources Authority, 4.00%, 8/1/46

 

$

2,607,992

 

 

 

 

 

$

 2,607,992

 

Total Tax-Exempt Investments — 172.4%
(identified cost $389,552,521)

 

$

 370,113,434

 

 

4



 

Auction-Rate Securities — 8.9%

 

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000’s omitted)

 

Security

 

Value

 

$

5,000

 

Colorado Health Facilities Authority, (Poudre Valley Health Care, Inc.), (FSA), Variable Rate, 10.55%, 3/1/40 (7)

 

$

5,000,000

 

2,125

 

E-470 Public Highway Authority, CO, (MBIA), Variable Rate, 11.95%, 9/1/39 (7)

 

2,125,000

 

2,000

 

Medford, OR, Hospital Facilities Authority, (Asante Health System), (MBIA), Variable Rate, 9.50%, 8/15/29 (7)

 

2,000,000

 

5,000

 

New Jersey Housing and Mortgage Finance Agency, (Single Family Housing), (AMT), Variable Rate, 10.00%, 10/1/25 (7)

 

5,000,000

 

1,950

 

Oregon Health and Science University, (MBIA), Variable Rate, 10.00%, 7/1/28 (7)

 

1,950,000

 

3,000

 

South Carolina Jobs Economic Development Authority, (FSA), Variable Rate, 9.50%, 8/1/35 (7)

 

3,000,000

 

Total Auction-Rate Securities — 8.9%
(identified cost $19,075,000)

 

$

 19,075,000

 

Total Investments — 181.3%
(identified cost $408,627,521)

 

$

 389,188,434

 

Other Assets, Less Liabilities — (20.3)%

 

$

 (43,510,768

)

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (61.0)%

 

$

 (131,031,539

)

Net Assets Applicable to Common Shares — 100.0%

 

$

 214,646,127

 

 

AGC

Assured Guaranty Corp.

AMBAC

AMBAC Financial Group, Inc.

AMT

Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

CIFG

CIFG Assurance North America, Inc.

FGIC

Financial Guaranty Insurance Company

FSA

Financial Security Assurance, Inc.

MBIA

Municipal Bond Insurance Association

 

At February 29, 2008, the concentration of the Trust’s investments in the various states, determined as a percentage of net assets, is as follows:

 

Puerto Rico

 

23.0

%

Texas

 

21.3

%

California

 

13.8

%

Colorado

 

12.3

%

New York

 

11.7

%

Others, representing less than 10% individually

 

99.2

%

 

The Trust 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 February 29, 2008, 32.9% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.5% to 10.1% of total investments.

 

5



 

(1)

 

Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust.

 

 

 

(2)

 

Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers.  At February 29, 2008, the aggregate value of the securities is $28,266,813 or 13.2% of the Trust’s net assets applicable to common shares.

 

 

 

(3)

 

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at February 29, 2008.

 

 

 

(4)

 

Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

 

 

 

(5)

 

Security is in default with respect to scheduled principal payments.

 

 

 

(6)

 

Security is in default and making only partial interest payments.

 

 

 

(7)

 

Security is subject to redemption at each auction date. The stated interest represents the rate in effect at February 29, 2008.

 

A summary of obligations under these financial instruments at February 29, 2008 is as follows:

 

Futures Contracts

 

 

 

 

 

 

 

 

 

 

 

Net

 

Expiration

 

 

 

 

 

Aggregate

 

 

 

Unrealized

 

Date

 

Contracts

 

Position

 

Cost

 

Value

 

Depreciation

 

6/08

 

750 U.S. Treasury Bond

 

Short

 

$

(85,913,391

)

$

(88,968,750

)

$

(3,055,359

)

 

Interest Rate Swaps

 

Counterparty

 

Notional
Amount

 

Annual
Fixed
Rate
Paid By
Fund

 

Floating Rate
Paid To Fund

 

Effective Date/
Termination Date

 

Net Unrealized
Appreciation
(Depreciation)

 

Lehman Brothers, Inc.

 

$

15,000,000

 

4.003

%

SIFMA Municipal Swap Index

 

July 24, 2008/
July 24, 2038

 

$

(67,394

)

Lehman Brothers, Inc.

 

$

10,950,000

 

4.985

%

3-month USD-LIBOR-BBA

 

September 28, 2008/
September 28, 2038

 

$

(59,192

)

Merrill Lynch Capital Services, Inc.

 

$

7,500,000

 

4.903

%

3-month USD-LIBOR-BBA

 

July 9, 2008/
July 9, 2038

 

$

12,304

 

Morgan Stanley Capital Services, Inc.

 

$

7,500,000

 

5.428

%

3-month USD-LIBOR-BBA

 

September 10, 2008/
September 10, 2038

 

$

(569,389

)

 

 

 

 

 

 

 

 

 

 

$

(683,671

)

 

The effective date represents the date on which the Trust and the counterparty to the interest rate swap contract begin interest payment accruals.

 

At February 29, 2008, the Trust had sufficient cash and/or securities to cover commitments under these contracts.

 

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 29, 2008, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

 

$

355,346,590

 

Gross unrealized appreciation

 

$

5,862,846

 

Gross unrealized depreciation

 

(26,296,002

)

Net unrealized depreciation

 

$

(20,433,156

)

 

The Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective December 1, 2007.  FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

6



 

·                  Level 1 – quoted prices in active markets for identical investments

·                  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·                  Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

 

At February 29, 2008, the inputs used in valuing the Trust’s investments, which are carried at value, were as follows:

 

 

Valuation Inputs

 

Investments in
Securities

 

Other Financial
Instruments*

 

Level 1

Quoted Prices

 

$

0

 

$

(3,055,359

)

Level 2

Other Significant Observable Inputs

 

 

389,188,434

 

 

(683,671

)

Level 3

Significant Unobservable Inputs

 

 

0

 

 

0

 

Total

 

 

$

389,188,434

 

$

(3,739,030

)

 

*Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Trust held no investments or other financial instruments as of November 30, 2007 whose fair value was determined using Level 3 inputs.

 

The Trust generally uses a pricing vendor to provide evaluations for its investments in municipal bonds, which are derived from the vendor’s pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, benchmark curves or information pertaining to the issuer. The pricing vendor may use a matrix approach, which considers information regarding securities with similar characteristics to determine the evaluation for a security. The Trust’s investments in interest rate swaps are normally valued using valuations provided by a pricing vendor.  Such vendor valuations are based on the present value of fixed and projected floating rate cash flows over the term of a swap contract. Future cash flows are discounted to their present value using swap curves provided by electronic data services or by broker/dealers. The Trust’s investments in futures contracts are valued based on the closing price on the primary exchange on which such contracts trade.

 

7



 

Item 2. Controls and Procedures

 

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

 



 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Eaton Vance Municipal Income Trust

 

By:

 

/s/ Robert B MacIntosh

 

 

Robert B. MacIntosh

 

 

President

 

 

 

Date:

 

April 18, 2008

 

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/ Robert B MacIntosh

 

 

Robert B. MacIntosh

 

 

President

 

 

 

Date:

 

April 18, 2008

 

By:

 

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer

 

 

 

Date:

 

April 18, 2008